la 

is 


Publications  of  the 

Carnegie  Endowment  for  International  Peace 

Division  of  International  Law 

Washington 


TREATIES  AND  AGREEMENTS 

WITH      AND      CONCERNING 

CHINA 

1894-1919 


l!    1 


TREATIES   AND  AGREEMENTS 

WITH    AND    CONCERNING 

CHINA 

1894-1919 


A  collection  of  state  papers,  private  agreements,  and  other 
documents,  in  reference  to  the  rights  and  obligations 
of  the  Chinese  Government  in  relation  to  foreign  powers, 
and  in  reference  to  the  interrelation  of  those  powers  in 
respect  to  China,  during  the  period  from  the  Sino-Japanese 
War  to  the  conclusion  of  the  World  War  of  1914-1919 


COMPILED  AND   EDITED   BY 

JOHN  V/A-'^MacMURRAY 

Counselor  of  Embassy  of  the  United  States,  assigned  to  Tokyo ; 
lately  Secretary  of  the  American  Legation  at  Peking 


Volume  I 
MANCHU   PERIOD   (1894-1911) 


NEW  YORK 

OXFORD   UNIVERSITY   PRESS 

AMERICAN   BRANCH:    35   WEST  32ND   STREET 
LONDON,   TORONTO,  MELBOURNE,  AND   BOMBAY 

1921 


COPYRIGHT  1921 

BY    THE 

CARNEGIE  ENDOWMENT   FOR  INTERNATIONAL  PEACE 
Washington,  D.  C. 


TO  THE  MEMORY  OF  MY  FORMER  CHIEF 
THE  LATE 

WILLIAM    WOODVILLE    ROCKHILL 

WHOSE  WORK  THESE  VOLUMES  ARE 
MEANT  TO  CARRY  ON 


INTRODUCTORY  NOTE. 

Approximately  i.ixteen  years  ago — to  be  accurate,  in  190^1 — the  Honorable 
William  Woodville  Rockhill,  an  American  diplomat  of  large  experience,  issued 
a  volume  of  Treaties  and  Conventions  zvith  or  concerning  China  and  Korea, 
1894-1904,  together  with  various  State  Papers  and  Documents  affecting  Foreign 
Interests.  The  collection  was  official  in  its  nature,  and  it  was  official  in  its  pub- 
lication, in  that  it  was  set  up  by  the  Government  Printing  Office,  and  appeared 
as  a  public  document.  It  would  therefore  have  been  in  keeping  with  precedent 
if  Mr.  John  V.  A.  MacMurray,  a  younger  diplomat  but  already  of  large  experi- 
ence, had  issued  as  a  public  document,  his  collection  of  Treaties  and  Agreements 
with  and  concerning  China,  1894-1919,  which  he  has  industriously  brought 
together  and  intelligently  edited.  The  Department  of  State,  however,  was  unable 
to  issue  Mr.  MacMurray's  collection  as  a  public  document,  owing  to  the  many 
demands  upon  it;  hence  the  Carnegie  Endowment  for  International  Peace  has 
the  good  fortune  to  render  this  public  service  through  its  Division  of  Inter- 
national Law. 

It  will  be  observed  that  Mr.  MacMurray's  collection  is  not  a  supplement  to 
Mr.  Rockhill's  volume.  It  covers  the  same  field  for  a  decade ;  but  it  covers  it, 
as  was  to  be  expected,  more  fully  and  completely,  in  that  additional  documents 
are  included,  which  were  not  at  Mr.  Rockhill's  disposal,  and  which  then  did  not 
seem  to  possess  the  importance  which  they  now  have.  Mr.  Rockhill's  collection 
is  therefore  merged  in  Mr.  MacMurray's,  and  it  is  enlarged  and  enriched  in  the 
process.  From  1904  to  the  end  of  the  World  War  in  1919,  Mr.  MacMurray 
blazes  his  own  trail  and  does  not  tread  in  the  path  of  a  predecessor. 

These  two  stately  volumes,  which  no  student  of  the  Far  East  can  aflford  to 
overlook  for  many  a  year  to  come,  are  a  labor  of  love.  They  are  the  free  offering 
to  the  public  on  the  part  of  Mr.  MacMurray,  who  has  given  to  the  Carnegie 
Endowment  his  manuscript  without  any  compensation  other  than  the  reward 
that  sometimes  comes  from  a  good  deed.  And  it  is  proper  to  mention  in  the 
same  connection,  that  they  are  issued  by  the  Endowment  in  the  same  spirit,  inas- 
much as  many  copies  will  be  placed  in  public  libraries,  and  the  copies  which  are 
not  so  placed,  but  are  purchased  in  ordinary  course,  can  never  be  expected  to 
make  good  the  original  outlay. 

It  is  a  source  of  pleasure  to  the  good  people  of  these  United  States,  that  the 
policy  of  their  government  has  invariably  been  one  of  sympathetic  interest  in 
and  toward  the  Far  East,  and  that  it  has  never  sought  to  make  of  the  needs  and 
distress  of  the  peoples  of  Japan  and  China,  a  source  of  profit.  It  is  worth  while 
recalling  that  as  a  consequence  of  the  Boxer  troubles  an  indemnity  equivalent 
in  round  numbers  to  $333,000,000  United  States  gold  was  exacted  from  China 
under  the  Protocol  of  September  7,  1901,  which  sum  was  to  be  paid  with  interest 
at  4  per  cent  per  annum,  by  installments  running  through  a  period  of  thirty-nine 


X  INTRODUCTORY  NOTE 

years.  The  sum  of  $24,440,778.81  was  allotted  to  the  United  States.  But  as 
this  sum  was  found  to  exceed  the  actual  losses  to  American  interests  and  property, 
the  amount  in  excess  of  $11,961,121.76  was  remitted  by  the  Government  of  the 
United  States.  It  was  felt  that  the  sum  originally  allotted  might'  exceed 
American  claims,  but  it  was  feared  that  if  the  United  States  should  refuse  to 
accept  it,  it  would  not  be  credited  to  China,  but  would  be  apportioned  among  the 
other  Powers.  In  communicating  the  intention  of  the  United  States  to  remit  the 
payment  of  the  balance  of  the  sums  to  which  the  United  States  was  entitled 
under  the  agreement  of  1901,  Mr.  Elihu  Root,  then  Secretary  of  State,  said  in 
his  note  of  June  15,  1907,  addressed  to  the  Chinese  Minister  in  Washington: 

It  was  from  the  first  the  intention  of  this  Government  at  the  proper 
time,  when  all  claims  should  have  been  presented  and  all  expenses  should 
have  been  ascertained  as  fully  as  possible,  to  revise  the  estimate  and  account 
against  which  these  payments  were  to  be  made,  and,  as  proof  of  sincere 
friendship  for  China,  to  voluntarily  release  that  country  from  its  legal 
liability  for  all  payments  in  excess  of  the  sum  which  should  prove  to  be 
necessary  for  actual  indemnity  to  the  United  States  and  its  citizens.^ 

The  remission  was  gratefully  accepted  by  the  Chinese  Government,  on  behalf 
of  which  the  Prince  of  Ch'ing,  President  of  the  Chinese  Foreign  Office,  said  in 
a  note  dated  July  14,  1908,  to  the  Honorable  William  Woodville  Rockhill,  then 
American  ]\Iinister  to  China : 

The  Imperial  Government,  wishing  to  give  expression  to  the  high  value 
it  places  on  the  friendship  of  the  United  States,  finds  in  its  present  action  a 
favorable  opportunity  for  doing  so.  Mindful  of  the  desire  recently  expressed 
by  the  President  of  the  United  States  to  promote  the  coming  of  Chinese 
students  to  the  United  States  to  take  courses  in  the  schools  and  higher 
educational  institutions  of  the  country,  and  convinced  by  the  happy  results 
of  past  experience  of  the  great  value  to  China  of  education  in  American 
schools,  the  Imperial  Government  has  the  honor  to  state  that  it  is  its  inten- 
tion to  send  henceforth  yearly  to  the  United  States  a  considerable  number 
of  students  there  to  receive  their  education.^ 

This  is  not  an  isolated  case.  Many  years  before,  in  1863,  the  Strait  of 
Shimonoseki,  improperly  closed  to  commerce,  was  opened  by  the  joint  action  of 
France,  Great  Britain,  Holland  and  the  United  States.  An  indemnity,  amounting 
to  $3,000,000,  was  exacted  from  Japan,  which  was  paid,  as  the  late  General 
Foster  says  in  his  admirable  little  volume  entitled  American  Diplomacy  in  the 
Orient,  "  after  some  delay  and  great  embarrassment,  because  of  the  poverty  of 
the  treasury."  ^  Each  participating  nation  received  an  equal  share.  The  action  of 
the  United  States  and  the  action  of  the  other  Powers  is  thus  stated  by  General 
Foster :  ^ 

The  sum  paid  to  the  United  States  remained  in  the  treasury  unused  for 
twenty  years.  The  public  conscience  was  troubled  as  to  the  justness  of  the 
exaction,  and  in  1883  by  an  act  of  Congress  the  amount  received  was 
returned  to  Japan,  and  accepted  by  that  government  "  as  a  strong  manifesta- 

'  Foreign  Relations  of  the  Unit-cd  States,  1907,  pt.  1,  p.  174. 

'  Ibid.,  1908,  p.  68. 

'John  W.  Foster,  American  Diplomacy  in  the  Orient  (1903),  p.  194. 


INTRODUCTORY  NOTE  xi 

tion  of  that  spirit  of  justice  and  equity  which  has  always  animated  the 
United  States  in  its  relations  with  Japan."  None  of  the  other  three  nations 
partaking  of  the  indemnity  have  seen  fit  to  follow  this  example. 

It  is  also  to  be  said  that  none  of  the  Powers  partaking  of  the  Chinese 
indemnity — France,  Germany,  Great  Britain,  Japan  and  Russia — "  have  seen  fit 
to  follow  this  example." 

Other  illustrations  might  be  given  of  the  policy  of  the  United  States  toward 
the  peoples  of  the  Far  East.  They  will  be  found,  however,  in  Mr.  MacMurray's 
two  volumes.  It  is  therefore  sufficient  to  remark  in  this  place  that  the  United 
States  has  invariably  framed  its  policy  in  such  a  way  that  it  should  be  just  to 
China — to  speak  specifically  of  this  one  country, — that  the  policy  of  China  should 
be  just  to  the  United  States,  and  that  the  door  of  opportunity  should  be  open 
to  the  United  States  and  to  all  other  countries  upon  a  footing  of  equality. 

It  is  a  pleasure  to  publish  Mr.  MacMurray's  volumes,  and  none  the  less  a 
pleasure  because  they  are  the  work  of  a  former  student  and  a  constant  friend. 

James  Brown  Scott, 
Director  of  the  Division  of  International  Lorv. 

Washington,  D.  C, 
January  8,  1921. 


EDITOR'S  PREFACE. 

The  present  compilation  of  documents  relating  to  the  affairs  of  China,  as 
involving  foreign  interests,  during  the  period  beginning  with  the  Sino-Japanese 
War  of  1894-95,  is  an  outgrowth  of  the  collection  edited  by  the  late  Mr.  William 
Woodville  Rockhill  under  the  title  "  Treaties  and  Conventions  with  or  concern- 
ing China  and  Korea,  1894-1904,  together  with  various  State  Papers  and  Docu- 
ments affecting  Foreign  Interests  "  (Washington :  Government  Printing  Office, 
1904). 

The  underlying  principle  of  Mr.  Rockhill's  collection  was  his  appreciation 
of  the  fact  that,  with  the  Japanese  War,  China  entered  upon  a  new  course  of 
national  development,  the  history  of  which  is  to  be  read  not  only — nor  even 
primarily — in  the  Treaties  and  other  formal  international  engagements,  but 
rather  in  the  arrangements  of  nominally  private  character,  with  syndicates  or 
firms  of  foreign  nationality,  under  which  the  Chinese  Government  then  began 
to  incur  a  complex  and  far-reaching  set  of  obligations  and  commitments,  in 
which  the  financial  or  economic  element  is  often  merged  indistinguishably  with 
political  considerations. 

Up  to  that  time,  the  whole  purpose  of  Chinese  statesmanship,  in  relation 
to  the  outer  world,  had  been  to  maintain  the  traditional  isolation  of  the  country ; 
and  against  that  aloofness,  the  foreign  nations  had  struggled  to  establish  the 
right  of  free  intercourse.  The  results  of  that  struggle,  as  embodied  in  the  earlier 
Treaties,  may  be  roughly  summarized  under  three  headings,  namely : — Extrater- 
ritoriality, or  the  right  of  foreigners  to  be  exempt  from  the  processes  of  Chinese 
law  and  amenable  only  to  the  jurisdiction  of  their  national  tribunals ;  the  right 
of  residence  in  designated  places,  and  of  access  to  the  interior  of  the  country ; 
and  the  right  to  trade  freely,  unhampered  by  monopolies,  subject  to  a  fixed 
tariff  of  import  and  export  duties,  and  with  the  privilege  of  commuting  by  a 
single  fixed  charge  all  local  taxes  and  levies  upon  commerce.  These  rights  were 
essential,  and  even  to-day  are  fundamental  to  the  whole  system  of  foreign  inter- 
course with  China ;  but  they  were  and  are,  from  the  view-point  of  the  develop- 
ment of  the  nation,  rather  negative  than  positive. 

The  conditions — particularly  the  financial  requirements — incidental  to  the 
war  with  Japan  compelled  a  readjustment  of  China's  attitude  towards  foreign 
nations  and  towards  their  resources  and  their  influences.  The  Chinese  nation 
found  itself  perforce  face  to  face  with  the  world,  and  under  the  necessity  of 
accommodating  itself  to  a  relationship  with  it.  Thenceforward,  the  problem  of 
China  was  to  avail  itself  of  the  material  resources  and  experience  of  the  West, 
while  retaining  what  was  vital  in  its  own  institutions  and  preserving  as  best  it 
could  not  merely  the  integrity  of  its  territories,  but  its  political  and  national 
entity.     How  clearly  this  problem  of  assimilating  the  new  conditions  to  the  old 


xiv  CHINA  TREATIES  AND  AGREEMENTS 

and  of  adapting  the  old  ideas  to  the  new  has  been  realized  by  those  responsible 
for  the  destinies  of  the  country — how  wisely,  how  courageously,  and  how  dis- 
interestedly they  have  acted  in  seeking  solutions  of  the  problem — how  well  and 
how  loyally  they  have  been  served  by  the  various  foreign  interests  to  which 
they  have  from  time  to  time  turned  for  assistance  and  cooperation, — ^those  are 
speculations  in  regard  to  which  some  indications  may  be  found  in  the  data  here 
gathered  together,  but  for  which  no  categorical  answers  are  possible.  There 
have  been  times  of  progress  and  of  reaction;  there  has  been  confusion  of  pur- 
poses ;  there  has  been  blind  Utopianism,  and  bitter  disillusionment :  but  the 
process  of  association  of  foreign  with  Chinese  interests  has  gone  on  almost  with- 
out interruption  or  pause,  China  repeatedly  seeking  foreign  assistance  in  the 
solution  of  its  problems  of  industrial,  economic  and  administrative  development, 
and  giving  in  return  rights  that  carried  with  them  in  many  instances  at  least  an 
implication  of  political  interest. 

This  process  has  been  marked  by  certain  critical  events  which  have  in  turn 
initiated  new  phases  of  development : — first,  the  rapprochement  with  Russia, 
immediately  prompted  by  the  apprehensions  arising  out  of  China's  defeat  at  the 
hands  of  Japan;  then  the  Battle  of  Concessions,  in  1898,  originating  with  Ger- 
many's exaction  of  the  lease  of  the  Kiaochow  Territory ;  thereupon,  the  abortive 
reaction  that  found  expression  in  the  Boxer  movement  of  1900,  irresolutely 
abetted  and  restrained  by  the  Manchu  Court ;  the  succeeding  period  of  recon- 
struction, when  China  sought  to  restore  and  stabilize  normal  relations  with  the 
Powers,  and  those  Powers  endeavored  to  establish  among  themselves  an  equili- 
brium based  upon  the  mutual  recognition  of  existing  interests  and  upon  the  adop- 
tion of  the  principles  of  preservation  of  Chinese  territorial  and  administrative 
integrity  and  maintenance  of  equality  of  commercial  opportunity  for  all  nationali- 
ties in  China ;  then  the  defeat  of  Russia  by  Japan,  in  1904-5,  with  the  consequent 
transfer  to  the  victor  of  a  great  share  of  both  the  material  advantages  and  the 
political  influence  theretofore  enjoyed  by  Russia;  in  1911,  the  overthrow  of  the 
Manchu  Dynasty,  which  brought  with  it  an  intensified  preoccupation  with  ques- 
tions of  internal  development,  and  which  was  the  beginning  of  the  period  of 
unrest  and  civil  dissension  which  continues  to  the  present  time ;  then  the  out- 
break of  the  European  War,  in  1914,  aflfecting  China  economically  through  the 
dislocation  of  foreign  trade  and  the  drying  up  of  the  European  money  markets 
to  which  it  had  hitherto  looked  for  financial  accommodation  at  need,  and  per- 
haps more  profoundly  affecting  it  politically  through  Japan's  entering  the  war 
and  taking  military  occupation  of  the  Kiaochow  Leased  Territory  and  other  Ger- 
man concessions  in  Shantung  Province,  and  through  the  Treaties  of  May  25th, 
1915;  and  lastly,  the  entry  of  China  itself  into  the  war,  in  August,  1917. 

Throughout  these  phases  of  development,  financial,  economic  and  indus- 
trial concessions  have  been  made  the  objects  of  international  policies ;  such 
advantages  have  been  sought  by  Governments, — both  directly,  in  the  form  of 
general  conventional  stipulations,  and  indirectly,  in  the  form  of  special  grants 
to  particular  banks  or  industrial  organizations, — through  all  the  means  available 
to  one  State  in  its  intercourse  with  another ;  the  holders  of  such  concessions  have 
often  spoken  with  the  voice  of  their  Governments  in  insisting  upon  their  own 


EDITOR'S  PREFACE  xv 

construction  of  the  rights  granted  to  them ;  and  such  commitments  to  individuals 
of  one  nationality,  even  when  left  unutilized  and  allowed  to  lapse  by  the  terms 
of  the  concession,  have  now  and  again  been  claimed  as  a  basis  of  protest  against 
a  grant  to  the  nationals  of  any  other  country.  The  result  of  this  merging  of 
individual  with  governmental  interests  has  been  that  matters  which  would  else- 
where be  of  merely  commercial  character,  susceptible  of  judicial  determination 
in  case  of  dispute,  are  in  China  matters  of  international  political  concern,  for 
the  settlement  of  which  the  ultimate  recourse  is  to  diplomatic  action.  It  is  thus 
in  a  sense  true  that  the  international  status  of  the  Chinese  Government  is  deter- 
mined and  conditioned  by  its  business  contracts  with  individual  foreign  firms  or 
syndicates,  scarcely  if  at  all  less  than  by  its  formal  Treaties  with  other  Govern- 
ments. It  is  at  any  rate  seldom  that  any  international  situation  relating  to  China 
can  be  fully  understood  without  reference  to  the  intricate  fabric  of  quasi-public 
as  well  as  of  public  obligations  which  qualify  the  freedom  of  action  of  the 
Chinese  Government. 

The  object  of  the  present  collection  is  to  reproduce  as  fully  and  as  faithfully 
as  possible  the  available  documents  embodying  that  complex  of  interrelated  rights 
and  obligations.  In  compiling  it,  the  Editor  has  drawn  upon  all  sources  at  his 
disposal,  and  save  for  a  few  instances  in  which  he  has  been  debarred  by  obliga- 
tions of  official  or  of  personal  confidence,  has  included  in  it  every  available 
document  that  seemed  to  him  to  fall  within  the  scope  of  the  collection.  He  has 
considered  it  to  be  beyond  his  competence,  as  a  compiler,  to  assume  any  judg- 
ment of  the  efifect  or  of  the  validity  of  the  various  agreements,  but  for  the  sake 
of  completeness  has  included  in  the  collection  documents  which  would  appear 
to  be  void  or  voidable,  or  which  have  expired  by  their  own  limitations,  or  have 
been  cancelled  by  other  agreements,  if  they  appeared  to  be  of  sufficient  interest — 
whether  of  actual  or  potential  practical  interest,  or  merely  historical  interest — to 
warrant  their  reproduction. 

Although  an  officer  of  the  American  Government,  the  Editor  is,  in  respect  to 
this  compilation,  acting  wholly  upon  his  personal  responsibility,  having  obtained 
the  permission  of  the  Department  of  State  to  edit  it  independently,  under  a 
publication  contract  with  the  Carnegie  Endowment  for  International  Peace. 
He  has  exercised  his  own  discretion  in  the  selection  of  the  documents  to  be 
included,  and  in  all  editorial  questions  such  as  the  choice  of  texts  to  be  adopted, 
the  translations,  and  the  explanatory  notes  that  he  has  affixed  to  the  various 
documents.  It  is  therefore  to  be  understood  that  there  is  neither  actual  nor 
implied  responsibility,  on  the  part  of  any  branch  of  the  Government  of  the 
United  States,  for  either  the  substance  or  the  editorial  treatment  of  the  present 
collection. 

In  the  compilation  of  so  great  a  bulk  of  material,  gathered  from  many  differ- 
ent sources,  the  Editor  has  incurred  many  obligations  which  he  gratefully 
acknowledges.  He  is  perhaps  most  deeply  indebted  to  Mr.  E.  T.  Williams, 
formerly  Secretary  of  the  American  Legation  in  Peking,  more  recently  Chief  of 
the  Division  of  Far  Eastern  Affairs  of  the  Department  of  State,  and  now 
attached  to  the  American  Delegation  to  the  Peace  Conference,  for  constant 
assistance  in  obtaining  texts  and  translations,  and  still  more  for  his  encourage- 


xvi  CHINA  TREATIES  AND  AGREEMENTS 

ment  and  for  his  helpfulness  in  the  various  arrangements  incidental  to  the  publica- 
tion of  the  book.  He  likewise  owes  much  to  the  assistance  and  cooperation  of  his 
recent  Chief,  the  Honorable  Paul  S.  Reinsch,  American  Minister  to  China.  It 
would  be  impossible  to  acknowledge  in  detail  his  obligations  to  those  who  have  in 
one  way  or  another  assisted  him  to  obtain  texts  for  publication;  but  he  takes 
pleasure  in  recording  a  particular  debt  of  gratitude  to  Dr.  G.  E.  Morrison,  who 
spared  no  pains  in  making  available  to  him  the  wealth  of  rare  materials  gath- 
ered in  his  library  of  the  Far  East.  He  is  also  much  indebted  to  the  assistance 
of  Dr.  C.  C.  Wang,  chief  compiler  of  the  admirable  collection  of  Railway  Loan 
Agreements  of  China,  who  placed  at  his  disposal  not  only  the  material  published 
in  that  volume  but  also  that  which  is  being  prepared  for  eventual  publication  in  a 
separate  volume  dealing  with  Railway  Agreements  other  than  those  involving 
loans ;  to  Mr.  W.  H.  Donald,  Editor  of  the  Far  Eastern  Review,  who  has  given 
him  access  to  a  number  of  documents  gathered  for  the  editorial  use  of  that 
magazine ;  to  Mr.  Igor  Mitrophanow,  Second  Secretary  of  the  Russian  Legation 
in  Peking,  who  very  generously  made  for  him  a  search  of  the  Russian  official 
and  semi-official  publications  dealing  with  questions  concerning  China;  and  to 
Mr.  Alexis  Leger,  of  the  French  Legation  in  Peking,  who  was  most  helpful 
in  looking  up  certain  documents  involving  French  interests,  and  obtaining  the 
necessary  permission  for  their  publication. 

In  the  matter  of  translations,  he  is  under  special  obligations  to  Mr.  Raymond 
P.  Tenney,  Assistant  Chinese  Secretary  of  the  American  Legation  in  Peking, 
for  a  great  number  of  careful  translations  from  Chinese ;  to  Mr.  Roger  S.  Greene, 
of  the  Rockefeller  Medical  Foundation,  formerly  American  Consul  at  Harbin 
and  Consul-General  at  Hankow,  to  Mr.  G.  A.  Candlin,  of  the  Russo-Asiatic 
Bank  in  Peking,  and  to  Mr.  Wilfred  Stevens,  of  the  Department  of  State,  for 
a  considerable  number  of  translations  from  Russian;  to  Mr.  Roger  A.  Burr,  of 
the  American  Legation  in  Peking,  for  several  translations  from  German;  and 
to  Mr.  J.  W.  Ballantine,  Japanese  Secretary  of  the  American  Embassy  in 
Tokyo,  and  to  Mr.  A.  A.  Williamson,  American  Consul  at  Dairen,  for  various 
translations  from  Japanese.  He  is  also  glad  to  acknowledge  his  indebtedness  to 
Mr.  W.  J.  Cannon,  formerly  of  the  American  Legation  at  Peking,  and  to  Mr.  S. 
S.  Young,  of  the  Siems-Carey  Company,  who  were  of  very  great  help  to  him  in 
gathering  and  preparing  the  material  for  publication. 

In  conclusion,  the  Editor  wishes  to  acknowledge  to  the  Carnegie  Endowment, 
and  especially  to  its  Secretary,  Dr.  Scott,  his  cordial  sense  of  personal  obligation 
for  its  generous  readiness  to  cooperate  in  the  furtherance  of  his  plans.  He  is 
particularly  grateful  to  the  Endowment  for  undertaking  to  relieve  him  of  the 
labor  and  responsibility  of  preparing  an  adequate  index. 

Upon  the  conclusion  of  the  Treaty  of  Peace  between  the  Allied  and  Asso- 
ciated Powers  and  Germany,  there  will  be  added  to  this  compilation  a  selection 
of  such  articles  as  appear  to  be  of  particular  interest  in  relation  to  the  affairs  of 
China. 

American  Embassy,  Tokyo,  Japan, 
April,  1919. 


TABLE   OF   CONTENTS, 

Including  Chronological  List  of  Documents. 


Page 

List  of  Maps  and  Plan xliii 

List  of  Abbreviations xlv 


DOCUMENTS. 


Date 


Specifications  of  Document 


Number  * 


March 


1,  1894 


March  17,  1894 

August         26,  1894 
September     6,  1894 


January        26,  1895 


January        26,  1895 


Page 

GREAT  BRITAIN  &  CHINA— Convention  giv- 
ing Effect  to  Article  III  of  Convention  of 
July  24,  1886,  relative  to  Burma  and  Tibet..  1894/1         .       .  1 

UNITED     STATES     &     CHINA— Convention 

regulating  Chinese  Immigration   1894/2         .       .  9 

JAPAN  &  KOREA— Treaty  of  Alliance (1895/3)    .       .        24 

GREAT  BRITAIN  &  CHINA— Convention  re- 
specting Junction  of  Chinese  and  Burmese 
Telegraph    Lines.      (Not    printed.)     (1905/2)     .       .       498 

GREAT  BRITAIN  (Hongkong  &  Shanghai 
Banking  Corporation)  &  CHINA — Final 
Agreement  for  Chinese  Imperial  Govern- 
ment 7%  Silver  Loan  of  1894 1895/1        .       .         11 

GREAT  BRITAIN  (Hongkong  &  Shanghai 
Banking  Corporation)  &  CHINA — Final 
Agreement  for  Chinese  Imperial  Govern- 
ment 6%  Sterling  Loan  of  1895 1895/2        .       .        15 

JAPAN  &  CHINA— Treaty  of  Peace  (with 
Separate  Articles,  and  Convention  to  pro- 
long   Armistice)     1895/3        .       .         18 

JAPAN  &  CHINA— Convention  of  Armistice...  (1895/3)     .       .         24 

JAPAN — Proclamation  in  regard  to  Retroces- 
sion of  Fengtien   Peninsula (1895/10).       .         52 

FRANCE  &  CHINA— Convention  complemen- 
tary to  Convention  for  Delimitation  of  Fron- 
tier between  Tongking  and  China,  June 
26,1887    1895/4        .       .        26 

FRANCE  &  CHINA--Additional  Convention  to 
Supplementary  Commercial  Convention  of 
June   26.    1887 1895/5        .       .        28 

FRANCE  &  RUSSIA  (Franco-Russian  Syndi- 
cate) &  CHINA— Contract  for  Chinese  4% 
Gold  Loan  of  1895 1895/6        .       .        35 

RUSSIA  &_  CHIN  A— Protocol  of  Exchange  of 
Declarations  concerning  Chinese  4%  Gold 
Loan  of   1895    1895/7        .       .        40 

RUSSIA  &  FRANCE  (Russian  Government, 
and  Franco-Russian  Syndicate) — Contract 
guaranteeing  Chinese  4%  Gold  Loan  of  1895  (1895/7)     .       .        42 

♦Principal  documents  are  indicated  by  their  year,  with  subjoined  serial  number:  docu- 
ments which  are  printed  as  annexes  or  in  notes  to  others  are  designated  by  the  number 
— between  parentheses — of  the  principal  document  to  which  they  are  attached. 


April 

March 

May 

June 


17,  1895 


30,  1895 
10,  1895 

20,  1895 


June 

20,  1895 

July 

6,  1895 

July 

6,  1895 

July 

6,  1895 

TABLE  OF  CONTENTS 


Date 
October         3,  1895 

October        18,  1895 


October  30,  1895 

November  8,  1895 

January  15,  1896 

March  23,  1896 


May 
May 

July 


(?),  1896 
7,  1896 

11,  1896 


July 

21,  1896 

July 

30,  1896 

August 

28,  1896 

September 

8,  1896 

September     8,  1896 
October        19,  1896 


December  16,  1896 

February  4,  1897 

March  15,  1897 

May  13,  1897 

May  27,  1897 


June 


12,  1897 


July  27,  1897 

September     6,  1897 
—  (?)—  1898 


Specifications  of  Document  Number  Page 

GERMANY  &  CHINA— Convention  for  Con- 
cession at  Hankow 1895/8        .       .         42 

FRANCE,  GERMANY,  RUSSIA  &  JAPAN— 
Exchange  of  Notes  regarding  Retrocession 
of  Fengtien  Peninsula,  and  Navigation  of 
Straits    of    Formosa (1895/10)  .       .         53 

GERMANY  &  CHINA— Convention  for  Con- 
cession   at    Tientsin 1895/9        .       .         46 

JAPAN  &  CHINA— Convention  for  Retroces- 
sion   of    Fengtien    Peninsula 1895/10       .       .        SO 

FRANCE  &  GREAT  BRITAIN— Declaration 
with  regard  to  the  Kingdom  of  Siam,  and 
other  Matters   1896/1        .       .        54 

GERMANY  (Deutsch-Asiatische  Bank),  GREAT 
BRITAIN  (Hongkong  &  Shanghai  Bank- 
ing Corporation)  &  CHINA — Agreement  for 
Chinese  Imperial  Government  5%  Sterling 
Loan   of    1896 1896/2        .       .        55 

RUSSIA  &  CHINA— Treaty  of  Alliance (1896/5)     .       .         81 

FRANCE    &    CHINA— Regulations    for    Mixed 

Police    on    Sino-Annamite    Border (1895/5)     .       .         32 

DENMARK  (Great  Northern  Telegraph  Com- 
pany), GREAT  BRITAIN  (Eastern  Ex- 
tension, Australasia  &  China  Telegraph 
Company)  &  CHINA — Convention  regulat- 
ing Relations  between  Chinese  Telegraph 
Administration  and  the   Companies    1896/3         .       .         59 

JAPAN   &   CHINA — Treaty   of   Commerce   and 

Navigation    1896/4        .       .        68 

RUSSIA  &  CHINA— Supplementary  Declara- 
tion regarding  Connections  between  Rus- 
sian and   Chinese  Telegraphs (1902/11)  .       .      382 

RUSSIA      &      CHINA — Agreement      regarding 

Russo-Chinese  Bank  Association (1896/5)     .       .         78 

RUSSIA  (Russo-Chinese  Bank)  &  CHINA— 
Contract  for  Construction  and  Operation  of 
Chinese  Eastern   Railway   1896/5         .       .         74 

RUSSIA   &   CHINA— "  Cassini    Convention  "...  (1896/5)     .       .         79 

JAPAN  &  CHINA — Protocol  concerning  Japa- 
nese Settlements,  Inland  Navigation,  Taxes 
on  Manufactures,  etc 1896/6        .       .        91 

RUSSIA — Statutes  of  Chinese  Eastern   Railway 

Company     (1896/5)     .       .         84 

GREAT  BRITAIN  &  CHINA— Agreement 
modifying  Convention  of  March  1,  1894, 
relative  to  Burma  and  Tibet 1897/1         .       .        94 

FRANCE    &    CHINA — Declaration     concerning 

Non-Alienation  of  Island  of  Hainan 1897/2        .       .         98 

DENMARK  (Great  Northern  Telegraph  Com- 
pany)  &  CHINA— Telegraph  Convention...  1897/3         .       .         99 

BELGIUM]  (Societe  Financiere  et  Industrielle 
Beige  en  Chine)  &  CHINA — Provisional 
Contract  for  Lukouchiao  (Peking) — Han- 
kow Railway   (1898/13)  .       .       145 

FRANCE  &  CHINA— Identic  Note  explanatory 
of  Provisions  of  Commercial  Convention  of 
June  20,  1895,  and  of  Railway  Contract  of 
June  5,  1896 (1895/5)    .       .        31 

BELGIUM  (Societe  Financiere  et  Industrielle 
Beige  en  Chine)  &  CHINA— Additional 
Protocol  to  Contract  of  May  27.  1897  for 
Lukouchiao   (Peking)— Hankow  Railway....  (1898/13)  .  148 

RUSSIA  &  CHINA — Supplementary  Declaration 
regarding  Connections  between  Russian  and 
Chinese  Telegraphs   (1902/11).       .       382 

RUSSIA  (Russo-Chinese  Bank)  &  CHINA— 
Preliminary  Loan  Agreement  for  Chengting 
—Taiyuan   Railway    (1902/8)     .       .       267 


Date 
February      11,  1898 

February      13,  1898 


March 


April 


April 


Tune 


1,  1898 


March 

6, 

1898 

March 

27. 

1898 

April 

10, 

1898 

10,  1898 


14,  1898 


April 

20, 

1898 

April 

26, 

1898 

May 

7, 

1898 

May 

13, 

1898 

May 

21, 

1898 

May 

27, 

1898 

June 

7, 

1898 

June 

9, 

1898 

June 

21, 

1898 

26,  1898 


July 

1,  1898 

July 

6,  1898 

July 

10.  1898 

July 

28.  1898 

August 

(?),  1898 

TABLE  OF  CONTENTS 

Specifications  of  Document  Number 

GREAT  BRITAIN  &  CHINA— Declaration  con- 
cerning Non-Alienation  of  Yangtze  Region.  1898/1 
GREAT    BRITAIN    &    CHINA— Declaration   as 
to   British    Nationality  of    Inspector   General 
of    Maritime    Customs    while    British    Trade 

predominates    1898/2 

GERMANY  (Deutsch-Asiatische  Bank),  GREAT 
BRITAIN  (Hongkong  &  Shanghai  Banking 
Corporation)  &  CHINA — Agreement  for 
the  Chinese  Imperial  Government  4^%  Gold 

Loan  of  1898  1898/3 

GERMANY   &   CHINA — Convention    respecting 

Lease  of  Kiaochow  1898/4 

RUSSIA  &   CHINA— Convention    for   Lease  of 

the  Liaotung  Peninsula   1898/5 

FRANCE  &  CHINA— Declaration  concerning 
Non-Alienation-  of  Chinese  Territory  border- 
ing on  Tongking   1898/6 

FRANCE  &  CHINA— Agreement  regarding 
Concession  for  Railway  from  Tongking  to 
Yunnan,  Lease  of  Kuangchouwan,  and  Or- 
ganization of  Chinese  Postal  Service 1898/7 

UNITED   STATES    (American   China  Develop- 
ment   Company)    &    CHINA— Contract    for 
Canton-Hankow  Railwav.     (Reference  only.)  (1905/7) 
GREAT  BRITAIN  &  GERMANY— Declaration 

respecting  Weihaiwei    (1898/14) 

JAPAN      &      CHINA— Declaration      concerning 

Non-Alienation  of   Fukien 1898/8 

RUSSIA  &  CHINA— Additional  Agreement  de- 
fining Boundaries  of  Leased  and  Neutralized 

Territory  in   Liaotung  Peninsula 1898/9 

GREAT  BRITAIN  (British  &  Chinese  Corpo- 
ration)   &   CHINA— Preliminary   Agreement 

for  Shanghai-Nanking  Railway    (1903/2) 

GREAT      BRITAIN       (Pekin      Syndicate)      & 
CHINA    (Shansi   Bureau  of  Trade)— Regu- 
lations for  Mining  Purposes,  etc.,  in   Shansi  (1908/2) 
FRANCE  &  CHINA— Convention   for  Lease  of 

Kuangchouwan    1898/10 

GREAT  BRITAIN  (Hongkong  &  Shanghai 
Banking  Corporation)  &  CHINA— Pre- 
liminary     Loan      Agreement      for      Peking- 

Newchwang   Railway    ( 1898/20) 

GREAT  BRITAIN  &  CHINA— Convention   for 

Extension    of    Hongkong   Territory 1898/11 

GREAT  BRITAIN  (Pekin  Syndicate)  & 
CHINA     (Yii-Feng    Company)— Regulations 

for  Mining  Purposes,  etc.,  in  Honan 1898/12 

BELGIUM  (Societe  d'Etudes  des  Chemins  de 
Fer  en  Chine)  &  CHINA— Loan  Contract, 
and  Operating  Contract,  for  Peking— Han- 
kow   Railway    1898/13 

GREAT  BRITAIN  &  CHINA— Convention  for 

Lease  of  Weihaiwei    1898/14 

RUSSIA  (Chinese  Eastern  Railway)  &  CHINA 
—Agreement  concerning  Southern  Branch  of 

Chinese  Eastern  Railwav 1898/15 

CONGO  FREE  STATE  &  CHINA-Treatv'conl 
fernng  Mutual  Most-favored-Nation  Treat- 
ment     1898/16 

CHINA — Steam  Navigation  Inland:  Regulations 
(Amended),  1898:  and  Supplementary  Rules 

thereunder    '  1898/17 

INTERNATIONAL  &  CHINA-Regulation; 
governmg  Trade  on  the  Yangtzekiang  (with 
Yangtze  Port  Regulations)    1898/18 


XIX 

Page 
104 

105 

107 
112 
119 

123 

124 

519 
152 
126 

127 

402 

700 
128 

179 
130 

131 

135 
152 

154 

159 

159 

163 


XX 


TABLE  OF  CONTENTS 


Date 

August  18,  1898 

August  29,  1898 

September  2,  1898 

October  10,  1898 

October  10,  1898 

February  1,  1899 


February 

17, 

1899 

March 

6, 

1899 

March 

16, 

1899 

April 

14, 

1899 

April 

17. 

1899 

April 

28, 

1899 

May 

2. 

1899 

May 

18, 

1899 

May 


July 


31,  1899 


June 

1. 

1899 

June 

1, 

1899 

June 

1. 

1899 

29,  1899 


August  11,  1899 

September  11,  1899 

October  10,  1899 

December  2,  1899 


Specifications  of  Document  Number  Page 

JAPAN  &  CHINA— Agreement  for  Establish- 
ment of  Japanese  Settlement  at  Shashi (1896/6)     .       .         92 

FRANCE  &  GREAT  BRITAIN— Exchange  of 
Notes  respecting  Reciprocal  Protection  of 
Trademarks  in  China  1898/19      .       .       171 

GERMANY  (German  Syndicate)  &  GREAT 
BRITAIN  (Hongkong  &  Shanghai  Banking 
Corporation,  and  British  &  Chinese  Corpo- 
ration)— Arrangement  regarding  Spheres  of 
Interest  in  Railway  Construction (1900/5)     .       .       266 

GREAT  BRITAIN  (British  &  Chinese  Cor- 
poration) &  CHINA — Shanhaikwan-New- 
chwang  Railway  Loan   Agreement 1898/20       .       .       173 

GREAT  BRITAIN  (British  &  Chinese  Cor- 
poration) &  CHINA — ^Agreement  for  Con- 
cession  for  Nanpiao  Mines (1898/20)  .       .       181 

GREAT  BRITAIN  (British  &  Chinese  Corpo- 
ration) &  UNITED  STATES  (American 
China  Development  Company) — Agreement 
in  regard  to  Railway  Business  in  China 
(Reference,  only)    (1905/7)     .       .       519 

RUSSIA — First  Supplement  to  Charter  of  Chi- 
nese Eastern  Railway  (1898/15)  .       .       157 

DENMARK  (Great  Northern  Telegraph  Com- 
pany) &  CHINA— Additional  Article  to 
Telegraph  Convention  of  May  13,  1897 (1897/3)    .       .       103 

CHINA — Memorial  and  Rescript  concerning  In- 
tercourse between  Local  Officials  and  Mis- 
sionaries     (1908/4)    .       .      718 

GREAT  BRITAIN  (Mr.  Pritchard  Morgan)  & 
CHINA  (Hua  Yi  and  Hui  Tung  Companies) 
— Regulations   for   Mining  in   Szechuan 1899/1         .       .       183 

GERMANY  &  CHI NAr— Agreement  concerning 
Establishment  of  a  Maritime  Customs  Office 
at   Tsingtao    1899/2        .       .       189 

GREAT    BRITAIN   &   RUSSIA— Exchange   of 

Notes  regarding  Railway  Interests  in   China  1899/3        .       .       204 

CHINA — Proclamation    in    regard    to    Extension 

of  International   Settlement  at   Shanghai....  1899/4        .       .       205 

GERMANY  (Deutsch-Asiatische  Bank),  GREAT 
BRITAIN  (British  &  Chinese  Corporation) 
&  CHINA — Preliminary  Agreement  for 
Tientsin-Chinkiang  Railway  (1908/1)     .       .       694 

RUSSIA  (Chinese  Eastern  Railway)  &  CHINA 
(Kirin  Province) — Agreement  regarding 
Jurisdiction  over  Chinese  Subjects  in  Rail- 
way Zone   (1901/2)    .       .      277 

GERMANY— Charter  of  the   Shantung  Railway 

Company   (1900/3)    .       .      240 

GERMANY — Charter     of     Schantung     Bergbau 

Gesellschaft    (1900/4)     .       .       252 

RUSSIA  &  CHINA— Note  regarding  Construc- 
tion of  Railways  Northward  and  North- 
eastward  from   Peking   1899/5        .       .       207 

INTERNATIONAL  &  CHINA^Conventions 
and  Declarations  of  the  First  Hague  Peace 
Conference    (Note,  only)    1907/18       .       .       682 

RUSSIA — Imperial    Order    for    Building    Dalny 

and  Creating  it  a  Free  Port (1898/5)    .       .       121 

KOREA     &     CHINA— Treaty     of     Amity     and 

Commerce     1899/6        .       .       208 

GERMANY — Rules  of  Schantung  Bergbau  Ge- 
sellschaft   (1900/4)    .       .      254 

RUSSIA  (Chinese  Eastern  Railway  Company)  & 
CHINA  (Heilungkiang  Province) — Agree- 
ment regarding  Jurisdiction  over  Chinese 
Subjects  in  Railway  Zone   (Reference,  only)  (1902/1)     .       .       321 


Date 
December    14,  1899 

January        15,  1900 


February       3,  1900 
March  20,  1900 


March  21,  1900 

March  21,  1900 

July  13,  1900 

October  16,  1900 

October  26,  1900 

January  16,  1901 


January  30,  1901 
February  (?),  1901 
April  23,  1901 


July 


18,  1901 


August  2,  1901 

September     7,  1901 


January  14,  1902 

January  14,  1902 

January  30,  1902 

April  8,  1902 


TABLE  OF  CONTENTS  xxi 

Specifications  of  Document  Number  Page 

MEXICO    &    CHINA— Treaty    of    Amity    and 

Commerce     1899/7        .       .      214 

FRANCE  &  GREAT  BRITAIN— Exchange  of 
Notes  respecting  Regulations  to  be  applied 
in  any  future  Extension  of  British  or 
French  Concession  at  Hankow 1900/1         .       .      220 

FRANCE  &)  CHINA— Postal  Arrangement (1906/3)     .       .       588 

UNITED  STATES  &  FRANCE,  GERMANY, 
GREAT  BRITAIN,  ITALY,  JAPAN  & 
RUSSIA — Declarations  accepting  the  Com- 
mercial Policy  of  the  "Open  Door"  in 
China    1900/2        .       .      221 

GERMANY  (Schantung  Eisenbahn  Gesellschaft) 
&  CHINA — Regulations  for  Kiaochow- 
Tsinanfu   Railway    1900/3         .       .       236 

GERMANY  (Schantung  Bergbau  Gesellschaft) 
&  CHINA — Agreement  for  Shantung  Ger- 
man-Chinese Mining  Company 1900/4        .       .       248 

UNITED  STATES  (American  China  Develop- 
ment Company)  &  CHINA — Supplemental 
Canton-Hankow  Railway  Loan  Agreement. 
(Reference,    only.)     (1905/7)     .       .       519 

GERMANY   &  GREAT  BRITAIN— Agreement 

relative  to  China   1900/5         .       .       263 

DENMARK  (Great  Northern  Telegraph  Com- 
pany), GREAT  BRITAIN  (Eastern  Exten- 
sion Telegraph  Company)  &  CHINA — 
Agreement  regarding  Land  Telegraph  Lines 
between    Taku    and    Peking 1900/6        .       .       267 

AUSTRIA-HUNGARY,  BELGIUM,  FRANCE, 
GERMANY,  GREAT  BRITAIN,  ITALY, 
JAPAN,  NETHERLANDS,  RUSSIA, 
SPAIN,  UNITED  STATES  &  CHINA— 
Reply  of  Chinese  Plenipotentiaries  to  Joint 
Note  in  behalf  of  Powers,  December  22, 
1900,  embodying  Conditions  for  Reestablish- 
ment  of   Normal   Relations   with   China (1901/3)     .        .       310 

RUSSIA   &j  CHINA— Preliminary   Arrangement 

in  regard  to  Manchuria (1902/3)     .       .       329 

RUSSIA  &  CHINA— "  Secret  Treaty"  concern- 
ing  Manchuria    (1902/3)     .       .       330 

GREAT  BRITAIN  (British  Government,  and 
Eastern  Extension,  Australasia  &  China 
Telegraph  Company) — Agreement  for  Sub- 
marine Cable  between  Chefoo  and  Weihaiwei  1901/1         .       .       269 

RUSSIA  (Chinese  Eastern  Railway)  &  CHINA 
(Kirin  Province) — Agreement  regarding 
Jurisdiction  over  Chinese  Subjects  in  Rail- 
way Zone   1901/2        .       .       274 

RUSSIA — Ukaz  regarding  Jurisdiction  in  Chinese 

Eastern  Railway  Zone (1896/5)    .       .         88 

AUSTRIA-HUNGARY,  BELGIUM,  FRANCE, 
GERMANY,  GREAT  BRITAIN,  ITALY, 
JAPAN,  NETHERLANDS.  RUSSIA, 
SPAIN,  UNITED  STATES  &  CHINA— 
Final  Protocol  for  the  Settlement  of  the 
Disturbances  of  1900  1901/3        -        ,      278 

RUSSIA  (Chinese  Eastern  Railway)  &  CHINA 
(Heilungkiang  Province) — Agreement  re- 
garding Jurisdiction  over  Chinese  Subjects 
in   Railway  Zone    1902/1         .       .       321 

RUSSIA  (Chinese  Eastern  Railway)  &  CHINA 
— Agreement  for  Coal  Mining  in  Heilung- 
kiang Province   (1907/12)  .       .       661 

GREAT  BRITAIN  &  JAPAN— Agreement  rela- 
tive  to    China   and    Korea 1902/2         .       .       324 

RUSSIA   &   CHINA— Convention    in    regard    to 

Manchuria    1902/3        .       .      326 


XXll 


TABLE  OF  CONTENTS 


Date 
April  29,  1902 


June 


10,  1902 


June  14,  1902 


June 

21, 

1902 

June 

2i, 

1902 

July 

11, 

1902 

August 

7, 

1902 

August 

29, 

1902 

September 
September 


5,  1902 
22,  1902 


October        15,  1902 


October 

15, 

1902 

October 

22, 

1902 

October 

22, 

1902 

November 

27, 

1902 

January 

27, 

1903 

July 

9, 

1903 

August 

7, 

1903 

August 

12, 

1903 

September 

24. 

1903 

October 

8. 

1903 

October 

8, 

1903 

Specifications  of  Document  Number  Page 

GREAT  BRITAIN  &  CHINA— Agreement  for 
Restoration  of  Peking-Shanhaikwan  Railway, 
and  Additional  Agreement  respecting  Man- 
agement of  Northern  Railways  and  Build- 
ing of  New  Branch  Lines 1902/4        .       .       331 

INTERNATIONAL  &  CHINA  — Provisional 
Rules  defining  Respective  Jurisdictions  of 
Mixed  Courts  of  International  and  French 
Settlements   at   Shanghai    1902/5        .       .      338 

AUSTRIA-HUNGARY,  BELGIUM,  FRANCE, 
GERMANY,  GREAT  BRITAIN,  ITALY, 
JAPAN,  NETHERLANDS,  RUSSIA, 
SPAIN,  UNITED  STATES— Protocol  con- 
cerning Apportionment  of   Boxer   Indemnity  (1901/3)     .       .       311 

FRANCE  &  GREAT  BRITAIN  (Syndicat  du 
Yunnan)  &  CHINA — Agreement  for  Mining 
Concession  in   Yunnan   Province (1911/10)  .       .       911 

RUSSIA  &  CHINA— Exchange  of  Notes  in  re- 
gard to  Pledging  of  Peking — Kalgan  and 
other  Railways   North  of  Peking (1902/4)     .       .       335 

RUSSIA   (Chinese  Eastern  Railway)   &  CHINA 

— Agreement  for  Kirin-Changchun  Railway..  (1907/3)     .        .       629 

GERMANY  (Carlowitz  &  Co.)  &  CHINA  (Ping 

Yang  Coal  Mine)— Agreements  for  Loans..  (1913/13)  .       .     1083 

AUSTRIA-HUNGARY,  BELGIUM,  DEN- 
MARK, FRANCE,  GERMANY,  GREAT 
BRITAIN,  ITALY,  JAPAN,  NETHER- 
LANDS, NORWAY,  PORTUGAL.  RUS- 
SIA, SPAIN,  SWEDEN,  UNITED  STATES 
&  CHINA— Revised  Import  Tariff  Agree- 
ment      1902/6        .       .      339 

GREAT  BRITAIN  &  CHINA— Treaty  respecting 

Commercial    Relations,    etc.    (with    Annexes)  1902/7        .       .       342 

RUSSIA  &  CHINA— t.'\greement  for  Rendition 
of  Shanhaikwan-Hsinmintun-Yingkow  Rail- 
way    (1902/3)    .       .       330 

RUSSIA  (Russo-Chinese  Bank)  &  CHINA^ 
Loan  Contract,  and  Operating  Contract,  for 
Chengtingfu-Taivuanfu    Railway 1902/8        .       .       356 

PORTUGAL  &  CHINA— Supplementary  Com- 
mercial   Convention    1902/9        .       .      370 

DENMARK  (Great  Northern  Telegraph  Com- 
pany) &  CHINA — Agreement  concerning 
Taku-Kiakhta  Telegraph  1902/10      .       .      375 

GREAT  BRITAIN  (Eastern  Extension  Tele- 
graph Company)  &  CHINA — Agreement 
concerning   Taku-Peking   Telegraph (1902/10)  .       .       379 

RUSSIA  &  CHINA— Supplementary  Declaration 
regarding  Connections  between  Russian  and 
Chinese    Telegraphs    1902/11       .       .      381 

PORTUGAL  &  CHINA— Additional  Convention 
regarding  Establishment  of  Customs  House 
at   Macao    1903/1        .       .       385 

GREAT  BRITAIN  (British  &  Chinese  Corpo- 
ration) &  CHINA — Agreement  for  Shanghai- 
Nanking  Railway  Loan 1903/2        .       .      387 

GREAT  BRITAIN  &  ITALY— Exchange  of 
Notes  respecting  Reciprocal  Protection  of 
Trademarks  in  China 1903/3         .        .       409 

RUSSIA — Imperial      Order      creating     Imperial 

Lieutenancy  of  Far  East (1898/5)    .       .       122 

UNITED    STATES    &    CHINA— Exchange    of 

Notes  in    regard   to   taxation (1903/5)     .       .       451 

JAPAN    &    CHINA— Supplementary    Treaty    of 

Commerce  and  Navigation  (with  Annexes) ..  1903/4        .       .       411 

UNITED  STATES  &  CHINA— Treaty  for  the 

Extension   of   Commercial   Relations 1903/S        .       .      423 


Date 
October        29,  1903 

November    12,  1903 


March 


6,  1904 


March 

25, 

1904 

April 

17, 

1904 

May 

13, 

1904 

June 

13, 

1904 

July 
August 

30,  1904 
8,  1904 

September 

7,  1904 

September 

7,  1904 

September 

30,  1904 

October 
November 

21,  1904 
11,  1904 

December 

21,  1904 

December 

29,  1904 

January 

15,  1905 

March 

22,  1905 

May 

23,  1905 

June 

7,  1905 

June 

28,  1905 

July 

2,  1905 

July 
July 


2,  1905 

3,  1905 


TABLE  OF  CONTENTS 

Specifications  of  Document  Number 

FRANCE     &     CHINA— Contract     for     Yunnan 

Railway   1903/6 

BELGIUM  (Compagnie  Generale  de  Chemins 
de  Fer  et  de  Tramways  en  Chine)  & 
CHINA — Loan  Contract,  and  Operating 
Contract,  for  Kaifengfu-Honanfu  Railway. .  1903/7 
RUSSIA  (Chinese  Eastern  Railway)  &  CHINA 
(Heilungkiang      Province)— Agreement      for 

Timbering.     (Reference,  only) (1908/6) 

CHINA — Customs     Regulations     for     Port     of 

Kongmoon    1904/1 

GERMANY  &  CHINA— Agreement  concerning 
Maritime  Customs  Office  at  Tsingtao :  In- 
land Waters   Steam  Navigation (1899/2) 

GREAT  BRITAIN  &  CHINA— Convention  re- 
specting  Chinese    Labor   in    British   Colonies 

and  Protectorates    1904/2 

AUSTRIA-HUNGARY,  BELGIUM,  FRANCE, 
GERMANY,  GREAT  BRITAIN,  ITALY, 
JAPAN,  NETHERLANDS,  RUSSIA. 
SPAIN,  UNITED  STATES— Protocol  re- 
garding Administration  of  Legation  Quarter 

in   Peking   (1901/3) 

CHINA— West  River  Regulations    1904/3 

GREAT  BRITAIN  &  PORTUGAL— Exchange 
of    Notes    respecting    Reciprocal    Protection 

of   Trademarks   in    China 1904/4 

GREAT    BRITAIN    &   TIBET— Convention    of 

^     Lhasa   (1906/2) 

GREAT  BRITAIN  &  NETHERLANDS— Ex- 
change of  Notes  respecting  Reciprocal  Pro- 
tection of  Trademarks  in   China 1904/5 

BELGIUM  &  GREAT  BRITAIN— Exchange 
of    Notes    respecting    Reciprocal    Protection 

of   Trademarks   in    China 1904/6 

FRANCE  &  CHINA— Parcels  Post  Arrangement  (1906/3) 
PORTUGAL    &    CHINA— (Unratified)     Treaty 

of    Commerce    (1902/9) 

INTERNATIONAL  &  CHINA— Convention  ex- 
empting   Hospital    Ships    from    Payment    of 

Dues,  etc.     ( Note,  only) 1904/7 

GREAT    BRITAIN    (Hongkong)    &    CHINA— 

Postal  Arrangement    (1906/3) 

RUSSIA  &  CHINA— Supplementary  Declara- 
tion regarding  Connections  between  Russian 

and  Chinese  Telegraphs    (1902/11) 

BELGIUM    (Societe    des    Mines    du    Luhan)    & 
CHINA  (Chihli  Lincheng  Mining  Company) 
— Contract  concerning  the  Lincheng  Mines. .  1905/1 
GREAT   BRITAIN   &  CHINA-Convention   re- 
specting Junction    of    Chinese   and    Burmese 

Telegraphs    1905/2 

INTERNATIONAL  &  CHINA-Convention  for 
International  Institute  of  Agriculture.    (Note, 

^^  only)     1905/3 

GREAT  BRITAIN  &  UNITED  STATES— Ex- 
change of  Notes  in  regard  to  Reciprocal  Pro- 
tection of  Trademarks  in   China 1905/4 

AUSTRIA-HUNGARY.  BELGIUM.  FRANCE, 
GERMANY,  GREAT  BRITAIN,  ITALY 
JAPAN,  NETHERLANDS,  RUSSIA, 
SPAIN,  UNITED  STATES  &  CHINA— 
Notes  effecting  final  Settlement  of  Question 

of    Boxer    Indemnity    (1901/3) 

GREAT  BRITAIN  (Pekin  Syndicate)  & 
CHINA — Letters     regarding     Supplementary 

Taokow-Chinghua  Railwav  Loan  (1905/5) 

GREAT  BRITAIN  (Pekin  Syndicate)  &  CHINA 


XXlll 

Page 
453 

462 

724 
476 

191 

478 


315 
484 


489 

578 

490 


492 
590 

371 


493 
592 

383 

493 

498 

501 
502 

319 
515 


XXIV 


TABLE  OF  CONTENTS 


Date 

August         12,  1905 
August         13,  1905 

August         29,  1905 


September  1,  1905 
September  5,  1905 
September     9,  1905 


September     9,  1905 

September   27,  1905 
October         2,  1905 


October 

3, 

1905 

October 

23, 

1905 

October 

30, 

1905 

November 

3, 

1905 

November 

27, 

1905 

November 

28, 

1905 

December 

1, 

1905 

December 

2, 

1905 

December 

6, 

1905 

December 

11, 

1905 

December 

18, 

1905 

December 

22, 

1905 

December 

22, 

1905 

December 

27 

1905 

January 

4 

1906 

Specifications  of  Document  Number  Page 
— Loan    Agreement,    and    Working    Agree- 
ment, for  Taokow-Chinghua  Railway   1905/5         .       .       506 

GREAT  BRITAIN  &  JAPAN— Agreement  re- 
specting  Integrity  of   China,   etc 1905/6        .       .       516 

BELGIUM  (Societe  d'Etudes  de  Chemins  de 
Per  en  Chine)  &  CHINA— Contract  for 
Supplementary  Loan  to  complete  Peking- 
Hankow  Railway (1898/13).       .       151 

UNITED  STATES  (American  China  Develop- 
ment Company)  &  CHINA — Agreement  can- 
celling  Canton-Hankow    Railway   Concession  1905/7        .       .       519 

JAPAN  &  RUSSIA— Protocol  of  Armistice....  (1905/8)    .       .       527 

JAPAN  &  RUSSIA— Treaty  of  Peace 1905/8        .       .      522 

GREAT  BRITAIN  (Hongkong)  &  CHINA— 
Agreement  for  Loan  to  Redeem  Canton- 
Hankow  Railway  Concession  1905/9        .       ..      528 

GREAT  BRITAIN  &  CHINA  — Letter  of 
Hukuang  Viceroy  regarding  Preference  to 
British  Nationals  for  Canton-Hankow  and 
other  Railways  in  Hupeh  and  Hunan (1905/9)     .       .       530 

INTERNATIONAL  &  CHINA— New  Agree- 
ment for  Huangpu  Conservancy 1905/10       .       .       531 

GREAT  BRITAIN  (British  &  Chinese  Corpo- 
ration, Pekin  Syndicate,  Yangtze  Valley 
Company,  and  Chinese  Central  Railways)  & 
FRANCE  (Banque  de  I'Indo-Chine,  etc.)  — 
Agreement  regarding  Construction  of  certain 
Railways    1905/11       .       .       534 

FRANCE  &  UNITED  STATES— Exchange  of 
Notes  in  regard  to  Reciprocal  Protection  of 
Trademarks  in  China  1905/12       .       .       538 

NETHERLANDS  &  UNITED  STATES— Ex- 
change of  Notes  in  regard  to  Reciprocal 
Protection  of  Trademarks  in  China 1905/13       .       .       540 

JAPAN  &  RUSSIA— Protocol  of  Procedure  in 
withdrawing  Troops,  and  transferring  Rail- 
ways  (1905/8).      .      527 

GERMANY  &  CHINA— Postal  Arrangement, 
and  Exchange  of  Notes  supplementary 
thereto    (1906/3)    .       .       594 

BELGIUM  &  UNITED  STATES— Exchange 
of  Notes  in  regard  to  Reciprocal  Protection 
of  Trademarks  in   China    1905/14      .       .       542 

GERMANY  &  CHINA— Agreement  for  With- 
drawal of  German  Troops  from  Kiaochow 
and  Kaomi   (1898/4)    .       .       118 

GERMANY  &  CHINA— Amendment  to  Agree- 
ment of  April  17,  1899,  concerning  Maritime 
Customs  Office  at  Tsingtao (1899/2)     .       .       192 

GERMANY    &    CHINA— Ordinance    regulating 

Customs  Procedure  in  Kiaochow  Territory..  (1899/2)     .       .       194 

GERMANY  &  UNITED  STATES— Exchange 
of  Notes  in  regard  to  Reciprocal  Protection 
of   Trademarks   in   China 1905/15       .       .       544 

DENMARK  &  GREAT  BRITAIN— Exchange 
of  Notes  in  regard  to  Reciprocal  Protection 
of   Trademarks   in    China 1905/16       .       .       546 

ITALY  &  UNITED  STATES— Exchange  of 
Notes  in  regard  to  Reciprocal  Protection  of 
Trademarks   in    China    1905/17       .       .       547 

JAPAN     &     CHINA— Treaty,     and     Additional 

Agreement,   relating  to   Manchuria 1905/18       .       .       549 

JAPAN  &  CHINA— "Secret  Protocols"  to 
Treaty    of    December    22,    1905,    relating    to 

Manchuria.     (Summary,  only) (1905/18)  .       .       554 

GREAT   BRITAIN    (Natal)   &  CHINA— Postal 

Arrangement    (1906/3)     .       .       596 

RUSSIA    &    CHINA— Supplementary    Declara- 


Date 


March 

26, 

1906 

April 

27, 

1906 

May 

26, 

1906 

June 

7, 

1906 

June 

28, 

1906 

July 

6, 

1906 

July 

31, 

1906 

July 

31, 

1906 

July 

31. 

1906 

August 

1, 

1906 

September 

1, 

1906 

September 

1, 

1906 

October 

15, 

1906 

October 

16, 

1906 

October 

29, 

1906 

November 

9, 

1906 

November 

30, 

1906 

December 

5, 

1906 

-(?)- 

1907 

February 

1, 

1907 

February 
March 

11, 

7, 

1907 
1907 

April 

15, 

1907 

April 

17, 

1907 

TABLE  OF  CONTENTS  xxv 

Specifications  of  Document  Number  Page 

tion  regarding  Connections  between  Russian 
and  Chinese   Telegraphs    (1902/11)  .       .       385 

GERMANY  &  GREAT  BRITAIN— Exchange 
of  Notes  respecting  Reciprocal  Protection 
of    Trademarks    in    China 1906/1         .       .       574 

GREAT  BRITAIN  &  CHINA— Convention  re- 
specting Tibet  (to  which  is  annexed  Conven- 
tion signed  at  Lhasa,  September  7,  1904) 1906/2        .       .       576 

INTERNATIONAL  &  CHINA— International 
Postal  Convention,  and  Parcels  Post  Con- 
vention.    (Note,   only) 1906/3        .       .      585 

JAPAN — Imperial  Order  sanctioning  the  Or- 
ganization of  South  Manchuria  Railway 
Company    (1905/18)  .       .       555 

RUSSIA  &  UNITED  STATES— Exchange  of 
Notes  in  regard  to  Reciprocal  Protection  of 
Trademarks  in  China  1906/4        .       .       606 

INTERNATIONAL  &  CHINA— International 
Red  Cross  Convention  for  Amelioration  of 
Condition  of  Wounded.     (Note,  only) 1906/5        .       .      608 

JAPAN — Imperial  Ordinance  concerning  Or- 
ganization of  Government  General  of 
Kwantung  ._ (1905/18).       .       565 

JAPAN — Imperial  Ordinance  concerning  Or- 
ganization of  Kwantung  Post  and  Telegraph 
Office.     (Extracts,  only) (1905/18)  .       .      567 

JAPAN — Imperial  Ordinance  relating  to  Military 
Department  of  Government  General  of 
Kwantung (1905/18).       .       568 

JAPAN — ^Government  Order  concerning  South 
Manchuria  Railway  Company,  with  Articles 
of  Incorporation  (1905/18)  .       .       557 

JAPAN— (Kwantung  Government  General)  — 
Regulations  relating  to  Vessels  sailing  to 
and  from  Dairen   (1905/18)  .       .       572 

JAPAN — (Kwantung  Government  General)  — 
Regulations  for  Control  of  Residents  in 
Kwantung  (1905/18)  .       .       571 

BELGIUM  &  RUSSIA— Exchange  of  Notes  con- 
cerning Reciprocal  Protection  of  Trademarks 
in  China 1906/6        .       .       608 

ITALY  &  RUSSIA— Exchange  of  Notes  re- 
specting Reciprocal  Protection  of  Trade- 
marks in  China   1906/7        .       .      609 

GREAT  BRITAIN  &  RUSSIA— Exchange  of 
Notes  concerning  Reciprocal  Protection  of 
Trademarks  in  China  1906/8         .       .       610 

JAPAN    &    CHINA— Agreement    in    regard    to 

Rendition  of   Yingkow    (1906/10)  .       .       612 

FRANCE  &  RUSSIA— Exchange  of  Notes  con- 
cerning Reciprocal  Protection  of  Trademarks 
in   China   1906/9        .       .       611 

JAPAN  &  CHINA— Agreement  for  Rendition  of 

Yingkow    1906/10      .       .       612 

JAPAN    &    CHINA — Memorandum    concerning 

Mines  along  Antung-Mukden  Railway (1909/9)    .       .       791 

GERMANY  &  RUSSIA— Exchange  of  Notes 
concerning  Reciprocal  Protection  of  Trade- 
marks in  China 1907/1         .       .       614 

GREAT  BRITAIN— Order  in  Council (1905/4)     .       .       505 

GREAT  BRITAIN  (British  &  Chinese  Corpo- 
ration) &  CHINA — Canton-Kowloon  Rail- 
way Loan  Agreement  1907/2        .       .      615 

JAPAN  &  CHINA— Convention  regarding 
Hsinmin-Mukden  and  Kirin-Changchun 
Railways    1907/3        .       .      627 

GERMANY  &  CHINA— Ordinance  regulating 
Customs  Procedure  in  Kiaochow  Territory : 
Manufactures    in    German    Territory    (1899/2)     .       .       199 


XXVI 


TABLE  OF  CONTENTS 


Date 
May              23, 

1907 

May 

2T, 

1907 

May 

30, 

1907 

June 

10, 

1907 

June 

12, 

1907 

June 

13, 

1907 

June 

26, 

1907 

July 

8, 

1907 

July 

15, 

1907 

July 
August 

30, 
30, 

1907 
1907 

August 

30, 

1907 

August 

30, 

1907 

August 

30, 

1907 

August 

31, 

1907 

September 

28, 

1907 

September 

28, 

1907 

October 

7, 

1907 

October 

18, 

1907 

November 

19, 

1907 

January 

13, 

1908 

January 

21, 

1908 

January  24  (?) 

1908 

March 

6 

1908 

March 


12,  1908 


Specifications  of  Document  Number 

RUSSIA  (Chinese  Eastern  Railway)  &  CHINA 
— Agreement  for  Transfer  to  China  of  Tele- 
graph Lines  in  Manchuria 1907/4 

JAPAN  (South  Manchuria  Railway)  &  CHINA 
— Agreement  for  handing  over  to  China  the 
Hsinmintun-Mukden   Railway   1907/5 

JAPAN  &  CHINA— Agreement  regarding  Estab- 
lishment of  Maritime  Customs  Office  at 
Dairen,  and  for  Inland  Waters  Steam  Navi- 
gation      1907/6 

FRANCE  &  JAPAN— Agreement   in   regard   to 

the  Continent  of  Asia 1907/7 

DENMARK  &  UNITED  STATES— Exchange 
of  Notes  in  regard  to  Reciprocal  Protection 
of  Trademarks  in  China  1907/8 

JAPAN  &  RUSSIA— Provisional  Convention 
(with  Additional  Article  and  Protocol)  con- 
cerning Junction  of  Japanese  and  Russian 
Railways  in  Manchuria   1907/9 

JAPAN  &  CHINA— Provisional  Customs  Regu- 
lations for  Leased  Territory  of  Kwantung.  .  (1907/6) 

RUSSIA   &   CHINA— Experimental    Regulations 

for  Customs  Houses  in  Northern  Manchuria  1907/10 

RUSSIA  &  CHINA— Exchange  of  Notes  re- 
garding Special  Privileges  in  respect  to  Im- 
ports into  Manchuria   (1907/10) 

JAPAN  &  RUSSIA— Political  Convention 1907/11 

RUSSIA  (Chinese  Eastern  Railway)  &  CHINA 
(Heilungkiang  Province) — Agreement  for 
Coal   Mining    1907/12 

RUSSIA  (Chinese  Eastern  Railway)  &  CHINA 
(Heilungkiang  Province) — Contract  for  Ex- 
propriation of  Lands    1907/13 

RUSSIA  (Chinese  Eastern  Railway)  &  CHINA 
(Kirin  Province) — Contract  for  Expropria- 
tion of  Lands   1907/14 

RUSSIA  (Chinese  Eastern  Railway)  &  CHINA 

(Kirin  Province) — Agreement  for  Timbering  1907/15 

GREAT  BRITAIN  &  RUSSIA— Convention  re- 
lating to   Persia,  Afghanistan  and  Tibet....  1907/16 

JAPAN  (South  Manchuria  Railway  Company) 
— Regulations  concerning  Councils  of  Branch 
Offices  of  Railway (1905/18) 

JAPAN  (South  Manchuria  Railway  Company) 
Order  concerning  Taxes  in  Leased  Lands  of 
Railway   (1905/18) 

RUSSIA  (Chinese  Eastern  Railway)  &  CHINA 
— Agreement  in  regard  to  Working  of  Rail- 
wav's   Telegraph   Lines    1907/17 

INTERNATIONAL  &  CHINA— Conventions 
and  Declarations  of  Second  Hague  Peace 
Conference.     (Note,  only)  . .  1907/18 

CHINA — Experimental  Regulations  for  Duties 
on  Goods  shipped  to  the  new  Ports  in  Man- 
churia    1907/19 

GERMANY  (Deutsch-Asiatische  Bank),  GREAT 
BRITAIN  (Chinese  Central  Railways)  & 
CHINA — Agreement  for  Tientsin-Pukow 
Railway  Loan    1908/1 

GREAT  BRITAIN  (Pekin  Syndicate)  &  CHINA 
(Shansi  Province) — Agreement  for  Redemp- 
tion of  Syndicate's  Mining  Rights  in  Shansi  1908/2 

GREAT     BRITAIN     &     CHINA— "  Ten-Year 

Agreement"  for  Suppression  of  Opium (1911/4) 

GREAT  BRITAIN  (British  &  Chinese  Corpora- 
tion) &  CHINA — Agreement  for  Shanghai- 
Hangchow-Ningpo  Railway  Loan    1908/3 

CHINA — Memorial  and  Rescript  for  Revision  of 


Date 


March  25,  1908 


April 
April 

April 


5,  1908 

13,  1908 

14,  1908 


April 

20, 

1908 

May 

14, 

1908 

May 

19, 

1908 

May 

25, 

1908 

May 

30, 

1908 

May 

30, 

1908 

July 

2, 

1908 

September 

11, 

1908 

October 

8, 

1908 

October  8,  1908 

October  8,  1908 

October  12,  1908 

November  7,  1908 

November  7,  1908 

November  12,  1908 

November  30,  1908 

January  4,  1909 

February  9,  1909 

February  19,  1909 

February  19,  1909 


TABLE  OF  CONTENTS 

Specifications  of  Document  Number 

Procedure     governing     Intercourse     between 

Local   Officials  and   Missionaries 1908/4 

GREAT  BRITAIN  (British  &  Chinese  Corpora- 
tion) &  CHINA — Agreement  regarding  Pe- 
king-Mukden   Railway     (Shanhaikwan-Hsin- 

mintun  Section)    1908/5 

RUSSIA  (Chinese  Eastern  Railway)  &  CHINA 
(Heilungkiang     Province) — Agreement      for 

Timbering     1908/6 

GREAT  BRITAIN  (British  &  Chinese  Corpora- 
tion) &  CHINA— Working  Agreement,  and 
Arrangement  regarding  Control  of  Shanghai- 
Nanking  Railway  (1903/2) 

GERMANY  (Ching  Ching  Minen  Gesellschaft) 
&   CHIN  At— Agreement   in   regard  to   Ching 

Hsing  Mines    1908/7 

GREAT   BRITAIN,   TIBET   &   CHINA— Tibet 

Trade  Regulations  (1906/2) 

JAPAN  &  CHINA— Agreement  for  Sino- 
Japanese  Joint   Stock   Lumber   Company   for 

Exploitation  of  Yalu  Timber   1908/8 

JAPAN  &  UNITED  STATES— Convention  for 
Reciprocal  Protection  of  Inventions,  Designs, 

Trademarks  and  Copyrights  in  China 1908/9 

UNITED  STATES— Joint  Resolution  providing 
for    Remission    of    a    Portion    of    American 

Share  of  Boxer  Indemnity (1901/3) 

INTERNATIONAL  &  CHINA— Revised  Regu- 
lations for  Arms  and  Ammunition 1908/10 

RUSSIA  &  CHINA— Provisional  Regulations 
for   Chinese   Customs   Houses  'at   Manchuria 

and  Pogranichnaya    (1907/10) 

SWEDEN    &    CHINA— Treaty    of    Friendship, 

Commerce  and  Navigation   1908/11 

JAPAN     &     CHINA— Regulations      for      Sino- 

Japanese  Yalu  Timber  Company (1908/8) 

FRANCE  (Banque  de  I'lndo-Chine),  GREAT 
BRITAIN  (Hongkong  &  Shanghai  Banking 
Corporation)  &  CHINA— Agreement  for 
Loan  to  Board  of  Posts  and  Communica- 
tions      1908/12 

CHINA— Prospectus     of     7%      Peking-Hankow 

Railway  Redemption  Loan   1908/13 

UNITED     STATES     &     CHINA— Arbitration 

Convention    1908/14 

JAPAN  &  CHINA — Convention  concerning 
Kwantung-Chefoo  Cable  and  Japanese  Tele- 
graph   Lines    in    Manchuria 1908/15 

JAPAN   &   CHINA— (Agreement   concerning  the 

Working  of  Chefoo-Kwantung  Cable 1908/16 

JAPAN  &  CHINA — Agreement  concerning  the 
Working  of  Japanese  and  Chinese  Tele- 
graphs in  Manchuria 1908/17 

JAPAN  &  CHINA — Supplementary  Loan  Agree- 
ment   for    Hsinmintun-Mukden    and    Kirin- 

Changchun    Railways    1908/18 

JAPAN    &    UNITED    STATES— Exchange    of 

Notes   declaring  Policy  in  the  Far  East 1908/19 

FRANCE     (Indo-China)    &    CHINA— Arrange- 
ment for  the  Maintenance  of  Order  on  the 
Sino-Annamite  Frontier.     (Reference,  only)  . .  (1915/4) 
GREAT  BRITAIN    (India)    &  CHINA— Postal 

Arrangement    1909/1 

RUSSIA  &  CHINA— Postal  Arrangement (1906/3) 

RUSSIA  (Chinese  Eastern  Railway)  &  CHINA 
— Arrangement  for  Transportation  of  Chi- 
nese Mails    1909/2 


xxvu 

Page 

717 

719 
721 

405 

724 

582 

731 

735 

311 
7Z7 

651 

740 
7iZ 

7A7 
752 
759 

760 
762 

765 

767 
769 

1196 

771 
597 

771 


XXVlll 


TABLE  OF  CONTENTS 


Date 
May  10,  1909 


May 


19,  1909 


May  24,  1909 

June     5  &  22,  1909 
June  6,  1909 


July 


6,  1909 


August 
August 

3, 
17, 

1909 
1909 

August 

18, 

1909 

August 

18, 

1909 

August 

19, 

1909 

August 

28, 

1909 

September 

4, 

1909 

September 

4, 

1909 

September 

14, 

1909 

October 


October 


2,  1909 


6,  1909 


February  9,  1910 

April  5,  1910 

May  22,  1910 

May  23.  1910 


June  10.  1910 

July  1,  1910 


Specifications  of  Document  Number  Page 

RUSSIA    &     CHINA— Preliminary    Agreement, 

and   Exchange  of   Notes,   in   regard  to    Mu- 
nicipal Administrations  in  the  Railway  Zone  (1914/14)  .       .     1185 
GREAT    BRITAIN     (Pauling    &    Company)    & 

CHINA — Agreement    for    Preliminary    Sur- 
vey of   Kueilin-Chuanchow   Railway  Line...  1909/3         .       .       774 
SWEDEN     &    CHINA— Additional    Article    of 

Treaty  of  Commerce,  July  2,  1908 (1908/11)  .       .       747 

GREAT    BRITAIN    (Hongkong)    &    CHINA— 

Parcels  Post  Arrangement   1909/4.        .       .       776 

FRANCE     (Banque     de     ITndo-Chine),     GER- 
MANY (Deutsch-Asiatische  Bank),  GREAT 

BRITAIN    (Hongkong  &  Shanghai  Banking 

Corporation)     &     CHINA— Agreement     for 

Loan   for  Hukuang  Railways (1911/5)     .       .       880 

FRANCE  (Banque  de  ITndo-Chine),  GERMANY 

(Deutsch-Chinesische  Eisenbahn  Gesellschaft) 

&    GREAT    BRITAIN    (British    &    Chinese 

Corporation,  and  Chinese  Central  Railways) 

— Memorandum   of   Agreement   in   regard  to 

Railway    Loans (1910/5)     .       .       833 

BRAZIL  &  CHINA— Arbitration   Convention...  1909/5         .       .       781 
PERU  &  CHINA— Protocol   determining  Dura- 
tion of  Treaty  of  Friendship,  etc.,  of  June  26, 

1874  App.  G      .       .     1523 

JAPAN   (South  Manchuria  Railway)  &  CHINA 

— Detailed  Agreement  for  Hsinmintun-Muk- 

den   Railway   Loan    1909/6         .       .       782 

JAPAN   (South  Manchuria  Railway)  &  CHINA 

— Detailed    Agreement    for    Kirin-Changchun 

Railway  Loan    1909/7        .        .       785 

JAPAN    &    CHINA— Memorandum    concerning 

Reconstruction  of  Antung-Mukden  Railway. .  1909/8         .        .       787 
PERU  &  CHINA — Protocol  concerning  Chinese 

Immigration  into  Peru App.  G.      .        .     1524 

JAPAN      &      CHINA — Agreement      concerning 

Mines  and  Railways  in  Manchuria   1909/9         .        .       790 

JAPAN     &     CHINA— Agreement     relating     to 

Chientao  Region  1909/10      .       .       796 

FRANCE  &  JAPAN — Convention  for  Reciprocal 

Protection  of  Trademarks,  Patents,  Designs 

and   Copyrights  in  China    1909/11       .       .       798 

GREAT     BRITAIN      (Pauling     &     Company), 

UNITED    STATES    (American    Group)    & 

CHINA — Preliminary    Agreement    for    Chin- 

chow-Aigun   Railway    1909/12       .       .       800 

GREAT    BRITAIN     (Pauling    &    Company)    & 

UNITED    STATES     (American    Gfoup)  — 

Agreement     in    regard    to     Chinchow-Aigun 

Railway    (1909/12)  .       .       802 

JAPAN  &  CHINA— Postal  Agreement,  and  Par- 
cels Post  Agreement .•••.•••; (1906/3)     .       .       598 

JAPAN — Law  relating  to  Adjudication  bv  Con- 
sular Officers  in  Chientao  " (1909/10)  .       .       797 

JAPAN   (Okura  &  Co.)  &  CHINA— Agreement 

for  Penhsihu  Coal  Mining  Company (1909/9)     .        .       793 

FRANCE      (Banque    de     ITndo-Chine),     GER- 
MANY (Deutsch-Asiatische  Bank),  GREAT 

BRITAIN    (British   &   Chinese   Corporation, 

and  Chinese  Central  Railways)   &  UNITED 

STATES   (American  Group) — Agreement  in 

regard  to  Hukuang  Railways   (1911/5)     .        .       886 

FRANCE  (Banque  de  ITndo-Chine)  &  CHINA 

(Ching-Hsing    Kuang   Wu    Chu) — Mortgage 

Indenture  of  Ching  Hsing  Mines (1908/7)     .        .       729 

JAPAN — Ordinance  regulating  Opening  of  Port 

Arthur   (1905/18)  .       .       573 


Date 
July  4,  1910 


August 


August 


1,  1910 


4,  1910 


August  8,  1910 

August  15,  1910 

August  26,  1910 

September  28,  1910 

October  27,  1910 

November  10,  1910 


March 
April 


24,  1911 
15,  1911 


May 

8,  1911 

May 

8,  1911 

May 

9,  1911 

May 

9,  1911 

May 

12,  1911 

May 

20,  1911 

TABLE  OF  CONTENTS 

Specifications  of  Document  Number 

JAPAN   &   RUSSIA— Convention   in   regard   to 

Manchuria    1910/1 

GREAT  BRITAIN  (Dunn,  Fischer  &  Company) 
&  CHINA  (Bank  of  Communications)  — 
Agreement  for  Purchase  of  Bonds  of  7% 
Peking-Hankow  Railway  Redemption  Loan. 
(Reference,  only)  (1908/13) 

BELGIUM  (Banque  Sino-Belge),  FRANCE 
(Banque  de  I'Indo-Chine),  GERMANY 
( Deutsch-Asiatische  Bank) ,  GREAT 
BRITAIN  (Chartered  Bank  of  India,  Aus- 
tralia &  China,  and  Hongkong  &  Shanghai 
Banking  Corporation),  JAPAN  (Yokohama 
Specie  Bank),  RUSSIA  (Russo-Chinese 
Bank),  NETHERLANDS  (Netherlands 
Trading  Society),  UNITED  STATES  (In- 
ternational Banking  Corporation)  &  CHINA 
— Agreement  for  Loan  to  Shanghai  Taotai..  1910/2 

RUSSIA  &  CHINA— Memorandum  of  Agree- 
ment concerning  Provisional  Sungari  River 
Trade  Regulations,  Harbin  River  Customs, 
etc 1910/3 

JAPAN  (Yokohama  Specie  Bank)  &  CHINA 
(Bank  of  Communications) — Agreement  for 
Purchase  of  Bonds  of  7%  Peking-Hankow 
Railway  Redemption  Loan.     (Summary,  only)  (1908/13) 

GERMANY  &  CHINA— Parcels  Post  Arrange- 
ment    (1906/3) 

GERMANY  (Deutsch-Asiatische  Bank),  GREAT 
BRITAIN  (Chinese  Central  Railways)  & 
CHINA — Supplementary  Loan  Agreement 
for  Tientsin-Pukow  Railway  1910/4 

UNITED  STATES  (American  Group)  & 
CHINA — Preliminary  Agreement  for  Cur- 
rency Reform  and  Industrial  Development 
Loan     (1911/2) 

FRANCE  (Banque  de  ITndo-Chine),  GER- 
MANY (Deutsch-Chinesische  Eisenbahn 
Gesellschaft),  GREAT  BRITAIN  (British 
&  Chinese  Corporation,  and  Chinese  Cen- 
tral Railways)  &  UNITED  STATES 
(American  Group) — Agreement  concerning 
Loans    for    Railway    Purposes 1910/5 

JAPAN  (Yokohama  Specie  Bank)  &  CHNA— 
Agreement  for  Chinese  Government  5% 
Railwav   Loan   of   1911 1911/1 

FRANCE  (Banque  de  ITndo-Chine),  GER- 
MANY (Deutsch-Asiatische  Bank),  GREAT 
BRITAIN  (Hongkong  &  Shanghai  Banking 
Corporation),  UNITED  STATES  (Ameri- 
can Group)  &  CHINA — Chinese  Currency 
Reform  and  Industrial  Development  Loan 
Agreement    191 1/2 

NETHERLANDS  &  CHINA— Consular  Con- 
vention relative  to  Dutch  Possessions 1911/3 

GREAT  BRITAIN  &  CHINA— Agreement  re- 
lating  to    Opium    1911/4 

CHINA — Imperial  Edict  supplementing  Anglo- 
Chinese  Opium  Agreement  of  May  8,  1911..  (1911/4) 

CHINA — Imperial  Edict  regarding  Nationaliza- 
tion of  Trunk  Lines  of   Railway (1911/5) 

JAPAN   (Fushun  Colliery  Company)   &  CHINA 

— Agreement  concerning  Fushun   Colliery...  (1909/9) 

FRANCE  (Banque  de  ITndo-Chine),  GER- 
MANY (Deutsch-Asiatische  Bank),  GREAT 
BRITAIN  (Hongkong  &  Shanghai  Banking 
Corporation),   UNITED    STATES    (Ameri- 


XXIX 

Page 
803 

755 


805 

807 

757 

602 

814 
851 


828 
835 


841 
856 
861 
865 
895 
792 


XXX 


TABLE  OF  CONTEXTS 


Date 


June 
July 


23,  1911 
13,  1911 


July  24,  1911 

August  14,  1911 

August  14,  1911 

August  30,  1911 

August  31,  1911 

September  2,  1911 

September  21,  1911 

October  30,  1911 

November  2,  1911 

December  16,  1911 

December  20.  1911 

December  Zl ,  1911 


January  8,  1912 

January        23,  1912 

January        26,  1912 


January        27,  1912 

January       30.  1912 
March  9,  1912 


Specifications  of  Document  Number  Page 

can    Group)     &    CHINA — Final    Agreement 
for  Hukuang  Railways    1911/5         .       .       866 

JAPAN  &  RUSSIA— Convention  for  Reciprocal 

Protection  of  Industrial  Property  in  China..  1911/6         .       .       899 

GREAT  BRITAIN  &  JAPAN— Agreement  re- 
specting the  Integrity  of  China,  the  General 
Peace  of  Eastern  Asia  and  India,  and  the 
Territorial  Rights  and  Special  interests  of 
the   Parties  in  those  Regions 1911/7        .       .       900 

GERMANY  (Schantung  Bergbau  Gesellschaft) 
&  CHINA  (Shantung  Province)— Agree- 
ment concerning  Mining  (1900/4)     .        .       261 

JAPAN  &  RUSSIA — Supplementary  Convention 
concerning  Connections  between  Japanese 
and  Russian  Railways  in  ^lanchuria (1907/9)     .       .       646 

FRANCE  (Banque  de  ITndo-Chine),  GER- 
MANY (Deutsch-Asiatische  Bank),  GREAT 
BRITAIN  (Hongkong  &  Shanghai  Banking 
Corporation),  UNITED  STATES  (Ameri- 
can Group)  &  CHINA — Agreement  for 
Hupei   Provincial   Silver  Loan   of   1911 1911/8        .       .      902 

FRANCE  (Banque  de  ITndo-Chine),  GER- 
MANY (Deutsch-Asiatische  Bank),  GREAT 
BRITAIN  (Hongkong  &  Shanghai  Banking 
Corporation)  &  CHINA — Agreement  for 
Kwangtung  Provincial  Silver  Loan  of  1911.  .  1911/9        .       .       906 

FRANCE  &  GREAT  BRITAIN  (Syndicat  du 
Yunnan)  &  CHINA — Exchange  of  Notes 
regarding  Cancellation  of  Syndicate's  Min- 
ing Concessions  in  Yunnan   1911/10       .       .       909 

JAPAN  &  CHINA — Agreement  for  Extension 
of  Peking-Mukden  Railway  Line  into 
Mukden   (1909/9)    .       .       795 

FRANCE     (Indo-China)     &     CHINA— Parcels 

Post    Arrangement    (1906/3)     .       .       604 

JAPAN  (South  Manchuria  Railway)  &  CHINA 
— Arrangement  for  Conveyance  of  Chinese 
Government  Stores,  etc.,  over  Antung- 
Mukden  Railwav   (1905/18).       .       574 

JAPAN     &     CHINA— Convention     relating     to 

Railwav  Connections  at  Antung   1911/11       .        .       914 

MEXICO  &  CHINA— Convention  for  Payment 
of  Indemnity  for  Injuries  to  Chinese  Sub- 
jects     1911/12      .       .      917 

RUSSIA  &  CHINA— Treaty  fixing  Russo- 
Chinese  Boundary,  between  Tarbaga  Dagh 
and   Abahaitu,  and  along  Argun   River 1911/13       .       .       919 

FRANCE  &  UXITED  STATES— Exchange  of 
Notes  regarding  Reciprocal  Protection  of 
Copyrights  in  China   1911/14      .       .      927 

CHINA- Regulations  for  the  8%  Military  Loan  1912/1         .       .       929 

INTERNATIONAL    &     CHINA— International 

Opium    Convention    1912/2        .       .       931 

INTERNATIONAL— Resolutions  of  Diplomatic 
Body  in  regard  to  Occupation  of  Peking- 
Mukden  Railway  from  Peking  to  Shan- 
haikwan     (1901/3)     .       .       318 

GREAT  BRITAIN  (Chinese  Engineering  & 
Mining  Company)  &  CHINA  (Lanchow 
Mining  Company) — Preliminary  Agreement, 
and  Supplementary  Agreement,  for  Forma- 
tion of  Kailan  Mining  Administration (1912/8)     .  965 

INTERNATIONAL  &  CHINA— Arrangement 
for  Commission  of  Bankers  to  receive  Cus- 
toms Revenues    1912/3        .       .      946 

FRANCE  (Banque  de  ITndo-Chine).  GER- 
MANY (Deutsch-Asiatische  Bank),  GREAT 
BRITAIN   (Hongkong  &  Shanghai  Banking 


TABLE  OF  CONTENTS  xxxi 

Date  Specifications  of  Document  Number  Page 

Corporation),  UNITED  STATES  (Ameri- 
can Group)  &  CHINA — Letter  of  Agree- 
ment for  Advance  upon   Currency  Loan....  (1911/2)     .       .       852 

March  14,  1912    BELGIUAI    (Banque    Sino-Belge)    &    CHINA— 

Agreement   for  5%   Gold  Loan  of  1912 1912/4        .       .       947 

March  31,  1912  CHINA — Provisional  Regulations  for  ^Maritime 
Customs  at  Antung  for  Through  Traffic  over 
Yalu   River  Bridge    1912/5         .       .       950 

April  9,  1912  INTERNATIONAL  &  CHINA— Huangpu  Con- 
servancy Agreement   1912/6        .       .       954 

April  15,  1912  FRANCE  (Compagnie  Frangaise  des  Chemins 
de  Fer  de  I'Indochine  et  du  Yunnan)  & 
CHINA — Convention  for  Transportation  of 
Postal  Parcels   1912/7        .       .       958 

June  1,  1912  GREAT  BRITAIN  (Chinese  Engineering  & 
Mining  Company)  and  CHINA  (Lanchow 
Mining  Company) — Agreement  for  Forma- 
tion   of    Kailan    IMining   Administration 1912/8        .       .       962 

June  18,  1912  FRANCE  (Banque  de  I'Indo-Chine),  GER- 
MANY (Deutsch-Asiatische  Bank),  GREAT 
BRITAIN  (Hongkong  &  Shanghai  Banking 
Corporation),  JAPAN  (Yokohama  Specie 
Bank),  RUSSIA  (Russo-Asiatic  Bank)  & 
UNITED  STATES  (American  Group)  — 
Agreement  in  regard  to  Reorganization 
Loan   (1913/5)     .       .     1024 

July  11,  1912  GERMANY  (Deutsch-Asiatische  Bank)  & 
CHINA — Letter  of  Agreement  for  Advance 
on  Tientsin-Pukow  Railway  Supplementary 
Loan   (1910/4)     .        .       824 

July  12,  1912  GREAT  BRITAIN  (Jackson  International  Fi- 
nancial Syndicate)  &  CHINA — Preliminary 
Agreement  for  Loan  of  ilO,000,000 (1912/9)     .       .       972 

August  12,  1912  GERMANY  (Deutsch-Asiatische  Bank)  & 
CHINA — Letter  of  Agreement  for  Advance 
on  Tientsin-Pukow  Railwav  Supplementary 
Loan   : (1910/4)     .       .       825 

August  28,  1912  GREAT  BRITAIN  (Chinese  Central  Railways) 
&  CHINA — Letter  of  Agreement  for  Ad- 
vance on  Tientsin-Pukow  Railway  Supple- 
mentary Loan   (1910/4)    .       .       826 

August  30,  1912  GREAT  BRITAIN  (G.  Birch  Crisp  &  Com- 
panv)  &  CHINA — Agreement  for  Chinese 
Government  5%  Gold  Loan  of  1912  1912/9        .       .       967 

September      6,  1912    RUSSIA— Note  regarding  Abolition  of  50-verst 

Dutv-free  Frontier  Zone (1917/10)  .       .       650 

September  6,  1912  RUSSIA  &  CHINA— Agreement  for  Spur  of 
Peking-Mukden  Railway  into  Russian  Con- 
cession in  Tientsin    1912/10       .       .       973 

September  24,  1912  BELGIUM  (Compagnie  Generale  de  Chemins 
de  Fer  et  de  Tramwavs  en  Chine)  &  CHINA 
—Contract    for    Lung-Tsing-U-Hai    Railway  1912/11       .       .       976 

November  2,  1912  CHINA — Agreement  between  Ministry  of  Com- 
munications and  Szechuan-Hankow  Railway 
Company  for  taking  over  of  Railway  by  Gov- 
ernment      (1911/5)     .       .      896 

November  3,  1912  MONGOLIA  &  RUSSIA— Agreement  regarding 
Relations,  and  Protocol  concerning  Russo- 
Mongolian  Trade   1912/12       .        .       992 

December  11,  1912  GREAT  BRITAIN  (City  Safe  Deposit  & 
Agency  Company)  &  CHINA — Agreement 
for  Loan  upon  Bonds  of  Chinese  Govern- 
ment 7%  Peking-Hankow  Railway  Redemp- 
tion Loan   (1908/13)  .       .      758 

December  12,  1912  BELGIUM  (Societe  Generale  de  Chemins  de 
Fer  et  de  Tramways  en  Chine)  &  CHINA — 
Supplementarv  Clause  to  Lung-Tsing-U-Hai 
Railway  Contract  (1912/11)  .       .      990 


XXXI 1 


TABLE  OF  CONTENTS 


Date 
December  22,,   1912 


-(?)- 


March 
March 

April 


April 


1913 


January  11,  1913 

February  12,  1913 

February  20,  1913 

March  3,  1913 


7,  1913 
7,  1913 

10,  1913 


26,  1913 


May 

25, 

1913 

May 

29, 

1913 

June 

6, 

1913 

June 

14, 

1913 

July 

22, 

1913 

September    12,  1913 

October  5,  1913 

October         9.  1913 


Specifications  of  Document  Number  Page 

GREAT  BRITAIN  (G.  Birch  Crisp  &  Company) 
&  CHINA — Agreement  for  Cancellation  of 
Loan  Agreement  of  August  30th,  1912  (1913/5)    .       .     1034 

CHINA — Agreement  between  Ministry  of  Com- 
munications and  Kiangsu  Railway  Company 
for  Nationalization  of  Shanghai-Fengching 
Railway   (1908/3)     .       .       711 

RUSSIA  &  SWEDEN— Convention  for  Recipro- 
cal Protection  of  Industrial  Property  in 
China    1913/1        .       .      997 

GERMANY— Rules  of  Shantung  Railway  Com- 
pany  (1900/3)    .       .      243 

CHINA — Regulations  for  6%  Domestic  Loan  of 

First  Year  of  Republic  1913/2        .       .       998 

FRANCE  (Banque  de  I'Indo-Chine),  GER- 
MANY (Deutsch-Asiatische  Bank),  GREAT 
BRITAIN  (Hongkong  &  Shanghai  Banking 
Corporation),  UNITED  STATES  (Ameri- 
can Group)  &  CHINA — Exchange  of  Com- 
munications regarding  Hukuang  Railways   . .  (1911/5)     .        .       888 

CHINA — Detailed  Regulations  for  6%  Domestic 

Loan  of   First   Year  of   Republic    (1913/2)     .        .       999 

SWEDEN  &  UNITED  STATES— Exchange  of 
Notes  regarding  Reciprocal  Protection  of  In- 
dustrial  Property  in   China    1913/3         ,       .     1002 

AUSTRIA-HUNGARY  (Arnhold  Karberg  & 
Company)  &  CHINA — Agreements  for  Loans 
of  i2,00a000  and  of  £1,200,000.  and  Agree- 
ments for  Purchase  of  Torpedo-Boat  De- 
stroyers. (Summary,  only,  of  Loan  Agree- 
ments)     ■ 1913/4        .       .     1004 

FRANCE  (Banque  de  ITndo-Chine),  GER- 
MANY (Deutsch-Asiatische  Bank).  GREAT 
BRITAIN  (Hongkong  &  Shanghai  Banking 
Corporation),  JAPAN  (Yokohama  Specie 
Bank),  RUSSIA  (Russo-Asiatic  Bank)  & 
CHINA — Chinese  Government  5%  Reorgani- 
zation Gold  Loan  Agreement  (with  Agree- 
ment  for  Advances,  and  Annexes)    1913/5         .       .     1007 

MONGOLIA  &  RUSSIA— Agreement  for  Kosh- 

Agatch— Kobdo  Telegraph  Line 1913/6        .       .     1038 

JAPAN  &  CHINA— Arrangement  for  Reduction 
of  Duties  on  Goods  transported  by  Antung- 
Mukden    Railway     1913/7        .       .     1039 

GREAT  BRITAIN  (British  &  Chinese  Corpora- 
tion) &  CHINA — Letter  of  Agreement  for 
Advances  on  Canton-Kowloon  Railway (1907/2)     .       .       626 

GREAT  BRITAIN  &  PORTUGAL— Agreement 
for  Regulation  of  Opium  Monopolies  in 
Hongkong   and    Macao    (1912/2)     .        .       944 

BELGIUM  (Societe  Beige  de  Chemins  de  Fer 
en  Chine),  FRANCE  (Societe  Franqaise  de 
Construction  et  d'Exploitation  de  Chemins  de 
Fer  en  Chine)  &  CHINA — Contract  for  the 
Tatungfu-Chengtu   Railway    1913/8        .       .     1042 

FRANCE  (Banque  de  I'lndo-Chine),  GER- 
MANY (Deutsch-Asiatische  Bank).  GREAT 
BRITAIN  (Hongkong  &  Shanghai  Banking 
Corporation),  UNITED  STATES  (Ameri- 
can Group)  &  CHINA — Memoranda  of 
Procedure  under  the  Hukuang  Loan  Agree- 
ment      (1911/5)     .       .       889 

JAPAN  &  CHINA— Exchange  of  Notes  regard- 
ing Construction  of  certain  Railways  in  Man- 
churia     : 1913/9        .       .     1054 

FRANCE  (Banque  Industrielle  de  Chine)  & 
CHINA— Contract  for  5%  Industrial  Gold 
Loan   of   1914    1913/10      .       •     1055 


Date 
October        14,  1913 

October        27,  1913 


October  30,  1913 

November  5,  1913 

November  14,  1913 

December  2,  1913 

December  5,  1913 

December  18,  1913 

December  20,  1913 

December  22,  1913 

December  30,  1913 

December  31,  1913 

January  8.  1914 
January21(?),  1914 

January  21,  1914 

January  23,  1914 


January  30,  1914 

February  10,  1914 

February  14,  1914 

February  14,  1914 


TABLE  OF  CONTENTS  xxxiii 

Specifications  of  Document  Number  Page 

BELGIUM  (Alfred  von  Hellfeld)  &  CHINA— 
Agreement  for  Loan  upon  Bonds  of  8% 
Military  Loan  of  January  8th,  1912 (1913/15)  .  1093 

FRANCE  (Banque  de  I'lndo-Chine),  GER- 
MANY (Deutsch-Asiatische  Bank),  GREAT 
BRITAIN  (Hongkong  &  Shanghai  Banking 
Corporation),  UNITED  STATES  (Ameri- 
can Group)  and  CHINA — Exchange  of  Let- 
ters  regarding  Hunan   Railway    (1911/5)  893 

GREAT   BRITAIN    (British   &   Chinese   Corpo- 
ration) &  CHINA — Letter  of  Agreement  re- 
garding    Shanghai-Nanking     Railway     Land 
,  Bonds (1903/2)    .       .       408 

RUSSIA  &  CHINA — Declaration,  and  Exchange 

of  Notes,   in   regard  to   Outer   Mongolia 1913/11  1066 

GREAT  BRITAIN  (Chinese  Central  Railways) 
&  CHINA — Agreement  for  Pukow-Sinyang 
Railway  Loan   1913/12      .       .     1068 

JAPAN  (Government  Iron  Works,  and  Yoko- 
hama Specie  Bank)  &  CHINA  (Hanyehping 
Coal  and  Iron  Factories  and  Mines  Com- 
pany)— Agreements  for  Loans,  and  Annexes  1913/13       .       .     1077 

FRANCZE  (Banque  Industrielle  de  Chine)  & 
CHINA — Contract  Supplementary  to  the  In- 
dustrial Loan  Contract  of  October  9th,  1913..  (1913/10)  1062 

GREAT  BRITAIN  (Pauling  &  Company)  & 
CHINA — Preliminary  Agreement  for  Shasi- 
ShingA-i  Railway  (1914/7)     .       .1146 

RUSSIA  &  CHINA — Arrangement  regarding 
Junction  of  Russian  and  Chinese  Telegraphs 
at   Irkechtam    1913/14       .       .     1088 

DENAIARK  (Great  Northern  Telegraph  Com- 
pany), GREAT  BRITAIN  (Eastern  Ex- 
tension, Australasia  and  China  Telegraph 
Company,  Ltd.)  &  CHINA— Additional  Arti- 
cle to  Telegraph  Convention  of  1896 (1896/3)  67 

BELGIUM  (Banque  de  Reports  de  Fonds  Pub- 
lics et  de  Depots)  &  CHINA — Contract  for 
Purchase  of  Bonds  of  8%  Military  Loan  of 
January  8th,    1912    1913/15       .        .     1089 

GERMANY  &  CHINA— Exchange  of  Notes  re- 
garding Extensions  of  the  Shantung  Rail- 
way  1913/16       .        .     1094 

CHINA — Mandate  regarding  Opening  of  Certain 

Ports 1914/1         .       .     1097 

CHINA — National  Currency  Law,  and  Regula- 
tions for  Enforcement  thereof   (1911/2)     .  853 

FRANCE     (Banque    Industrielle    de    Chine)     & 

CHINA— Contract  for  Ching-Yu  Railway  . .  1914/2         .       .     1099 

FRANCE  (Banque  de  ITndo-Chine).  GER- 
MANY (Deutsch-Asiatische  Bank),  GREAT 
BRITAIN  (Hongkong  &  Shanghai  Banking 
Corporation),  UNITED  STATES  (Ameri- 
can Group)  &  CHINA — Exchange  of  Letters 
regarding  Redemption  of  Hunan  and  Sze- 
chuan  Railways  (1911/5)     .       .       895 

UNITED  STATES  (American  National  Red 
Cross)  &  CHINA— Huai  River  Conservancy 
Agreement (1916/6)     .       .     1310 

UNITED  STATES  (Standard  Oil  Company  of 
New  York)  &  CHINA— Agreement  for 
Prospecting  in  Chihli  and  Shensi  Provinces.  .   1914/3         .        ,     1109 

GREAT  BRITAIN  (British  &  Chinese  Corpora- 
tion) &  CHINA — Shanghai-Fengching  Rail- 
way Mortgage  Redemption  Agreement (1908/3)     .       .       713 

GREAT  BRITAIN  (British  &  Chinese  Corpora- 
tion) &  CHINA — Agreement  for  Resumption 
of   Shanghai-Fengching  Railway   (1908/3)    .       .       712 


XXXIV 


TABLE  OF  CONTENTS 


Date 

March  2,  1914 

March  9,  1914 

March  31,  1914 


April 

8, 

1914 

May 

20-25, 

1914 

July 

3, 

1914 

July 

9, 

1914 

July 

25, 

1914 

July 

25, 

1914 

August  3,  1914 

August  6,  1914 

August  6,  1914 

August  23,  1914 

September  3,  1914 

September  15,  1914 

September  17,  1914 

September  19,  1914 

September  26,  1914 

September  30,  1914 

September  30,  1914 

November  9,  1914 

November  19,  1914 

December  3,  1914 

December  21,  1914 

December  28,  1914 


Specifications  of  Document  Number  Page 

FRANCE  (Banque  Industrielle  de  Chine)  & 
CHINA — Annexes  1  and  2  to  Industrial  Loan 
Contract  of  October  9th,  1913  (1913/10)  .       .     1064 

UNITED  STATES  (Bethlehem  Steel  Company) 
&  CHINA — Apocryphal  Contract  for  Naval 
Dockyard  and  Fortifications  at  Mamoi (1915/8)     .       .     1236 

GREAT  BRITAIN  (British  &  Chinese  Corpora- 
tion) &  CHINA — Agreement  for  Nanking- 
Hunan    Railway    1914/4        .       .     1113 

FRANCE  &  CHINA — ^Convention  for  Extension 

of  French  Concession  at  Shanghai 1914/5         .       .     1123 

FRANCE,  GERMANY,  GREAT  BRITAIN, 
UNITED  STATES  &  CHINA— Hankow 
Conference  Resolutions  concerning  Materials 
and  Equipment  for  Hukuang  Railways (1911/5)     .        .       897 

GREAT  BRITAIN  &  TIBET— Agreement  in  re- 
gard to  Tibet   (Summary,  only)    (1906/2)     .       .       581 

INTERNATIONAL  &  CHINA— Agreement,  and 
Regulations,  for  the  Liao  River  Conservancy 
Board   1914/6         .       .     1125 

GREAT  BRITAIN  (Pauling  &  Company)  & 
CHINA — Final  Agreement  for  Shasi-Shingyi 
Railway   1914/7        .       .     1130 

GREAT  BRITAIN  (Pauling  &  Company)  & 
CHINA — Supplementary  Agreement  cancel- 
ling Preliminary  Agreement  of  December 
18,   1913,   for  Shasi-Shingyi   Railway    (1914/7)     .       .     1148 

CHINA — Regulations   for  Third  Year  Domestic 

Loan   1914/8        .       .     1150 

CHINA— Regulations     for     Bureau     of     Public 

Loans   (1914/8)     .       .     1152 

CHINA — Mandate  proclaiming  Neutrality  in  the 

European    War    (1917/7)     .       .     1365 

JAPAN— Rescript    making    Declaration    of    War 

against  Germany 1914/9         .       .     1153 

CHINA — Circular     Note     designating    Area     of 

QuaHfied    Neutrality    in    Shantung (1917/7)     .       .     1367 

UNITED  STATES  &  CHINA— Treaty  for  Ad- 
vancement of  Peace 1914/10       .       .     1169 

GREAT  BRITAIN  (Samuel  &  Company)  & 
CHINA — Agreement  for  Hankow  Improve- 
ment Loan 1914/11       .        .     1172 

GREAT  BRITAIN  (British  &  Chinese  Corpo- 
ration) &  CHINA — Agreement  for  Resump- 
tion of  Chekiang  Section  of  Shanghai-Hang- 
chow-Ningpo   Railway    (1908/3)     .        .       715 

FRANCE  &  CHINA— Note  of  Minister  for  For- 
eign Affairs  regarding  Preference  to  French 
Nationals  in  Railway  and  Mining  Enter- 
prises in  Kwangsi  Province  (1895/5)     .       .         34 

MONGOLIA  &  RUSSIA— Agreement  concern- 
ing Railways  in  Mongolia 1914/12  .     1178 

MONGOLIA       &       RUSSIA— Agreement       for 

Monda-Uliassutai  Telegraph  Concession   ....  1914/13       .       .     1179 

GREAT  BRITAIN  (Pekin  Syndicate)  & 
CHINA  (Honan  Province,  and  Chung  Yuan 
Companv) — Agreement  regarding  Coal  Min- 
ing in  Honan  Province   (1915/6)     .       .     1210 

JAPAN   (Military  Administration  of  Kiaochow) 

—Regulations  of  Militarv  Administration  ...   (1914/9)     .       .     1159 

GREAT  BRITAIN  &  RUSSIA— Agreement  re- 
garding Municipal  Administration  and  Taxa- 
tion in  Zone  of  Chinese  Eastern  Railway  ...  1914/14  .     1181 

CHINA— Regulations  for  Increase  of  Amount  of 

Third-Year  Domestic  Loan   (1914/8)     .       .     1152 

JAPAN  (Military  Administration  of  Kiaochow) 
— Provisional  Customs  Regulations  for 
Tsingtao (1915/12)  .       .     1247 


Date 
January   26,  1915 


January   26,  1915 


February   9,  1915 

February   18,  1915 
March     4,  1915 


April 


May 


May 


13,  1915 


1,  1915 


7,  1915 


May 

13, 

1915 

May 

25, 

1915 

May 

25, 

1915 

May 

25, 

1915 

May 

25, 

1915 

June 

1, 

1915 

June 

7, 

1915 

June 

12, 

1915 

July 

27, 

1915 

August 

6, 

1915 

October 

19, 

1915 

October  27,  1915 

November  6,  1915 

December  21,   1915 

January  5,  1916 

January  24,  1916 

February  8,  1916 


March 


10,  1916 


TABLE  OF  CONTENTS  xxxv 

Specifications  of  Document  Number  Page 
JAPAN   (Military  Administration  of  Kiaochow) 
— Military    Notification    regarding    Lease    of 
Private    Property   in    Zone   of    Alilitary   Ad- 
ministration     (1914/9)    .       .     1159 

JAPAN  (Military  Administration  of  Kiaochow) 
— ^Regulations  for  Lease  of  Land  in  Japanese 

Temporary  Settlement  in  Tsingtao (1914/9)     .       .     1160 

CHINA — Regulations  of  Fourth  Year  Domestic 

Loan   1915/1        .       .     1187 

CHILE  &  CHINA— Treaty  of  Amity  1915/2        .       .     1190 

RUSSIA  &  CHINA — Agreement  concerning  In- 
terpretation of  Dutv-Free  List  in  St.  Peters- 
burg Treaty  of  1881 1915/3         .       .1191 

FRANCE  (Indo-China)  &  CHINA— Arrange- 
ment for  Maintenance  of  Order  on  Sino- 
Annamite  Frontier  (v^rith  accompanying  Ex- 
change  of    JNotes)     1915/4        .       .     1196 

GREAT  BRITAIN  (Opium  Merchants'  Combines 
of  Shanghai  and  Hongkong)  &  CHINA — 
Agreement  relating  to  Suppression  of  Illicit 
Sales  of  Native  Opium  in  Kiangsu,  Kiangsi 
and  Kwangtung  Provinces   1915/5         .       ,     1200 

GREAT  BRITAIN  (Pekin  Syndicate)  &  CHINA 
(Honan  Province,  and  Chung  Yuan  Com- 
pany)— Final  Agreement,  and  Regulations,  in 
regard  to  Coal  Mining  in  Honan  Province..  1915/6        .       .     1203 

CHINA — Mandate  concerning  Non-Alienation  of 

Coasts  of  China  1915/7         .       .     1215 

JAPAN   &  CHINA— Treaty,  and  Exchanges  of 

Notes,  respecting  the  Province  of  Shantung.  .  1915/8        .       .     1216 

JAPAN  AND  CHINA— Treaty,  and  Exchanges 
of  Notes,  respecting  South  Manchuria  and 
Eastern  Inner  Mongolia    1915/8        .       .     1220 

JAPAN  &  CHINA— Exchange  of  Notes  respect- 
ing  Hanvehping   Matter    1915/8        .       .     1229 

JAPAN  &  CHINA— Exchange  of  Notes  respect- 
ing Fukien   Question    1915/8        .       .     1230 

NETHERLANDS  &  CHINA— Treaty  providing 

for   Obligatory   Arbitration    1915/9        .       .     1237 

RUSSIA,    MONGOLIA    &    CHINA— Tripartite 

Agreement  regarding  Outer  Mongolia  1915/10      .       .     1239 

RUSSIA    &    CHINA— Protocol    of    Delimitation 

along   River    Horgos    1915/11       .        .     1245 

RUSSIA  &  CHINA— Regulations  for  Refund  of 

Duties  under  Agreement  of  March  4th,  1915..   (1915/3)     .       .     1195 

JAPAN   &    CHINA— Agreement    for   Reopening 

of  Maritime  Customs  Office  at  Tsingtao... \  1915/12       .       .     1246 

INTERNATIONAL  &  CHINA— Supplementary 
Article  to  Huangpu  Conservancy  Agreement 
of  April  9th,  1912   (1912/6)'    .       .      956 

CHINA — 'Rescript  regarding  Opening  of  Cus- 
toms House  at  Lungkow   (1914/1)     .       .     1098 

RUSSIA    &    CHINA — Arrangement    concerning 

Situation  of  Houlounbouir   (Hailar)    1915/13       .        .     1247 

JAPAN  (Yokohama  Specie  Bank)  &  CHINA— 
Agreement  for  Ssupingkai-Chengchiatun  Rail- 
way  1915/14      .       .     1249 

INTERNATIONAL  &  CHINA— Additional 
(10th)  Article  of  Arms  Regulations  of  May 
30th,  1908   (1908/10)  .       .       740 

RUSSIA,  MONGOLIA  &  CHINA— Tripartite 
Agreement  concerning  Outer  Mongolian  Tele- 
graph   Line    ' 1916/1         .       .     1259 

GREAT  BRITAIN  (Samuel  &  Company)  & 
CHINA — Agreement  for  Extension  of  Op- 
tion under  Hankow  Improvement  Loan 
Agreement.      (Note,  onlv) (1914/11).       .     1177 

CHINA — Regulations    for   Fifth   Year   Domestic 

Loan 1916/2        .       .     1266 


XXXVl 


TABLE  OF  CONTENTS 


Date 

March  27,  1916 

April  7,  1916 

April  19,  1916 


May 


May 


May 


13,  1916 


17,  1916 


19.  1916 


May  21,  1916 

June  9,  1916 


June 


July 

July 
July 

August 


9,  1916 


3,  1916 

3,  1916 
11,  1916 

1,  1916 


August  9,  1916 

September  29,  1916 

October  16,  1916 

November  16,  1916 

January  20,  1917 

January  22,  1917 


January        28,  1917 


Specifications  of  Document  Number  Page 

RUSSIA     (Russo-Asiatic    Bank)     &    CHINA— 

Agreement  for  Pin-Hei  Railway   1916/3         .       .     1267 

UNITED  STATES  (Lee,  Higginson  &  Com- 
pany) &  CHINA— Agreement  for  a  Loan  .  . .   1916/4        .       .     1279 

UNITED  STATES  (American  International 
Corporation)  &  CHINA — Agreement  for 
South  Grand  Canal  of  Shantung  Province 
7%  Improvement  Gold  Loan   1916/5         .       .     1287 

UNITED  STATES  (American  International 
Corporation)  &  CHINA — Agreement  for 
Huai  River  Conservancy  Grand  Canal  Im- 
provement 7%  Gold  Loan  of  1916  1916/6        .       .     1304 

UNITED  STATES  (Siems  &  Carey)  &  CHINA 
— Agreement,  with  Supplement  and  Sup- 
plementary Agreement,  for  Railway  Con- 
struction     1916/7        .       .     1313 

UNITED  STATES  &  CHINA— Exchange  of 
Notes  extending  Time  for  Appointment  of 
Commission  under  Treaty  of  September  15th, 
1914  (1914/10)  .       .     1171 

RUSSIA  &  CHINA— Agreement  for  Suppression 
of  Liquor  Traffic  in  certain  Districts  of  Man- 
churia    1916/8        .       .     1324 

JAPAN  (Bank  of  Chosen)  &  CHINA  (Feng- 
tien  Province) — Agreement  for  Loan  of  Yen 
1,000,000  for  Adjustment  of  Reserves  of 
Chinese  Banks  in  Mukden (1918/5)     .        .     1418 

JAPAN  (Bank  of  Chosen)  &  CHINA  (Feng- 
tien  Province) — Agreement  for  Loan  of  Yen 
2,000,000  for  Redemption  of  Note  Issues  of 
Chinese  Banks  in  Mukden  (Reference,  only).   (1918/5)     .        .     1418 

JAPAN    &   RUSSIA— Convention    in    regard   to 

Cooperation  in  the  Far  East  1916/9         .        .     1327 

JAPAN  &  RUSSIA— Alleged  Secret  Treaty  ....  (1916/9)     .       .     1328 

UNITED    STATES    &    CHINA— Parcels    Post 

Convention    1916/10       .        .     1329 

JAPAN  (Bank  of  Chosen)  &  CHINA  (Feng- 
tien  Province) — Agreement  for  Loan  of  Yen 
2,000,000  for  Readjustment  of  Reserves  of 
Chinese  Banks  in  Mukden (1918/5)     .       .     1419 

UNITED  STATES  (International  Banking  Cor- 
poration) &  CHINA — Agreement  for  Financ- 
ing Purchases  of  Silver  Bullion  1916/11       .        .     1333 

UNITED  STATES  (Siems  &  Carey)  &  CHINA 
— Supplementary  Agreement  amending  Rail- 
way Agreement  of  May  17th.  1916   (1916/7)     .       .     1321 

JAPAN  (Okura  &  Company)  &  CHINA  (Feng- 
tien  Province) — Contract  for  a  Loan  of  Yen 
1,500,000  1916/12      .       .     1335 

UNITED  STATES  (Continental  &  Commercial 
Trust  &  Savings  Bank)  &  CHINA— Agree- 
ment for  Loan  of  U.  S.  Gold  $5,000.000....  1916/13       .       .     1337 

JAPAN  (Industrial  Development  Bank.  Bank 
of  Taiwan,  and  Bank  of  Chosen)  &  CHINA 
(Bank  of  Communications) — Agreement  for 
Loan  of  Yen  5,000.000   1917/1        .       .     1345 

JAPAN  &  CHINA— Exchanges  of  Notes  re- 
garding Settlement  of  Chengchiatun  Affair, 
Employment  of  Japanese  Military  Advisers 
and  Instructors,  Establishment  of  Japanese 
Police  Stations  in  South  Manchuria  and 
Eastern  Inner  Mongolia,  and  Withdrawal  of 
Japanese  Troops  from  between  Ssupingkai 
and   Chengchiatun    1917/2         .       .     1347 

GREAT  BRITAIN  (Shanghai  Opium  Combine) 
&  CHINA — Agreement  for  Purchase  of 
Stock  of  Indian  Opium  remaining  in  Hands 
of   Combine    ^ 1917/3        .       .     1352 


Date 
February   5,  1917 


February  20,  1917 

February  21,  1917 

February  24,  1917 

March  1,  1917 

March  14,  1917 

March  26,  1917 

March  28,  1917 


March 
April 

May 


July 


July 


28,  1917 
2,  1917 

14,  1917 


May  24,  1917 

June  30,  1917 


16,  1917 


31,  1917 


July 

31, 

1917 

July 

31, 

1917 

July 

31, 

1917 

August 

7, 

1917 

August 

14, 

1917 

August 

14, 

1917 

August 

14, 

1917 

TABLE  OF  CONTENTS 

Specifications  of  Document  Number 

UNITED  STATES  (Standard  Oil  Company  of 
New  York)  &  CHINA— Agreement  settling 
Accounts  under  Prospecting  Agreement  of 
1914  (1914/3) 

JAPAN  &  RUSSIA— Understanding  in  regard  to 
ultimate  Disposal  of  German  Rights  in 
Shantung,  etc.     (Reference,  only) (1914/9) 

GREAT  BRITAIN  &  JAPAN— Exchange  of 
Notes  regarding  ultimate  Disposal  of  German 
Rights  in  Shantung,  etc.     (Reference,  only) . .   (1914/9) 

JAPAN  &  CHINA — Regulations  concerning 
Transportation  of  Salt  by  South  Manchuria 
Railway    Company    1917/4 

FRANCE  &  JAPAN— Understanding  in  regard 
to  ultimate  Disposal  of  German  Rights  in 
Shantung,  etc (1914/9) 

CHINA — Mandate     and     Proclamation     severing 

Relations  with  Germany   (1917/7) 

JAPAN  &  CHINA— Agreement  for  Provisional 
Procedure  in  Postal  and  Telegraphic  Opera- 
tions in  Kiaochow  and  along  Shantung  Rail- 
way    1917/5 

ITALY  &  JAPAN— Understanding  in  regard  to 
ultimate  Disposal  of  German  Rights  in 
Shantung,  etc.     (Reference,  only) (1914/9) 

CHINA — Rules  of  Procedure  governing  As- 
sumption of  Control  of  German  Concessions  (1917/7) 

JAPAN  (Bank  of  Taiwan)  &  CHINA  (Kwang- 
tung  Province) — Agreement  for  Loan  to  Can- 
ton Cement  Works 1917/6 

UNITED  STATES  (Continental  &  Commercial 
Trust  &  Savings  Bank)  &  CHINA— Sup- 
plementary Agreement  regarding  Securities 
under  Loan  Agreement  of  November  16th, 
1916  (1916/13) 

JAPAN  (Military  Administration  of  Kiaochow) 
— Regulations  relative  to  Prohibiting  Enemy 
Trade    (1914/9) 

UNITED  STATES  (Siems  &  Carey)  &  CHINA 
— Arrangement  for  Advance  under  Railway 
Contract  of  May  17,  1916,  and  Supplementary 
Agreement  of  September  29th,  1916.  (Refer- 
ence, only)    (1916/7) 

JAPAN  (Japanese  Chamber  of  Commerce,  Muk- 
den) &  CHINA  (Chinese  Chamber  of  Com- 
merce, IMukden) — Agreement  regarding  Re- 
demption of  Chinese  Small-Coin  Banknotes  .  (1918/5) 

JAPAN — ^Imperial  Ordinance  regarding  Organi- 
zation of  South  Manchuria  Railway  Com- 
pany      (1905/18) 

JAPAN — Imperial  Ordinance  regarding  Organi- 
zation of  Kwantung  Government  General  ...  (1905/18) 

JAPAN — Imperial  Ordinance  regarding  Organi- 
zation of  Foreign  Office (1905/18) 

JAPAN — Imperial  Ordinance  regarding  Ap- 
pointment of  Consular  Officers  in  Man- 
churia    (1905/18) 

RUSSIA  &  OTHER  POWERS— Agreement  re- 
garding Passport  Control  in  Chinese  Eastern 
Railway  Zone  during  the  War (1896/5) 

CHINA — Presidential  Mandate  and  Proclamation 
declaring  War  against  Germany  and  Austria- 
Hungary    1917/7 

CHINA — Regulations    for   Treatment   of   Enemy 

Subjects  (1917/7) 

CHINA — Provisional  Regulations  governing 
Trial  of  Civil  and  Criminal  Cases  of  Enemy 
Subjects  (1917/7) 


XXXVll 

Page 

1111 

1169 

1167 

1358 

1169 
1369 

1359 

1169 
1370 

1360 

1343 
1161 

1323 

1420 

563 
569 
569 

569 

90 

1361 
1371 

1372 


XXXVlll 


TABLE  OF  CONTEXTS 


Date 
August         14,  1917 


August  17,  1917 

August  28,  1917 

September  8,  1917 

September  28,  1917 

October  1,  1917 

October  1,  1917 

October  1,  1917 

October  1,  1917 

October  1,  1917 

October  12,  1917 

October  24,  1917 

October  26,  1917 

October  30,  1917 

November  2,  1917 

November  20,  1917 

November  22,  1917 

January  6,  1918 

January  14,  1918 


Specifications  of  Document  Number  Page 

CHINA — Regulations  for  Bureaux  of  Municipal 
Administration  of  German  Concessions  in 
Tientsin  and  Hankow  and  Austrian  Con- 
cession in  Tientsin (1917/7)     .       .     1372 

CHINA— Rules  and  Regulations  governing  Dis- 
position of  Enemy  Subjects;  and  Matters  to 
be  attended  to  when  granting  Permission  to 
Enemy  Subjects  to  carry  on  Business  in  Pur- 
suance thereof (1917/7)    .       .     1374 

JAPAN  (Yokohama  Specie  Bank)  &  CHINA— 
Agreement  for  Advance  of  Yen  10,000,000 
upon  proposed  Supplementary  Reorganiza- 
tion Loan   1917/8        .       .     1382 

BELGIUM,  FRANCE,  GREAT  BRITAIN, 
ITALY,  JAPAN,  PORTUGAL  &  RUSSIA 
— Collective  Note  regarding  Advantages  to 
be   accorded  to    China (1917/7)     .       .     1375 

JAPAN  (Industrial  Development  Bank,  Bank  of 
Taiwan,  and  Bank  of  Chosen)  &  CHINA 
(Bank  of  Communications) — Agreement  for 
Supplementary  Loan  of  Yen  20,000,000  1917/9        .       .     1387 

JAPAN — Imperial  Ordinance  establishing  Regu- 
lations for  Division  of  Civil  Administration 
in  Tsingtao  Garrison (1904/9)     .       .     1162 

JAPAN  (Tsingtao  Garrison) — Alilitary  Notifica- 
tion prescribing  Names,  Localities  and  Dis- 
tricts under  Civil  Administration  of  Tsingtao 
Garrison (1914/9)     .       .     1163 

JAPAN  (Tsingtao  Garrison)— Military  Ordi- 
nance establishing  Regulations  for  Appor- 
tionment of  Duties  in  Department  of  Civil 
Administration  of  Tsingtao  Army  Head- 
quarters     (1914/9)    .       .     1164 

JAPAN  ("Tsingtao  Garrison)— Military  Ordi- 
nance establishing  Regulations  for  Appor- 
tionment of  Business  in  Local  Civil  Ad- 
ministration Offices   (1914/9)    .       .     1166 

CHINA— Regulations     for     Fourth     Short-term 

Loan  of  Peking-Suiyuan  Railway   1917/10       .        .     1389 

JAPAN  (South  Manchuria  Railway  Company)  & 
CHINA — Agreement  for  Kirin-Changchun 
Railway  Loan    1917/11       .       .     1390 

UNITED  STATES  &  CHINA— Protocol  re- 
garding Procedure  in  American  Cases  against 
Chinese  Defendants  in  Tientsin  Consular 
District (1903/5)    .       .      450 

GREAT  BRITAIN  &  CHINA— Agreement  for 
Chartering  of  Interned  Enemy  Vessels  for 
Service  of  Allies   (1917/7)     .       .     1375 

CHINA  —  Presidential  Mandates  promulgating 
Prize  Court  Rules  and  Regulations  govern- 
ing Captures  at  Sea  (Reference,  only) (1917/7)     .       .     1377 

JAPAN  &'  UNITED  STATES— Agreement  re- 
garding ^lutual  Interests  relating  to  China  .  .  1917/12       .       .     1394 

UNITED  STATES  (American  International 
Corporation)  &  CHINA— Agreement  for 
Chinese  Government  Grand  Canal  Improve- 
ment 7  per  cent  Gold  Loan (1916/5)     .       .     1297 

JAPAN  (Industrial  Bank  of  Japan,  Smo-Japa- 
ncse  Industrial  Development  Co.,  etc.)  & 
CHINA— .Agreement  for  Loan  for  Flood 
Relief  in   Chihli 1917/13      .       .     1397 

JAPAN  (Yokohama  Specie  Bank)  &  CHINA— 
Agreement  for  Second  Advance  upon  pro- 
posed Reorganization  Loan   1918/1         .       .     1400 

JAPAN  (Tsingtao  Garrison)— Military  Ordi- 
nance announcing  Regulations  for  Control  of 
Foreigners    (1914/9)    .       .1166 


Date 
January        18,  1918 


January  29,  1918 

January  (?),  1918 

February  21,  1918 

March  20,  1918 

March  25,  1918 

April  22,  1918 


April 


April 


June 


27,  1918 


30,  1918 


May 

16,  1918 

I\Iay 

17,  1918 

May 

19,  1918 

11,  1918 


June 

13, 

1918 

June 

18, 

1918 

July 

1, 

1918 

July 

19, 

1918 

July  31,  1918 

August  2,  1918 

August  10,  1918 

August  27,  1918 


TABLE  OF  CONTENTS  xxxix 

Specifications  of  Document  Number  Page 

FRANCE  (Banque  de  I'Indo-Chine),  GREAT 
BRITAIN  (Hongkong  &  Shanghai  Banking 
Corporation),  JAPAN  (Yokohama  Specie 
Bank),  RUSSIA  (Russo-Asiatic  Bank)  & 
CHINA — Agreement  for  Loan  for  Plague 
Prevention    1918/2         .       .     1405 

JAPAN  &  CHINA— Exchange  of  Notes  regard- 
ing Exemption  of  Chinese  Citizens  from 
Japanese  Passport  Requirements    1918/3        .       .     1406 

JAPAN  (Taihei  Kumiai)  &  CHINA— Agree- 
ment for  Supply  of  Arms (1918/4)  1415 

JAPAN  (Mitsui  Bussan  Kaisha)  &  CHINA— 
Contract  for  Loan  for  Establishment  of 
Wireless  Telegraph   Stations App.  F.      .       .     1519 

JAPAN      (Kwantung     Government     General)  — 

Regulations  controlling  Foreigners   (1905/18)  .       .       572 

JAPAN  &  CHINA— Exchanges  of  Notes  in  re- 
gard to  Military  Cooperation 1918/4        .       .     1407 

JAPAN  (Bank  of  Chosen)  &  CHINA  (Feng- 
tien  Provincial  Government) — Agreement  fo- 
Loan  for  Readjustment  of  Reserves  of 
Provincial  Government  Bank  1918/5         .        .     1416 

CHINA — Regnlations  governing  Issue  of  Short- 
Term  Loan  Bonds ;  and  Regulations  gov- 
erning 6  per  cent  Internal  Loan  of  7th  Year 
of   Republic    1918/6        .       .     1421 

JAPAN — (Exchange  Bank  of  China,  in  associa- 
tion with  Industrial  Bank  of  Japan,  Bank 
of  Chosen,  and  Bank  of  Taiwan)  &  CHINA 
— Agreement  for  Loan  for  Improvement  of 
Telegraphs    1918/7        .       .     1424 

JAPAN  &  CHINA— Agreement  regarding  Co- 
operation of  Japanese  and  Chinese  Armies..  (1918/4)     .       .     1411 

CHINA — Enemy   Trading   Act,   and   Regulations 

for  Enforcement  thereof    (1917/7)     .       .     1379 

JAPAN  &  CHINA— Agreement  regarding  Co- 
operation of  Japanese  and  Chinese  Navies, 
and  Explanatory  Notes   (1918/4)  1412 

GREAT  BRITAIN  (Shanghai  Opium  Combine) 
&  CHINA — Agreement  supplementary  to 
that  of  January  28th,  1917,  for  Purchase 
of  Opium  Stocks   (1917/3)    .       .     1355 

SWITZERLAND  &  CHINA— Treaty  of  Amity 

(with  attached  Declaration) 1918/8         .  1429 

JAPAN  (Industrial  Bank  of  Japan,  Bank  of 
Chosen,  and  Bank  of  Taiwan)  &  CHINA — 
Preliminary  Agreement  for  Kirin-Hueining 
Railway  Loan   1918/9  1430 

CHINA— Regulations      for      Fifth      Short-Term 

Loan  of  Peking-Suiyuan  Railway 1918/10  1433 

JAPAN  (Yokohama  Specie  Bank)  &  CHINA— 
Agreement  for  Renewal  of  Chinese  Govern- 
ment Treasury  Bills  securing  First  Advance 
upon    proposed    Supplementary    Reorganiza- 

X .  J'°"  ^°^"    (1917/8)    .       .     1385 

JAPAN  (Taihei  Kumiai)  &  CHINA— Agreement 

for  Purchase  of  Arms (1918/4)     .       .     1414 

JAPAN  (Exchange  Bank  of  China,  in  associa- 
tion with  Industrial  Bank  of  Japan,  Bank  of 
Chosen  and  Bank  of  Taiwan)  &  CHINA— 
Agreement  for  Loan  for  Gold  Alining  and 
Forestry  in  Heilung-kiang  and  Kirin 1918/11       .        .     1434 

CHINA — Regulations  governing  Issue  of  Gold 
Currency  Notes,  and  Rules  governing  Or- 
ganization  of   Currency   Bureau (1911/2)     .        .       854 

GREAT  BRITAIN  (Marconi's  Wireless  Tele- 
graph Company)  &  CHINA — Agreement  for 
Loan  in  connection  with  Purchase  of  Wire- 
less Telephone  Equipment 1918/12       .       .     1440 


xl 


TABLE  OF  CONTENTS 


Date 
September     6,  1918 

September    24,  1918 


September  24,  1918 

September  24,  1918 

September  28,  1918 

September  28,  1918 

September  28,  1918 

October  9,  1918 

Dec.     3   &   4,  1918 

December  19,  1918 

January  9,  1919 

January  26,  1919 

February  5,  1919 

March  1,  1919 

April  12,  1919 

May  24,  1919 


June 


28,  1919 


September    10,  1919 


Specifications  of  Document  Number  Page 

JAPAN    &    CHINA— Supplement    to     Military 

Agreement  of  May  16,  1918 (1918/4)     .       .     1413 

JAPAN  &  CHINA— Exchange  of  Notes  embody- 
ing   Arrangement    concerning    Questions    in 

Shantung  1918/13      .       .     1445 

JAPAN  &  CHINA— Exchange  of  Notes  regard- 
ing Four  Railways  in  Manchuria  and  Mon- 
golia  (1918/15).       .     1450 

JAPAN  &  CHINA— Exchange  of  Notes  regard- 
ing Extensions  of  Shantung  Railway (1918/16)  .       .     1452 

JAPAN  (Bank  of  Chosen,  Industrial  Bank  of 
Japan  and  Bank  of  Taiwan)  &  CHINA — 
Contract  for  Loan  for  Purposes  of  War  Par- 
ticipation  1918/14      .       .     1446 

JAPAN  (Industrial  Bank  of  Japan,  Bank  of 
Taiwan  and  Bank  of  Chosen)  &  CHINA— 
Preliminary  Agreement  for  Loan  for  Rail- 
ways in  Manchuria  and  Mongolia 1918/15       .       .     1448 

JAPAN  (Industrial  Bank  of  Japan,  Bank  of 
Chosen  and  Bank  of  Taiwan)  &  CHINA-- 
Preliminary  Agreement  for  Loan  for  Tsi- 
nanfu-Shuntefu  and  Kaomi-Hsuchow  Ex- 
tensions of  Shantung  Railway 1918/16      .       .     1450 

GREAT    BRITAIN    (Marconi's   Wireless    Tele- 
graph Company)  &  CHINA — Agreement  for 
Establishment   of  Wireless   Telegraph   Com- 
munications between  Kashgar  and  Sianfu...  1918/17      .       .     1452 
CHINA  —  Presidential       Mandates      concerning 

Burning  of  Opium   Stocks (1917/3)     .       .     1357 

INTERNATIONAL  &  CHINA— Revised  Im- 
port Tariff  and  Rules 1918/18      .        .     1456 

FRANCE,  GREAT  BRITAIN,  ITALY,  JAPAN, 
RUSSIA,  UNITED  STATES  &  CHINA— 
Agreement  regarding  Inter-Allied  Supervi- 
sion of  Siberian  Railway  System (1896/5)     .       .         82 

CHINA — Regulations  for  Office  for  Repatriation 
of      Enemy      Subjects,      Administration      of 

Enemy  Property,  etc.     (Reference,  only) (1917/7)     .       .     1377 

JAPAN     &     CHINA— Supplement     to     Military 

Agreemeiit  of  May  16,  1918 (1918/4)    .       .     1414 

JAPAN  &  CHINA— Supplement  to  Naval  Agree- 
ment of  May  19,  1918 (1918/4)    .       .     1414 

JAPAN — Ordinance    regarding    Organization    of 

Government  of  Kwantung   (1905/18)  .       ,       569 

GREAT  BRITAIN  (Marconi's  Wireless  Tele- 
graph Company)  &  CHINA— Agreement  for 
Chinese  National  Wireless  Telegraph  Com- 
pany     (1918/12)  .       .     1442 

BELGIUM.  BOLIVIA,  BRAZIL,  CUBA, 
CZECHO    -    SLOVAKIA,  ECUADOR, 

FRANCE,  GERMANY,  GREAT  BRITAIN, 
GREECE,  GUATEMALA,  HAITI,  HED- 
JAZ,  HONDURAS,  ITALY,  JAPAN,  LI- 
BERIA, NICARAGUA.  PANAMA,  PERU, 
POLAND,  PORTUGAL,  ROUMANIA, 
SERB-CROAT-SLOVENE  STATE,  SIAM, 
UNITED  STATES  &  URUGUAY— Treaty 
of    Peace    between    Allied    and    Associated 

Powers  and  Germany   (Extracts,  only) 1919/1         .       .     1485 

AUSTRIA,  BELGIUM,  BOLIVIA,  BRAZIL, 
CUBA,  CZECHO-SLOVAKIA,  ECUADOR, 
FRANCE.  GREAT  BRITAIN,  GREECE, 
GUATEMALA,  HAITI,  HEDJAZ,  HON- 
DURAS. ITALY.  JAPAN,  LIBERIA, 
NICARAGUA.  PANAMA,  PERU.  PO- 
LAND, PORTUGAL,  ROUMANIA,  SERB- 
CROAT-SLOVENE  STATE,  SIAM, 
UNITED  STATES,  URUGUAY  &  CHINA 


Date 


September    15,  1919 


TABLE  OF  CONTENTS  xli 

Specifications  of  Document                  Number  Page 
— Treaty  of  Peace  between  Allied  and  Asso- 
ciated Powers  and  Austria  (Reference,  only)  (1919/1)  .       .     1485 
CHINA — Presidential    Mandate    declaring   at   an 

End  the  State  of  War  with  Germany (1917/7)  .       .     1381 


APPENDICES. 

List  of  Treaty  Ports  and  Ports  Voluntarily  Opened  to  Trade  App. 

Regulations  governing  Organization  of  Chinese  Government  Railways, 

and  of  Peking-Mukden  Railway  Administration   App. 

Tables  of  Cost  of  Operation  (for  1915)  of  Various  Lines  of  Chinese 

Government  Railways,  and  Average  Costs  per  Mile App. 

Act  establishing  the  United  States  Court  for  China App. 

Chinese  Government  Regulations  concerning  Mining  of  Iron,  Novem- 
ber 25,  1915,  and  February  12,  1918 App. 

Mitsui  Bussan  Kaisha  Contract  for  Wireless  Telegraph  Loan,  February 
21,  1918   App. 

Protocols  regarding  Duration  of  Treaty  of  1874  with  Peru,  and 
Chinese  Immigration  into  Peru,  August,  1909 App. 


Page 
1507 

1509 

1513 
1516 

1518 

1519 

1523 


Indexes 


1527 


LIST  OF  MAPS  AND  PLAN . 

Map  of  China,  showing  Railways Frontispiece,  Vol.  I 

Map  of  the  Railways  of  North  China "                "II 

Map  of  Eastern  Shantung,  showing  Kiaochow  and  Weihaiwei  Leased 

Territories           .  _ Opposite  page  114 

Map  of  Liaotung  Peninsula,  showing  Kwantung  Leased  Territory       .  "            "     119 

Map  of  Kuangchouwan  and  Leichow  Peninsula "             "      128 

Map  of  Hongkong  Extension "             "      130 

Plan  of  Boundaries  of  Legation  Quarter  at  Peking ,        "            "     298 


LIST  OF  ABBREVIATIONS. 

Am.  Int.  Law  Journal The  American  Journal  of  International  Law,  published 

quarterly  for  the  American  Society  of  International 
Law. 

B.   and  F.   State   Papers British  and  Foreign   State  Papers. 

Bulletin    of    Laws Bulletin    of    Laws    and    Ordinances    of    the    (Russian) 

Government  {Sobranie  Ucakonenii  i  Rasporiajcnii 
Pravifelstva). 

Charignon   Lcs  chemins  de  fer  chinois,  par  A.  J.   H.   Charignon 

(Pekin,  1914). 

China,  No.  —    (year) British    Parliamentary    Papers    on    China,    of    number 

and  year   indicated. 

Chung  Htia  Fa  Kuci  Ta  Ch'uan Compilation   of   the   Lazvs   of   China,   together    with    a 

Collection  of  the  Treaties  with  Foreign  Countries 
(Shanghai,  1913).     This  compilation  is  not  official. 

Collins    Mineral   Enterprise   in    China,   by    William    F.    Collins 

(London,  Heinemann,  1918). 

Customs  Treaties,  Conventions,  etc.,  between  China  and  Foreign 

States,  published  by  order  of  the  Inspector  General 
of   Customs    (second   edition,    Shanghai,    1917). 

Doc.    Dipt.,    Chine French   Foreign  Office  Yellow  Books  on   China. 

F.    E.   Review The     Far     Eastern     Review,     published     monthly     at 

Shanghai. 

For.  Rel Foreign  Relations  of  the  United  States,  published  an- 
nually under  the  authority  of  the  Secretary  of  State. 

Izviestia   Review  of  the   C Russian)   Ministry  for  Foreign  Affairs 

(Icviestia  Ministerstva  Inostrannuikh  Did),  bi- 
monthly  publication   of   the   Russian   Foreign    Office. 

Hertslet   Hertslct's  China  Treaties:  Treaties,  etc.,  between  Great 

Britain  and  China,  and  between  China  and  Foreign 
Powers,  etc.   (3rd  edition,  London,  1908). 

Hsuan  Tung  Tiao   Yueh Treaties,  Conventions,  etc.,  between  China  and  Foreign 

States:  Hsuan  Tung  Period,  edited  by  C.  P.  Hu 
(Peking,  1913). 

Kent  Railway  Enterprise  in  China,  by  Percy  H.  Kent  (Lon- 
don, "1908). 

Malloy    Treaties,  Conventions,  etc.,  betzveen  the   United  States 

and  Other  Powers,  1776-1909,  edited  by  William  AI. 
Malloy  (Washington,  Government  Printing  Office, 
1909). 

Official   Documents    Official  Documents  relating  to  the   War   (for  the  year 

1917)    (Peking,  Ministry  of  Foreign  Affairs,  1918). 

Recueil  Recueil     des     Documents     Diplomatiqucs     concemant 

r Extreme-Orient,  1894-1905,  published  by  the  Rus- 
sian Ministry  for  Foreign  Affairs  (St.  Petersburg, 
1905). 

Rockhill    Treaties  and  Conventions  with  or  concerning  China  and 

Korea,  1895-1904,  edited  by  W.  W.  Rockhill  (Wash- 
ington, Government  Printing  Office,  1904). 

Shina  Kankei  Tokushu  Joyaku  Isan. Compilation  of  Special  Treaties  relating  to  China,  com- 
piled by  the  Research  Committee  of  the  Societv  of 
Common   Language  of  Eastern  Asia   (Tokyo,  1917). 

Sobranie    See  Bulletin  of  Laws. 

Soglashenia    Agreements   between    Russia   and    China    in    regard   to 

Railways,  Posts  and  Telegraphs,  and  Customs 
(Soglashenia  mcjdu  Rossiei  i  Kitaem  po  Voprosam 
J eli-ezno-dorojnuim,  Pochtovo-telegrafnuim  i  Tamo- 
jennuiin),  published  by  the  Russian  INlinistry  for  For- 
eign Affairs  as  a  Supplement  to  Volumes  III  and  IV 
of  the  Izviestia  (cited  above)  for  1916. 
xlv 


j^j  LIST  OF  ABBREVIATIONS 

T-     •.'       *   r^„.,^t,iin„c  Traites    et    Conventions   entre   l' Empire    dti   Japan    et 

Traites   et   Conventions Tes   Puissances    Etrangeres    (Ministere    des    Affaires 

Etrangeres;  Tokyo,  Maruya  &  Co.,  publishers,  1908). 
rp  .The  Legal  Obligations  arising  out  of  Treaty  Relations 

^  ^'^^     between  China  and  Other  States,  by  Min-ch'ien  T.  Z. 

Tyau,  LL.D.   (Shanghai,  Commercial  Press,  1917). 
Tr/^„^  ..Raikvay    Loan    Agreements    of    China,    compiled    by 

"""^    Ching-Chun    Wang,    Ph.D.,    and    Others     (Privately 

printed  by  the  Railway  Association,  Pekmg,  1916). 

V.nr  Rank  The   China  Year  Book,  by   H.   G.  W.  Woodhead  and 

^""^  ^'""'   H.  T.  Montague  Bell  (London,  1912,  1913,  1914,  and 

1916). 


NUMBER  1894/1. 

GREAT  BRITAIN  AND  CHINA. 

Convention  giving  effect  to  Article  3  of  the  Convention  of  July  24,  1886,  relative 
to  Biirmah  and  Thibet^— March  1,  1894. 

Her  Majesty  the  Queen  of  the  United  Kingdom  of  Great  Britain  and  Ire- 
land, Empress  of  India,  and  His  Majesty  the  Emperor  of  China,  being  sincerely 
desirous  of  consolidating  the  relations  of  friendship  and  good  neighborhood 
which  happily  exist  between  the  two  Empires,  have  resolved  to  conclude  a  Con- 
vention with  the  view  of  giving  effect  to  Article  III  of  the  Convention  relative 
to  Burmah  and  Thibet,  signed  at  Peking  on  the  24th  July,  1886,t  and  have  ap- 
pointed as  their  Plenipotentiaries  for  this  purpose,  that  is  to  say : 

Her  Majesty  the  Queen  of  the  United  Kingdom  of  Great  Britain  and  Ire- 
land, Empress  of  India,  the  Right  Honourable  the  Earl  of  Rosebery,  Knight  of 
the  Most  Noble  Order  of  the  Garter,  Her  Britannic  Majesty's  Principal  Secre- 
tary of  State  for  Foreign  Affairs ; 

And  His  Majesty  the  Emperor  of  China,  Sieh  Ta-Jen,  Envoy  Extraordinary 
and  Minister  Plenipotentiary  of  China  at  the  Court  of  St.  James',  and  Vice- 
President  of  the  Imperial  Board  of  Censors ; 

Who,  having  mutually  communicated  to  each  other  their  respective  full 
powers,  found  to  be  in  good  and  due  form,  have  agreed  upon  the  following 
Articles : — 

Art.  I. — Delimitation  of  frontier,  first  section. —  It  is  agreed  that  the  fron- 
tier between  the  two  Empires,  from  latitude  25°  35'  north,  shall  run  as  follows: 

Commencing  at  the  high  conical  peak  situated  approximately  in  that  latitude 
and  in  longitude  98°  14'  east  of  Greenwich  and  18°  16'  west  of  Peking,  the  line 
will  follow,  as  far  as  possible,  the  crest  of  the  hills  running  in  a  south-westerly 
direction  through  Kaolang  Pum  and  the  Warong  Peak,  and  thence  run  nearly 
midway  between  the  villages  of  Wanchon  and  Kaolang — leaving  the  former  to 
Burmah  and  the  latter  to  China — on  to  Sabu  Pum. 

From  Sabu  Pum  the  frontier  will  run  in  a  line  slightly  to  the  south  of  west 
through  Shatrung  Pum  to  Namienku  Pum ;  thence  it  will  be  continued,  still  run- 
ning in  a  south-westerly  direction  along  the  crest  of  the  hills,  until  it  strikes 
the  Tazar  Kha  River,  the  course  of  which  it  will  follow  from  its  source  to  its 

*  Text  as  printed  in  RockhUl,  p.  5.    Printed  also  in  B.  &  F.  State  Papers,  vol.  87,  1894-5, 
p.  1311;  Customs,  Vol.  I,  p.  520;  Hertslet,  p.  99. 

This  convention  was  modified  by  that  of  February  4,  1897  (No.  1897/1,  post)  :  see  also 
the  convention  of  April  27,  1906  (No.  1906/2,  post). 

In  connection  with  this  convention,  see  the  Anglo-French  declaration  of  January  15, 
1896  (No.  1896/1,  post),  particularly  Article  4. 

fFor  the  text,  see  Hertslet,  p.  88  (No.  15). 

1 


2  '  CHINA  TREATIES  AND  AGREEMENTS 

confluence  with  the  Nam  Tabet  or  Tabak  Kha,  thus  leaving  Uka  to  the  east 
and  Laipong  to  the  west. 

From  the  confluence  of  the  Tazar  Kha  River  with  the  Tabak  Kha,  the  fron- 
tier will  ascend  the  latter  river  to  its  junction  with  the  Lekra  Kha,  which  it  will 
follow  to  its  source  near  Nkrang.  From  the  source  of  the  Lekra  Kha,  leaving 
Nkrang,  Kukum,  and  Singra  to  the  west,  and  Sima  and  Mali  to  the  east,  the 
line  will  follow  the  Lesa  Kha  from  its  western  source  to  its  junction  with  the 
Mali  River,  and  thence  will  ascend  the  Mali  to  its  source  near  Hpunra  Shikong: 
thence  it  will  run  in  a  south-westerly  direction  along  the  Laisa  Kha  from  its 
source  down  to  the  point  where  it  falls  into  the  Mole  River  near  Kadon,  leaving 
the  village  of  Kadon  to  the  west  and  that  of  Laisa  to  the  east. 

The  line  will  then  follow  the  course  of  the  Mole  in  a  southeasterly  direc- 
tion to  the  place  where  it  receives  the  Che  Yang  Kha,  which  latter  river  it  will 
follow  to  its  source  in  the  Alau  Pum.  It  will  then  be  directed  along  the  Nam- 
paung  River  from  its  western  source  down  to  where  it  enters  the  Taping  River. 

This  concludes  the  description  of  the  first  section  of  the  frontier. 

IL — Delimitation  of  frontier,  second  section. — The  second  section  of  the 
frontier,  or  that  portion  of  it  which  extends  from  the  Taping  River,  to  the  neigh- 
bourhood of  Meung  Mao,  will  run  as  follows : 

Starting  from  the  junction  of  the  Khalong  Kha  with  the  Taping  River,  the 
frontier  will  follow  the  Khalong  Kha  and  its  western  branch  to  its  source;  it 
will  be  drawn  thence  southward  to  meet  the  Sipaho  or  Lower  Nanthabet  at  a 
spot  immediately  to  the  south-west  of  Hanton,  leaving  Matin  to  Great  Britain, 
and  Loilong-ga-tong,  Tieh-pi-Kwan,  and  Hanton  to  China ;  thence  it  will  ascend 
the  branch  of  the  last-named  river  which  has  its  source  nearest  to  that  of  the 
Mantein  Kha.  It  will  thence  follow  the  crests  of  the  line  of  hills  running  in  a 
south-easterly  direction  to  the  more  southerly  of  the  two  places  named  Kadaw, 
which  is  close  to  the  Namwan  River,  leaving  Kadaw  to  China  and  Palen  to  Great 
Britain.  It  will  follow  the  Namwan  River  in  a  south-westerly  direction  down  to 
the  point  in  about  latitude  23°  55',  where  that  river  takes  a  south-easterly  course. 
Thence  it  will  run  in  a  direction  somewhat  west  of  south  to  the  Nammak  River, 
leaving  Namkhai  to  Great  Britain.  It  will  follow  the  Nammak  River  to  the  point 
where  it  bifurcates  in  about  latitude  23°  47',  and  will  then  ascend  the  southern 
branch  till  it  reaches  the  crest  of  a  high  range  of  hills  to  the  south  of  Mawsiu,  in 
about  latitude  23°  45'.  It  will  follow  the  crest  of  this  range  (which  runs  slightly 
to  the  north  of  east)  until  it  reaches  the  Shweli  River  at  its  junction  with  the 
Nammak,  thus  leaving  to  China  the  district  of  Mawsiu,  the  spot  recently  identi- 
fied as  Tien-ma-Kwan,  and  the  villages  of  Hinglon  and  Kong-mow,  lying  to  the 
north  of  the  above-mentioned  range. 

It  will  then  follow  the  course  of  the  Shweli  River,  and  where  the  river 
bifurcates,  it  will  follow  the  more  southerly  of  the  two  branches,  leaving  to 
China  the  island  formed  by  them,  until  it  reaches  a  point  near  the  eastern  end 
of  the  loop  which  the  river  forms  opposite  to  Meung  Mao,  as  indicated  in  the  next 
Article  of  the  Convention. 

Open  roads  between  Burmah  and  China. — The  Government  of  China  con- 
sent that  the  most  direct  of  the  roads  between  Bhamo  and  Nankhan,  where  it 


NUMBER  1894/1:  MARCH  1,  1894  ■  3 

through  Loiaipong  and  Loipanglom  until  it  reaches  the  Salween  River,  in  about 
passes  through  the  small  portion  of  Chinese  territory  south  of  Namwan,  shall, 
while  remaining  entirely  open  to  Chinese  subjects  and  to  the  tribesmen  subject  to 
China,  be  free  and  open  to  Great  Britain  for  travellers,  commerce,  and  adminis- 
trative purposes,  without  any  restrictions  whatever.  Her  Britannic  Majesty's 
Government  shall  have  the  right,  after  communication  with  the  Chinese  authori- 
ties, to  execute  any  works  which  may  be  desirable  for  the  improvement  or  repair 
of  the  road,  and  to  take  any  measures  which  may  be  required  for  the  protection 
of  the  traffic  and  the  prevention  of  smuggling. 

It  is  equally  agreed  that  British  troops  shall  be  allowed  to  pass  freely  along 
this  road.  But  no  body  of  troops  more  than  200  in  number  shall  be  despatched 
across  it  without  the  consent  of  the  Chinese  authorities,  and  previous  notice  in 
writing  shall  be  given  of  every  armed  party  of  more  than  twenty  men. 

III. — Delimitation  of  frontier,  third  section. — The  third  section  of  the  fron- 
tier will  run  as  follows : 

It  will  commence  from  a  point  on  the  Shweli  River,  near  to  the  east  end 
of  the  loop  formed  by  that  river  opposite  to  Meung  Mao;  thence  paying  due 
regard  to  the  natural  features  and  the  local  conditions  of  the  country,  it  will  trend 
in  a  south-easterly  direction  towards  Ma-li-pa  until  it  reaches,  at  a  point  in 
about  longitude  98°  7'  east  of  Greenwich  (18°  23'  west  of  Peking),  and  latitude 
23°  52',  a  conspicuous  mountain  range.  It  will  follow  the  crests  of  that  range 
latitude  23°  41'. 

This  portion  of  the  frontier  from  the  Shweli  to  the  Salween  River  shall 
be  settled  by  the  Boundary  Commission  provided  for  in  Article  VI  of  the  present 
Convention,  and  in  such  manner  as  to  give  to  China  at  least  as  much  territory 
as  would  be  included  if  the  frontier  were  drawn  in  a  straight  line  from  Meung 
Mao  towards  Ma-li-pa. 

If  it  should  be  found  that  the  most  suitable  frontier  will  give  to  China  a 
larger  amount  of  territory  than  is  stated  above,  the  compensation  to  be  given  to 
Great  Britain  on  some  other  part  of  the  frontier  shall  be  matter  for  subsequent 
arrangement. 

From  latitude  23°  41'  the  frontier  will  follow  the  Salween  until  it  reaches 
the  northern  boundary  of  the  circle  of  Kunlong.  It  will  follow  that  boundary 
in  an  easterly  direction,  leaving  the  whole  circle  of  Kunlong,  and  the  ferry  of 
that  name  to  Great  Britain,  and  leaving  to  China  the  State  of  Kokang. 

It  will  then  follow  the  course  of  the  river  forming  the  boundary  between 
Somu,  which  belongs  to  Great  Britain,  and  Meng  Ting,  which  belongs  to  China. 
It  will  still  continue  to  follow  the  frontier  between  those  two  districts,  which  is 
locally  well  known,  to  where  it  leaves  the  aforesaid  river  and  ascends  the  hills ; 
and  will  then  follow  the  line  of  water-parting  between  the  tributaries  of  the 
Salween  and  the  Meikong  Rivers,  from  about  longitude  99°  east  of  Greenwich 
(17°  30'  west  of  Peking),  and  latitude  23°  20',  to  a  point  about  longitude  99° 
40'  east  of  Greenwich  (16°  50'  west  of  Peking),  and  latitude  23°,  leaving  to 
China  the  Tsawbwaships  of  Keng  Ma,  Mengtung,  and  Mengko. 

At  the  last-named  point  of  longitude  and  latitude  the  line  strikes  a  very  lofty 
mountain  range,  called  Kong-Ming-Shan,  which  it  will   follow  in  a  southerly 


4  CHINA  TREATIES  AND  AGREEMENTS 

direction  to  about  longitude  99°  30'  east  of  Greenwich  (17°  west  of  Peking), 
and  latitude  22°  30',  leaving  to  China  the  district  of  Chen-pien  T'ing.  Then, 
descending  the  western  slope  of  the  hills  to  the  Namka  River,  it  will  follow  the 
course  of  that  river  for  about  10'  of  latitude,  leaving  Munglem  to  China,  and 
Mangliin  to  Great  Britain. 

It  will  then  follow  the  boundary  between  Munglem  and  Kyaing  Tong,  which 
is  locally  well-known,  diverging  from  the  Namka  River  a  little  to  the  north  of 
latitude  22°,  in  a  direction  somewhat  south  of  east,  and  generally  following  the 
crest  of  the  hills  till  it  strikes  the  Namlam  River  in  about  latitude  21  °  45',  and 
longitude  100°  east  of  Greenwich  (16°  30'  west  of  Peking), 

It  will  then  follow  the  boundary  between  Kyaing  Tong  and  Kiang  Hung 
which  is  generally  formed  by  the  Namlam  River,  with  the  exception  of  a  small 
strip  of  territory  belonging  to  Kiang  Hung,  which  lies  to  the  west  of  that  river 
just  south  of  the  last  named  parallel  of  latitude.  On  reaching  the  boundary  of 
Kyaing  Chaing,  in  about  latitude  21°  27',  and  longitude  100°  12'  east  of  Green- 
wich (16°  18'  west  of  Peking),  it  will  follow  the  boundary  between  that  district 
and  Kiang  Hung    until  it  reaches  the  Meikong  River. 

IV. — Portion  of  frontier  to  be  settled  ulteriorly. — It  is  agreed  that  the  set- 
tlement and  delimitation  of  that  portion  of  the  frontier  which  lies  to  the  north 
of  latitude  25°  35'  north  shall  be  reserved  for  a  future  understanding  between 
the  High  Contracting  Parties,  when  the  features  and  conditions  of  the  country 
are  more  accurately  known. 

V. — Territorial  concessions  to  China. — In  addition  to  the  territorial  conces- 
sions in  Northern  Theinni,  and  the  cession  to  China  of  the  State  of  Kokang, 
which  result  from  the  frontier  as  above  described.  Her  Britannic  Majesty,  in 
consideration  of  the  abandonment  of  the  claims  advanced  by  China  to  the  terri- 
tory lying  outside  and  abutting  on  the  frontier  of  the  Prefecture  of  Yung  Chang 
and  Sub-Prefecture  of  Teng  Yiieh,  agrees  to  renounce  in  favour  of  His  Majesty 
the  Emperor  of  China,  and  of  his  heirs  and  successors  for  ever,  all  the  suzerain 
rights  in  and  over  the  States  of  Munglem  and  Kiang  Hung  %  formerly  possessed 
by  the  Kings  of  Ava  concurrently  with  the  Emperors  of  China.  These  and  all 
other  rights  in  the  said  States,  with  the  titles,  prerogatives  and  privileges  thereto 
pertaining.  Her  Majesty  the  Queen  Empress  renounces  as  aforesaid,  with  the  sole 
proviso  that  His  Majesty  the  Emperor  of  China  shall  not,  without  previously 
coming  to  an  agreement  with  Her  Britannic  Majesty,  cede  either  Munglem  or 
Kiang  Hung,  or  any  portion  thereof,  to  any  other  nation. § 

tHertsIet  (p.  103),  citing  Parliamentary  Paper,  Siam,  No.  1  (1893),  makes  the  following 

note: "On  the  1st  December,  1893,  the  French  Government  were  officially  informed  by  the 

British  Government  that  no  Treaty  had  then  been  signed  between  Great  Britain  and  China, 
on  the  subject  of  the  State  of  Kiang  Hung,  and  that  England  had  no  intention  of  seeking 
to  obtain  any  monopoly,  either  for  railways,  steam-boat  companies,  or  any  other  mode  of 
transit  or  communication,  to  the  detriment  of  "R"rench  commercial  enterprises  of  the  same 
kind ;  and  that  it  was  understood  that,  in  that  respect,  the  field  would  be  left  open  to  French 
and  English  enterprise.  In  return  the  French  Government  stated  that  the  delimitation  of 
the  French  possessions  on  the  side  of  Kiang  Hung  had  not  then  been  made,  but  that,  in 
the  negotiations  on  the  subject  which  the  French  Government  would  have  to  carry  on  with 
the  Chinese  Government,  they  intended  to  be  guided_  by  the  same  principles  as  were  laid 
down  by  the  British  Government  in  their  communication  of  the  1st  December,  1893." 

%HertsUt,  citing  Hansard's  Debates,  vol.  47  (1897),  p.  296,  notes  that  "Under  the 
Burmah  Frontier  Convention,  as  revised    (No.   1897/1,  post),  certain  territorial  compensa- 


NUiMBER  1894/1:  MARCH  1,  1894  5 

VI. — Demarcation  of  frontier. — It  is  agreed  that,  in  order  to  avoid  any  local 
contention,  the  alignments  of  the  frontier  described  in  the  present  Convention, 
and  shown  on  the  maps  annexed  thereto,  shall  be  verified  and  demarcated,  and, 
in  case  of  its  being  found  defective  at  any  point,  rectified  by  a  Joint  Commission 
appointed  by  the  High  Contracting  Parties ;  and  that  the  said  Commission  shall 
meet,  at  a  place  hereafter  to  be  determined  on  by  the  two  Governments,  not  later 
than  twelve  months  after  the  exchange  of  the  ratifications  of  the  present  Conven- 
tion ;  and  shall  terminate  its  labours  in  not  more  than  three  years  from  the  date  of 
its  first  meeting. 

It  is  understood  that  any  alterations  in  the  alignment  which  the  Joint  Com- 
mission may  find  it  necessary  to  make  shall  be  based  on  the  principle  of  equiva- 
lent compensations,  having  regard  not  only  to  the  extent,  but  also  to  the  value, 
of  the  territory  involved.  Further,  that  should  the  members  of  the  Commission  be 
unable  to  agree  on  any  point,  the  matter  of  disagreement  shall  at  once  be  referred 
to  their  respective  Governments. 

The  Commission  shall  also  endeavour  to  ascertain  the  situation  of  the  former 
frontier-post  of  China  named  Kanlung  Kwan.  If  this  place  can  be  identified, 
and  is  found  to  be  situated  in  British  Territory,  the  British  Government  will 
consider  whether  it  can,  without  inconvenience,  be  ceded  to  China. 

If  it  shall  be  found  to  the  south-east  of  Meung  Mao  so  as  to  be  on  the  north- 
ern side  of  the  straight  line  drawn  from  that  place  towards  Ma-li-pa,  it  will  in 
that  case  already  belong  to  China. 

VII. — Occupation  following  demarcation. — It  is  agreed  that  any  posts  be- 
longing to  either  country  which  may  be  stationed  within  the  territory  of  the  other 
when  the  Commission  of  Delimitation  shall  have  brought  its  labours  to  a  con- 
clusion shall,  within  eight  months  from  the  date  of  such  conclusion,  be  with- 
drawn, and  their  places  occupied  by  the  troops  of  the  other,  mutual  notice  having 
in  the  meantime  been  given  of  the  precise  date  at  which  the  withdrawal  and  occu- 
pation will  take  place.  From  the  date  of  such  occupation  the  High  Con- 
tracting Parties  shall  each  within  its  own  territories  hold  itself  responsible  for 
the  maintenance  of  good  order,  and  for  the  tranquillity  of  the  tribes  inhabiting 
them. 

Unfortified  strip. — The  High  Contracting  Parties  further  engage  neither  to 
construct  nor  to  maintain  within  10  English  miles  from  the  nearest  point  of  the 
common  frontier,  measured  in  a  straight  line  and  horizontal  projection,  any  forti- 
fications or  permanent  camps,  beyond  such  posts  as  are  necessary  for  preserving 
peace  and  good  order  in  the  frontier  districts. 

VIII. — Free  trade  between  China  and  Burmah. — Subject  to  the  conditions 
mentioned  hereafter  in  Articles  X  and  XI,  the  British  Government,  wishing  to 
encourage  and  develop  the  land  trade  of  China  with  Burmah  as  much  as  pos- 
sible, consent,  for  a  period  of  six  years  from  the  ratification  of  the  present  Con- 
vention, to  allow  Chinese  produce  and  manufactures,  with  the  exception  of  salt, 
to  enter  Burmah  by  land  duty  free,  and  to  allow   British  manufactures  and 

tions  were  made  to  Great  Britain  for  the  violation  by  the  Chinese  Government  of  that  por- 
tion of  the  original  Convention  that  related  to  Kiang  Hung,"  the  Chinese  Government  having 
by  the  Delimitation  Convention  with  France,  signed  June  20,  1895  (No.  1895/4,  post), 
alienated  a  part  of  the  territory  of  Kiang  Hung. 


6  CHINA  TREATIES  AND  AGREEMENTS 

Burmese  produce,  with  the  exception  of  rice,  to  be  exported  to  China  by  land 
free  of  duty. 

Salt  and  rice  subject  to  duties. — The  duties  on  salt  and  rice  so  imported  and 
exported  shall  not  be  higher  than  those  imposed  on  their  import  or  export  by  sea. 

IX. — Trade  route. — Pending  the  negotiation  of  a  more  complete  arrange- 
ment, and  until  the  development  of  the  trade  shall  justify  the  establishment  of 
other  frontier  Customs  stations,  goods  imported  from  Burmah  into  China  or 
exported  from  China  into  Burmah  shall  be  permitted  to  cross  the  frontier  by 
Manwyne  and  by  Sansi. 

Reduced  tariff . —  With  a  view  to  the  development  of  trade  between  China 
and  Burmah,  the  Chinese  Government  consent  that  for  six  years  from  the  rati- 
fication of  the  present  Convention  the  duties  levied  on  goods  imported  into  China 
by  these  routes  shall  be  those  specified  in  the  General  Tariff  of  the  Maritime 
Customs  diminished  by  three-tenths,  and  that  the  duties  on  goods  exported  from 
China  by  the  same  route  shall  be  those  specified  in  the  same  Tariff  diminished 
by  four-tenths. 

Transit  passes. — Transit  passes  for  imports  and  exports  shall  be  granted 
in  accordance  with  the  rules  in  force  at  the  Treaty  ports. 

Smuggling. — Smuggling  or  the  carrying  of  merchandize  through  Chinese 
territory  by  other  routes  than  those  sanctioned  by  the  present  Convention,  shall, 
if  the  Chinese  authorities  think  fit,  be  punished  by  the  confiscation  of  the  mer- 
chandize concerned. 

X. — Trade  in  munitions  of  war. — The  following  articles,  being  munitions 
of  war,  shall  neither  be  exported  from  Burmah  into  China,  nor  imported  from 
China  into  Burmah,  save  at  the  requisition  of  the  Government  desiring  their 
importation;  neither  shall  they  be  sold  to  parties  other  than  those  who  have 
been  duly  authorized  by  their  respective  Governments  to  purchase  them : 

Cannon,  shot  and  shell,  cartridges  and  ammunition  of  all  kinds,  firearms  and 
weapons  of  war  of  every  description.  Saltpetre,  sulphur,  brimstone,  gunpowder, 
dynamite,  gun-cotton,  or  other  explosives. 

XI. — Forbidden  trade. — The  exportation  from  Burmah  into  China  of  salt 
is  prohibited.  The  exportation  from  China  into  Burmah  of  cash,  rice,  pulse  and 
grains  of  every  kind  is  prohibited. 

The  importation  and  exportation  across  the  frontier  of  opium  and  spirituous 
liquors  is  prohibited,  excepting  in  small  quantities  for  the  personal  use  of  travel- 
lers.    The  amount  to  be  permitted  will  be  settled  under  Customs  regulations. 

Infractions  of  the  conditions  set  forth  in  this  and  the  preceding  Article  will 
be  punishable  by  confiscation  of  all  the  goods  concerned. 

XII. — Encouragement  of  mining. — The  British  Government,  wishing  to 
promote  frontier  trade  between  the  two  countries  by  encouraging  mining  enter- 
prise in  Yiinnan  and  in  the  new  territorial  acquisitions  of  China  referred  to  in 
the  present  Convention,  consent  to  allow  Chinese  vessels  carrying  merchandize, 
ores,  and  minerals  of  all  kinds,  and  coming  from  or  destined  for  China,  freely  to 
navigate  the  Irrawaddy  on  the  same  conditions  as  to  dues  and  other  matters  as 
British  vessels. 

XIII. — Consular  officers.— It  is  agreed  that  His  Majesty  the  Emperor  of 


NUMBER  1894/1 :  xMARCH  1,  1894  7 

China  may  appoint  a  Consul  in  Burmah,  to  reside  at  Rangoon;  and  that  Her 
Britannic  Majesty  may  appoint  a  Consul  to  reside  at  Manwyne;  and  that  the 
Consuls  of  the  two  Governments  shall  each  within  the  territories  of  the  other 
enjoy  the  same  privileges  and  immunities  as  the  Consuls  of  the  most  favoured 
nation. 

Further,  that,  in  proportion  as  the  commerce  between  Burmah  and  China 
increases,  additional  Consuls  may  be  appointed  by  mutual  agreement,  to  reside 
at  such  places  in  Burmah  and  Yiinnan  as  the  requirements  of  the  trade  may 
seem  to  demand. 

The  correspondence  between  the  British  and  Chinese  Consuls  respectively, 
and  the  chief  authority  at  the  place  where  they  reside,  shall  be  conducted  on  terms 
of  perfect  equality. 

XIV. — Passports. — Passports,  written  in  Chinese  and  English,  and  identical 
in  terms  to  those  issued  to  foreigners  at  the  Treaty  ports  in  China,  shall,  on  the 
application  of  the  proper  British  authorities,  be  issued  to  British  merchants  and 
others  wishing  to  proceed  to  China  from  Burmah,  by  the  Chinese  Consul  at 
Rangoon  or  by  the  Chinese  authorities  on  the  frontier;  and  Chinese  subjects 
wishing  to  proceed  to  Burmah  from  China  shall,  on  the  application  of  any  recog- 
nized Chinese  official,  be  entitled  to  receive  similar  passports  from  Her  Britannic 
Majesty's  Consul  at  Manwyne  or  other  convenient  places  in  China  where  there 
may  be  a  British  Consular  officer. 

XV. — Extradition  of  criminals. — Should  criminals,  subjects  of  either  coun- 
try, take  refuge  in  the  territory  of  the  other,  they  shall,  on  due  requisition  being 
made,  be  searched  for,  and,  on  reasonable  presumption  of  their  guilt  being  estab- 
lished, they  shall  be  surrendered  to  the  authorities  demanding  their  extradition. 

"  Due  requisition  "  shall  be  held  to  mean  the  demand  of  any  functionary  of 
either  Government  possessing  a  seal  of  office,  and  the  demand  may  be  addressed 
to  the  nearest  frontier  officer  of  the  country  in  which  the  fugitive  has  taken 
refuge. 

X\T. — Telegraph  lines  to  be  extended.— With  a  view  to  improving  the  in- 
tercourse between  the  two  countries,  and  placing  the  Chinese  Consul  at  Rangoon 
in  communication  with  the  high  provincial  authorities  in  Yunnan,  the  High  Con- 
tracting Parties  undertake  to  connect  the  telegraphic  systems  of  the  two  coun- 
tries with  each  other  as  soon  as  the  necessary  arrangements  can  be  made ;  the 
line  will,  however,  at  first  only  be  used  for  the  transmission  of  official  telegrams 
and  of  general  messages  for  and  from  Burmah  and  the  Province  of  Yunnan. 

XVn. — Favored-nation  provision.— It  is  agreed  that  subjects  of  the  two 
Powers  shall  each  within  the  territories  of  the  other  enjoy  all  the  privileges,  im- 
munities, and  advantages  that  may  have  been,  or  may  hereafter  be  accorded  to 
the  subjects  of  any  other  nation. 

XVIII. — Stipulations  of  convention  restricted  to  localities  mentioned. — 
It  is  agreed  that  the  commercial  stipulations  contained  in  the  present  Convention 
being  of  a  special  nature  and  the  result  of  mutual  concessions,  consented  to  with 
a  view  to  adapting  them  to  local  conditions  and  the  peculiar  necessities  of  the 
Burmah-China  overland  trade,  the  advantages  accruing  from  them  shall  not  be 
invoked  by  the  subjects  of  either  Power  residing  at  other  places  where  the  two 


8  CHINA  TREATIES  AND  AGREEMENTS 

Empires  are  conterminous,  excepting  where  the  same  conditions  prevail,  and 
then  only  in  return  for  similar  concessions. 

XIX. — Revision  of  convention. — The  arrangements  with  regard  to  trade  and 
commerce  contained  in  the  present  Convention  being  of  a  provisional  and  experi- 
mental character,  it  is  agreed  that  should  subsequent  experience  of  their  work- 
ing, or  a  more  intimate  knowledge  than  is  now  possessed  of  the  requirements 
of  the  trade,  seem  to  require  it,  they  may  be  revised  at  the  demand  of  either 
party  after  a  lapse  of  six  years  after  the  exchange  of  ratifications  of  the  present 
Convention,  or  sooner  should  the  two  Governments  desire  it. 

XX. — Ratification. — The  ratification  of  the  present  Convention  under  the 
hand  of  Her  Britannic  Majesty  and  of  His  Majesty  the  Emperor  of  China  shall 
be  exchanged  in  London  in  six  months  from  this  day  of  signature,  or  sooner  if 
possible. 

The  Convention  shall  come  into  force  immediately  after  the  exchange  of 
ratifications.il 

In  token  whereof  the  respective  Plenipotentiaries  have  signed  this  Conven- 
tion in  four  copies,  two  in   Chinese  and  two  in  English. 

Done  at  London,  this  1st  day  of  March,  1894,  corresponding  to  the  24th 
day  of  the  1st  moon  of  the  20th  year  of  Kuang  Hsii. 

[l.    S.]  ROSEBERY. 

[l.  s.]  Sieh. 

declaration. 

On  proceeding  to  the  signature  this  day  of  the  Convention  between  Great 
Britain  and  China,  giving  effect  to  Article  HI  of  the  Convention  relative  to  Bur- 
mah  and  Thibet,  signed  at  Peking  on  the  24th  July,  1886 :  jj 

The  undersigned  Plenipotentiaries  declare  that,  inasmuch  as  the  present  Con- 
vention has  been  concluded  for  the  special  purpose  mentioned  in  the  preamble 
thereof,  the  stipulations  contained  therein  are  applicable  only  to  those  parts  of  the 
dominions  of  Her  Britannic  Majesty  and  of  His  Majesty  the  Emperor  of  China 
to  which  the  said  Convention  expressly  relates,  and  are  not  to  be  construed  as 
applicable  elsewhere. 

Done  at  London,  the  1st  day  of  March,  1894. 

[l.  s.]  Rosebery. 

[l.  s.]  Sieh. 

il  Ratifications  were  exchanged  at  London  on  August  23,  1894. 
'^Hertslet,  88  (No.  15). 


NUMBER  1894/2:  MARCH  17,  1894  9 

NUMBER  1894/2. 

UNITED  STATES  AND  CHINA. 

Convention  regulating  Chinese  immigration.'^ — March  17 ,  1894.^ 

Whereas,  on  the  17*^  day  of  November  A.  D.  1880,  and  of  Kwanghsii,  the 
sixth  year,  tenth  moon,  fifteenth  day,  a  Treaty  was  concluded  between  the  United 
States  and  China  for  the  purpose  of  regulating,  limiting,  or  suspending  the  com- 
ing of  Chinese  laborers  to,  and  their  residence  in,  the  United  States; 

And  whereas  the  Government  of  China,  in  view  of  the  antagonism  and 
much  deprecated  and  serious  disorders  to  which  the  presence  of  Chinese  laborers 
has  given  rise  in  certain  parts  of  the  United  States,  desires  to  prohibit  the 
emigration  of  such  laborers  from  China  to  the  United  States ; 

And  whereas  the  two  governments  desire  to  co-operate  in  prohibiting  such 
immigration,  and  to  strengthen  in  other  ways  the  bonds  of  friendship  between 
the  two  countries ; 

And  whereas  the  two  Governments  are  desirous  of  adopting  reciprocal 
measures  for  the  better  protection  of  the  citizens  or  subjects  of  each  within  the 
jurisdiction    of    the   other ; 

Now,  therefore,  the  President  of  the  United  States  has  appointed  Walter  Q. 
Gresham,  Secretary  of  State  of  the  United  States,  as  his  Plenipotentiary,  and 
His  Imperial  Majesty,  the  Emperor  of  China  has  appointed  Yang  Yii,  Officer  of 
the  second  rank,  Sub-Director  of  the  Court  of  Sacrificial  Worship,  and  Envoy 
Extraordinary  and  Minister  Plenipotentiary  to  the  United  States  of  America,  as 
his  Plenipotentiary ;  and  the  said  Plenipotentiaries  having  exhibited  their  re- 
spective Full  Powers  found  to  be  in  due  and  good  form,  have  agreed  upon  the 
following  articles : 

Article  I. — The  High  Contracting  Parties  agree  that  for  a  period  of  ten 
years,  beginning  with  the  date  of  the  exchange  of  the  ratifications  of  this  Con- 
vention, the  coming,  except  under  the  conditions  hereinafter  specified,  of  Chi- 
nese laborers  to  the  United  States  shall  be  absolutely  prohibited. 

Article  II. — The  preceding  Article  shall  not  apply  to  the  return  to  the 
United  States  of  any  registered  Chinese  laborer  who  has  a  lawful  wife,  child, 
or  parent  in  the  United  States,  or  property  therein  of  the  value  of  one  thousand 
dollars,  or  debts  of  like  amount  due  him  and  pending  settlement.  Nevertheless 
every  such  Chinese  laborer  shall,  before  leaving  the  United  States,  deposit,  as  a 
condition  of  his  return,  with  the  collector  of  customs  of  the  district  from  which 
he  departs,  a  full  description  in  writing  of  his  family,  or  property,  or  debts,  as 
aforesaid,  and  shall  be  furnished  by  said  collector  with  such  certificate  of  his 
right  to  return  under  this  Treaty  as  the  laws  of  the  United  States  may  now 

*Text  as  printed  in  Malloy,  p.  241.     Printed  also  in  Customs,  Vol.  I,  p.  740;  Hertslet, 

t  Ratifications  exchanged  December  7,  1894.  This  treaty  terminated  December  7,  1904, 
on  notice  given  by  the  Chinese  Government. 


10  CHINA  TREATIES  AND  AGREEMENTS 

or  hereafter  prescribe  and  not  inconsistent  with  the  provisions  of  this  Treaty; 
and  should  the  written  description  aforesaid  be  proved  to  be  false,  the  right  of 
return  thereunder,  or  of  continued  residence  after  return,  shall  in  each  case 
be  forfeited.  And  such  right  of  return  to  the  United  States  shall  be  exercised 
within  one  year  from  the  date  of  leaving  the  United  States ;  but  such  right  of 
return  to  the  United  States  may  be  extended  for  an  additional  period,  not  to 
exceed  one  year,  in  cases  where  by  reason  of  sickness  or  other  cause  of  disability 
beyond  his  control,  such  Chinese  laborer  shall  be  rendered  unable  sooner  to 
return — which  facts  shall  be  fully  reported  to  the  Chinese  Consul  at  the  port  of 
departure,  and  by  him  certified,  to  the  satisfaction  of  the  collector  of  the  port 
at  which  such  Chinese  subject  shall  land  in  the  United  States.  And  no  such  Chi- 
nese laborer  shall  be  permitted  to  enter  the  United  States  by  land  or  sea 
without  producing  to  the  proper  officer  of  the  customs  the  return  certificate 
herein  required. 

Article  III. — The  provisions  of  this  Convention  shall  not  affect  the  right 
at  present  enjoyed  of  Chinese  subjects,  being  officials,  teachers,  students,  mer- 
chants or  travellers  for  curiosity  or  pleasure,  but  not  laborers,  of  coming  to  the 
United  States  and  residing  therein.  To  entitle  such  Chinese  subjects  as  are 
above  described  to  admission  into  the  United  States,  they  may  produce  a  cer- 
tificate from  their  Government  or  the  Government  where  they  last  resided  vised 
by  the  diplomatic  or  consular  representative  of  the  United  States  in  the  country 
or  port  whence  they  depart. 

It  is  also  agreed  that  Chinese  laborers  shall  continue  to  enjoy  the  privilege 
of  transit  across  the  territory  of  the  United  States  in  the  course  of  their  journey 
to  or  from  other  countries,  subject  to  such  regulations  by  the  Government  of  the 
United  States  as  may  be  necessary  to  prevent  said  privilege  of  transit  from  being 
abused. 

Article  IV. — In  pursuance  of  Article  III  of  the  Immigration  Treaty  be- 
tween the  United  States  and  China,  signed  at  Peking  on  the  17^^  day  of  Novem- 
ber, 1880,  (the  15*^^  day  of  the  tenth  month  of  Kwanghsii,  sixth  year)  it  is 
hereby  understood  and  agreed  that  Chinese  laborers  or  Chinese  of  any  other 
class,  either  permanently  or  temporarily  residing  in  the  United  States,  shall  have 
for  the  protection  of  their  persons  and  property  all  rights  that  are  given  by  the 
laws  of  the  United  States  to  citizens  of  the  most  favored  nation,  excepting  the 
right  to  become  naturalized  citizens.  And  the  Government  of  the  United  States 
reaffirms  its  obligation,  as  stated  in  said  Article  III,  to  exert  all  its  power  to 
secure  protection  to  the  persons  and  property  of  all  Chinese  subjects  in  the 
United  States. 

Article  V. — The  Government  of  the  United  States,  having  by  an  Act 
of  the  Congress,  approved  May  5,  1892,  as  amended  by  an  Act  approved  Novem- 
ber 3,  1893,  required  all  Chinese  laborers  lawfully  within  the  limits  of  the  United 
States  before  the  passage  of  the  first  named  Act  to  be  registered  as  in  said  Acts 
provided,  with  a  view  of  affording  them  better  protection,  the  Chinese  Govern- 
ment will  not  object  to  the  enforcement  of  such  Acts,  and  reciprocally  the  Gov- 
ernment of  the  United  States  recognizes  the  right  of  the  Government  of  China 
to  enact  and  enforce  similar  laws  or  regulations  for  the  registration,  free  of 


NUMBER  1895/1:  JANUARY  26,  1895  H 

charge,  of  all  laborers,  skilled  or  unskilled,  (not  merchants  as  defined  by  said 
Acts  of  Congress),  citizens  of  the  United  States  in  China,  whether  residing 
within  or  without  the  treaty  ports. 

And  the  Government  of  the  United  States  agrees  that  within  twelve  months 
from  the  date  of  the  exchange  of  the  ratifications  of  this  Convention,  and  annu- 
ally, thereafter,  it  will  furnish  to  the  Government  of  China  registers  or  reports 
showing  the  full  name,  age,  occupation,  and  number  or  place  of  residence  of  all 
other  citizens  of  the  United  States,  including  missionaries,  residing  both  within 
and  without  the  treaty  ports  of  China,  not  including,  however,  diplomatic  and 
other  officers  of  the  United  States  residing  or  travelling  in  China  upon  official 
business,  together  with  their  body  and  household  servants. 

Article  VI. — This  Convention  shall  remain  in  force  for  a  period  of  ten 
years  beginning  with  the  date  of  the  exchange  of  ratifications,  and,  if  six  months 
before  the  expiration  of  the  said  period  of  ten  years,  neither  Government  shall 
have  formally  given  notice  of  its  final  termination  to  the  other,  it  shall  remain  in 
full  force  for  another  like  period  of  ten  years. 

In  faith  whereof,  we,  the  respective  plenipotentiaries,  have  signed  this  Con- 
vention and  have  hereunto  affixed  our  seals. 

Done,  in  duplicate,  at  Washington,  the  17*'^  day  of  March,  A.  D.  1894. 

Walter   Q.   Gresham.       [seal.] 
Yang  Yu.  [seal.] 


NUMBER  1895/1. 

GREAT  BRITAIN  (Hongkong  and  Shanghai  Banking  Corporation) 

AND  CHINA. 

'Final  Agreement  for  the  Chinese  Imperial  Government  seven  per  cent  silver  loan 

of  1894.— January  26,  1895. 

An  agreement  made  this  26  day  of  January  1895  between  the  Tsung  li 
Yamen  acting  in  conjunction  with  the  Board  of  Revenue  on  behalf  of  the  Im- 
perial Chinese  Government  of  the  one  part  and  the  Hongkong  &  Shanghai  Bank- 
ing Corporation  of  the  other  part. 

2. — Whereas  by  a  Preliminary  contract  made  on  the  2nd  day  of  October  1894 
between  the  Tsung  li  Yamen  and  the  Corporation,  the  Corporation  was  author- 
ised to  act  as  Agents  for  the  Chinese  Government  and  as  such  Agents  to  raise  a 
loan  on  behalf  of  the  Chinese  Government  of  Ten  millions  nine  hundred  thou- 
sand Taels  of  Shanghai  sycee  being  the  equivalent  of  Ten  millions  Kuping  Taels 
pure  silver.  The  rate  of  interest  being  7  per  cent  per  annum,  the  period  of  the 
Loan  being  ten  years,  and  it  being  arranged  that  Bonds  to  secure  repayment  to 
the  public  of  principal  and  interest  should  be  issued  to  the  public  at  par,  and 
that  the  rate  of  Exchange  should  be  left  to  the  discretion  of  the  Corporation. 


12  CHINA  TREATIES  AND  AGREEMENTS 

3. — And  whereas  at  subsequent  discussions  between  the  parties  it  was  ar- 
ranged that  the  term  of  the  loan  should  be  extended  to  20  years  and  that  instead 
of  issuing  the  Bonds  to  the  public  at  par  they  should  be  issued  at  a  discount  of 
2  per  cent  and  at  a  sterling  exchange  of  three  shillings  per  S'hai  Tael  and  that 
the  whole  amount,  after  deducting  the  Corporation's  commission  and  allow- 
ance for  expenses,  so  received  should  be  handed  over  to  the  Chinese  Govern- 
ment by  the  Corporation  at  an  exchange  of  two  shillings  and  eleven  pence  (2/11 
1/4)  per  S'hai  Tael,  that  is  to  say  the  equivalent  of  the  full  amount  of  the 
Bonds  at  par,  videlicit  Shanghai  Taels  10,900,000  less  commission  and  allow- 
ance for  expense  as  above ;  and  other  variations  were  made. 

4. — And  whereas  the  Corporation  have  contracted  with  the  public  for  the 
loan  under  the  modified  agreement,  and  have  collected  a  large  proportion  of  it ; 
and,  after  deducting  their  commission  and  allowance  for  expenses,  have  handed 
over  the  balance  of  the  money  collected  to  the  Chinese  Government,  and  have 
agreed  to  hand  over  the  balance  which  is  to  be  collected  on  the  10th  of  January 
1895  to  the  Chinese  Government  on  its  being  collected :  all  of  which  acts  and 
arrangements  have  been  examined  into  and  approved  of  by  the  Chinese  Govern- 
ment. 

5. — And  whereas  His  Imperial  Majesty  the  Emperor  of  China  has  by  Edict 
made  on  the  9th  day  of  November  1894  (a  copy  whereof  has  been  delivered 
through  the  Tsung  li  Yamen  and  the  British  Minister  to  the  Corporation)  au- 
thorised and  recognized  the  said  loan  and  the  signing  of  this  agreement. 

6. — Now  it  is  agreed  as  follows : 

7. — Interest  on  the  whole  amount  of  the  Loan  shall  be  calculated  from  the 
1st  day  of  November  1894  and  shall  be  at  the  rate  of  7  per  cent  per  annum  on 
the  amount  from  time  to  time  remaining  due.  The  first  payment  of  interest 
shall  be  made  on  the  1st  day  of  May  1895  and  the  subsequent  payments  on  the 
1st  day  of  May  and  the  1st  day  of  November  in  every  year  so  long  as  any  prin- 
cipal money  remains  due. 

8. — The  principal  of  the  loan  shall  be  repaid  in  10  equal  annual  instalments 
commencing  after  the  expiration  of  9  years  from  the  1st  day  of  November  1894, 
that  is  to  say  on  the  1st  day  of  November  1904.  The  holders  of  Bonds  un- 
drawn on  the  1st  November  1912  shall  have  the  option  of  receiving  payment 
of  same,  with  interest  thereon,  either  on  the  1st  November  1913  or  on  the 
1st    November    1914. 

9. — The  Loan  and  interest  shall  be  paid  through  the  Corporation  in  Lon- 
don and  elsewhere  as  may  suit  the  convenience  of  the  Bond  holders,  according 
to  the  schedule  to  this  agreement. 

10. — The  money  to  meet  each  payment  of  interest  and  instalment  of  prin- 
cipal shall  be  handed  to  the  Corporation  at  their  Branch  at  Shanghai,  in  S'hai 
sycee,  7  days  before  each  payment  or  instalment  becomes  due. 

11. — The  Shanghai  sycee  to  be  handed  to  the  Corporation  to  meet  the  pay- 
ments of  interest  and  instalments  of  principal  shall  be  of  the  ordinarily  accepted 
standard  of  Shanghai  sycee  according  to  which  payment  of  the  loan  is  made  to  the 
Chinese  Government. 

12. — Bonds    of    the    Chinese    Government    to    the    extent    of    S'hai    Taels 


NUMBER  1895/1 :  JANUARY  26,  1895  13 

10,900,000,  bearing  interest  until  repayment  at  the  rate  of  7  per  cent  per  annum, 
each  for  such  amount  and  in  such  form  as  the  Corporation  shall  think  proper, 
shall  be  issued  by  the  Corporation  to  the  subscribers  to  the  loan;  and  the  Chi- 
nese Envoy  to  Great  Britain  shall  put  his  Official  seal  upon  every  Bond  as 
evidence  that  the  Chinese  Government  is  bound  thereby. 

13. — The  Chinese  Government  hereby  specially  authorises  the  Corporation, 
as  attorneys  and  Agents  for  the  Chinese  Government,  the  Tsung  li  Yamen  and 
the  Board  of  Revenue,  to  issue  the  said  Bonds  on  the  sole  responsibility  of 
the  Chinese  Government,  and  without  the  Corporation  accepting  any  respon- 
sibility for  payment  of  either  interest  or  principal. 

14. — Customs  Bonds  for  the  total  amount  of  principal  and  interest  of  the 
loan  each  for  such  amount  as  shall  suit  the  convenience  of  the  Corporation, 
signed  by  the  Commissioner  of  Customs  for  the  Treaty  Port  upon  which  each 
Bond  is  chargeable  and  sealed  by  the  Provincial  Governor  General  or  Governor 
within  whose  jurisdiction  such  Treaty  Port  is  situated,  and  by  the  Chinese  Super- 
intendent of  Customs  at  such  Port,  shall  be  handed  to  the  Shanghai  Branch 
of  the  Corporation  on  or  before  the  15th  day  of  March  1895. 

15. — The  Chinese  Government  hereby  assigns  to  and  charges  in  favor  of  the 
Corporation  sufficient  of  the  Customs  Revenue  at  all  or  any  of  the  Treaty  ports, 
irrespective  of  the  port  upon  which  any  Bond  may  be  primarily  chargeable,  to 
meet  and  pay  off  all  the  Customs  Bonds  which  have  been  handed  to  the  Corpo- 
ration as  aforesaid.  In  the  event  of  circumstances  arising  which  should  lead  to 
the  non-payment  of  a  Customs  Bond  or  Bonds  on  presentation  the  Chinese  Gov- 
ernment hereby  authorises  the  Corporation  or  its  Agents  to  proceed  to  collect  at 
any  Treaty  port  or  ports  Customs  Revenue  sufficient  to  meet  such  Bond  or 
Bonds. 

16. — In  the  event  of  the  money  to  meet  a  payment  of  interest  or  instalment 
of  principal  not  being  handed  to  the  Corporation  at  their  Branch  in  Shanghai  at 
due  date,  the  said  Customs  Bonds  may  be  tendered,  and  shall  be  accepted,  in 
payment  of  duties  to  the  amount  of  the  face  values  together  with  any  interest 
in  arrear  up  to  or  after  the  due  date  of  the  Bond.  A  Bond  primarily  chargeable 
to  any  one  Custom  House  may  be  tendered,  and  shall  be  accepted,  at  any  other 
Custom  House. 

17. — Should  the  money  to  pay  the  interest  on  the  loan  and  the  instalments 
as  they  become  due  not  be  punctually  provided  as  stipulated  in  the  terms  of  this 
agreement,  or  under  the  said  Customs  Bonds,  or  from  the  Revenue  of  the  Cus- 
toms, then  Plis  Imperial  Majesty  the  Emperor  of  China  and  his  successors 
and  the  Imperial  Chinese  Government  shall  remain  liable  for,  and  shall  pay,  the 
said  interest  and  instalments  immediately  after  the  failure  of  the  Customs  to  do 
so  shall  have  occurred,  together  with  interest  thereon  to  the  day  of  actual  pay- 
ment. 

18. — The  Chinese  Government  guarantees  that  the  prior  charges  upon  the 
Customs  Revenue  now  outstanding  do  not  exceed  £700,000  Sterling  and  Tls. 
500,000  besides  loans  issued  by  the  Imperial  Chinese  Government  at  the  present 
moment  at  Shanghai  and  Canton  to  the  extent  of  about  Tls.  2,000,000  at  each 
place  with  interest  thereon. 


14 


CHINA  TREATIES  AND  AGREEMENTS 


19. — The  said  Customs  Bonds  shall  be  returned  to  the  Customs  authorities 
according  to  the  amount  of  the  loan  from  time  to  time  repaid  by  instalments,  as 
and  when  the  money  is  received  by  the  Corporation. 

20. — This  agreement  is  made  out  in  English  and  Chinese,  and  in  the  event  of 
any  question  arising  between  the  parties  hereto  as  to  the  tone  [?  true]  meaning 
thereof  the  same  shall  be  determined  by  the  text  of  the  English  thereof  which 
shall  be  taken  as  the  true  text. 

21. — The  terms  of  this  agreement  and  its  signature  by  the  contracting 
parties  shall  be  immediately  after  signature  reported  to  the  Throne  by  the  Board 
of  Revenue  and  Tsung  li  Yamen  in  a  joint  supplementary  Memorial,  and  copies 
of  that  Memorial  and  of  the  Imperial  Decree  received  in  reply  sanctioning  this 
agreement  shall  be  officially  handed  by  the  Tsung  li  Yamen  to  H.  B.  M.  Minister 
in  Peking  for  communication  to  the  Corporation. 

THE  SCHEDULE  ABOVE  REFERRED  TO 


Balance  of 

Year 

Date 

Instalment  of 

Principal 

Interest  Due 

Total  Due 

Principal  Due 

Outstanding 

1894 

Nov.  1 

10,900,000 

1895 

May    1 

Nov.  1 

'" 

381,500 

381,500 
381,500 

1896 

May    1 
Nov.  1 

•• 

'' 

381,500 
381,500 

1897 

May    1 

Nov.  1 

'' 

'• 

381,500 
381,500 

1898 

May    1 
Nov.  1 

'' 

'■ 

381,500 
381,500 

1899 

May    1 

Nov.  1 

" 

>i 

381,500 
381,500 

1900 

May    1 
Nov.  1 

.< 

" 

381,500 
381,500 

1901 

May    1 

** 

" 

381,500 

Nov.  1 

** 

" 

381,500 

1902 

May    1 
Nov.  1 

'' 

381,500 
381,500 

1903 

May    1 
Nov.  1 

" 

'' 

381,500 
381,500 

1904 

May    1 

" 

'* 

381,500 

Nov.  1 

1,090,000 

9,810,000 

** 

1,471,500 

1905 

^lay    1 

" 

343,350 

343,350 

Nov.  1 

1,090,000 

8,720,000 

343,350 

1,433,350 

1906 

.May    1 

" 

305,200 

305,200 

Nov.  1 

1,090,000 

7,630,000 

305,200 

1,395,200 

1907 

May    1 

" 

267,050 

267,050 

Nov.  1 

1,090,000 

6,540,000 

267,050 

1,357,050 

1908 

May    1 

" 

228,900 

228,900 

Nov.  1 

1,090,000 

5,450,000 

228,900 

1,318,900 

1909 

May    1 

" 

190,750 

190,750 

Nov.  1 

1,090,000 

4,360,000 

.  190,750 

1,280,750 

1910 

May    1 

152,600 

152,600 

Nov.  1 

1,090,000 

3,270.000 

152,600 

1.242,600 

1911 

May    1 

" 

114,450 

114,450 

Nov.  1 

1,090,000 

2,180,000 

114,450 

1,204,450 

1912 

May    1 

" 

76,300 

76,300 

Nov.  1 

1,090,000 

1,090,000 

76,300 

1,166,300 

1913 

May    1 

" 

38,150 

38,150 

Nov.  1 

1,090,000 

38,150 
Shanghai  Ta 

1,128,150 
els    21,963,500 

These  presents  have  been  written  in  duplicate  and  duly  signed  by  both  parties 
hereto,  each  retaining  one. 


NUMBER  1895/2:  JANUARY  26,  1895  15 


NUMBER  1895/2. 

GREAT   BRITAIN    (Hongkong   and    Shanghai    Banking    Corporation)    AND 

CHINA. 

Final  Agreement  for  the  Chinese  Imperial  Government  six  per  cent  Sterling  loan 

of  1895.— January  26,  1895. 

This  Contract  is  made  between  the  Tsung  li  Yamen,  Peking,  acting  in  con- 
junction with  the  Board  of  Revenue,  on  behalf  of  the  Imperial  Government  of 
China,  and  the  Hongkong  and  Shanghai  Banking  Corporation. 

1. — The  Tsung  li  Yamen  hereby  authorises  the  Hongkong  and  Shanghai 
Banking  Corporation,  acting  as  agent  for  the  Imperial  Government  of  China, 
either  alone  or  associated  with  others  selected  by  the  Corporation,  to  borrow  for 
the  Imperial  Government  of  China  the  sum  of  Three  million  pounds  Sterling. 

2. — The  rate  of  interest  for  the  loan  shall  not  exceed  six  per  cent  per  annum, 
and  shall  be  payable  half  yearly,  on  the  thirtieth  day  of  June  and  thirty  first  day 
of  December  of  each  year,  on  the  amount  of  the  loan  from  time  to  time  remain- 
ing unredeemed. 

3. — The  term  of  the  loan  shall  be  twenty  years  and  repayment  of  principal 
shall  be  made  by  fifteen  equal  annual  drawings  commencing  on  the  thirty  first 
day  of  December  nineteen  hundred,  but  the  Imperial  Government  of  China  shall 
have  the  power  and  right  of  paying  ofif  the  loan  at  par  at  any  time  during  the 
aforesaid  term  of  twenty  years  on  giving  six  months'  notice  by  advertisement  in 
the  "  Times  "  newspaper,  London. 

4. — All  payments  of  interest  and  repayments  of  principal  shall  be  made  to 
the  Hongkong  and  Shanghai  Banking  Corporation  by  the  Imperial  Government 
of  China,  in  accordance  with  the  schedule  to  this  Contract,  and  the  Imperial  Gov- 
ernment of  China  shall  hand  to  the  Corporation  at  their  Branch  in  S'hai  funds 
sufficient  to  enable  them  to  meet  all  such  payments  in  Sterling  twenty  one  days 
before  they  become  due. 

5. — The  loan  shall  be  issued  to  the  public  at  a  subscription  price  of  not  less 
than  ninety  five  and  a  half  per  cent. 

6. — The  Corporation,  as  Agent  for  the  Imperial  Government  of  China,  shall 
issue  to  subscribers  to  the  loan  Sterling  Bonds  for  the  total  amount  of  the  loan, 
each  for  such  amount  as  shall  appear  advisable  in  the  discretion  of  the  Corpo- 
ration, and  they  shall  be  sealed  by  the  Minister  for  China  in  London  as  evidence 
that  the  Imperial  Chinese  Government  is  bound  thereby. 

7._The  Commission  to  be  paid  by  the  Imperial  Chinese  Government  to  the 
Corporation  for  floating  and  issuing  the  loan  shall  be  two  per  cent  clear  on  the 
total  amount  of  the  loan,  that  is  to  say  shall  be  sixty  thousand  pounds  Sterling, 
and  shall  be  deducted  by  the  Corporation  from  the  proceeds  of  the  loan. 

8._A11  charges  for  underwriting,  stamps,  brokerage  &c.,  incurred  by  the 
Corporation  in  connection  with  the  floating  and  issue  of  the  loan  and  estimated  at 


16  CHINA  TREATIES  AND  AGREEMENTS 

four  and  a  half  per  cent  on  the  total  amount  of  the  loan,  shall  be  borne  by  the 
Imperial  Chinese  Government  and  shall  be  deducted  by  the  Corporation  from 
the  proceeds  of  the  loan. 

9. — This  loan,  subject  to  loans  now  remaining  unredeemed,  shall  be  charged 
on  the  Imperial  Maritime  Customs  Revenue  of  China,  and  shall  have  priority, 
both  regarding  principal  and  interest,  over  all  future  loans  charges  and 
mortgages,  so  long  as  this  loan,  or  any  part  thereof,  shall  be  unredeemed.  No 
loan,  charge  or  mortgage  shall  be  raised  or  created  which  shall  take  precedence 
of,  or  be  on  equality  with  this  loan  or  which  shall  in  any  manner  lessen  or 
impair  its  security  over  the  said  Customs  Revenue,  so  far  as  required  for  the 
annual  service  of  this  loan ;  and  any  future  loan  charge  or  mortgage  charged  on 
the  said  Customs  Revenue  shall  be  made  subject  to  this  loan,  and  it  shall 
be  so  expressed  in  every  agreement  for  any  such  future  loan,  charge  or  mort- 
gage. 

10. — This  loan  shall  be  further  secured  by  Customs  Bonds  for  the  total 
sterling  amount  of  the  loan  and  interest,  issued  by  the  Tsung  li  Yamen  and  the 
Board  of  Revenue,  Peking,  and  countersigned  by  the  Inspector  General  of  Cus- 
toms, and  all  such  Customs  Bonds  shall  contain  the  "  priority  clause  "  number 
nine  of  this  contract.  Such  Customs  Bonds  shall  be  handed  to  the  Hongkong 
and  Shanghai  Banking  Corporation,  in  Tientsin,  before  payment  by  the  Cor- 
poration to  the  Imperial  Chinese  Government  of  the  proceeds  of  the  loan. 

11. — This  loan  shall  be  also  further  collaterally  secured  by  deposit  with  the 
Hongkong  and  Shanghai  Banking  Corporation  of  Sterling  Customs  Bonds,  equal 
in  value  altogether  to  the  total  amount  of  the  loan  and  interest,  sealed  by  the 
Chinese  Superintendents  of  Customs  at  Treaty  ports  and  by  the  Governors 
General  or  Governors  of  the  Provinces  within  which  such  Treaty  ports  are  situ- 
ated and  countersigned  by  the  Foreign  Commissioners  of  Customs  at  such  ports. 
Such  Customs  Bonds  shall  be  handed  to  the  Corporation  at  their  Branch  in 
Shanghai  within  three  months  from  the  date  of  signing  this  contract  and,  in 
the  event  of  the  money  to  meet  a  payment  of  interest  or  instalment  of  prin- 
cipal not  being  handed  to  the  Corporation  at  their  Branch  in  Shanghai  at  due 
date,  shall  be  available  for  payment  of  Imperial  Maritime  Customs  duties  at  all  or 
any  of  the  Treaty  ports  of  China  irrespective  of  the  port  or  ports  upon  which 
such  Bonds  may  be  primarily  chargeable,  or  in  such  other  manner  as  stated  in 
the  Bonds. 

12. — Should  the  loan  be  floated  on  better  terms  than  those  named  herein  the 
Imperial  Chinese  Government  shall  have  the  benefit  of  the  difference,  and  the 
Corporation  shall  share  in  no  economy  or  profits  on  the  floating  of  the  loan  other 
than  its  commission  of  two  per  cent,  clear,  aforesaid. 

13. — The  authority  hereby  given  by  the  Tsung  li  Yamen  to  the  Hongkong 
and  Shanghai  Banking  Corporation  to  borrow  money  on  behalf  of  the  Imperial 
Government  of  China  on  the  terms  herein  named  shall  remain  in  force  for  ten 
days  from  the  receipt  by  the  Hongkong  and  Shanghai  Banking  Corporation, 
in  London  of  telegraphic  advice  of  the  signing  of  this  contract,  but  the 
Corporation  accepts  no  responsibility  for  success  or  failure  in  floating  the 
loan. 


NUMBER  1895/2:  JANUARY  26,  1895 


17 


14_ — Immediately  upon  being  informed  by  the  Hongkong  and  Shanghai 
Banking  Corporation  that  initial  arrangements  can  be  made  for  floating  the  loan, 
and  before  the  loan  shall  be  issued  to  the  public,  the  Board  of  Revenue  and 
the  Tsung  li  Yamen  shall  jointly  memorialise  the  Throne  and  obtain  the  Imperial 
sanction  for  this  contract  with  all  the  conditions  herein  specified,  and  copies 
of  their  Memorial  and  of  the  Imperial  Decree  sanctioning  this  contract  shall  be 
officially  handed  by  the  Tsung  li  Yamen  to  Her  Britannic  Majesty's  Minister 
in  Peking  for  communication  to  the  Corporation. 

SCHEDULE  ABOVE  REFERRED  TO 


Year 

Date 

Instalment  of 
principal  due 

Balance  of 
principal  out- 
standing 

Interest 
due 

Total  due 

1894 

Dec.  31 

3,000,000 

1895 

June  30 

3,000,000 

90,000 

90,000 

Dec.  31 

3,000,000 

90,000 

90,000 

1896 

June  30 

3,000,000 

90,000 

90,000 

Dec.  31 

3,000,000 

90,000 

90,000 

1897 

Tune  30 

3,000,000 

90,000 

90,000 

Dec.  31 

* 

3,000,000 

90,000 

90,000 

1898 

June  30 

3,000,000 

90,000 

90.000 

Dec.  31 

3,000,000 

90,000 

90,000 

1899 

June  30 

3,000,000 

90,000 

90,000 

Dec.  31 

3,000,000 

90,000 

90,000 

1900 

June  30 

3,000,000 

90,000 

90.000 

Dec.  31 

200,000 

2,800,000 

90,000 

290,000 

1901 

June  30 

2,800,000 

84,000 

84,000 

Dec.  31 

200,000 

2,600,000 

84,000 

284,000 

1902 

June  30 

2,600,000 

78,000 

78,000 

Dec.  31 

200,000 

2,400,000 

78,000 

278,000 

1903 

Tune  30 

2,400,000 

72,000 

72.000 

"Dec.  31 

200,000 

2,200,000 

72,000 

272,000 

1904 

June  30 

2,200,000 

66,000 

66,000 

Dec.  31 

200,000 

2,000,000 

66,000 

266,000 

1905 

June  30 

2,000,000 

60,000 

60,000 

Dec.  31 

200,000 

1,800,000 

60,000 

260,000 

1906 

Tune  30 

1,800,000 

54,000 

54,000 

Dec.  31 

200,000 

1,600,000 

54,000 

254,000 

1907 

June  30 

1,600,000 

48,000 

48,000 

Dec.  31 

200,000 

1,400,000 

48.000 

248,000 

1908 

June  30 

1,400,000 

42,000 

42,000 

Dec.  31 

200,000 

1,200,000 

42,000 

242.000 

1909 

June  30 

1,200,000 

36,000 

36,000 

Dec.  31 

200,000 

1,000,000 

36,000 

236,000 

1910 

June  30 

1,000,000 

30,000 

30,000 

Dec.  31 

200,000 

800.000 

30,000 

230,000 

1911 

June  30 

800,000 

24,000 

24,000 

Dec.  31 

200,000 

600,000 

24,000 

224,000 

1912 

June  30 

600.000 

18,000 

18,000 

Dec.  31 

200,000 

400,000 

18,000 

218,000 

1913 

June  30 

400,000 

12,000 

12,000 

Dec.  31 

200,000 

200,000 

12,000 

212,000 

1914 

June  30 

200,000 

6,000 

6.000 

Dec.  31 

200,000 

200,000 

6,000 

206,000 

£3,000,000 

£2,340.000 

£5,340,000 

Signed  by  the  contracting  parties  in  duplicate,  one  copy  being  retained  by 
each  party,  this  first  day  of  the  first  month  of  the  twenty  first  year  of  the  Em- 


18  CHINA  TREATIES  AND  AGREEMENTS 

peror  Kuang  Hsu,  being  the  twenty  sixth  day  of  January  one  thousand  eight 
hundred  and  ninety  five  English  Calendar. 

(Signed)  For  the  Hongkong  &  Shanghai 
Banking  Corporation, 

E,   G.   HiLLIER, 

Agent  and  Attorney. 
(Signed)  Shu  Wen, 

Secretary  of  the  Tsung  li  Yamen. 
[seal  of  tsung  li  yamen.] 
[Date,  in  Chinese.] 


NUMBER  1895/3. 

JAPAN  AND  CHINA. 

Treaty  of  peace  {zvith  separate  articles  and  Convention  to  prolong  Armistice).* — 

April  17,  1895. 

His  Majesty  the  Emperor  of  China  and  His  Majesty  the  Emperor  of  Japan, 
desiring  to  restore  the  blessings  of  peace  to  their  countries  and  subjects  and  to 
remove  all  cause  for  future  complications,  have  named  as  their  Plenipotentiaries 
for  the  purpose  of  concluding  a  Treaty  of  peace ;  that  is  to  say,  His  Majesty  the 
Emperor  of  China,  Li  Hung-chang,  Senior  Tutor  to  the  Heir  Apparent,  Senior 
Grand  Secretary  of  State,  Minister  Superintendent  of  Trade  for  the  Northern 
Ports  of  China,  Viceroy  of  the  Province  of  Chihli,  and  Earl  of  the  First  Rank, 
and  Li  Ching-fong,  Ex-Minister  of  the  Diplomatic  Service,  of  the  Second  Official 
Rank; 

And  His  Majesty  the  Emperor  of  Japan,  Count  Ito  Hirobumi,  Junii,  Grand 
Cross  of  the  Imperial  Order  of  Paullownia,  Minister  President  of  State,  and  Vis- 
count Mutsu  Munemitsu,  Junii,  First  Class  of  the  Imperial  Order  of  the  Sacred 
Treasure,  Minister  of  State  for  Foreign  Affairs ; 

Who,  after  having  exchanged  their  full  powers,  which  were  found  to  be 
in  good  and  proper  form,  have  agreed  to  the  following  Articles : — 

Article  I, — Independence  of  Korea. — China  recognizes  definitely  the  full 
and  complete  independence  and  autonomy  of  Korea,  and  in  consequence  the  pay- 
ment of  tribute  and  the  performance  of  ceremonies  and  formalities  by  Korea  to 
China,  in  derogation  of  such  independence  and  autonomy,  shall  wholly  cease 
for  the  future. 

Article  II. — Cession    of   part    of    Ffingtien    Province. — China    cedes    to 

Japan  in  perpetuity  and  full  sovereignty  the  following  territories,  together  with 

all  fortifications,  arsenals,  and  public  property  thereon : 

*  Text  as  printed  in  Rockhill,  p.  14.  Printed  also  in  Customs,  Vol.  II,  p.  590 ;  Traites 
et  Conventions,  p.  209;  Hertslet,  p.  362;  Rccueil,  p.  1;  Am.  Int.  Law  Journal,  Supplement, 
1907,  p.  378.    See  Note  1  to  this  document,  post,  p.  24. 


NUMBER  1895/3 :  APRIL  17,  1895  19 

(a)  The  southern  portion  of  the  province  of  Fengtien,  within  the  following 
boundaries : — 

The  Hne  of  demarcation  begins  at  the  mouth  of  the  River  Yalu  and  ascends 
that  stream  to  the  mouth  of  the  River  An-ping;  from  thence  the  line  runs  to 
Feng-huang ;  from  thence  to  Haicheng ;  from  thence  to  Ying-kow,  forming  a  line 
which  describes  the  southern  portion  of  the  territory.  The  places  above  named 
are  included  in  the  ceded  territory.  When  the  line  reaches  the  River  Liao 
at  Ying-kow,  it  follows  the  course  of  that  stream  to  its  mouth  where  it  termi- 
nates. The  mid-channel  of  the  River  Liao  shall  be  taken  as  the  line  of  demarca- 
tion. 

This  cession  also  includes  all  islands  appertaining  or  belonging  to  the 
province  of  Fengtien,  situated  in  the  eastern  portion  of  the  Bay  of  Liao-tung  and 
in  the  northern  part  of  the  Yellow  Sea. 

(b)  The  island  of  Formosa,  together  with  all  islands  appertaining  or  be- 
longing to  said  island  of  Formosa. 

(c)  The  Pescadores  Group,  that  is  to  say,  all  islands  lying  between  the 
119th  and  120th  degrees  of  longitude  east  of  Greenwich  and  the  23rd  and  24th 
degrees  of  north  latitude. 

Article  III. — Delimitation  of  ceded  territory. — The  alignments  of  the 
frontiers  described  in  the  preceding  Article  and  shown  on  the  annexed  map,t 
shall  be  subject  to  the  verification  and  demarcation  on  the  spot,  by  a  Joint  Com- 
mission of  Delimitation  consisting  of  two  or  more  Chinese  and  two  or  more 
Japanese  Delegates  to  be  appointed  immediately  after  the  exchange  of  the  ratifi- 
cations of  this  Act.  In  case  the  boundaries  laid  down  in  this  act  are  found  to 
be  defective  at  any  point,  either  on  account  of  topography  or  in  considera- 
tion of  good  administration,  it  shall  also  be  the  duty  of  the  Delimitation  Com- 
mission to  rectify  the  same. 

The  Delimitation  Commission  will  enter  upon  its  duties  as  soon  as  possible 
and  will  bring  its  labors  to  a  conclusion  within  the  period  of  one  year  after  ap- 
pointment. 

The  alignments  laid  down  in  this  Act  shall,  however,  be  maintained  until 
the  rectifications  of  the  Delimitation  Commission,  if  any  are  made,  shall  have 
received  the  approval  of  the  Governments  of  China  and  Japan. 

Article  IV. — War  Indemnity  to  Japan. — China  agrees  to  pay  to  Japan  as 
a  war  indemnity  the  sum  of  200,000,000  Kuping  Taels.  The  said  sum  is  to  be 
paid  in  eight  installments.  The  first  installment  of  50,000,000  Taels  to  be  paid 
within  six  months,  and  the  second  installment  of  50,000,000  Taels  to  be  paid 
within  twelve  months  after  the  exchange  of  the  ratifications  of  this  Act.  The 
remaining  sum  to  be  paid  in  six  equal  annual  installments,  as  follows :  The  first 
of  such  equal  annual  installments  to  be  paid  within  two  years ;  the  second  within 
three  years ;  the  third  within  four  years ;  the  fourth  within  five  years ;  the  fifth 
within  six  years,  and  the  sixth  within  seven  years,  after  the  exchange  of  the 
ratifications  of  this  Act.     Interest  at  the  rate  of  5  per  centum  per  annum  shall 

i  Hertslet  notes  that  the  map  was  not  published.  Article  III  of  the  treaty  having  been 
suppressed  by  the  terms  of  the  convention  of  November  8,  1895   (No.  1895/10,  post). 


20  CHINA  TREATIES  AND  AGREEMENTS 

begin  to  run  on  all  unpaid  portions  of  the  said  indemnity  from  the  date  the  first 
installment   falls   due. 

China  shall,  however,  have  the  right  to  pay  by  anticipation  at  any  time  any 
or  all  of  said  installments.  In  case  the  whole  amount  of  the  said  indemnity 
is  paid  within  three  years  after  the  exchange  of  the  ratifications  of  the  present 
Act,  all  interest  shall  be  waived  and  the  interest  for  two  years  and  a  half  or  for 
any  less  period  if  then  already  paid,  shall  be  included  as  a  part  of  the  principal 
amount  of  the  indemnity. 

Article  V. — Inhabitants  of  ceded  territory. — ^The  inhabitants  of  the  ter- 
ritory ceded  to  Japan,  who  wish  to  take  up  their  residence  outside  the  ceded 
districts  shall  be  at  liberty  to  sell  their  real  property  and  retire. 

For  this  purpose  a  period  of  two  years  from  the  date  of  the  exchange  of  the 
ratifications  of  the  present  Act,  shall  be  granted.  At  the  expiration  of  that 
period  those  of  the  inhabitants  who  shall  not  have  left  such  territories  shall  at 
the  option  of  Japan,  be  deemed  to  be  Japanese  subjects. 

Each  of  the  two  Governments  shall  immediately  upon  the  exchange  of  the 
ratifications  of  the  present  Act,  send  one  or  more  Commissioners  to  Formosa  to 
effect  a  final  transfer  of  that  Province  and  within  the  space  of  two  months  after 
the  exchange  of  the  ratifications  of  this  Act,  such  transfer  shall  be  completed. 

Article  VI. — Treaty  of  commerce  and  navigation  to  be  negotiated. — 
All  treaties  between  China  and  Japan  having  come  to  an  end  in  consequence 
of  war,  China  engages  immediately  upon  the  exchange  of  the  ratifications  of  this 
Act,  to  appoint  Plenipotentiaries  to  conclude,  with  the  Japanese  Plenipotentiaries, 
a  Treaty  of  Commerce  and  Navigation  J  and  a  Convention  to  regulate  Frontier 
Intercourse  and  Trade.  The  Treaties,  Conventions,  and  Regulations  now  sub- 
sisting between  China  and  European  Powers  shall  serve  as  a  basis  for  the  said 
Treaty  and  Convention  between  China  and  Japan.  From  the  date  of  the  exchange 
of  the  ratifications  of  this  Act  until  the  said  Treaty  and  Convention  are  brought 
into  actual  operation,  the  Japanese  Government ;  its  officials ;  commerce ;  naviga- 
tion; frontier  intercourse  and  trade;  industries;  ships,  and  subjects,  shall,  in 
every  respect,  be  accorded  by  China  most-favored-nation  treatment. 

China  makes  in  addition  the  following  concessions,  to  take  effect  six  months 
after  the  date  of  the  present  Act : 

1st. — Opening  of  new  localities  in  China  to  trade.§ — The  following  cities 
towns,  and  ports,  in  addition  to  those  already  opened,  shall  be  opened  to  the 
trade,  residence,  industries,  and  manufactures  of  Japanese  subjects,  under  the 
same  conditions  and  with  the  same  privileges  and  facilities  as  exist  at  the  pres- 
ent open  cities,  towns,  and  ports  of  China. 

(1)  Shashih,  in  the  province  of  Hupeh. 

(2)  Chungking,  in  the  province  of  Szechuan. 

(3)  Suchow,  in  the  province  of  Kiangsu. 

(4)  Hang-chow,  in  the  province  of  Chekiang. 

The  Japanese  Government  shall  have  the  right  to  station  Consuls  at  any 
or  all  of  the  above-named  places. 

±  For  Treaty  of  commerce  and  navigation,  concluded  July  21,  1896,  see  No.  1896/4,  f^ost. 

§  In  connection  with  this  article,  see  the  protocol  concerning  Japanese  Settlements,  etc., 
October  19,  1896  (No.  1896/6,  post),  and  attached  note  giving  the  agreement  for  the  estab- 
lishment of  a  Japanese  settlement  at  Shashi,  August  18,  1898,  at  p.  92,  post. 


NUMBER  1895/3:  APRIL  17,  1895  21 

2nd. — Navigation  on  Chinese  inland  waters. — Steam  navigation  for  vessels 
under  the  Japanese  tiag  tor  the  conveyance  of  passengers  and  cargo  shall  be 
extended  to  the  following  places: 

(1)  On  the  upper  Yangtsze  River,  from  I-chang  to  Chung-king. 

(2)  On  the  Woo-sung  River  and  the  Canal,  from  Shanghai  to  Su-chow  and 
Hang-chow.  The  Rules  and  Regulations  which  now  govern  the  navigation  of 
the  inland  waters  of  China  by  foreign  vessels  shall,  so  far  as  applicable,  be 
enforced  in  respect  of  the  above-named  routes  until  new  Rules  and  Regulations 
are  conjointly  agreed  to. 

3rd. — Renting  warehouses. — Japanese  subjects  purchasing  goods  or  produce 
in  the  interior  of  China  or  transporting  imported  merchandise  into  the  interior 
of  China,  shall  have  the  right  temporarily  to  rent  or  hire  warehouses  for  the 
storage  of  the  articles  so  purchased  or  transported,  without  the  payment  of  any 
taxes  or  exactions  whatever. 

4th. — Right  to  manufacture  in  open  localities. — Japanese  subjects  shall  be 
free  to  engage  in  all  kinds  of  manufacturing  industries  in  all  the  open  cities, 
towns,  and  ports  of  China,  and  shall  be  at  liberty  to  import  into  China  all  kinds 
of  machinery  paying  only  the  stipulated  duties  thereon. 

All  articles  manufactured  by  Japanese  subjects  in  China,  shall  in  respect 
of  inland  transit  and  internal  taxes,  duties,  charges  and  exactions  of  all  kinds 
and  also  in  respect  of  warehousing  and  storage  facilities  in  the  interior  of  China, 
stand  upon  the  same  footing  and  enjoy  the  same  privileges  and  exemptions  as 
merchandise  imported  by  Japanese  subjects  into  China. 

In  the  event  additional  Rules  and  Regulations  are  necessary  in  connec- 
tion with  these  concessions,  they  shall  be  embodied  in  the  Treaty  of  Commerce 
and  Navigation  provided  for  by  this  Article. 

Article  VII. — Evacuation  of  China. — Subject  to  the  provisions  of  the 
next  succeeding  Article,  the  evacuation  of  China  by  the  armies  of  Japan,  shall 
be  completely  effected  within  three  months  after  the  exchange  of  the  ratifications 
of  the  present  Act. 

Article  VIII. — Temporary  military  occupation  of  Wei-hai-wei.  Its 
evacuation. — As  a  guarantee  of  the  faithful  performance  of  the  stipulations  of 
this  Act,  China  consents  to  the  temporary  occupation  by  the  military  forces 
of  Japan,  of  Wei-hai-wei  in  the  Province  of  Shantung. 

Upon  the  payment  of  the  first  two  installments  of  the  war  indemnity  herein 
stipulated  for  and  the  exchange  of  the  ratifications  of  the  Treaty  of  Commerce 
and  Navigation,  the  said  place  shall  be  evacuated  by  the  Japanese  forces,  pro- 
vided the  Chinese  Government  consent  to  pledge,  under  suitable  and  sufficient 
arrangements,  the  Customs  Revenue  of  China  as  a  security  for  the  payment  of 
che  principal  and  interest  of  the  remaining  installments  of  said  indemnity.  In 
the  event  no  such  arrangements  are  concluded,  such  evacuation  shall  only  take 
place  upon  the  payment  of  the  final  installment  of  said  indemnity. 

It  is,  however,  expressly  understood  that  no  such  evacuation  shall  take  place 
until  after  the  exchange  of  the  ratifications  of  the  Treaty  of  Commerce  and 
Navrgation. 

Article  IX. — Prisoners  of  war. — Immediately  upon  the  exchange  of  the 


22  CHINA  TREATIES  AND  AGREEMENTS 

ratifications  of  this  Act,  all  prisoners  of  war  then  held  shall  be  restored  and 
China  undertakes  not  to  ill-treat  or  punish  prisoners  of  war  so  restored  to  her 
by  Japan.  China  also  engages  to  at  once  release  all  Japanese  subjects  accused 
of  being  military  spies  or  charged  with  any  other  military  ofifenses.  China  fur- 
ther engages  not  to  punish  in  any  manner  nor  to  allow  to  be  punished,  those 
Chinese  subjects  who  have  in  any  manner  been  compromised  in  their  relations 
with  the  Japanese  army  during  the  war. 

Article  X. — Cessation  of  military  operations. — All  offensive  military 
operations  shall  cease  upon  the  exchange  of  the  ratifications  of  this  Act. 

Article  XI. — The  present  Act  shall  be  ratified  by  their  Majesties  the  Em- 
peror of  China  and  the  Emperor  of  Japan,  and  the  ratifications  shall  be  ex- 
changed at  Chefoo,  on  the  14th  day  of  the  4th  month  of  the  21st  year  of  Kwang 
Hsu,  corresponding  to  the  8th  day  of  the  5th  month  of  the  28th  year  of  Meiji. 
(May  8th,  1895.)  || 

In  witness  whereof,  the  respective  Plenipotentiaries  have  signed  the  same 
and  have  affixed  thereto  the  seal  of  their  arms. 

Done  at  Shimohoseki,  in  duplicate,  this  23d  day  of  the  3d  month  of  the 
21st  year  of  Kwang  Hsii,  corresponding  to  the  17th  day  of  the  4th  month  of  the 
28th  year  of  Meiji.     (April  17th,  1895.) 

Li  Hung  Chang,     [l.  s.] 

Plenipotentiary  of  His  Majesty  the  Emperor  of  China, 
Senior  Tutor  of  the  Heir  Apparent,  Senior  Grand 
Secretary  of  State,  Minister  Superintendent  of 
Trade  for  the  North  Ports  of  China,  Viceroy  of  the 
Province  of  Chihli,  and  Earl  of  the  First  Rank. 

Li  Ching  Fong. 
Plenipotentiary  of  His  Majesty  the  Emperor  of  China, 
Ex-Minister  of  the  Diplomatic  Service,  of  the  Sec- 
ond OiHcial  Rank. 

Count  Ito  Hirobumi.     [l.  s.] 
Junii,  Grand  Cross  of  the  Imperial  Order  of  Paul- 
lozvnia.  Minister  President  of  State,  Plenipotentiary 
of  His  Majesty  the  Emperor  of  Japan. 

Viscount  Mutsu  Munemitsu.     [l.  s.] 
Junii,  First  Class  of  the  Imperial  Order  of  the  Sacred 
Treasure,  Minister  of  State  for  Foreign  Affairs, 
Plenipotentiary   of   His   Majesty   the   Emperor   of 
Japan. 

SEPARATE   articles. 

Article  I. — Military  force  to  occupy  Wei-hai-wei. — The  Japanese  military 
forces  which  are,  under  Article  VIII  of  the  treaty  of  peace  signed  this  day,  to 
temporarily  occupy  Wei-hai-wei,  shall  not  exceed  one  Brigade  and  from  the  date 
of  the  exchange  of  the  ratifications  of  the  said  treaty  of  peace,  China  shall  pay 

II  Ratifications  exchanged  at  Chefoo,  May  8,  1895. 


NUMBER  1895/3:  APRIL  17,  1895  23 

annually,  one-fourth  of  the  amount  of  the  expenses  of  such  temporary  occupation 
that  is  to  say,  at  the  rate  of  500,000  Kuping  Taels  per  annum. 

Article  II. — Territory  occupied  at  Wei-hai-wei. —  The  territory  tempo- 
rarily occupied  at  Wei-hai-wei  shall  comprise  the  island  of  Liu-kung  and  a  belt  of 
land  5  Japanese  Ri  wide  along  the  entire  coast  line  of  the  Bay  of  Wei-hai-wei. 

No  Chinese  troops  shall  be  permitted  to  approach  or  occupy  any  place  within 
a  zone  of  5  Japanese  Ri  wide  beyond  the  boundaries  of  the  occupied  territory. 

Article  III. — Chinese  to  retain  civil  administration. — The  civil  admin- 
istration of  the  occupied  territory  shall  remain  in  the  hands  of  the  Chinese 
Authorities.  But  such  Authorities  shall  at  all  times  be  obliged  to  conform  to 
the  orders  which  the  Commander  of  the  Japanese  Army  of  occupation  may  deem 
it  necessary  to  give  in  the  interest  of  the  health,  maintenance,  safety,  distribu- 
tion *or  discipline  of  the  Troops. 

All  military  offences  committed  within  the  occupied  territory  shall  be  sub- 
ject to  the  jurisdiction  of  the  Japanese  Military  Authorities. 

The  foregoing  Separate  Articles  shall  have  the  same  force,  value  and  effect 
as  if  they  had  been,  word  for  word,  inserted  in  the  Treaty  of  Peace  signed  this 
day. 

In  witness  whereof,  the  respective  Plenipotentiaries  have  signed  the  same 
and  have  affixed  thereto  the  seal  of  their  arms. 

Done  at  Shimonoseki,  in  duplicate,  this  23rd  day  of  the  third  month  of  the 
21st  year  of  Kuang  Hsii,  corresponding  to  the  17th  day  of  the  4th  month  of 
the  28th  year  of  Meiji.     (April  17th,  1895.) 

(Signatures  (4)  and  titles,  same  as  in  Treaty.) 


CONVENTION  TO  PROLONG  ARMISTICE 

The  undersigned  (insert  here  names  and  titles  of  the  2  Chinese  Pleni- 
potentiaries, as  in  Preamble  of  Treaty)  Plenipotentiaries  of  His  Majesty  the 
Emperor  of  China,  and  (insert  here  names  and  titles  of  2  Japanese  Plenipoten- 
tiaries as  in  preamble  of  Treaty)  Plenipotentiaries  of  His  Majesty  the  Emperor 
of  Japan,  having  concluded  a  Treaty  of  Peace,  have,  in  order  to  provide  for  the 
peaceful  exchange  of  the  ratifications  of  said  Treaty,  agreed  upon  and  signed 
the  following  Articles : 

I. — Armistice. — The  Convention  of  Armistice  concluded  on  the  5th  day  of 
the  3rd  month  of  the  21st  year  of  Kwang  Hsii,  corresponding  to  the  30th  day  of 
the  3d  month  of  the  28  year  of  Meiji,^  is  prolonged  for  the  period  of  21  days  from 
this  date. 

II. — The  armistice,  which  is  prolonged  by  this  Convention,  shall  termi- 
nate, without  notice  on  either  side,  at  midnight  on  the  14th  day  of  the  4th  month 
of  the  21st  year  of  Kwang  Hsii,  corresponding  to  the  8th  day  of  the  5th  month  of 
the  28th  year  of  Meiji.  The  rejection  in  the  meantime,  however,  of  the  said 
Treaty  of  Peace,  by  either  High  Contracting  Party,  shall  have  the  eflfect  of  at 
once  terminating  this  Armistice  without  previous  notice. 

^  See  Note  1  to  this  document,  post,  p.  24. 


24  CHINA  TREATIES  AND  AGREEMENTS 

In  witness  whereof  the  Plenipotentiaries  of  China  and  Japan  have  hereunto 
set  their  hands  and  affixed  their  seal. 

Done  at  Shimonoseki,  this  23rd  day  of  the  3rd  month  of  the  21st  year  of 
Kuang  Hsu,  corresponding  to  the  17th  day  of  the  4th  month  of  the  28th  year 
of  Meiji.     (April  17th,  1895.) 

(Signatures  (4)  and  titles,  same  as  in  Treaty.) 


Note  1. 

In  connection  with  this  treaty,  see  the  Convention  for  the  retrocession  of  the 
southern  portion  of  Fengtien,  November  8,  1895  (No.  1895/10,  post).  See  also  the  treaty 
of  alliance  between  Japan  and  Korea,  signed  at  Seoul,  August  26,  1894,  of  which  the  ■fol- 
lowing translation  is  printed  in  Rockhill,  p.  429: 

Treaty  of  Alliance  between  Korea  and  Japan. — August  26,  1894, 

"  In  view  of  the  fact  that  on  the  25th  of  July,  1894,  the  Korean  Government  entrusted 
His  Imperial  Majesty's  Envoy  Extraordinary  and  Minister  Plenipotentiary  at  Soul,  Korea, 
with  the  expulsion,  on  their  behalf,  of  Chinese  soldiers  from  Korean  territory,  the  Gov- 
ernments of  Japan  and  Korea  have  been  placed  in  a  situation  to  give  mutual  assistance  both 
offensive  and  defensive.  Consequently  the  undersigned  Plenipotentiaries,  duly  authorized 
by  their  respective  Governments,  have,  with  a  view  of  defining  the  fact  and  of  securing 
in  the  premises  concerted  action  on  the  part  of  the  two  countries,  agreed  to  the  following 
Articles : — 

"Article  I. — The  object  of  the  alliance  is  to  maintain  the  independence  of  Korea  on 
a  firm  footing  and  to  promote  the  respective  interests  of  both  Japan  and  Korea  by  expelling 
Chinese  soldiers   from   Korean  territory. 

"  Article  II. — Japan  will  undertake  all  warlike  operations  against  China,  both  offen- 
sive and  defensive,  while  Korea  will  undertake  to  give  every  possible  facility  to  Japanese 
soldiers  regarding  their  movements  and  supply  of  provisions. 

"  Article  III. — This  treaty  shall  cease  and  determine  at  the  conclusion  of  a  treaty  of 
peace  with  China. 

"  In  witness  whereof  the  Plenipotentiaries  of  the  two  countries  have  signed  the  treaty 
and  hereunto  affixed  their  seals. 

"  Done  at  Soul  this  26th  day  of  August,  1894. 

"  Keisuke  Otori, 
"  H.   I.   J.   M.'s   Envoy   Extraordinary  and 
Minister  Plenipotentiary. 

.  "  Kim  In  Shiouku, 
" H.  K.  M.'s  Minister  for  Foreign  Affairs." 


Note  2. 

The  English  version  of  this  armistice,  signed  at  Shimonoseki,  March  30,  1895,  is  given 
as  follows  in  Customs,  Vol.  II,  p.  599 : 

Convention  of  Armistice  between  Japan  and  China, — March  30,  1895. 

"  His  Majesty  the  Emperor  of  Japan  having,  in  view  of  the  untoward  event  which  tem- 
porarily interrupted  the  depending  negotiations  for  peace,  cornmanded  His  Plenipotentiaries 
to  consent  to  a  temporary  Armistice,  the  undersigned,  Count  Ito  Hirobumi,  Junii,  Grand 
Cross  of  the  Imperial  Order  of  Paullownia,  Minister  President  of  State,  and  Viscount  Mutsu 
Munemitsu,  Junii,  First  Class  of  the  Imperial  Order  of  the  Sacred  Treasure,  Minister  of 
State  for  Foreign  Affairs,  the  Plenipotentiaries  of  His  Majesty  the  Emperor  of  Japan;  and 
Li  Hung-chang,  Plenipotentiary  of  His  Majesty  the  Emperor  of  China,  Senior  Tutor  to 
the  Heir  Apparent,  Senior  Grand  Secretary  of  State,  Minister  Superintendent  of  Trade  for 
the  Northern  Ports  of  China,  Viceroy  of  the  province  of  Chihli,  and  Earl  of  the  First  Rank, 
have  concluded  the  following  Convention  of  Armistice: — 

"  Article  I. — The  Imperial  Governments  of  Japan  and  China  agree  to  enforce  an 
Armistice  between  their  respective  military  and  naval  forces,  in  the  provinces  of  Feng- 
tien, Chihli,  and  Shantung,  subject  to  the  provisions  contained  in  the  following  Articles. 

"  Article  II. — The  forces  affected  by  this  Armistice  shall  have  the  right  to  maintain  the 


NUMBER  1895/3:  APRIL  17,  1895:  NOTES  25 

positions  respectively  occupied  by  them  at  the  time  hostilities  are  actually  suspended,  but 
they  shall  not  under  any  circumstances  during  the  existence  of  this  Armistice  advance 
beyond  such  positions. 

"Article  111. — The  two  Governments  engage  during  the  existence  of  this  Convention 
not  to  extend,  perfect,  or  advance  their  attackmg  works,  or  to  reinforce  or  in  anywise  to 
strengthen,  either  for  offensive  or  defensive  operations,  their  confronting  military  lines. 
But  this  engagement  shall  not  prevent  either  Government  from  making  any  new  distribu- 
tion or  arrangment  of  troops  not  intended  to  augment  or  strengthen  the  armies  now 
actually  in  the  field  and  engaged  in  active  military  operations. 

"  Article  IV. — The  movement  of  troops  and  the  transportation  of  military  supplies 
and  all  other  contraband  of  war  by  sea  shall  be  subject  to  the  ordinary  rules  of  war,  and 
shall  consequently  be  liable  to  hostile  capture. 

"  Article  V. — This  Armistice  shall  be  enforced  by  the  Imperial  Governments  of  Japan 
and  China  for  the  period  of  21  days  from  the  date  of  the  signature  of  this  Convention. 

"  In  those  localities  occupied  by  the  troops  of  the  two  Governments  to  which  there  is  no 
telegraphic  communication,  the  quickest  possible  means  shall  be  employed  in  issuing  the  orders 
for  the  Armistice,  and  the  respective  Commanders  of  the  two  countries  shall,  upon  receipt  of 
such  orders,  announce  the   fact  to  each  other  and  take  steps  to   enforce  the   Armistice. 

"  Article  VI. — This  Armistice  shall  terminate,  without  notice  on  either  side,  at  mid- 
day on  the  20th  day  of  the  4th  month  of  the  28th  year  of  Meijt,  corresponding  to  the  26th 
day  of  the  3rd  month  of  the  21st  year  of  Kuang  Hsij.  If  in  the  meantime  the  depending 
negotiations  for  peace  are  broken  off,  this  Armistice  shall  in  that  case  terminate  at  the  same 
time  such  negotiations  cease. 

"  In  witness  whereof  the  Plenipotentiaries  of  Japan  and  China  have  hereunto  set  their 
hands  and  affixed  their  seals. 

"  Done  at  Shimonoseki,  Japan,  this  30th  day  of  the  3rd  month  of  the  28th  year  of  Meiji, 
corresponding  to  the  5th  day  of  the  3rd  month  of  the  21st  year  of  Ku-^^ng  Hsu. 

"  Count  Hirobumi  Ito,  [l.  s.] 

,  Junii,  Grand  Cross  of  the  Imperial 
Order  of  Paullownia,  Minister 
President  of  State,  Plenipotentiary 
of  His  Majesty  the  Emperor  of 
Japan. 
"  Viscount  Mutsu  Munemitsu,    [l.  s] 

Junii,  First  Class  of  the  Imperial  Order 
of  the  Sacred  Treasure,  Minister  of 
State  for  Foreign  Affairs,  Pleni- 
potentiary  of  His  Majesty  the  Em- 
peror of  Japan. 
"  Li  Hung-chang,  [l.  s.] 

Plenipotentiary  of  His  Majesty  the 
Emperor  of  China,  Senior  Tutor 
to  the  Heir  Apparent,  Senior  Grand 
Secretay  of  State,  Minister  Super- 
intendent of  Trade  for  the  North- 
ern Ports  of  China,  Viceroy  of  the 
province  of  Chihli,  and  Earl  of 
the  First  Rank." 


26  CHINA  TREATIES  AND  AGREEMENTS 

NUMBER  1895/4. 

FRANCE  AND  CHINA. 

Convention  complementary  to  the  Convention  for  the  delimitation  of  the  frontier 
between  Tonkin  and  China,  of  June  26,  1887  * — June  20,  1895. 

The  Commissioners  named  by  the  two  Governments  to  establish  the  last 
portion  of  the  frontier  between  China  and  Tonkin  (from  the  Red  River  to  the 
Mekong),  having  terminated  their  labors, — 

Mr.  Auguste  Gerard,  Minister  Plenipotentiary,  Envoy  Extraordinary  of  the 
French  Republic  in  China,  Officer  of  the  Legion  of  Honor,  Grand-Cross  of  the 
Order  of  the  Independence  of  Montenegro,  Grand  Officer  of  the  Royal  Order  of 
Charles  III  of  Spain,  Grand  Officer  of  the  Royal  Order  of  the  Crown  of  Italy, 
etc.,  of  the  one  part ;  and 

His  Highness  Prince  Ch'ing,  Prince  of  the  First  Rank,  President  of  the 
Tsungli-Yamen,  etc. ;  and  His  Excellency  Siu  Yong-yi,  Member  of  the  Tsungli- 
Yamen  and  of  the  Grand  Council  of  the  Empire,  Vice-President  (Left-hand)  of 
the  Ministry  of  the  Interior,  etc.,  of  the  other  part ; 

Acting  in  the  name  of  their  respective  Governments,  and  to  that  end  pos- 
sessing full  powers  which  they  have,  on  conmiunicating  them,  found  to  be  in 
good  and  due  form,  have  decided  to  set  down  in  the  present  document  the  fol- 
lowing provisions  with  a  view  to  rectifying  and  completing  the  Convention 
signed  at  Peking,  June  26th,  1887,t  the  minutes  and  the  maps  that  have  been 
drawn  up  and  signed  by  the  French  and  Chinese  Commissioners  teing  now  and 
hereafter  approved. 

Article  I. — The  course  of  the  frontier  between  Yunnan  and  Annam  (map, 
second  section),  from  point  R  to  point  S,  is  modified  as  follows: — The  frontier 
line  leaves  point  R,  runs  north-eastward  to  Man-mei,  then  from  Man-mei  in  a 
west-and-east  direction  to  Nan-na  on  the  Ts'ing-chouei-ho,  leaving  Man-mei  to 
Annam,  and  the  territories  of  Mong-t'ong-chang-ts'ouen,  Mong-t'ong-chan, 
Mong-t'ong-tchong-ts'ouen,  and  Mong-t'ong-hia-ts'ouen  to  China. 

Article  II. — The  course  of  the  fifth  section,  between  Long-po-tchai  and 
the  Black  River,  is  modified  as  follows: — From  Long-po-tchai  (fifth  section),  the 
common  frontier  of  Yunnan  and  Annam  runs  up  the  course  of  the  Long-po-ho, 
to  its  confluence  with  the  Hong-yai-ho,  at  the  point  marked  A  on  the  map.  From 
point  A,  it  follows  a  generally  north-north-westerly  direction  and  the  watershed, 
to  the  point  where  the  P'ing-ho  takes  its  source.     From  that  point  the  frontier 

*  Translation  from  French  text  as  printed  in  Hertslet,  p.  321.  French  text  printed 
also  in  Customs,  Vol.  I,  p.  942;  Reinach,  p.  328. 

In  connection  with  this  convention,  see  also  the  Anglo-Chinese  Convention  relative 
to  Burmah,  March  1,  1894  (No.  1894/1,  ante),  particularly  Article  5;  Anglo-Chinese  agree- 
ment of  February  4,  1897  (No.  1897/1,  post)  ;  and  Anglo-French  declaration  of  January  15, 
1896  (No.  1896/1,  post),  particularly  Article  4. 

t  For  the  text  of  that  convention,  see  Hertslet,  p.  314. 


NUMBER  1895/4:  JUNE  20,  1895  27 

follows  the  course  of  the  P'ing-ho,  then  that  of  the  Mou-k'i-ho  to  its  confluence 
with  the  Ta-pao-ho,  which  it  follows  to  its  confluence  with  the  Nan-kong-ho, 
then  the  course  of  the  Nan-kong-ho  to  its  confluence  with  the  Non-na-ho.  The 
frontier  then  follows  up  the  course  of  the  Pa-pao-ho  to  its  confluence  with  the 
Kouang-sse-ho,  then  the  course  of  the  Kouang-sse-ho,  and  follows  the  water- 
shed to  the  confluence  of  the  Nam-la-pi  and  the  Nam-la-ho,  and  lastly  the  Nam- 
la-ho  to  its  confluence  with  the  Black  River,  then  the  middle  of  the  Black 
River  to  the  Nam-nap  or  Nan-ma-ho. 

Article  III. — The  common  frontier  of  Yunnan  and  Annam,  between  the 
Black  River  (at  its  confluence  with  the  Nam-nap)  and  the  Mekong,  is  laid  down 
as  follows : — From  the  confluence  of  the  Black  River  and  the  Nam-nap,  the 
frontier  follows  the  course  of  the  Nam-nap  to  its  source,  then  in  a  south- 
westerly and  westerly  direction  the  watershed  to  the  sources  of  the  Nam-kang 
and  the  Nam-wou.  From  the  sources  of  the  Nam-wou  the  frontier  follows  the 
watershed  between  the  basin  of  the  Nam-wou  and  the  basin  of  the  Nam-la, 
leaving  to  China,  on  the  west,  Ban-noi,  I-pang,  I-wou,  and  the  Six  Tea  Moun- 
tains, and  to  Annam,  on  the  east,  Mong-wou,  Wou-te,  and  the  Confederation 
of  the  Hua-panh-ha-tang-hoc.  The  frontier  follows  a  north-and-south  direction, 
south-east  to  the  sources  of  the  Nan-nuo-ho,  then  in  a  north-north-easterly  direc- 
tion along  the  watershed  it  skirts  the  valleys  of  the  Nam-ouo-ho  and  the  left-hand 
affluents  of  the  Nam-la,  to  the  confluence  of  the  Mekong  and  the  Nam-la, 
north-west  of  Muong-poung.  The  territory  of  Muong-mang  and  of  Muong 
jouen  is  left  to  China.  As  for  the  territory  of  the  Eight  Salt  Springs  (Pa-fa- 
tchai),  it  remains  assigned  to  Annam. 

Article  IV. — The  agents,  commissioners  or  authorities  designated  by  the 
two  Governments  will  be  entrusted  with  the  running  of  the  boundary-line,  in 
conformity  with  the  maps  drawn  up  and  signed  by  the  Delimitation  Commission, 
and  with  the  above  line. 

Article  V. — The  provisions  concerning  delimitation,  between  France  and 
China,  not  modified  by  the  present  document,  remain  in  full  force. 

The  present  Complementary  Convention,  as  also  the  Delimitation  Conven- 
tion of  June  26,  1887,  will  be  ratified  forthwith  by  His  Majesty  the  Emperor  of 
China,  and  after  it  has  been  ratified  by  the  President  of  the  French  Republic, 
the  exchange  of  ratifications  will  take  place  at  Peking  with  as  little  delay  as 
possible. $ 

Done  at  Peking  in  four  copies,  June  20,  1895,  corresponding  to  the  28th 
day  of  the  5th  month  of  the  21st  year  of  Kuang  Hsii. 

[l.  s.]  (Sgd.)       A.  Gerard 

[l.  s.]  (Sgd.)       Ch'ing. 

[l.  s.]  (Sgd.)       Siu. 

t  Ratifications  exchanged  at  Peking,  August  7,  1896. 


28  CHINA  TREATIES  AND  AGREEMENTS 

NUMBER  1895/5. 

FRANCE  AND  CHINA. 

Additional  Convention  to  the  Supplementary  Commercial  Conventioii  of  June  26, 

1887^— June  20,  1895. 

The  President  of  the  French  RepubHc  and  His  Majesty  the  Emperor  of 
China,  being  desirous  of  encouraging  and  extending  along  the  Sino-Annamite 
frontier,  henceforth  defined  as  far  as  the  Mekong.f  the  extension  of  commercial 
relations  between  the  two  countries  and  of  insuring  the  execution  of  the  treaty  of 
commerce  signed  at  Tientsin,  April  25,  1886,  as  well  as  of  the  Supplementary 
Convention,  signed  at  Peking,  June  26,  1887,  have  decided  to  conclude  an  Addi- 
tional Convention,  containing  several  new  provisions  and  modifying  certain  of 
the  provisions  included  in  the  previous  documents. 

For  this  purpose  the  two  High  Contracting  Parties  have  named  as  their 
respective  Plenipotentiaries,  to  wit : 

The  President  of  the  French  Republic,  M.  Auguste  Gerard,  Minister  Pleni- 
potentiary, Envoy  Extraordinary  of  the  French  Republic  in  China,  Officer  of  the 
Legion  of  Honor,  etc.,  etc.,  and  His  Majesty  the  Emperor  of  China,  His  High- 
ness Prince  K'ing,  Prince  of  the  first  rank.  President  of  the  Tsung-li  Yamen, 
etc.,  etc.,  and  His  Excellency  Hsii  Yung-i,  member  of  the  Tsung-li  Yamen  and 
of  the  Grand  Council  of  the  Empire,  etc.,  etc. 

Who  having  communicated  their  full  powers,  which  have  been  recognized  as 
in  good  and  due  form,  have  agreed  on  the  following  articles : 

Article  I. — Consular  agent  at  Tong-hing. — It  is  agreed,  so  as  to  insure 
the  policing  of  the  frontier,  that  the  French  Government  will  have  the  right 
of  maintaining  an  agent  of  the  Consular  order  at  Tong-hing  opposite  Monkay 
on  the  frontier  of  Kwang-tung. 

A  further  regulation  will  determine  the  conditions  under  which  should  be 
exercised,  by  agreement  between  the  French  and  Chinese  authorities,  the  mutual 
police  of  the  Sino-Annamite  frontier.^ 

Article  II. — Lung-chou,  Meng-tse,  and  Hok'ou  opened  to  trade. — Article 
n  of  the  Additional  Convention,  signed  at  Peking,  June  26th,  1887,  is  modified 
and  completed  as  follows : 

It  is  agreed  between  the  High  Contracting  Parties  that  the  town  of  Lung- 
chou  in  Kwang-si  and  that  of  Meng-tse  in  Yiin-nan  are  open  to  Franco-Annamite 
commerce.  It  is  furthermore  understood  that  the  locality  open  to  commerce  on 
the  river  route  of  Lao-kay  to  Meng-tse  will  no  longer  be  Man-hao,  but  Ho-k'ou, 

*  Translation,  as  given  in  RockhUl,  p.  21,  from  the  French  text  as  printed  in  Doc. 
Dipt.,  Chine.  1894-1898,  p.  16.  Printed  also  in  B.  &  F.  State  Papers,  vol.  87,  p.  525;  Customs. 
Vol.  I,  p.  937;  Hertslet,  p.  323;  Rectieil,  p.  19;  Rcinach,  p.  331. 

t  This  was  done  by  the  complementary  convention  of  June  20,  1895,  to  the  Convention 
for  the  boundary  delimitation  between  Tongking  and  China,  signed  June  26,  1887  (No. 
1895/4,  ante.) 

t  See  Note  1  to  this  document,  post,  p.  7)2. 


NUMBER  1895/5 :  JUNE  20,  1895  29 

and  that  the  French  Government  shall  have  the  right  of  maintaining  at  Ho- 
k'ou  an  Agent  under  the  Consul  at  Meng-tse,  at  the  same  time  the  Chinese 
Government  will  keep  a  Customs  agent  there. 

Article  III. — Ssu-mao  opened  to  trade. — It  is  agreed  that  the  town  of  Ssu- 
mao  in  Yiin-nan  shall  be  open  to  Franco-Annamite  commerce,  like  Lung-chou 
and  Meng-tse,  and  that  the  French  Government  will  have  the  right,  as  in  the 
other  open  ports,  of  maintaining  a  Consul  there,  at  the  same  time  the  Chinese 
Government  can  keep  a  Customs  agent. 

The  local  authorities  will  exert  themselves  to  facilitate  the  installation  of  the 
French  Consul  in  a  suitable  residence. 

Frenchmen  and  French  proteges  may  establish  themselves  at  Ssu-mao  under 
conditions  provided  for  by  Articles  VII,  X,  XI,  XII,  and  others  of  the  Treaty 
of  June  27,  1858;  as  well  as  by  Article  III  of  the  Convention  of  April  25,  1886. 
Goods  destined  for  China  can  be  transported  by  the  rivers,  particularly  the 
Lo-so  and  the  Mekong  as  well  as  by  land  routes,  and  particularly  by  the  official 
road,  leading  either  from  Mong-le,  or  from  I-pang  to  Ssu-mao  and  P'u-erh,  the 
duties  which  these  goods  will  be  subject  to  being  paid  at  Ssu-mao. 

Article  IV. — Transit  of  goods  across  Chinese-Annam  frontier.  Regu- 
lations.— Article  IX  of  the  Commercial  Convention  of  April  25,  1886,  is  modi- 
fied as  follows : — 

(1)  Chinese  goods  in  transit  from  one  or  the  other  of  the  four  towns  open 
to  commerce  on  the  frontier,  Lung-chou,  Meng-tse,  Ssu-mao  and  Ho-k'ou,  in 
passing  through  Annam,  will  pay,  on  leaving,  duties  reduced  by  four-tenths. 
A  special  certificate  will  be  delivered  setting  forth  the  payment  of  this  duty,  and 
destined  to  accompany  the  goods.  When  they  have  come  to  the  other  town,  they 
shall  be  exempt  from  the  payment  of  import  duty. 

(2)  Chinese  goods  exported  from  the  four  above-named  localities  and 
transported  to  Chinese  maritime  or  river  ports,  open  to  commerce,  shall  pay  on 
passing  the  frontier  export  duty  reduced  by  four-tenths.  A  special  certificate 
will  be  delivered  setting  forth  the  payment  of  this  duty,  and  destined  to  ac- 
company the  goods.  When  they  shall  arrive  at  one  of  the  maritime  or  river 
ports  open  to  commerce,  they  shall  pay  the  half  re-importation  duty  in  con- 
formity with  the  general  rule  for  all  goods  of  like  nature  in  the  maritime  or  river 
ports  open  to  commerce. 

(3)  Chinese  goods  transported  from  Chinese  maritime  or  river  ports  open 
to  commerce,  by  way  of  Annam,  towards  the  four  above  named  localities, 
shall  pay  on  crossing  (the  frontier)  full  duty.  A  special  certificate  will  be 
delivered,  setting  forth  the  payment  of  this  duty,  and  destined  to  accompany 
the  goods.  When  they  shall  arrive  at  one  of  the  frontier  customs  stations  they 
shall  pay  on  entry  half  re-importation  duty  based  on  the  reduction  by  four-tenths. 

(4)  The  above  mentioned  Chinese  goods,  when  accompanied  by  the  special 
certificate  above  mentioned,  shall,  before  passing  through  the  customs  on  ex- 
portation, or  after  passing  through  the  customs  on  re-importation,  be  subject  to 
the  regulations  governing  native  Chinese  goods. 

Article  V.— Mining  in  Yunnan,  Kwang-si,  and  Kwang-tung.§— It  is  un- 
§  See  Note  2  to  this  document,  post,  p.  34. 


30  CHINA  TREATIES  AND  AGREEMENTS 

derstood  that  China,  for  the  exploitation  of  its  mines  in  the  provinces  of  Yiin- 
nan,  Kwang-si,  and  Kwang-tung,  may  call  upon,  in  the  first  instance,  French 
manufacturers  and  engineers,  the  exploitation  remaining  nevertheless  subject  to 
the  rules  proclaimed  by  the  Imperial  Government  as  regarding  national  industries. 
It  is  agreed  that  railways  either  those  already  in  existence,  or  those  pro- 
jected in  Annam  may,  after  mutual  agreement,  and  under  conditions  to  be  defined, 
be  continued  on  Chinese  territory. 

Article  VI. — Extension  of  telegraph  lines. — Article  II  of  the  Telegraphic 
Convention  between  France  and  China,  signed  at  Chefoo,  December  1,  1888,  is 
completed  as  follows  : — 

D. — A  junction  shall  be  made  between  the  Secondary  Prefecture  of  Ssu- 
mao  and  Annam  by  two  stations,  which  shall  be  Ssu-mao  in  China  and  Muang- 
ha-hin  (Muong-ngay-neua)  in  Annam,  midway  between  Lai-chou  and  Luang 
Prabang. 

The  tarifif  shall  be  fixed  in  conformity  with  Article  VI  of  the  Telegraphic 
Convention  of  Chefoo. 

Article  VII. — Provisions  of  Convention  not  to  extend  beyond  localities 
named. — It  is  agreed  that  the  commercial  stipulations  contained  in  the  pres- 
ent Convention  being  of  a  special  nature,  the  result  of  mutual  concessions 
resulting  from  the  needs  of  the  relations  between  Lung-chou,  Ho-k'ou,  Meng-tse, 
Ssu-mao,  and  Annam,  the  benefits  resulting  therefrom  shall  not  be  appealed  to  by 
the  subjects  and  the  proteges  of  the  two  High  Contracting  Parties  except  at 
the  localities  as  w^ell  as  on  the  river  and  land  routes  of  the  frontier  here  set 
forth. 

Article  VIII. — The  present  stipulations  shall  come  into  force  as  if  they 
were  inserted  in  the  text  of  the  Additional  Convention  of  June  26,  1887. 

Article  IX. — Former  treaties  remain  in  force. — The  terms  of  former 
Treaties,  Agreements  and  Conventions  between  France  and  China,  not  modified 
by  the  present  Treaty  shall  remain  in  full  force. 

The  present  Complementary  Convention  shall  be  ratified  at  once  by  His 
Majesty  the  Emperor  of  China,  and  after  it  shall  have  been  ratified  by  the  Presi- 
dent of  the  French  Republic,  the  exchange  of  ratifications  shall  take  place  at 
Peking  with  the  least  delay  possible. 

Done  at  Peking  in  four  copies  20th  June  1895,  corresponding  to  the  28th 
day  of  the  5th  moon  of  the  21st  year  Kwang-hsii. 

(Signed)  A.  Gerard. 

(Signed)  Ching. 

(Signed)  Hsu. 


NUMBER  1895/5 :  JUNE  20,  1895  31 


Identic  Note  Explanatory  of  the  Provisions  of  the  Commercial  Convention  be- 
tween France  and  China  of  June  20,  1895,  and  of  the  Railway  Contract  of 
June  5,  1896. \\ 

The  Tsung-li  Yamen  to  Mr.  Gerard,  Minister  of  the  French  Republic 

AT  Peking. 

13th  Day,  5th  Moon,  23d  Year  Kuang-hsu  (12  June  1897). 

The  Imperial  Government  of  China  and  the  Government  of  the  French 
RepubHc,  animated  with  a  mutual  and  equal  desire  to  facilitate  and  develop,  in 
conformity  with  treaties  and  conventions,  and  as  evidence  of  their  feelings  of 
concord,  neighborly  and  commercial  relations  between  China  and  Annam,  have 
striven  by  an  interchange  of  views  and  an  agreement  between  our  Yamen  and 
the  Legation  of  the  Republic,  to  define  more  precisely  and  clearly  the  carrying  out 
of  certain  provisions  of  the  convention  made  between  China  and  France. 

With  this  object  in  view,  our  Yamen  and  the  Legation  of  the  Republic  have 
agreed  on  the  three  following  formulas : 

1°.  It  is  understood  that  in  compliance  with  Article  V  of  the  Commercial 
Convention  of  June  20,  1895,  as  well  as  the  contract  of  June  5,  1896,  between 
the  Compagnie  de  Fives-Lille  and  the  official  Administration  of  the  Dong-dang 
and  Lung-chou  Railroad,  and  the  despatches  exchanged  the  2d  and  25th  June 
of  the  same  year  between  our  Yamen  and  the  Legation  of  the  Republic,  if 
the  Compagnie  de  Fives-Lille  has  satisfactorily  succeeded,  and  as  soon  as 
the  line  from  Dong-dang  to  Lung-chou  shall  be  finished,  a  request  will  of 
necessity  be  made  it  to  continue  the  said  line  in  the  direction  of  Nan-ning  and 
Pe-se. 

2°.  It  is  understood,  in  compliance  with  Article  V  of  the  Complementary 
Commercial  Convention  of  June  20,  1895,  that  in  the  three  southern  border 
provinces,  Kuang-tung,  Kuang-si  and  Yiin-nan,  the  Chinese  Government  may 
call  upon  French  engineers  and  manufacturers  for  working  mines. 

3°.  It  is  understood  that  China  shall  undertake  works  for  the  improvement 
of  navigation  on  the  upper  Red  River,  and  that  in  the  interest  of  commerce  she 
will  grade  and  improve  the  route  from  Ho-k'ou  to  Man-hao  and  Meng-tse 
as  far  as  the  provincial  capital.  It  is  understood  furthermore  that  the  right  will 
be  conceded  to  construct  a  railway  communication  between  the  Annam  frontier 
and  the  provincial  capital,  either  by  way  of  the  Pe-se  river  region,  or  by  that  of 
the  upper  Red  River;  the  (preliminary)  studies  and  the  carrying  out  by 
China  to  be  done  gradually. 

These  formulas  are  incorporated  in  the  present  exchange  of  despatches  as 
evidence.  Our  Yamen  and  the  Legation  of  the  Republic,  faithful  interpreters  of 
the  mutual  opinion  of  the  two  Governments,  agree  that  these  formulas  are  in- 
tended to  define  certain  provisions  of  the  conventions  previously  concluded  be- 
ll Translation.  Documents  Diplomatiques,  Chine,  1894-1898,  p.  39.  An  identic  note 
bearing  the  same  date  was  sent  to  the  Tsung-li  Yamen  by  Mr.  Gerard.     See  ibid.,  p.  38. 


32  CHINA  TREATIES  AND  AGREEMENTS 

tween  the  two  Governments,  and  to  insure  their  effectual  carrying  out  in  a  spirit 
of  mutual  confidence  and  good  will,  and  in  the  equal  interest  of  the  two  countries. 
(Follow  the  signatures  of  the  President  and  the  Members  of  the  Tsung-li 
Yamen. ) 


Note  1. 

The  Regulations  for  the  carrying  out  of  a  mixed  police  service  on  the  Sino-Annamite 
frontier,  of  which  a  translation  follows,  were  agreed  upon  between  the  Tsung-li  Yamen  and 
the  French  Legation  at  Peking,  May  7,  1896: 

Regulations  for  Mixed  Police  on  Sino-Annamite  Frontier.— May  7,  1896. 

"  Section  1. — uMixed  Commissions  for  the  policing  of  the  Sino-Annamite  frontier. 

"Article  I. — The  whole  of  the  Sino-Annamite  frontier  is  divided,  for  the  purposes  of 
the  mixed  police  service  to  be  maintained  by  the  Chinese  Government  and  the  Government 
of  the  Protectorate  of  Annam,  into  three  sections,  as  follows : 

1st  section:  The  frontier  between  the  Province  of  Kwangtung,  and  Annam; 
2nd  section  :  The  frontier  between  the  Province  of  Kwangsi,  and  Annam ; 
3rd  section :  The  frontier  between  the  Province  of  Yunnan,  and  Annam. 
"  Article  II. — In  each  of  the  sections  of  frontier  specified  in  the  preceding  article,  the 
police  service  is  directed  by  a  Mixed  Commission  composed  of  one  French  Commissioner 
and  one  Chinese  Commissioner. 

"  Article  III. — The  French  Commissioner  has  authority  over  the  officers  and  func- 
tionaries of  the  region  of  Annam  corresponding  to  the  section  of  frontier  placed  under 
his  supervision,  in  so  far  as  concerns  the  carrying  out  of  the  police  service.  He  is  directly 
subordinate  to  the  Governor  General  of  Indo-China. 

"  The  Chinese  Commissioner  has  authority  over  the  officers  and  functionaries  of  the 
Chinese  Province  corresponding  to  the  section  of  frontier  placed  under  his  supervision,  in 
so  far  as  concerns  the  carrying  out  of  the  police  service.  He  is  directly  subordinate  to  the 
Viceroy  and  the  Governor  of  the  province. 

"  Article  IV. — The  places  of  residence  of  the  French  Commissioners  are  as  follows : 
1st  frontier  section:  IMoncay ; 
2nd  frontier  section  :  Langson  ; 
3rd  frontier  section :  Laokay. 
"  The  places  of  residence  of  the  Chinese  Commissioners  are  as  follows : 
1st  frontier  section:  Tong-hing; 
2nd  frontier  section:   P'ing-siang; 
3rd  frontier  section :  Ho-k'eou. 
"  Article  V. — The  residences  of  the  French  and  Chinese  Commissioners  who  constitute 
a  single  Mixed  Commission  will  be  connected  by  a  telephone  or  telegraph  line. 

"  Section  2. — Means  of  policing  the  frontier. 

"  Article  VI. — The  policing  of  the  frontier  is  carried  out  by  means  of  double  military 
posts  made  up  of  the  regular  troops  of  the  two  countries. 

"  Article  VII. — Each  double  military  post  comprises  a  French  post  and  a  Chinese  post, 
situated  on  either  side  of  the  frontier,  upon  the  same  route   {voie  de  penetration) . 

"  In  places  where  the  configuration  of  the  country  is  such  as  not  to  permit  of  the  estab- 
lishment of  encampments,  they  may  be  so  established  as  to  confront  each  other  at  some  dis- 
tance to  the  one  side  or  the  other  (pourront  etre  ctablis  de  facon  a  se  faire  face  de  plus  loin 
sur  le  cote,  a  droite  on  a  gauche),  taking  care  always  that  they  should  be  within  sight  of  each 
other  and  in  cooperation. 

"Article  VIII. — Each  French  or  Chinese  military  post  comprises  an  effective  minimum 
of  thirty  regular  soldiers  under  arms.     It  is  commanded  by  an  officer. 

"Article  TX. — At  each  double  military  post,  the  French  and  the  Chinese  post  will  as 
soon  as  possible  be  connected  by  a  telephone  or  telegraph  line. 

"Article  X. — The  double  military  posts  are  established  at  the  following  passages: 
1st.     Moncay,  Tong-hing; 
2nd.    Pac-si,  Li-tsie  (Ly-tien)  ; 


NUMBER  1895/5 :  JUNE  20,  1895  :  NOTES  33 

3rd.     Hoang-mo,  Leng-tong  (Lang-dong)  ; 

4th.     Chi-ma,  Che-ma  (Chi-ma)  ; 

5th.     Dong-dang,  Nan-kouan  (Xam-quan)  ; 

6th.     Bi-nhi,  P'ing-eul  (Bi-nhi)  ; 

7th.     Na-lan,  Pou-kiu  (Bocup); 

8th.    Ta-lung,  Chouei-k'eou-kouan  (Thuy-kau)  ; 

9th.     Ly-ban,  Li-pan  (Ly-pan)  ; 
10th.     Soc-giang,  P'ing-meng  (Binh-mang). 
"  Article  XI. — The  number  and  the  situation  of  double  military  posts,  as  provided  in  the 
preceding  article,  may  be  altered  by  mutual  agreement,  after  previous  consultation  between 
the  French  Government  and  the  Chinese  Government.    They  will  remain  for  the  time  being 
undetermined,  on  the  frontier  of  Yunnan. 

"  Section  3. — Carrying  out  of  the  police  service  on  the  frontier. 

"  Article  XII. — In  conformity  with  the  provisions  of  the  treaty  concluded  at  Tientsin 
between  France  and  China,  June  9,  1885,  Frenchmen  or  French  proteges  and  foreign  resi- 
dents of  Tonkin  who  should  wish  to  cross  the  frontier  in  order  to  visit  China  may  do 
so  only  after  having  first  provided  themselves  with  passports  delivered  by  the  Chinese 
frontier  authorities  upon  the  request  of  the  French  authorities.  For  Chinese  subjects,  an 
authorization   delivered   by   the   imperial   frontier  authorities  will   suffice. 

"The  Chinese  subjects  who  may  desire  to  go  from  China  into  Tonkin  by  land  must 
be  provided  with  regular  passports  delivered  by  the  French  authorities  upon  the  request  of 
the   imperial  authorities. 

"Article  XIII. — The  only  points  of  passage  authorized  for  the  people  (ressortissants) 
of  the  two  countries  are,  without  exception,  pending  further  regulations,  the  ten  passages 
provided  in   Article  X  of  the  present   Regulations. 

"  The  authorizations  and  passports  must  bear  an  indication  of  the  passages  by  which 
their   holders   are   authorized   to   cross   the    frontier. 

"  Article  XIV. — On  passing  the  double  military  posts,  the  authorizations  and  passports 
will  be  visaed  by  the  commander  of  the  French  post,  and  examined  by  the  commander  of 
the  Chinese  post,  to  whom  they  must  be  presented. 

"Article  XV. — In  derogation  from  Articles  XII,  XIII  and  XIV  of  the  present  Regula- 
tions, permanent  authorizations  for  crossing  the  frontier  may  be  granted,  by  arrange- 
ment between  the  local  authoritites  of  the  two  countries  and  the  commanders  of  the  double 
military  posts,  to  the  people  (ressortissants)  of  the  two  countries  and  to  the  foreign 
residents  of  Tonkin  who,  by  the  requirements  of  their  profession  or  trade,  or  of  an  agri- 
cultural enterprise,  are  obliged  to  stay  on  one  and  the  other  side  of  the  frontier  alternately. 

"Article  XVI. — The  permanent  authorizations  provided  for  in  the  preceding  article 
will  be  renewable  annually,  from  the  1st  to  the  10th  of  January  of  the  French  year,  but 
notice  to  that  effect  must  be  given  a  month  in  advance  to  the  Chinese  authorities,  who 
will  inform  those  concerned. 

"Article  XVII. — The  perrnanent  authorizations  must  be  registered  by  the  authorities 
of  the  two  countries  who  may  have  delivered  them,  and  they  will  report  them  to  the  Com- 
missioner of  their  nationality  in  order  that  he  may  keep  a  record  of  them  in  his  archives. 

"  Section  4. — Carrying  out  of  the  police  service  vinth  respect  to  gatherings  of  armed  bands. 

"Article  XVIII. — Whenever  gatherings  of  pirates  may  be  reported  on  the  territory 
of  Annam,  the  commander  of  the  French  post  that  may  be  informed  of  it  must,  at  each 
double  military  post,  immediately  warn  the  commander  of  the  Chinese  post  and  the  French 
commissioner  in  charge  of  the  frontier  section  in  which  his  post  is  situated. 

"  Article  XIX. — Whenever  gatherings  of  pirates  may  be  reported  on  the  territory  of 
China,  the  commander  of  the  Chinese  post  that  may  be  informed  of  it  must,  at  each 
double  military  post,  immediately  warn  the  commander  of  the  French  post  and  the  Chinese 
Commissioner  in  charge  of  the  frontier  section  in  which  his  post  is  situated. 

"Article  XX. — The  two  Commissioners,  after  a  mutual  understanding,  will  each  in 
what  concerns  him  give  the  necessary  orders  in  regard  to  the  police  measures  to  be  taken 
against  the  gatherings  reported. 

"In  each  double  military  post,  the  commander  of  the  French  post  and  the  commander 
of  the  Chinese  post  must  communicate  to  each  other  the  instructions  or  orders  received 
from  the  members  of  the  Mixed  Commission. 

"Article  XXI. — In  cases  of  emergency,  the  commander  of  the  French  post  and  the 
commander  of  the  Chinese  post,  at  each  double  military  post,  will  arrange  between  them- 
selves for  the  police  measures  to  be  taken  and  wUl  report  these  measures  to  their  respective 
Commissioners. 

"Article  XXII. — If  pirates,  pursued  by  French  troops  in  Annam,  cross  the  frontier  and 
pass  into  Chinese  territory,  word  thereof  will  be  given  by  the  near-by  French  military 
post  to  the  Chinese  military  post,  or  by  the  commander  of  the  French  troops  engaged  to 


34  CHINA  TREATIES  AND  AGREEMENTS 

the  Chinese  miHtary  chief  in  the  neighborhood,  in  order  that  the  pursuit  may  be  continued 
without  delay  by   the  Chinese  troops,   and   the  pirates  be  captured. 

"In  case  pirates  should  cross  the  frontier  in  order  to  pass  from  China  into  Annam,  the 
Chinese  frontier  posts  or  the  Commanders  of  the  Chinese  troops  engaged  would  be  under 
the  obligation  to  give  notice  thereof  as  soon  as  possible  to  the  near-by  French  frontier  posts 
or  the  Commanders  of  the  French  troops  in  the  neighborhood,  in  order  that  the  pursuit 
might  be  continued  without  delay  by  the  French  troops,  and  the  pirates  be  captured. 

"Any  negligence  or  any  delay  occurring  in  the  pursuit  which  should  thus  be  con- 
tinued, or  in  the  notice  to  be  given,  will  immediately  involve  the  responsibility  of  the 
officers  in  command  of  the  posts  or  of  the  troops,  and  will  make  them  liable  to  severe 
penalties.  The  punishment  inflicted  will  be  made  known  to  the  Commissioner  of  the  other 
country   belonging  to   the    Mixed   Commission   concerned. 

"Section  5. — Responsibility  of  the  Commissioners  and  of  the  Commanders  of  the  Double 

Military  Posts. 

"  Article  XXIII. — The  French  and  the  Chinese  Commissioners,  belonging  to  a  Mixed 
Commission,  who  shall  .not  have  conformed  to  the  provisions  of  the  present  Regulations 
affecting  them,  will  be  the  subject  of  investigations  made  on  either  part  by  the  high  officials 
of  the  two  countries,  who  will  determine  the  responsibilities  incurred.  When  the  penalty 
inflicted  by  one  of  the  Governments  shall  have  been  made  known  to  the  other,  each  will 
act  according  to  its  own  laws. 

"  Article  XXIV. — The  commanders  of  the  French  or  of  the  Chinese  post  at  double 
military  posts,  or  the  commanders  of  French  or  of  Chinese  troops,  who  shall  not  have 
conformed  to  the  provisions  of  the  present  Regulations  affecting  them,  will  be  the  subject 
of  investigations  made  on  either  part  by  the  two  Commissioners,  French  and  Chinese,  be- 
longing to  the  Mixed  Commission  charged  with  the  supervision  of  the  frontier  section  con- 
cerned. Each  will  adjudge  the  penalty  incurred,  according  to' the  laws  of  his  own  country, 
and  will  make  it  known  to  the  Commissioner  of  the  other  country  belonging  to  the  Mixed 
Commission  concerned. 

"  Section  6. — Carrying  out  of  the  police  service  in  the  Archipelago  of  Tonkin. 

"  Article  XXV. — Every  boat  or  launch  manned  by  a  crew  composed  of  Chinese,  and 
sailing  in  the  waters  of  Annam,  must  be  provided  with  a  permit  delivered  and  visaed  by 
the  French  authorities,  either  administrative  or  consular,  or  by  the  Chinese  Maritime 
Customs  or  the  local  Chinese  authorities,  of  the  point  of  departure. 

"  This  permit  will  state  the  composition  of  the  crew,  the  nature  of  the  cargo,  and  the 
point   for  which  the  vessel   is  bound. 

"  The  boats  of  near-by  villages  coming  to  markets  or  fairs,  or  serving  as  ferries,  which 
it  would  be  difficult  to  hold  to  making  an  exact  statement  of  the  persons  aboard  them, 
must  receive  passports  delivered  by  the  local  authorities,  on  the  responsibility  of  the  lat- 
ter, permitting  them  to  sail.  The  persons  and  the  goods  aboard  them  must  be  exempted 
from  minute  and  itemized  declarations. 

"  Article  XXVI. — The  sailing  ipermit  must  be  presented  upon  every  request  by  a 
French   war-vessel   or   by   a   customs   vessel   of    the    Protectorate. 

"  Article  XXVII. — The  request  provided  for  in  the  preceding  article  will  be  signified 
by  a  blank  gun  or  cannon  shot,  followed,  if  necessary,  by  a  second  shot. 

"  Any  boat  which  should  not  obey  the  request  signified  as  prescribed  above  would  sub- 
ject itself  to  being  considered  a  pirate  vessel  and  treated  as  such. 

"  Article  XXVIII. — Every  boat  or  launch  manned  by  a  crew  composed  of  Chinese, 
presenting  itself  at  a  point  on  the  coast  of  Annam,  must  present  for  the  visa  of  the 
customs  or  administrative  authorities  the  sailing  permit  provided  for  by  Article  XXV  of 
the  present  Regulations." 

See  also  the  Arrangement  for  the  maintenance  of  order  on  the  Sino-Annamite  frontier, 
April  13,  1915,  between  the  Wai  Chiao  Pu  and  the  French  Minister  acting  in  behalf  of  the 
Government  of  Indo-China  (No.  1915/4,  post),  which  replaced  a  similar  arrangement  of 
January  4,  1909,  between  the  authorities  of  China  and  of  Indo-China. 

Note  2. 

Under  date  of  September  26,  1914,  the  Chinese  Minister  for  Foreign  Affairs  (Mr. 
Sun  Pao-ki)  addressed  to  the  French  Minister  in  Peking  (Mr.  Conty)  a  letter  of  which  the 
translation  is  thus  given  in  the  F.  E.  Review,  vol.   13,  p.  455: 

Note  regarding  Preference  to  French  Nationals  in  Yunnan  and  Kwangsi. — 

September  26,  1914. 

"  Since  there  has  been  disorder  on  the  border  of  Yunnan  and  Kwangsi,  which  has  led 
to  misunderstandings,  both  sides  have  appointed  deputies  to  investigate  and  make  arrange- 


NUMBER  1895/6 :  JULY  6,  1895  35 

ments  for  the  pacification  of  the  locality.  Several  replies  have  been  sent  to  Your  Ex- 
cellency, in  response  to  your  requests  for  action  to  be  taken,  which  we  trust  have  been 
satisfactory.  Now_  our  Government  wishes  to  show  in  an  especial  way  its  friendly  inten- 
tions. In  future  if  railway  or  mining  enterprises  are  to  be  undertaken  in  the  province 
of  Kwangsi,  in  which  foreign  capital  is  required,  an  offer  will  first  be  made  to  French 
capitalists.  At  such  a  time  the  higher  officials  of  Kwangsi  will  ascertain  the  facts  and 
carry  on  negotiations  with  the  French  Minister.  A  report  will  then  be  made  to  the 
Government,  which  will  make  a  final  decision. 
"  With  compliments,"  etc. 

See  also  the  identic  notes  of  June  12,  1897,  appended  to  the  text  of  this  convention. 


NUMBER  1895/6. 

FRANCE  AND  RUSSIA   (Franco-Russian  Syndicate)   AND  CHINA. 
Contract  for  the  Chinese  four  per  cent  Gold  Loan  of  1895* — July  6,  1895. 

Between  the  undersigned : 

His  Excellency  Shu  King-chen,  Envoy  Extraordinary  and  Minister  Plenipo- 
tentiary of  His  Majesty  the  Emperor  of  China,  acting  with  full  powers  from  the 
Imperial  Government  of  China  and  duly  authorized  by  a  decree  of  His  Majesty 
the  Emperor  of  China,  dated  Peking,  .  .  . , — of  the  one  part ;  and  a  Syn- 
dicate consisting  of  M.  M.  Hottinguer  &  Cie.,  Paris ;  La  Banque  de  Paris  et  des 
Pays-Bas,  Paris ;  Le  Credit  Lyt)nnais,  Paris ;  La  Societe  Generale  pour  favoriser 
le  Developpement  du  Commerce  et  de  I'lndustrie  en  France,  Paris ;  Le  Comptoir 
National  d'Escompte  de  Paris,  Paris ;  La  Societe  Generale  de  Credit  Industriel 
et  Commercial,  Paris;  La  Banque  Internationale  de  Commerce  a  St.-Petersbourg, 
St.  Petersburg;  La  Banque  d'Escompte  de  St.-Petersbourg,  St.  Petersburg;  La 
Banque  Russe  pour  le  Commerce  Etranger,  St.  Petersburg ;  and  La  Banque  de 
Commerce  de  Volga-Kama,  St.  Petersburg, — of  the  other  part, — 

It  has  been  agreed  as  follows : 

L — By  virtue  of  an  edict  of  His  Majesty  the  Emperor  of  China,  the  Im- 
perial Government  of  China  will  proceed  to  issue  a  4%  Gold  Loan  for  a  nominal 
amount  of  francs  400,000,000  =  marks  323,200,000  =  pounds  15,820,000  = 
Netherland  florins  191,200,000  =  gold  roubles  100,000,000. 

This  loan  will  be  entitled  the  "Chinese  4%  Gold  Loan  of  1895"  (f.  e.,  Em- 
prunt  Chinois  4%  Or  1895),  and  as  to  capital  and  interest  will  be  issued  in 
francs,  pounds  sterling,  reichmarks,  Netherland  florins,  and  gold  roubles,  on 
the  basis  of  frs.  500  =  mk.  404  =  il9/15/6  =  fl.  239  =  g.  rs.  125. 

2. — By  an  edict  of  July  1,  1895   (New  Style),  His  Majesty  the  Emperor 

of  China  legalizes  the  Chinese  4%  Gold  Loan  of  1895,  and  has  duly  authorized 

his  Minister  Plenipotentiary  at  St.  Petersburg  to  conclude  and  sign  the  conditions 

of  the  loan  as  stipulated  in  the  following  articles. 

*  Translation  from  the  French  text.  In  connection  with  this  contract,  see  also  the 
Protocol  of  exchange  of  declarations,  between  Russia  and  China,  concerning  this  loan,  July 
6,  1895  (No.  1895/7,  post),  and  the  simultaneous  Contract  of  guarantee  of  the  loan  by  the 
Russian  Ministry  of  Finance   (printed  in  the  note  thereto,  p.  42,  fost). 


36  CHINA  TREATIES  AND  AGREEMENTS 

There  shall  be  drawn  up  a  general  bond  for  the  whole  of  the  Chinese  4% 
Gold  Loan  of  1895,  to  which  will  be  affixed  the  legal  Chinese  signatures.  This 
bond  will  be  turned  over  to  the  Banque  Internationale  de  Commerce  a  St.-Peters- 
bourg,  and  each  contracting  party  will  receive  a  copy  thereof  authenticated  by 
the  Imperial  Chinese  Legation  at  St.  Petersburg.  After  the  complete  amortiza- 
tion of  the  loan,  the  original  will  be  returned  to  the  Imperial  Government  of 
China. 

3. — On  the  basis  of  this  general  bond,  there  will  be  certificates  issued  for  the 
new  loan,  divided  into  500,000  sets  of  one  bond  each,  55,000  sets  of  five  bonds 
each,  and  1,000  sets  of  twenty-five  bonds  each — each  bond  being  for  frs.  500  = 
mk.  404  -  il9/15/6  =  fl.  239  =  g.  rs.  125. 

The  certificates  for  the  new  loan  will  be  to  bearer,  and  their  text  will  be 
drawn  up  in  French,  English  and  Russian. 

4. — The  bonds  of  the  present  loan  will  bear  interest  at  4%  per  annum  upon 
the  nominal  principal. 

Interest  will  run  from  July  1,  1895  (New  Style),  and  will  be  payable  semi- 
annually, to  wit,  on  January  1  and  July  1   (New  Style)  each  year. 

The  loan  will  be  amortized  in  36  years,  at  the  furthest,  beginning  with  1896, 
by  means  of  drawings  by  lot,  which  will  take  place  at  the  Banque  Internationale 
de  Commerce  a  St.-Petersbourg  in  the  presence  of  a  delegate  of  the  Chinese 
Legation,  in  the  month  of  March,  each  year,  beginning  with  March,  1896 — the 
date  of  the  first  drawing. 

There  shall  be  devoted  to  amortization,  each  year,  1.288,688%  of  the  nominal 
amount  of  the  loan,  plus  4%  of  the  nominal  amount  of  the  bonds  already 
amortized. 

The  bonds  drawn  by  lot  will  be  paid,  beginning  with  the  1st  of  July  next 
following,  upon  the  return  of  the  bonds  together  with  their  stubs  and  all  the 
coupons  falling  due  after  the  time  for  repayment.  The  amount  of  missing 
coupons  will  be  deducted  from  the  principal  to  be  repaid.  The  numbers  of 
the  bonds  drawn  at  each  drawing  will  be  duly  published,  and  will  be  made  the 
subject  of  a  special  list  to  which  will  be  appended  a  detailed  specification  of 
such  bonds  as  may  have  been  drawn  at  previous  drawings  and  not  yet  presented 
for  repayment. 

These  publications  will  be  made  at  the  expense  of  the  Imperial  Government 
of  China,  in  the  Russian  newspapers,  in  two  newspapers  in  Paris,  two  in  Berlin, 
one  in  London,  one  in  Amsterdam,  one  in  Frankfurt-on-Main,  one  in  Brussels, 
and  one  in  Geneva. 

Until  January  1,  1910,  the  amortization  may  not  be  increased;  and  until 
that  date,  nothing  may  be  done  towards  converting  or  repaying  the  present 
loan. 

5. — The  service  of  the  bonds  will  take  place,  at  the  option  of  the  holders,  at 
Paris,  Brussels  and  Geneva,  in  francs;  at  Berlin  and  Frankfurt-on-Main,  in 
reichmarks ;  at  London,  in  pounds  sterling ;  at  Amsterdam,  in  Netherland 
florins ;  at  St.  Petersburg,  in  gold  roubles  (in  accordance  with  the  Monetary 
Law  of  December  17/29th,  1885), — all  at  the  equivalents  mentioned  in 
Article  1. 

6. — The  bonds  and  coupons  of  the  present  loan  will  be  forever  exempt  from 


NUMBER  1895/6 :  JULY  6,  1895  37 

all  present  or  future  Chinese  tax,  as  well  as  from  any  other  levy  on  the  part 
of  China. 

7 . — Upon  the  exhaustion  of  the  sheets  of  coupons  of  the  bonds,  and  upon 
the  return  of  the  stubs  belonging  to  bonds  not  yet  drawn  by  lot,  the  Banque 
Internationale  de  Commerce  a  St.-Petersbourg  will,  at  the  expense  of  the  Im- 
perial Government  of  China,  have  new  sheets  of  coupons  made,  which  will  be 
delivered  to  the  holders  without  any  expense  to  them,  and  free  of  any  Chinese 
tax. 

8. — The  following  offices  will  be  exclusively  entrusted  with  the  service  of 
the  Chinese  \%  Gold  Loan  of  1895 : 

In  Paris — M.M.  Hottinguer  &  Cie. ;  La  Banque  de  Paris  et  das  Pays-Bas; 
Le  Credit  Lyonnais ;  La  Societe  Generale  pour  favoriser  le  Developpement  du 
Commerce  et  de  I'lndustrie  en  France;  Le  Comptoir  National  d'Escompte  de 
Paris ;  and  La  Societe  Generale  de  Credit  Industriel  et  Commercial ; 

In  Brussels — ; 

In  Geneva — The  branch  of  the  Banque  de  Paris  et  des  Pays-Bas;  and  the 
agency  of  the  Credit  Lyonnais ; 

In  Amsterdam — The  branch  of  the  Banque  de  Paris  et  des  Pays-Bas; 

In  London — The  agency  of  the  Comptoir  National  d'Escompte  de  Paris; 
the  agency  of  the  Credit  Lyonnais ;  and  the  branch  of  the  Banque  Russe  pour  le 
Commerce  Et  ranger; 

In  Berlin — ; 

In  Frankfurt-on-Main — For  account  of  the  Banque  Internationale  de  Com- 
merce a  St.-Petersbourg,  at  the  offices  which  may  be  designated  by  it; 

In  St.  Petersburg — La  Banque  Internationale  de  Commerce  a  St.-Peters- 
bourg ;  La  Banque  Russe  pour  le  Commerce  Etranger ;  La  Banque  d'Escompte  de 
St.-Petersbourg ;  and  La  Banque  de  Commerce  de  Volga-Kama. 

The  commission  allotted  to  the  offices  of  all  the  firms  alike  is  fixed  at  %% 
(a  quarter  of  one  per  cent)  of  the  amount  of  the  coupons  and  of  the  bonds 
of  the  present  loan. 

9. — The  present  loan  is  guaranteed  by  the  duties  levied  by  the  Maritime 
Customs  of  China,  and  by  the  deposit  of  customs  bonds. 

Furthermore,  in  the  event  that  the  service  of  the  loan  should  for  any  reason 
whatsoever  come  to  be  suspended  or  delayed,  the  Imperial  Government  of  Rus- 
sia, by  agreement  with  the  Imperial  Government  of  China,  undertakes,  vis-a-vis 
the  contracting  banks  and  firms,  the  obligation  to  find,  itself,  and  to  place  at 
their  disposal  in  good  time,  as  they  fall  due,  whatever  sums  are  necessary  for 
the  payment  of  the  coupons  and  of  the  amortized  bonds  of  the  present  loan.f 

The  bonds  put  into  circulation  by  the  Syndicate,  representing  the  general 
bond  deposited  with  the  Banque  Internationale  de  Commerce  a  St.-Petersbourg, 
will  be  made  out  in  the  name  of  the  Imperial  Government  of  China. 

10. — The  Imperial  Chinese  Legation  at  St.  Petersburg  will  hold  or  cause  to 
be  held  an  annual  drawing  of  bonds,  and  will  see  to  it  that  the  publications 
specified  in  Article  4  take  place  regularly. 

fFor  the  terms  of  the  guarantee  given  by  the  Russian  Government  to  the  Syndicate, 
see  the  note  to  the  Russo-Chinese  Protocol  of  July  6th,  1895  (No.  1895/7),  post,  p.  42. 


38  CHINA  TREATIES  AND  AGREEMENTS 

The  correspondence  of  the  Imperial  Chinese  Legation  with  the  contracting 
parties  will  be  carried  on  exclusively  through  the  Banque  Internationale  de 
Commerce  a  St.-Petersbourg,  which  will  be  in  charge  of  the  general  accounting 
of  the  loan,  and  will  see  to  it  that  the  funds  necessary  for  the  service  of  the 
loan  are  suitably  apportioned,  and  to  which  the  other  offices  will  cause  to  be 
delivered,  duly  cancelled,  the  bonds  and  coupons  paid  by  them. 

Through  the  agency  of  its  Legation  at  St.  Petersburg,  the  Imperial  Govern- 
ment of  China  will  in  good  time  provide  to  the  firms  entrusted  with  the  service  of 
the  Chinese  4%  Gold  Loan  of  1895  the  amounts  necessary  therefor,  in  accordance 
with  the  requirements  ascertained  during  the  corresponding  semester  of  the  pre- 
ceding year.  One  month  before  each  due  date,  the  Banque  Internationale  de 
Commerce  a  St.-Petersbourg  will,  in  behalf  of  the  contracting  parties,  furnish 
the  necessary  information  to  the  Imperial  Chinese  Legation  at  St.  Petersburg. 
The  Imperial  Government  of  China  undertakes  to  put  into  the  hands  of  the 
officers  concerned  the  amounts  necessary,  in  accordance  with  these  indications,  at 
least  twenty  days  before  each  due  date. 

IL — The  Syndicate  binds  itself  to  take  firm, — and  by  the  mere  fact  of 
signature  of  the  present  contract  it  takes  firm, — the  Chinese  4%  Gold  Loan 
of  1895,  for  a  nominal  amount  of  frs.  400,000,000  =  mk.  323,200,000 
=  £15,820,000  =  Netherland  fls.  191,200,000  =  g.  rs.  100,000,000,  at  the  price 
of  94ys%  (ninety-four  and  one-eighth  per  cent)  of  the  nominal  principal  in 
francs. 

The  discount  on  the  loan  will  be  calculated  upon  the  nominal  principal  in 
francs,  and  the  net  proceeds  accruing  to  the  Imperial  Government  of  China  will 
be  placed  to  its  credit  in  Paris. 

The  Minister  of  China  at  St.  Petersburg  is  authorized,  after  the  deposit  of 
the  general  bond  with  the  Banque  Internationale  de  Commerce  a  St.-Peters- 
bourg, to  dispose  of  the  proceeds  of  the  loan,  and  to  give  the  Syndicate  good 
and  valid  receipts  therefor. 

Until  the  completion  of  the  definitive  bonds,  the  Syndicate  will  at  its  own 
expense  issue  at  each  place  special  provisional  certificates. 

12. — The  Syndicate  will  see  to  the  payment,  for  the  account  of  the  Imperial 
Government  of  China,  of  the  expenses  for  the  French  stamp  tax,  as  well  as 
for  the  preparation  and  delivery  of  the  definitive  bonds.  The  amount  of  these 
expenses  will  be  deducted  from  the  proceeds  of  the  loan.  All  other  expenses 
(such  as  publicity,  charges  for  other  foreign  stamps,  notarial  services,  registra- 
tion, etc.)  will  be  borne  by  the  Syndicate.  The  definitive  bonds  will  bear  the 
coupons  falling  due  on  January  1,  1896  (New  Style),  and  subsequent  coupons. 

13. — The  Syndicate  will  issue  the  Chinese  4%  Gold  Loan  of  1895  by  public 
subscription,  on  July  31,  1895,  at  the  latest.  The  prospectus  of  the  subscription 
is  approved  by  the  Minister  of  China  at  St.  Petersburg. 

14. — The  discount  on  these  transactions  will  be  calculated  on  the  basis  of 
the  nominal  amount  in  francs,  at  the  price  of  94j^%,  plus  the  interest  accrued 
from  July  1st  to  the  day  of  the  discount,  such  interest  being  calculated  at  4% 
per  annum.  The  amounts  thus  arrived  at  in  francs  will  be  held  in  Paris  to 
the  credit  of  the  Minister  of  China  at  St.  Petersburg. 


NUMBER  1895/6:  JULY  6,  1895  .      39 

The  Syndicate  may,  at  its  discretion,  arrange  for  the  Chinese  4%  Gold  Loan 
of  1895  in  one  or  more  issues.  In  any  case,  a  third  of  the  proceeds  must  be 
placed  to  the  credit  of  the  Imperial  Government  of  China,  as  provided  above, 
on  August  20,  1895,  at  the  latest;  another  third  on  October  1,  1895;  and  the 
balance  on  January  1,  1896   (New  Style). 

The  expenses  of  the  French  stamp  tax  and  those  for  preparation  and  delivery 
of  the  bonds  will  be  deducted  from  the  amount  to  be  placed  to  the  credit  of 
the  Imperial  Government  of  China  following  such  payments. 

From  the  sums  held  in  Paris  to  the  credit  of  the  Imperial  Government  of 
China,  the  Syndicate  will  make  without  charge,  to  any  one  of  the  places  in 
Europe,  such  transfers  as  may  be  requested  of  it  by  the  Minister  of  China  at 
St.  Petersburg. 

Transfers  outside  of  Europe  will  be  arranged  for  exclusively  by  the  Banque 
Internationale  de  Commerce  a  St.-Petersbourg,  which  will  see  to  it  that  they  are 
made  to  the  best  advantage  of  the  Imperial  Government  of  China. 

15. — The  contracting  parties  participate  in  the  present  contract  severally 
(i.e.,  sajis  solidarite  cntre  eux),  and  in  the  following  proportions: 

M.M.  Hottinguer  &  Cie francs  62,500,000 

La  Banque  de  Paris  et  des  Pays-Bas 62,500,000 

Le  Credit  Lyonnais 62,500,000 

Le  Comptoir  National  d'Escompte  de   Paris 25,000,000 

La  Societe    Generale   pour   favoriser   le    Developpement    du    Com- 
merce et  de  ITndustrie  en  France 25,000,000 

La  Societe  Generale  de   Credit   Industriel  et   Commercial 12,500.000 

La  Banque  Internationale  de  Commerce  a  St.-Petersbourg 75,000,000 

La  Banque  Russe  pour  le  Commerce  Etranger 25.000,000 

La  Banque  d'Escompte  de  St.-Petersbourg 25.000.000 

La  Banque  de  Commerce  de  Volga-Kama 25,000,000 

Total francs  400,000,000 

16. — Until  January  15th,  1896,  the  Imperial  Government  of  China  will  not 
take  steps  to  make  any  issue  of  funds  in  gold,  and  will  allow  no  steps  to  be  taken 
towards  any  issue  of  Chinese  securities  in  gold  guaranteed  by  the  State,  unless 
upon  a  previous  understanding  with  the  Syndicate. 

Exception  is  made  solely  for  the  case  of  war. 

17. — If  extraordinary  events  should  occur — if,  for  example,  the  French 
retite  should  fall  below  par,  or  Russian  Consolidated  4%s  below  98^2%, — the 
Syndicate  will  have  the  right  to  decline  to  execute  the  present  contract.  This 
right  of  cancellation  is  available  to  it,  however,  only  before  June  24/July  6, 
1895. 

In  the  event  of  cancellation  of  the  obligations  of  the  Syndicate,  the  present 
contract  becomes  null  and  void. 

18. — The  Banque  Internationale  de  Commerce  a  St.-Petersbourg  has  full 
power  to  act  in  the  name  of  the  Syndicate  with  the  Chinese  Legation  at  St. 


40    .  CHINA  TREATIES  AND  AGREEMENTS 

Petersburg.    The  said  Bank  is  authorized  to  give  good  and  valid  receipt  in  the 
name  of  the  Syndicate  for  any  sum  or  value. 

19. — The  present  contract  will  be  drawn  up  in  two  originals,  one  for  the 
Imperial  Chinese  Legation  at  St.  Petersburg,  and  one  for  the  Syndicate ;  and  as 
many  copies  as  there  are  members  of  the  Syndicate  will  be  prepared.  The  copies 
will  be  certified  by  the  Imperial  Chinese  Legation  at  St.  Petersburg. 

In  case  of,  doubt  or  of  difference,  the  French  text  alone  will  be  authoritative 
for  the  interpretation  of  the  contract. 

Done  at  St.  Petersburg,  June  24/July  6,  1895,  the  14th  day  of  the  inter- 
calary 5th  moon  of  the  21st  year  of  Kuang  Hsii  of  the  Ta  Ch'ing  Dynasty, 
in  virtue  of  full  powers  in  behalf  of  the  Syndicate,  namely : 
For  Hottinguer  &  Cie.,  etc.,  etc. 
[Here  follow  signatures  and  seals] 


NUMBER  1895/7. 

RUSSIA  AND  CHINA. 

Protocol  of  exchange  of  declarations  concerning  the  Chinese  Four  Per  Cent  Gold 

Loan  of  1895*— July  6, 1895. 

The  undersigned  met  this  day  at  the  Imperial  Ministry  of  Foreign  Affairs 
to  proceed  with  the  exchange  of  the  Declarations  concerning  the  Chinese  4% 
Gold  Loan  of  1895,  signed  at  St.  Petersburg  on  June  24/July  6,  1895,  between 
Russia  and  China. 

The  respective  instruments  having  been  read  and  found  to  be  in  good  and 
due  form,  the  exchange  of  Declarations  took  place  in  the  usual  manner. 

In  faith  whereof  the  undersigned  drew  up  the  present  Protocol  and  affixed 
thereto  the  seal  of  their  arms. 

Done  in  duplicate  at  St.  Petersburg,  June  24/July  6,  1895. 

L.  s.         (Signed)         Prince  Lobanow  Rostowsky. 

L.  s.         (Signed)         Shu. 

L.  s.         (Signed)         Serge  Witte. 

In  view  of  the  conclusion  of  the  Chinese  4%  Gold  Loan  of  1895,  the  Im- 
perial Government  of  Russia  and  the  Imperial  Government  of  China  have,  in 
common  accord,  drawn  up  the  following  provisions: 

The  Imperial  Government  of  Russia  takes  formal  notice  of  the  data  sup- 
plied on  June  24/July  6,  1895,  by  the  Minister  of  China  at  St.  Petersburg  as 
to  the  Chinese  loans  contracted  up  to  date  and  secured  by  the  Maritime  Customs 

*  Translation   from  the  French  text  as  printed  in   Recueil,  p.   57.     See  also   Note  to 
this  document,  post,  p.  42. 


NUMBER  1895/7:  JULY  6,  1895  41 

receipts,  as  to  the  annual  amount  to  be  paid  on  account  of  interest  and  amor- 
tization of  the  said  loans,  and  as  to  the  figure  to  which  the  annual  receipts  of 
the  Chinese  Maritime  Customs  amount. 

II. — The  Chinese  Government  engages  to  assign  to  the  service  of  interest 
and  amortization  of  the  400,000,000  francs  in  gold  (face  value)  of  the  loan  of 
1895  the  balance  of  the  Maritime  Customs  receipts  available  after  meeting  the 
payments  on  Chinese  loans  previously  secured  by  the  said  receipts.  It  is  ex- 
pressly stipulated  that  every  year  until  the  Chinese  4%  Gold  Loan  of  1895  shall 
have  been  fully  liquidated,  no  other  Chinese  loan  subsequently  concluded  shall 
be  served  out  of  the  receipts  of  the  Chinese  Maritime  Customs  before  full  pro- 
visions shall  have  been  made  for  the  service  of  the  interest  and  amortization 
of  the  above-mentioned  loan. 

III. — In  case  the  service  of  the  loan  should,  for  any  reason  whatever,  hap- 
pen to  suffer  abeyance  or  delay,  the  Imperial  Government  of  Russia,  in  accord 
with  the  Imperial  Government  of  China,  takes  the  obligation  toward  the  con- 
tracting banks  and  firms,  to  make  up  for  its  part  and  place  at  their  disposal  in 
good  time,  as  fast  as  they  fall  due,  all  sums  required  for  the  payment  of  coupons 
and  redeemed  bonds  of  the  present  loan,  save  that  the  Chinese  Government  will 
afterwards  furnish  the  Russian  Government  with  additional  security.  The 
manner  of  such  additional  security  will  be  made  the  subject  of  a  special  agreement 
to  be  established  between  the  two  governments  by  their  plenipotentiaries  at 
Peking. 

TV. — In  consideration  of  this  loan  the  Chinese  Government  declares  its 
resolution  not  to  grant  to  any  Foreign  Power  any  right  or  privilege  under  any 
name  whatsoever  concerning  the  supervision  or  administration  of  any  of  the 
revenues  of  the  Chinese  Empire.  But  in  case  the  Chinese  Government  should 
grant  to  any  one  Power  rights  ot  this  character,  it  is  understood  that  from  the 
mere  fact  of  their  being  so  granted,  they  should  be  extended  to  the  Russian 
Government. 

V. — This  Declaration  shall  have  the  same  force  and  value  as  a  Treaty.  It 
shall  go  into  efifect  on  and  from  the  day  of  the  signing  of  the  Chinese  Govern- 
ment's contract  with  the  bankers  who  take  charge  of  this  loan,  and  will  endure 
until  the  loan  is  fully  liquidated. 

In  faith  whereof  the  undersigned,  duly  authorized  to  that  effect,  have  signed 
this  Declaration  and  affixed  thereto  the  seal  of  their  arms. 

Done  at  St.  Petersburg,  in  duplicate,  June  24/July  6,  1895,  corresponding  to 
the  14th  day  of  the  5th  moon,  of  the  21st  year  of  Kuang  Hsii  of  the  Ta-Ching 
Dynasty. 

L.  s.         (Signed)         Prince  Lobanow  Rostowsky. 

L.  s.         (Signed)         Shu. 

L.  s.         (Signed)         Serge  Witte. 


42  CHINA  TREATIES  AND  AGREEMENTS 

Note. 

In  connection  with  this  Declaration  see  Loan  Contract  (No.  1895/6);  also  the  contract 
of  the  same  date  by  which  the  Russian  Government  guaranteed  to  the  lending  syndicate  the 
due  payment  of  interest  and  amortization  by  the  Chinese  Government,  as  given  in  ///  Cor- 
dicr,  p.  307,  of  the  body  of  which  the  translation  is  as  follows: 

Contract  of  Guarantee  of  Chinese  4%  Gold  Loan  of  1895  by  Russian  Government.— 

July  6,  1895. 

"Art.  1. — The  Syndicate  takes  positively  (i.e,  prend  ferme)  from  the  Chinese  Govern- 
ment a  4%  gold  loan  of  a  nominal  amount  of  100,000,000  gold  roubles,  400,000,000  francs, 
323,200,000  marks,  15,820,000  pounds,  or  191,200,000  Dutch  florins,  under  the  conditions 
and  on  the  basis  of  a  contract  to  be  concluded  between  the  Syndicate  and  the  Minister  of 
China  at  St.  Petersburg,  on  the  same  date  and  at  the  same  time  as  the  present  agreement. 

"  Art.  2. — The  conditions  of  this  loan  are  stipulated  in  the  afore-mentioned  contract, 
which  is  appended  to  the  present  document  and  forms  a  part  of  this  agreement.  As  pro- 
vided in  the  contract  with  China,  besides  the  special  guarantees  granted  directly  by  the 
latter  Power,  the  Imperial  Government  of  Russia  undertakes,  in  case  for  any  reason  the 
payments  on  the  loan  should  fail  to  be  made  or  should  be  delayed,  to  make  up  on  its 
part  and  to  place  at  the  disposal  of  the  contracting  parties  to  the  loan,  in  due  time  and  as 
fast  as  the  payments  fall  due,  all  the  sums  necessary  for  the  payment  of  the  coupons  and 
redeemed  bonds  of   the  present   loan. 

"  Art.  3. — The  obligation  stipulated  in  the  foregoing  article  shall  become  effective 
in  the  following  manner :  When  China,  in  pursuance  of  the  contract,  has  failed  to  furnish 
20  days  before  the  date  of  maturity,  according  to  Article  10  of  the  contract,  the  necessary 
funds  for  making  the  payment  on  the  coupons  and  the  amount  of  bonds  to  be  re- 
deemed, Russia  shall  furnish  the  undersigned  banking  institutions,  on  a  mere  notice  from 
them  and  not  later  than  ten  days  before  the  maturity  of  the  coupons,  all  the  amounts 
necessary  to  meet  the  payments. 

"  The  contracting  parties  shall  be  permitted  to  request  these  amounts  through  their 
representatives  at  St.  Petersburg  or  through  some  representative  chosen  among  the  French 
banking  institutions. 

"  Art.  4. — His  Excellency  the  Minister  of  Finance  hereby  declares  that  the  Minister  of 
China  is  duly  authorized  by  the  Emperor  of  China  to  sign  the  loan  contract  with  the 
Syndicate  and  that  this  loan  has  received  legal   force  through  this  signature. 

"  Art.  5. — The  Contract  with  China,  as  well  as  the  present  Agreement,  shall  be  exempt 
from  Russian  stamp  duties.  The  Agreement  shall  be  drawn  up  in  two  copies,  one  of 
which  shall  be  deposited  in  the  Ministry  of  Finance  of  Russia  and  the  other  at  the  house 
of  Messrs.  Hottinguer  &  Co.  at  Paris.  Each  contracting  party  shall  receive  a  copy  of 
the  present  agreement,  duly  authenticated  by  the  Ministry  of   Finance. 

"  The  present  agreement  shall  not  be  valid  until  it  has  received  the  approval  of  His 
Majesty   the    Emperor. 

"  Done  at  St.  Petersburg,  June  24/July  6,  1895." 


NUMBER  1895/8. 

GERMANY  AND  CHINA. 

Convention  in  regard  to  a  concession  in  the  treaty  port  of  Hankozu.* — 

October  3,  1895. 

The  Imperial  German  Consul  General  in  Shanghai,  Dr.   Steubel,  and  the 
Taotai  of  the  Han-Huang-Te  Circuit  in  ?Iupei,  Superintendent  of  Customs  for 

*  Translation  from  the  German  text  as  printed  in  Reciieil,  p.  68. 

In  connection  with  this  convention,  see  also  the  Declaration  of  war  by  China  against 
Germany,  August  14,  1917  (No.  1917/7.  post). 


NUMBER  1895/8:  OCTOBER  3,  1895  43 

Foreign  Trade  in  Hankow,  Officer  of  the  Second  Rank,  Yiin,  have— subject  to 
the  sanction  of  the  superior  authorities  of  the  said  two  officers — concluded  the 
following  lease  in  perpetuity : — 

Article  I. — Inasmuch  as  the  establishment  of  a  new  Concession  in  Hankow 
has  been  duly  applied  for  with  a  view  to  the  development  of  German  commerce, 
I,  the  Superintendent  of  Customs,  by  order  of  the  Acting  Governor-General  of 
the  Two  Hu  Provinces,  Tan,  and  I,  the  German  Consul-General,  have  selected, 
on  due  and  careful  examination,  a  plot  of  land  situated  in  the  market-town 
Hankow,  below  the  British  Concession,  which,  with  its  front  outside  the  Tung 
Chi  Gate,  extends  from  the  border  of  the  government  land  by  the  river  side  to 
a  place  called  Lichia-tun  (mound  of  the  Li  family),  measuring  300  chang  in 
length,  the  depth  of  the  area  (the  bank  of  which  is  at  present  still  inundated) 
being  fixed  at  120  chang. 

On  the  24th  day  of  the  7th  month  (September  12th)  the  survey  of  the 
area  of  the  German  Concession  took  place  in  the  presence  of  the  German  Consul- 
General  and  the  German  Vice-Consul  Thyen  on  the  one  side,  and  the  Hanyang 
District  Magistrate  Hsiieh  and  Sub-Prefect  Tung  on  the  other  side,  boundary 
stones  having  been  set  at  the  terminal  points. 

The  depth  of  the  Concession  will  have  to  be  fixed  as  s^on  as  the  water-level 
of  the  river  has  fallen  to  the  normal  water  mark. 

Article  H. — The  total  area  of  this  plot  is  600  mon.  The  land  tax  amounts 
to  Taels  0.117  per  mou,  making  a  total  of  Taels  70.20  for  the  whole  area. 
The  grain  tax  is  2.84  sheng  per  moti,  making  a  total  of  17  piculs  and  4  sheng  of 
rice,  which  calculated  at  the  rate  of  Taels  3  per  picul,  yields  a  sum  of  Taels  51.12 
as  grain  tax  for  the  whole  settlement.  Inasmuch  as  the  land  and  grain  taxes 
amounting  to  Taels  121.32  per  annum  have  hitherto  been  paid  by  Chinese  as 
revenue  from  the  land,  the  German  Consul  will  pay  a  similar  amount  in  the 
4th  month  of  each  year  to  the  Hanyang  District  Magistrate  for  further  trans- 
mission through  him. 

In  return  therefor,  the  land  is  leased  in  perpetuity  to  the  German  Govern- 
ment, which,  through  its  authorities,  will  bring  about,  as  soon  as  possible,  the 
transfer  of  the  land  from  Chinese  into  foreign  ownership.  As  far  as  concerns 
land  that  has  not  yet  changed  hands  in  the  above  manner,  the  amount  of  the 
lease  will,  as  heretofore,  be  paid  by  the  Chinese  tenant. 

The  register  of  landed  property  kept  by  the  German  Consul  is  authority 
and  proof  for  questions  as  to  who  is  entitled  to  the  lease  of  the  land  in  the  Ger- 
man Concession  and  for  what  amounts  the  registered  lessee  may  possibly  have 
mortgaged  his  rights  in  the  land  to  some  third  person. 

The  German  Concession  will  be  administered  by  the  German  Consul  in 
accordance  with  this  agreement  of  lease  and  with  executive  orders  to  be  issued 
in  this  connection.    Chinese  shall  not  be  allowed  to  reside  within  the  Concession. 

Article  HI. — Whosoever  desires  to  acquire  from  the  Chinese  owner  a 
lease  in  the  German  Concession  is  bound  to  compensate  the  latter  in  accordance 
with  the  following  rules : 

The  indemnity  is  to  be  fixed  according  to  the  principle  of  fairness  and  the 


44  CHINA  TREATIES  AND  AGREEMENTS 

prices  obtaining  within  the  last  three  months  for  sales  of  similar  land.  The 
Superintendent  of  Customs  shall  not  allow  the  Chinese  to  artifically  raise  the 
usual  prices,  whereas,  on  the  other  hand,  the  German  merchants  may  not  bring 
about  by  force  the  transfer  of  rights.  Should  it,  however,  prove  necessary  in 
the  course  of  time  to  do  so,  the  right  to  make  arrangements  for  standard  prices 
for  land  in  the  German  Concession  is  reserved  herewith  for  future  negotiations. 

So  far  as  private  temples,  ancestral  halls,  guild  halls  and  public  temples 
are  concerned,  the  amount  of  compensation  is  to  be  agreed  upon  specially  and 
individually  in  each  case,  in  order  to  avoid  arousing  the  ill-feeling  or  inviting  the 
resistance  of  the  people.  Houses  or  tombs — if  there  be  any — on  the  land  leased 
in  perpetuity  shall  have  their  values  fixed  according  as  they  are  brick  buildings 
or  wooden  huts,  and  any  change  of  residence  or  removal  of  tomb  so  entailed  is 
to  be  compensated  for  by  mutual  agreement. 

As  soon  as  the  compensation  is  paid  the  land  is  to  be  vacated.  If  there 
are  buildings  on  the  plot,  a  special  time  is  to  be  fixed  for  the  vacation.  The 
Chinese  owner  is  not  allowed  to  utilize  his  land  in  any  other  way  than  hereto- 
fore— that  is,  exclusively  as  residence  for  himself  and  his  family,  or  for  farming, 
which  he  may  continue  to  do,  so  long  as  no  transfer  of  property  has  taken 
place.    In  particular,  no  new  buildings  are  to  be  erected  on  the  plot. 

Article  IV. — Compulsory  expropriation  of  the  Chinese  owner  will  be  ef- 
fected by  the  Chinese  authorities  concerned  on  application  by  the  German  Consul. 

In  the  title-deed  the  words  "  leased  in  perpetuity  "  are  to  be  used.  After 
careful  examination  by  the  Prefect  and  the  District  Magistrate  of  Hanyang,  the 
usual  Chinese  fees  are  to  be  paid  for  the  documents,  whereupon  the  official  seal 
is  to  be  affixed  in  witness  thereof. 

It  may  happen  that  after  the  conclusion  of  this  treaty  of  lease  a  non-German 
foreigner  desires  to  acquire  a  lease  of  land  in  the  German  Concession.  This, 
however,  shall  only  be  possible  if  the  German  Consul  gives  his  sanction  thereto, 
after  and  because  the  area  of  the  Concession  has,  by  this  treaty  of  lease,  been 
transferred  to  the  German  Government  in  perpetuity.  It  is  the  German  Consul 
alone  who  is  entitled,  if  such  a  case  arises,  to  apply  to  the  Chinese  authorities 
for  the  issue  of  a  title-deed. 

Article  V. — Government  land  situated  in  the  German  Concession  shall  be 
surveyed,  and  is  to  remain  in  the  possession  of  the  Chinese  Government,  in 
order  that  there  may  be  established  later  on  a  Mixed  Court  and  eventually  other 
public  buildings. 

Article  VI. — On  the  area  of  the  German  Concession  there  are  from 
ancient  times  government  roads  and  public  ways.  If  in  future  these  thorough- 
fares should  be  blocked  up  by  the  erection  of  European  houses,  sufficient  space 
is  to  be  left  at  another  place  for  the  construction  of  proper  roads  and  ways. 
Both  Chinese  and  European  merchants,  without  discrimination,  as  well  as 
Government  couriers  forwarding  despatches  and  transports  of  Government  silver, 
together  with  the  men  and  horses  required  for  them,  are  all%wed  to  pass  freely 
and  unmolested  over  these  roads. 

In  case  the  Chinese  Government  decides  to  lay  a  railway  track  through 
the  German  Concession,  the  area  required  for  this  purpose  shall  be  retroceded. 


NUMBER  1895/8:  OCTOBER  3,  1895  45 

The  price  of  the  land  shall  be  fixed  by  the  Superintendent  of  Customs  and  the 
German  Consul  in  accordance  with  the  principle  of  fairness,  should  it  be  impos- 
sible to  arrive  at  an  understanding  in  this  respect  with  the  lessee  for  the  time 
being.  On  no  account  and  under  no  pretext  whatsoever  can  the  retrocession 
be  refused. 

Article  VII. — The  communication  facilities  between  the  German  and  Brit- 
ish Concessions  through  the  Tung  Chi  Gate  in  the  City  Wall  being  most  in- 
sufficient, an  agreement  has  been  reached,  after  examination  by  the  Hanyang 
District  Magistrate,  to  the  effect  that  a  practicable  (passable)  quay  may  be 
constructed  around  the  base  of  the  City  Wall  along  the  river,  so  that  in  this  way 
good  communication  may  be  established  with  the  roads  on  the  other  side  of  the 
wall  and  thereby  also  with  the  British  Concession. 

The  Government  land  outside  of  the  Tung  Chi  Gate  which  serves  for  defend- 
ing and  guarding  the  City  Wall  is  not  included  in  the  Concession.  However, 
the  Chinese  authorities  shall  take  care  that  no  huts  that  offend  the  eye  will  re- 
main or  be  erected  on  this  land.     Likewise  tombs  shall  not  be  allowed  there. 

Article  VIII. — The  German  Concession  is  to  be  within  the  boundaries  of 
the  Treaty  Port  of  Hankow.  The  construction  of  landing  stages  is  to  be  pre- 
ceded by  a  consultation  with  the  Superintendent  of  Customs  so  that  it  may  be 
determined  (stated)  whether  or  not  Chinese  and  foreign  shipping  will  thereby 
be  inconvenienced  on  that  spot. 

Article  IX. — Foreigners  residing  in  the  German  Concession,  who  are  not 
represented  by  a  Consul  in  China,  as  well  as  all  Chinese,  are  under  Chinese 
jurisdiction,  which  is  exercised  in  the  German  Concession  itself  by  a  Chinese 
judge  to  be  specially  appointed  to  this  function. 

In  cases  that  concern  a  non-represented  foreigner,  and  in  cases  where  a 
German  or  another  foreigner  is  concerned  as  plaintiff  or  injured  party,  and 
finally  in  cases  dealing  with  Chinese  contraventions  of  the  orders  in  force  in  the 
German  Concession,  the  Chinese  judge  is  to  sit  and  to  decide  only  in  the  presence 
of  the  German  Consul  or  of  a  person  deputed  by  him. 

Moreover,  it  shall  be  possible  in  all  such  cases  to  lodge,  through  the  medium 
of  the  German  Consul,  an  appeal  with  the  Superintendent  of  Customs,  against 
the  decision  of  the  judge.  The  judgment  in  difficult  and  important  cases  re- 
mains, also  in  future,  reserved  to  the  local  authorities. 

As  for  the  rest,  all  questions  at  issue  between  Chinese  and  foreigners  are 
to  be  dealt  with  according  to  the  treaties. 

Article  X. — There  are  various  non-German  foreigners  who  have  already 
previous  to  this  acquired  from  the  Chinese  owners  the  leases  of  plots  of  land 
lying  within  the  boundaries  of  the  German  Concession.  The  rights  of  such 
foreigners  are  not  interfered  with  by  the  establishment  of  the  German  Conces- 
sion. 

Regarding  the  incorporation  in  the  German  Concession  of  the  plots  of  land 
in  question,  the  German  consular  authorities  shall,  if  necessary,  negotiate  with 
the  Consuls  of  the  foreigners  concerned. 

This  Agreement  is  done  in  duplicate  and  signed,  and  will,  in  addition,  have 
the  official  seals  of  the  two  contracting  parties  affixed  thereto,  as  soon  as  the 


46  CHINA  TREATIES  AND  AGREEMENTS 

above  mentioned  reserved  sanction  of  the  said  superior  authorities  is  at  hand. 
Done  at  Hankow,  this  third  day  of  October,  1895,  which  is  the  15th  day 
of  the  eighth  moon  of  the  21st  year  of  Kuang  Hsii. 
(Sgd.)         Dr.  Steubel, 
[l.  s.]  Imperial  German  Consul-General. 

(Sgd.)         Taotai  and  Superintendent  of  Customs, 

YUN. 


NUMBER  1895/9. 

GERMANY  AND  CHINA. 

Convention  in  regard  to  a  concession  in  the  treaty  port  of  Tientsin/^ — October 

30.  1895. 

An  Agreement  having  been  reached  between  the  Imperial  German  Legation 
in  Peking  acting  by  order  and  on  behalf  of  the  Imperial  German  Government,  on 
the  one  side,  and  the  Tsiing-li  Yamen,  on  the  other,  to  the  effect  that  a  Con- 
cession should  be  set  apart  for  German  trade  at  Tientsin ;  further  that  the  details 
bearing  thereupon  should  be  settled  by  negotiations  to  be  conducted  between  offi- 
cials specially  detailed  by  the  Superintendent  of  Trade  of  the  Northern  Ports,  and 
the  Imperial  German  Consul  at  Tientsin ;  the  commission,  consisting  of  the  Taotais 
Sheng,  Li,  Huang  and  Wu,  on  the  one  side,  charged  with  the  conduct  of  these 
negotiations  by  the  Superintendent  of  Trade  of  the  Northern  Ports,  and  the 
Imperial  German  Consul  on  the  other  side,  have  now  agreed  upon  the  following 
points : 

Article  I. — The  Concession  destined  for  German  trade  in  Tientsin  be- 
ing herewith  leased  in  perpetuity  to  the  Imperial  German  Government  by  the 
Imperial  Chinese  Government  shall  have  the  following  boundaries : 

On  the  north,  the  road  along  the  northern  side  of  the  plots  of  the  Fukien  and 
Canton  Guild  Halls  down  to  Taku  Road. 

On  the  east,  the  river. 

On  the  south,  the  edge  of  the  street  leading  from  the  northern  part  of 
the  village  of  Hsiao  Liu  Chuang  to  the  eastern  edge  of  Taku  Road.  The  houses 
belonging  to  this  village  are  to  remain  outside  the  Concession. 

On  the  west,  the  eastern  side  of  Taku  Road. 

The  erection  of  the  boundary  stones  required  shall  be  undertaken  with  the 
assistance  of  the  Chinese  authorities  and  the  Imperial  German  Consul  in  Tien- 
tsin immediately  on  conclusion  of  this  Agreement. 

*  Translation  from  the  German  text  as  printed  in  Recueil,  p.  77. 

In  connection  with  this  convention  see  also  the  Declaration  of  war  by  China  against 
Germany,  August  14,   1917   (No.   1917/7,  post). 


NUMBER  1895/9:  OCTOBER  30,  1895  47 

The  part  of  the  City  Wall  running  within  this  area  can  be  removed  only 
with  the  consent  of  the  Chinese  Government,  whereas  it  is  admissible  to  break 
through  it  for  gates. 

Article  II. — In  the  event  of  the  area  composed  of  compounds  of  the 
China  Merchants  Steam  Navigation  Company,  of  the  Chinese  Engineering  and 
Mining  Company  and  of  the  firm  of  Forbes  &  Company,  lying  between  the 
southern  boundary  of  the  British  Concession  and  the  road  running  along  the 
southern  boundary  of  the  compound  of  Forbes  &  Co.,  remaining  under  Chinese 
jurisdiction,  the  Chinese  Government  undertakes  the  responsibility  of  having 
the  strip  of  land  lying  between  these  compounds  and  the  river  put  in  order 
and  kept  in  the  same  way  as  it  has  been  done  in  the  British  Concession,  so 
that  the  Bund  and  the  street  running  along  it  is  extended. 

The  Chinese  Government  shall,  in  this  case,  not  allow  the  keeping  of  small 
stalls  on  this  new  Bund  or  on  the  new  street  section. 

Further,  the  Chinese  Government  undertakes  to  keep  in  good  order  the 
section  of  Taku  Road  joining  the  British  Concession  and  the  road  running 
along  the  south  of  the  compound  of  Forbes  &  Company. 

If  the  Chinese  Government  does  not  discharge  the  liabilities  taken  over 
under  Article  II  within  one  year  after  the  Imperial  German  Consulate  at  Tientsin 
has  requested  it  to  do  so,  then  the  right  of  executing  the  necessary  work,  at 
the  expense  of  the  Chinese  Government,  shall  pass  to  the  Administration  of  the 
German  Concession. 

Article  III. — The  building  near  the  river  outside  of  the  Wall,  together 
with  the  compound  appertaining  to  it,  known  under  the  name  of  Po-wen-shu- 
yuan  and  changed  by  the  Chinese  authorities  into  a  High  School,  shall  remain 
there  undisturbed  without  taxes  of  any  kind  being  allowed  to  be  levied  thereon. 
If,  however,  at  the  time  of  constructing  the  bund  the  enclosure  wall  built  on 
the  eastern  side  of  the  said  compound  proves  to  interfere  with  the  bund  line 
to  be  fixed  later  on  by  the  German  authorities,  the  Chinese  authorities  shall  be 
bound  to  put  this  wall  back  free  of  charge  as  far  as  it  appears  necessary,  it 
being  understood,  however,  that  this  removal  shall,  at  all  events,  be  a  small  one 
only.  On  this  part  of  the  river  bank,  godowns  or  shanties  made  of  bamboo 
matting  likely  to  shut  oil  light  and  view  from  the  High  School  are  not  to  be 
erected. 

Article  IV. — The  granary  inside  the  Wall  shall  be  left  there  without 
molestation  for  the  time  being,  without  any  taxes  to  be  levied  thereon.  Its  com- 
munication with  the  river  shall  be  in  accordance,  with  the  land  regulations  to  be 
issued  in  due  course,  but  shall  otherwise  be  unhampered. 

Chinese  native  craft  loaded  with  rice  for  the  granary  may  load  and  unload 
there  without  payment  of  any  taxes  or  fees. 

Article  V. — The  building  adjoining  the  granary  and  containing  a  mortuary 
for  Chinese  officials  from  other  provinces  shall  be  left  unmolested  forever,  with- 
out taxes  to  be  levied  thereon.  Religious  ceremonies  held  there  at  fixed  dates 
must  not  be  interfered  with,  if  they  do  not  violate  the  regulations  for  order 
and  peace  in  the  Concession  to  be  issued  later  on. 

Article  VI. — The  cemetery  of  the  Canton,  Fukien  and  Chekiang  Guilds 


48  CHINA  TREATIES  AND  AGREEMENTS 

lying  within  the  area  assigned  for  the  Concession  shall  so  far  as  covered  by 
tombs  be  left  unmolested,  nor  shall  sacrificial  ceremonies  for  the  dead  on  this 
place  be  in  any  way  interfered  with.  Taxes  shall  not  be  levied  thereon,  nor 
shall  it  be  possible  to  force  the  Guilds  to  sell  it.  However,  they  shall  see  that 
on  the  eastern  side  the  place  is  walled  in  by  an  enclosure  having  a  big  gate, 
which  allows  of  free  passage  in  and  out. 

Article  VII. — Within  the  Concession  and  outside  the  Wall  there  is  a  drain 
coming  from  the  southern  marsh,  which  is  to  remain  under  Chinese  administra- 
tion. The  same  applies  also  to  such  dredging  thereof  as  may  be  required  from 
time  to  time.  Merchandise  passing  this  canal  shall  not  be  taxed  by  the  Ger- 
man authorities. 

Article  VIII. — Chinese  shall  be  allowed  to  settle  in  the  German  Con- 
cession in  agreement  with  the  Regulations  governing  the  purchase  of  land  to 
be  issued  in  due  course. 

Article  IX. — The  expropriation  of  Chinese  residing  or  owning  land  on 
the  area  now  leased  in  perpetuity  to  Germany  becoming  necessary  on  con- 
clusion of  this  Agreement,  shall  be  carried  out  by  the  Chinese  authorities,  inas- 
much as  the  German  Government  does  not  acquire  this  Concession  from  the 
landowners  but  from  the  Chinese  Government.  Accordingly  the  local  authori- 
ties shall  have  to  apply  force,  in  case  a  person  is  unwilling  to  sell  his  land 
or  property  voluntarily. 

Article  X. — A  single  and  uniform  compensation  fee  of  Taels  75  per 
mou  will  be  paid  against  voucher  to  the  Chinese  authorities  by  the  Imperial 
German  Consul  in  Tientsin  for  all  the  land  contained  in  the  Concession,  re- 
gardless of  the  situation  of  the  various  plots. 

As  to  all  the  alluvial  land  by  the  river-side  belonging  to  the  Chinese  Govern- 
ment to  the  east  of  the  road  running  along  the  river  and  forming  the  eastern 
boundary  of  the  cemetery  and  of  the  compounds  of  the  Fukien,  Canton  and 
Chekiang  Guilds,  and  of  the  mortuary  and  the  granary,  and  which,  farther  on, 
leads  from  the  Po-wen-shu-yuan  along  the  river  to  the  village  Hsiao  Liu  Chuang, 
although  this  also  is  to  be  surveyed,  it  shall  be  exempt  from  compensation. 

In  addition,  the  entire  land  of  the  Public  Works  Office  is  ceded  free  of 
charge  to  Germany  on  the  understanding,  however,  that  Germany  transfers,  in 
exchange,  also  free  of  charge,  another  plot  of  land  to  the  Works  Office  to  carry 
on  their  business. 

Article  XI. — The  fixing  of  the  expropriation  value  of  houses  within  the 
German  Concession  is  reserved  to  a  German-Chinese  Commission  to  be  specially 
appointed  to  this  end.  This  Commission  shall,  however,  be  guided  in  the  decision 
of  those  questions  by  the  procedure  as  laid  down  in  the  regulations  referring 
to  the  French  Concession,  as  may  be  taken  from  the  archives, — on  no  ac- 
count, however,  yielding  to  exaggerated  demands  of  the  landowners.  If  there 
are  particularly  well-built  houses,  fair  valuation  shall  be  taken  into  special 
consideration. 

Article  XII. — The  land  in  the  Concession  is  to  be  evacuated  on  the  expira- 
tion of  three  months  after  payment.  As  regards  houses  occupied  by  Chinese 
they  shall,  in  consideration  of  the  imminent  cold  season  when  it  is  difficult  to 


NUMBER  1895/9:  OCTOBER  30,  1895  49 

abandon  same,  not  be  evacuated  until  three  months  after  payment  has  been 
made,  said  payment  to  take  place  on  the  opening  of  the  river  in  the  coming 
spring.  For  removal  fees,  10  Taels  shall  be  paid  by  the  German  authorities  to 
each  family. 

Article  XIII. — Tombs,  wherever  found  in  the  area  intended  for  the  Ger- 
man Concession,  shall  not  be  removed  by  the  Germans  themselves,  but  shall  be 
left  in  the  condition  hitherto  prevailing.  In  case  the  descendants  themselves 
agree  upon  the  removal  of  a  tomb  the  Germans  shall  pay  one  Tael  per  tomb 
for  removal  expenses. 

Article  XIV. — Payment  having  been  made  for  a  plot  of  land  sold,  the 
former  Chinese  owner  shall  send  in  to  the  Chinese  authorities,  for  the  affixing 
of  the  official  seal,  a  contract  of  sale  concerning  transfer  of  the  plot  to  German 
hands,  with  details  of  boundaries  and  size  of  the  plot,  to  be  forwarded  in  due 
course  to  the  German  Consul  for  safekeeping. 

Article  XV. — The  Administration  of  the  German  Concession  shall  pay 
annually  to  the  Chinese  Government  an  amount  of  1000  big  cash  as  land  tax  per 
moil  of  land  transferred,  in  accordance  with  the  French  Concession  Agree- 
ment, this  payment  to  be  made  in  advance  on  the  15th  day  of  each  twelfth  moon 
for  the  following  year.  The  amount  is  to  be  handed  over  to  the  office  of  the 
City  Magistrate  by  the  German  Consul.  The  liability  to  payment  of  this  land 
tax  begins  at  the  moment  of  the  purchase  made  by  the  German  authorities. 

Article  XVI. — Immediately  on  the  signing  of  this  Agreement,  the  Governor 
General  and  the  Superintendent  of  Trade  of  the  Northern  Ports  will  issue  a 
proclamation  making  known  the  bestowal  of  the  Concession  on  the  German 
Government. 

Article  XVII. — The  present  Agreement  shall  be  signed  and  stamped 
with  the  official  seals  on  quintuplicate  copies,  issued  in  both  the  German  and  the 
Chinese  languages,  by  the  officials  specially  detailed  by  the  Superintendent  of 
Trade  of  the  Northern  Ports,  on  one  side,  and  by  the  Imperial  German  Consul 
in  Tientsin,  on  the  other. 

Recipients  of  a  copy: 

The  Tsung-li  Yamen, 

The  Superintendent  of  Trade, 

The  Imperial  German  Minister  at  Peking, 

The  Taotai  and  Superintendent  of  the  Tientsin  Maritime  Customs, 

The  Imperial  German  Consul  at  Tientsin. 

ADDITIONAL  RULES. 

Article  A. — Against  the  transfer  of  the  part  lying  between  the  com- 
pound of  the  firm  of  Forbes  &  Company  and  the  compounds  of  the  aforesaid 
Guilds,  a  protest  has  been  lodged  with  the  Peking  Government  by  the  Minister 
of  the  United  States  of  America.  In  the  event  of  this  protest  being  dropped 
by  the  Government  of  the  United  States,  the  northern  boundary  of  the  German 
Concession  shall  be  traced  in  such  a  manner  that  the  road  running  along  the 
southern  boundary  of  the  compound  belonging  at  present  to  the  firm  of  Forbes 
&  Company  between  the  river  and  Taku  Road  forms  the  northern  boundary. 


50  CHINA  TREATIES  AND  AGREEMENTS 

In  this  event  the  prices  fixed  in  Article  X  shall  be  binding  also  for  an 
eventual  expropriation  of  the  area  at  present  claimed  by  the  American  Minister. 

Chinese  men-of-war  shall,  as  heretofore,  be  allowed  to  moor  at  the  land- 
ing-stage south  of  the  compound  of  Forbes  &  Company  and  north  of  the  com- 
pound belonging  to  the  Guilds,  without  paying  to  Germany  any  fees  or  taxes. 

Article  B. — If  the  Imperial  German  authorities  intend  road  building  on 
the  area  assigned  to  them,  the  owners  of  tombs  lying  in  the  alignment  of  these 
streets  shall  by  negotiations  with  the  local  authorities  be  induced  to  have  them 
removed.  If  in  this  connection  tombs  of  notable  families  are  concerned,  which 
they  on  no  account  are  willing  to  remove,  ways  and  means  must  be  found  to 
alter  somewhat  the  course  of  the  street. 

Ninety  Five,  corresponding  to  the  13th  day  of  the  9th  moon  of  the  21st  year  of 
Kuang  Hsii,  Chinese  date. 

Done  at  Tientsin,  this  30th  of  October,  One  Thousand  Eight  Hundred  and 
[l.  s.]  (Sgd.)         voN  Seckendorff, 

Imperial  Consul. 
[Two  Chinese  signatures  and  seal.] 


NUMBER  1895/10. 

JAPAN  AND  CHINA. 

Convention  for  the  retrocession  by  Japan  to  China  of  the  southern  portion  of 
the  Province  of  Feng-Tien  (i.e.,  the  Liaotung  Peninsula.)*— November  8, 
1895. 

His  Majesty  the  Emperor  of  Japan  and  His  Majesty  the  Emperor  of  China, 
desiring  to  conclude  a  Convention  for  the  retrocession  by  Japan  of  all  the  south- 
ern portion  of  the  province  of  Feng-Tien  to  the  sovereignty  of  China,  have  for 
that  purpose  named  as  Their  Plenipotentiaries,  that  is  to  say : 

His  Majesty  the  Emperor  of  Japan — Baron  Hayashi  Tadasu,  Shoshii,  Grand 
Cross  of  the  Imperial  Order  of  the  Sacred  Treasure,  Grand  Officer  of  the  Im- 
perial Order  of  the  Rising  Sun,  Minister  Plenipotentiary  and  Envoy  Extraordi- 
nary 

and  His  Majesty  the  Emperor  of  China — Li  Hung-Chang,  Minister  Pleni- 
potentiary, Senior  Tutor  of  the  Heir-Apparent,  Senior  Grand  Secretary  of  State 
and  Earl  of  the  First  Rank, 

Who,  after  having  communicated  to  each  other  their  full  powers,  which  were 
found  to  be  in  good  and  proper  form,  have  agreed  upon  the  following  Articles : 

*Text  as  reprinted  in  Rockhill,  p.  26,  from  B.  &  F.  State  Papers,  vol.  87,  p.  1195,  with 
the  addition  of  the  Preamble  as  printed  in  Rccueil,  p.  89.  Printed  also  in  Hertslet,  p.  370, 
and  Am.  Int.  Laiv  Journal,  Supplement,  1907,  p.  384.     See  Note  to  this  document,  post.  p.  52. 


NUMBER  1895/10:  NOVEMBER  8,  1895  51 

Article  I. — Territory  retroceded. — Japan  retrocedes  to  China  in  perpe- 
tuity and  full  sovereis2;nty  the  southern  portion  of  the  Province  of  Feng-Tien, 
which  was  ceded  to  Japan  under  Article  II  of  the  Treaty  of  Shimonoseki  of  the 
17th  day  of  the  4th  month  of  the  28th  year  of  Meiji,  corresponding  to  the  23rd 
day  of  the  3d  month  of  the  21st  year  of  Kuang  Hsii,  together  with  all  fortifica- 
tions, arsenals  and  public  property  thereon  at  the  time  the  retroceded  territory  is 
completely  evacuated  by  the  Japanese  forces  in  accordance  with  the  provisions 
of  Article  III  of  this  Convention,  that  is  to  say,  the  southern  portion  of  the 
Province  of  Feng-Tien  from  the  mouth  of  the  River  Yalu  to  the  mouth  of  the 
River  An-ping,  thence  to  Feng  Huang  Ch'eng,  thence  to  Haicheng,  and  thence 
to  Ying-kow ;  also  all  cities  and  towns  to  the  south  of  this  boundary  and  all 
islands  appertaining  or  belonging  to  the  Province  of  Feng-Tien  situated  in  the 
eastern  portion  of  the  Bay  of  Liao-Tung  and  in  the  northern  part  of  the  Yellow 
Sea.  Article  III  of  the  said  Treaty  of  Shimonoseki  is  in  consequence  suppressed, 
as  are  also  the  provisions  in  the  same  Treaty  with  reference  to  the  conclusion 
of  a  Convention  to  regulate  frontier  intercourse  and  trade. 

II. — Compensation  in  lieu  of  territory. — As  compensation  for  the  retro- 
cession of  the  southern  portion  of  the  Province  of  Feng-Tien,  the  Chinese  Gov- 
ernment engage  to  pay  to  the  Japanese  Government  30,000,000  Kuping  taels  on 
or  before  the  16th  day  of  the  11th  month  of  the  28th  year  of  Meiji,  correspond- 
ing to  the  30th  day  of  the  9th  month  of  the  21st  year  of  Kuang  Hsii. 

III. — Mode  of  payment. — Within  three  months  from  the  day  on  which 
China  shall  have  paid  to  Japan  the  compensatory  indemnity  of  30,000,000  Kuping 
taels  provided  for  in  Article  II  of  this  Convention,  the  retroceded  territory  shall 
be  completely  evacuated  by  the  Japanese  forces. 

IV. — Immunity  to  inhabitants. — China  engages  not  to  punish  in  any  man- 
ner nor  to  allow  to  be  punished  those  Chinese  subjects  who  have  in  any  manner 
been  compromised  in  connection  with  the  occupation  by  the  Japanese  forces  of  the 
retroceded  territory. 

V. — English  text  authoritative.— The  present  Convention  is  signed  in 
duplicate,  in  the  Japanese,  Chinese,  and  English  languages.  All  these  texts 
have  the  same  meaning  and  intention,  but  in  case  of  any  differences  of  inter- 
pretation between  the  Japanese  and  Chinese  texts,  such  differences  shall  be  de- 
cided by  reference  to  the  English  text. 

VI. — The  present  Convention  shall  be  ratified  by  His  Majesty  the  Emperor 
of  Japan  and  His  Majesty  the  Emperor  of  China,  and  the  ratifications  thereof 
shall  be  exchanged  at  Peking  within  twenty-one  days  from  the  present  date.f 

In  witness  whereof  the  respective  Plenipotentiaries  have  signed  the  same 
and  have  afifixed  thereto  the  seal  of  their  arms. 

Done  at  Peking,  this  8th  day  of  the  11th  month  of  the  28th  year  of  Meiji, 
corresponding  to  the  22nd  day  of  the  9th  month  of  the  21st  year  of  Kuang  Hsii. 

[l.  s.]  Hayashi  Tadasu, 

[l.  s.]  Li  Hung-Chang. 

t  Ratifications  exchanged  at  Peking,  November  29,  1895. 


52  CHINA  TREATIES  AND  AGREEMENTS 


PROTOCOL. 


In  view  of  the  insufficiency  of  time  to  effect  a  formal  exchange  of  the 
ratifications  of  the  Convention  between  Japan  and  China  signed  this  day  respect- 
ing the  retrocession  of  the  Peninsula  of  Feng-Tien,  before  the  date  named  in  the 
said  Convention  for  certain  stipulations  thereof  to  take  effect,  the  Government  of 
His  Majesty  the  Emperor  of  Japan  and  the  Government  of  His  Majesty  the 
Emperor  of  China,  in  order  to  prevent  the  possibility  of  delay  in  putting  into  exe- 
cution the  several  provisions  of  the  said  Convention,  have,  through  their  re- 
spective Plenipotentiaries,  agreed  upon  the  following  stipulations : 

The  Governments  of  Japan  and  China  shall,  within  the  period  of  five  days 
after  the  date  of  this  Protocol,  announce  to  each  other  through  the  under- 
signed, their  respective  Plenipotentiaries,  that  the  said  Convention  has  received 
the  approval  of  His  Majesty  the  Emperor  of  Japan  and  His  Majesty  the  Em- 
peror of  China,  respectively,  and  thereupon  the  said  Convention  in  all  its  parts 
shall  come  into  operation  as  fully  and  effectually  as  if  the  ratifications  thereof  had 
actually  been  exchanged. 

In  witness  whereof  the  respective  Plenipotentiaries  have  signed  the  same, 
and  have  affixed  thereto  the  seal  of  their  arms. 

Done  at  Peking,  this  8th  day  of  the  11th  month  of  the  28th  year  of  Meiji, 
corresponding  to  the  22nd  day  of  the  9th  month  of  the  21st  year  of  Kuang  Hsii. 

[l.  s.]  Hayashi  Tadasu. 

[l.  s.]  Li  Hung-Chang. 


Note. 

In  connection  with  this  convention  see  the  Treaty  of  peace  between  China  and  Japan 
of  April  17,  1895  (No.  1895/3,  ante)  ;  see  also  the  Convention  for  the  lease  of  the  Liao- 
tung  Peninsula  to  Russia,  March  27,  1898  (No.  1898/5,  post),  and  Article  5  of  the  Treaty  of 
Peace  between  Russia  and  Japan,  September  5,  1905   (No.  1905/8,  post). 

Hertslet  (p.  369)  also  gives  the  following  translation  of  a  Japanese  Proclamation  dated 
May  10th,  1895: 

Japanese  Imperial  Proclamation  regarding  Retrocession  of  Liaotung  Peninsula. — 

May  10,  1895. 

"  We  recently,  at  the  request  of  the  Emperor  of  China,  appointed  Plenipotentiaries  for 
the  purpose  of  conferring  with  the  Ambassadors  sent  by  China  and  of  concluding  with  them 
a  Treaty  of  Peace  between  the  two  Empires.  Since  then  the  Governments  of  the  two  Em- 
pires of  Russia  and  Germany  and  of  the  French  Republic,  considering  that  the  permanent 
possession  of  the  ceded  districts  of  the  Feng-Tien  Peninsula  by  the  Empire  of  Japan 
would  be  detrimental  to  the  lasting  peace  of  the  Orient,  have  united  in  a  simultaneous 
recommendation  to  our   Government  to   refrain    from  holding  these   districts   permanently. 

"  Earnestly  desirous  as  we  always  are  for  the  maintenance  of  peace,  nevertheless  we 
were  forced  to  commence  hostilities  against  China  for  no  other  reason  than  our  sincere 
desire  to  secure  for  the  Orient  an  enduring  peace.  The  Governments  of  the  three  Powers 
are,  in  offering  their  friendly  rcommcndation.  similarly  actuated  by  the  same  desire,  and 
we,  out  of  our  regard  for  peace,  do  not  hesitate  to  accept  their  advice.  Moreover,  it  is 
not  our  wish  to  cause  suffering  to  our  people,  or  to  impede  the  progress  of  the  national 
destiny  by  embroiling  the  Empire  in  new  complications,  and  thereby  imperiling  the  situa- 
tion and  retarding  the  restoration  of  peace. 

"  China  has  already  shown,  by  the  conclusion  of  the  Treaty  of  Peace,  the  sincerity  of 
her  repentance  for  her  breach  of  faith  with  us,  and  has  made  manifest  to  the  world 
our  reasons  and  the  object  we  had  in  view  in  waging  war  with  that  Empire. 

"  Under  these  circumstances  we  do  not  consider  that  the  honour  and  dignity  of  the  Em- 
pire will  be  compromised  by  resorting  to  magnanimous  measures,  and  by  taking  into 
consideration   the    general    situation    of    affairs. 


NUMBER  1895/10:  NOVEMBER  8,  1895:  NOTE  53 

"  We  have  therefore  accepted  the  advice  of  the  friendly  Powers  and  have  commanded 
our  Government  to  reply  to  the  Governments  of  the  three   Powers  to  that  effect. 

"  We  have  specially  commanded  our  Government  to  negotiate  with  the  Chinese  Gov- 
ernment respecting  all  arrangements  for  the  return  of  the  peninsular  districts.  The  ex- 
change of  the  ratifications  of  the  Treaty  of  Peace  has  now  been  concluded,  the  friendly 
relations  between  the  two  Empires  have  been  restored,  and  cordial  relations  with  all  other 
Powers  have  been  strengthened. 

"We  therefore  command  all  our  subjects  to  respect  our  will,  to  take  into  careful 
consideration  the  general  situation,  to  be  circumspect  in  all  things,  to  avoid  erroneous 
tendencies,  and  not  to  impair  or  thwart  the  high  aspirations  of  our  Empire. 

(Imperial  sign-manual.) 
"  (Countersigned  by  all  the  Ministers  of  State.) 

"May  10,  1895." 

In  Recueil  (p.  6Z)  are  printed  the  French  texts  of  several  documents,  the  tenor  of 
which  is  sufficiently  indicated  by  the  following  translation  of  an  identic  note  addressed  to 
the  Japanese  Ministry  for  Foreign  Affairs,  by  the  French,  German  and  Russian  Ministers  on 
October  18,  1895,  and  acknowledged  by  it  under  date  of  the  following  day: 

Identic  Note  of  French,  German  and  Russian  Ministers  to  Japanese  Minister  for  Foreign 
Affairs  regarding  Retrocession  of  Liaotung  Peninsula. — October  i8,  1895. 

"The  undersigned  Envoy  Extraordinary  and  Minister  Plenipotentiary  of  His  Majesty 
the  Emperor  of  Russia  has  not  failed  to  bring  to  the  knowledge  of  his  Government  the 
two  Declarations  that  His  Excellency  the  Marquis  Saionzi,  Acting  Minister  for  Foreign 
Affairs,  has  made  to  him  in  the  name  of  his  Government,  namely: 

"a — Under  date  of  July  19th:  'That  the  Government  of  His  Majesty  the  Emperor 
of  Japan  recognizes  the  Straits  of  Formosa  as  being  a  great  sea  highway  of  the  nations, 
and  that  those  Straits  are  in  consequence  beyond  its  exclusive  control  or  appropriation. 
The  Government  of  His  Majesty  the  Emperor  of  Japan  binds  itself  not  to  cede  to  any 
Power  the  Islands  of  Formosa  and  the  Pescadores'; 

"and  B— Under  date  of  October  7th:  'That  the  Government  of  His  Majesty  the  Em- 
peror of  Japan  has  decided  (1)  to  reduce  to  thirty  million  taels  the  amount  of  the 
indemnity  in  compensation  for  the  retrocession  of  the  Liaotung  (Feng-Tien)  Peninsula,  and 
(2)  not  to  make  the  conclusion  of  the  Treaty  of  commerce  and  navigation  with  China  a 
condition  of  the  evacuation  of  the  said  Peninsula;  and  to  effect  such  evacuation  within 
a  period  of  three  months  from  the  date  of  the  full  payment  by  China  of  the  said  in- 
demnity of  thirty  million  taels.' 

"  The  undersigned  has  been  advised  that  the  Government  of  his  August  Master,  His 
Majesty  the  Emperor,  taking  note  of  the  Declarations  above  cited,  can  only  felicitate  the 
Government  of  His  Majesty  the  Emperor  of  Japan  upon  this  new  proof  of  its  wisdom 
and  moderation. 

"  In  bringing  the  foregoing,  under  the  instruction  of  his  Government,  to  the  knowledge 
of  His  Excellency  the  Acting  Minister  for  Foreign  Affairs,  the  undersigned  begs  him 
to  be  so  good  as  to  acknowledge  the  receipt  of  the  present  note,  and  avails  himself  of 
this  occasion  to  renew  to  him  the  assurance  of  his  highest  consideration. 

"  Tokio,  October  6/18,  1895. 

"  (Sgd.)  HiTROVo." 


54  CHINA  TREATIES  AND  AGREEMENTS 

NUMBER  1896/1. 

FRANCE  AND  GREAT  BRITAIN. 

Declaration  with  regard  to  the  Kingdom  of  Siam  and  other  matters  {advantages  in 
Yilnnan  and  Ssechiian,  etc.)* — January  15,  1896. 

The  Undersigned,  duly  authorized  by  their  respective  Governments,  have 
signed  the  following  Declaration  : — 

I. — British  and  French  spheres  of  influence  in  Siam. — The  Governments 
of  Great  Britain  and  France  engage  to  one  other  that  neither  of  them  will, 
without  the  consent  of  the  other,  in  any  case,  or  under  any  pretext,  advance 
their  armed  forces  into  the  region  which  is  comprised  in  the  basins  of  the 
Petcha  Bouri,  Meiklong^  Menam  and  Bang  Pa  Kong  (Petriou)  Rivers  and  their 
respective  tributaries,  together  with  the  extent  of  coast  from  Muong  Bang  Tapan 
to  Muong  Pase,  the  basins  of  the  rivers  on  which  those  two  places  are  situated, 
and  the  basins  of  the  other  rivers,  the  estuaries  of  which  are  included  in  that 
coast ;  and  including  also  the  territory  lying  to  the  north  of  the  basin  of  the 
Menam,  and  situated  between  the  Anglo-Siamese  frontier,  the  Mekong  River, 
and  the  eastern  watershed  of  the  Me  Ing.  They  further  engage  not  to  acquire 
within  this  region  any  special  privilege  or  advantage  which  shall  not  be  enjoyed  in 
common  by,  or  equally  open  to.  Great  Britain  and  France  and  their  nationals  and 
dependents.  These  stipulations,  however,  shall  not  be  interpreted  as  derogat- 
ing from  the  special  clauses  which,  in  virtue  of  the  Treaty  concluded  on  the 
3rd  October,  1893,  between  France  and  Siam,  apply  to  a  zone  of  25  kilom.  on  the 
right  bank  of  the  Mekong  and  to  the  navigation  of  that  river. 

II. — Independence  of  Siam. — Nothing  in  the  foregoing  clause  shall  hinder 
any  action  on  which  the  two  Powers  may  agree,  and  which  they  shall  think 
necessary  in  order  to  uphold  the  independence  of  the  Kingdom  of  Siam.  But  they 
engage  not  to  enter  into  any  separate  Agreement  permitting  a  third  Power 
to  take  any  action  from  which  they  are  bound  by  the  present  Declaration  them- 
selves to  abstain. 

III. — Mekong  thalweg  limit. — From  the  mouth  of  the  Nam  Huok  north- 
wards as  far  as  the  Chinese  frontier  the  thalweg  of  the  Mekong  shall  form  the 
limit  of  the  possessions  or  spheres  of  influence  of  Great  Britain  and  France.  It  is 
agreed  that  the  nationals  and  dependents  of  each  of  the  two  countries  shall  not 
exercise  any  jurisdiction  or  authority  within  the  possessions  or  sphere  of  influ- 
ence of  the  other. 

Police  of  islands  in  Mekong. — The  police  of  the  islands  in  this  part  of  the 
river  which  are  separated  from  the  British  shore  by  a  branch  of  the  river  shall, 

*Text  as  reprinted  in  Rockhill,  p.  28,  from  B.  &  F.  State  Papers,  Vol.  88,  p.  13. 
Printed  also  in  British  Treaty  Series,  No.  5   (1896)  ;  Hertslet.  p.  583;  Rccueil,  p.  94. 

In  connection  with  Article  4  of  this  declaration  see  the  Anglo-Chinese  Convention  rela- 
tive to  Burmah  and  Thibet,  March  1,  1894  (No.  1894/1,  ante)  and  the  Franco-Chinese  Com- 
plementary Convention  for  the  delimitation  of  the  boundary  between  Tonkin  and  China,  June 
20,  1895  (No.  1895/4,  ante). 


NUMBER  1896/2:  MARCH  21,  1896  55 

SO  long  as  they  are  thus  separated,  be  intrusted  to  the  French  authorities.     The 
fishery  shall  be  open  to  the  inhabitants  of  both  banks. 

IV. — No  exclusive  commercial  and  other  privileges  in  Yunnan  and 
Szechuen. — The  two  Governments  agree  that  all  commercial  and  other  privileges 
and  advantages  conceded  in  the  two  Chinese  provinces  of  Yiinnan  and  Szechuen 
either  to  Great  Britain  or  France,  in  virtue  of  their  respective  Conventions  with 
China  of  the  1st  March,  1894,  and  the  20th  June,  1895,  and  all  privileges  and 
advantages  of  any  nature  which  may  in  the  future  be  conceded  in  these  two 
Chinese  provinces,  either  to  Great  Britain  or  France,  shall,  as  far  as  rests  with 
them,  be  extended  and  rendered  common  to  both  Powers  and  to  their  nationals 
and  dependents,  and  they  engage  to  use  their  influence  and  good  offices  with 
the  Chinese  Government  for  this  purpose. 

V. — Delimitation  of  territory  west  of  Lower  Niger. — The  two  Govern- 
ments agree  to  name  Commissioners  delegated  by  each  of  them,  who  shall  be 
charged  to  fix  by  mutual  agreement,  after  examination  of  the  titles  produced 
on  either  side,  the  most  equitable  delimitation  between  the  British  and  French 
possessions  in  the  region  situated  to  the  west  of  the  Lower  Niger. 

VI. — Revision  of  general  convention  of  July  19,  1875,  with  Tunis,  agreed 
to. — In  conformity  with  the  stipulations  of  Article  XL  of  the  General  Conven- 
tion concluded  between  Great  Britain  and  the  Regency  of  Tunis  on  the  19th 
July,  1875,  which  provides  for  a  revision  of  that  Treaty  "  in  order  that  the  two 
Contracting  Parties  may  have  the  opportunity  of  hereafter  treating  and  agreeing 
upon  such  other  arrangements  as  may  tend  still  further  to  the  improvement  of 
their  mutual  intercourse,  and  to  the  advancement  of  the  interests  of  their  re- 
spective people,"  the  two  Governments  agree  at  once  to  commence  negotiations 
for  replacing  the  said  General  Convention  by  a  new  Convention,  which  shall  cor- 
respond with  the  intentions  proposed  in  the  Article  above  referred  to. 

Done  at  London,  the  15th  January,  1896. 

[l.  s.]  Salisbury. 

[l.  s.]  Alph.  de  Courcel. 


NUMBER  1896/2. 

GERMANY  (Deutsche-Asiatische  Bank),  GREAT  BRITAIN  (Hongkong  and 
Shanghai  Banking  Corporation)  AND  CHINA. 

Agreement  for  the  Chinese  Imperial  Government  Five  Per  Cent  Sterling  Loan 

of  1896.*— March  23,  1896. 

This  agreement  is  made  between  the  Tsungli  Yamen  Peking  acting  on  behalf 
of  the  Imperial  Government  of  China  of  the  one  part  and  the  Hongkong  and 

*  In  connection  with  this  agreement  see  also  Agreement  for  the  Chinese  Imperial  Gov- 
ernment 41/2%  Gold  Loan  of  1898,  signed  March  1,  1898  (No.  1898/3,  post). 


56  CHINA  TREATIES  AND  AGREEMENTS 

Shanghai  Banking  Corporation  and  Deutsch-Asiatische   Bank  representing  an 
Anglo-German  Syndicate  hereinafter  called  "  the  Syndicate  " — of  the  other  part. 

Whereas  a  Preliminary  Agreement  for  an  Imperial  Chinese  Government  five 
per  cent  gold  loan  was  executed  by  the  above  contracting  parties  on  the  eleventh 
day  of  March  one  thousand  eight  hundred  and  ninety  six, 

And  whereas  on  the  seventeenth  day  of  March  one  thousand  eight  hundred 
and  ninety  six  telegraphic  advice  was  received  from  the  Syndicate  in  Europe 
that  they  are  prepared  to  issue  the  loan  on  the  conditions  specified  in  that  pre- 
liminary agreement, 

And  whereas  in  terms  of  clause  thirteen  of  the  preliminary  agreement  an 
Imperial  Edict  has  been  issued  on  the  first  day  of  the  second  month  of  the 
twenty  second  year  of  the  Emperor  Kuang-Hsu  being  the  fourteenth  day  of 
March  one  thousand  eight  hundred  and  ninety  six  sanctioning  the  loan  on  the 
terms  named  in  the  Preliminary  Agreement  copies  of  which  Imperial  Edict 
have  been  officially  handed  by  the  Tsungli  Yamen  to  the  Minister  for  Germany 
and  to  the  Charge  d' Affaires  for  Great  Britain  in  Peking. 
It  is  now  agreed  as  follows : 

1. — The  Imperial  Government  of  China  authorizes  the  Syndicate  to  issue 
an  Imperial  Chinese  Government  five  per  cent  Sterling  loan  for  the  amount  of 
sixteen  million  pounds  Sterling. 

2. — The  loan  shall  be  dated  the  first  day  of  April  one  thousand  eight  hun- 
dred and  ninety  six  and  shall  be  entitled  the  "  Chinese  Imperial  Government 
five  per  cent  Sterling  loan  of  one  thousand  eight  hundred  and  ninety  six."  The 
loan  shall  be  issued  in  two  series,  the  first  of  which  shall  be  for  ten  million 
pounds  Sterling  and  shall  be  issued  as  soon  as  possible  after  the  signing  of  this 
agreement.  The  balance  of  the  loan  shall  be  issued  not  later  than  the  first  of 
October  of  the  present  year,  the  two  series  to  be  extinguishd  simultaneously. 

3. — The  rate  of  interest  for  the  loan  shall  be  five  per  cent  per  annum,  on  the 
nominal  principal,  that  is  shall  be  eight  hundred  thousand  pounds  per  annum 
and  shall  be  paid  by  the  Chinese  Government  to  the  Syndicate  in  monthly  instal- 
ments calculated  from  the  first  day  of  April  one  thousand  eight  hundred  and 
ninety  six  and  in  accordance  with  the  amounts  and  dates  of  the  Schedule  attached 
to  this  Agreement. 

4. — The  term  of  the  loan  shall  be  thirty  six  years,  and  repayment  of  prin- 
cipal shall  be  made  by  a  yearly  sinking-fund  of  one  hundred  and  sixty  six  thou- 
sand nine  hundred  and  fifty  two  pounds  Sterling  which  shall  be  paid  by  the 
Chinese  Government  to  the  Syndicate  in  monthly  instalments,  in  accordance  with 
the  amounts  and  dates  of  the  Schedule  attached  to  this  Agreement.  During 
the  term  of  thirty  six  years  the  amortisation  shall  not  be  increased  nor  the  loan 
converted  nor  redeemed  by  the  Chinese  Government. 

5. — The  total  monthly  payment  due  for  amortisation  and  interest  and 
amounting  to  eighty  thousand  five  hundred  and  seventy-nine  pounds  six  shillings 
and  eight  pence  shall  be  made  in  equal  shares  and  in  accordance  with  the  amounts 
and  dates  of  the  Schedule  attached  to  this  agreement,  to  the  Hongkong  and 
Shanghai  Banking  Corporation  and  Deutsch-Asiatische  Bank  by  the  Imperial 
Government  of  China  who  shall  hand  to  those  banks  at  their  branches  in  Shang- 


NUMBER  1896/2 :  MARCH  23,  1896  57 

hai  on  the  date  named  in  the  Schedule,  funds  in  Shanghai  Sycee  sufficient  to 
meet  each  such  payment  in  sterHng  in  Europe,  the  rate  of  exchange  for  which 
shall  be  settled  with  those  two  banks  on  the  same  day.  The  Syndicate  retains 
the  right  to  re-arrange  the  service  of  interest  and  repayments  of  principal  to  the 
Bondholders  on  such  terms  as  it  deems  advisable. 

6. — The  Syndicate  shall  issue  and  is  hereby  authorised  to  issue,  to  sub- 
scribers of  the  loan,  bonds  for  the  total  amount  of  the  loan  in  pounds  Sterling, 
in  such  form,  in  such  languages  and  for  such  amounts  as  shall  appear  advisable 
to  the  Syndicate  and  these  bonds  shall  be  sealed  by  the  Minister  for  China  in 
London  or  Berlin  as  evidence  that  the  Imperial  Government  of  China  is  bound 
thereby. 

7. — This  entire  loan  of  sixteen  million  pounds,  subject  to  previous  loans 
charged  on  the  same  security  and  not  yet  redeemed,  shall  be  charged  on  the 
Imperial  Maritime  Customs  Revenue  of  China  and  shall  have  priority  both 
regarding  principal  and  interest  over  all  future  loans,  charges  and  mortgages  so 
long  as  this  loan  or  any  part  thereof  shall  be  unredeemed.  No  loan,  charge  or 
mortgage  shall  be  raised  or  created  which  shall  take  precedence  of  or  be  on 
equality  with  this  loan  or  which  shall  in  any  manner  lessen  or  impair  its  security 
over  the  said  Customs  Revenue  so  far  as  required  for  the  annual  service  of  this 
loan  and  any  future  loan  charge  or  mortgage  charged  on  the  said  Customs 
revenue  shall  be  made  subject  to  this  loan  and  it  shall  be  so  expressed  in  every 
agreement  for  any  such  future  loan  charge  or  mortgage.  In  the  event  of  the 
Imperial  Maritime  Customs  Revenue  of  China,  at  any  time  proving  insufficient 
to  support  the  service  of  the  interest  or  repayment  of  the  principal  of  this  loan 
the  Imperial  Chinese  Government  will  provide  the  funds  required  for  the  same 
from  other  sources.  The  administration  of  the  Imperial  Maritime  Customs  of 
China  shall  continue  as  at  present  constituted,  during  the  currency  of  this 
loan. 

8. — This  loan  shall  be  further  secured  by  Customs  Bonds  for  the  total 
amount  in  Sterling  of  the  loan  principal  and  interest,  issued  and  sealed  by  the 
Tsung-li-yamen  and  the  Board  of  Revenue,  Peking,  and  countersigned  by  the 
Inspector  General  of  Customs  and  all  such  Customs  Bonds  shall  contain  the 
priority  clause  number  seven  of  this  Agreement.  These  Customs  bonds  shall  be 
handed  in  equal  shares  to  the  Imperial  German  Legation,  Peking,  and  the  Hong- 
kong and  Shanghai  Banking  Corporation  before  payment  to  the  Chinese  Govern- 
ment of  the  proceeds  of  the  loan. 

9. — This  loan  shall  also  be  further  collaterally  secured  by  deposit  with  the 
Hongkong  and  Shanghai  Banking  Corporation  and  Deutsch-Asiatische  Bank 
of  sterling  Customs  Bonds  equal  in  value  altogether  to  the  total  amount  of  the 
loan,  principal  and  interest,  sealed  by  the  Chinese  Superintendent  of  Customs 
at  Shanghai  and  by  the  Viceroy  of  the  Liang  Kiang  Provinces  and  counter- 
signed by  the  foreign  Commissioner  of  Customs  at  Shanghai.  These  Customs 
bonds  shall  be  handed  to  the  Hongkong  and  Shanghai  Banking  Corporation  and 
Deutsch-Asiatische  Bank  at  their  branches  in  Shanghai  in  equal  shares  on  or 
before  the  fifteenth  day  of  April  next  and  in  the  event  of  the  money  to  meet  a 
payment  of  interest  and/or  sinking  fund,  not  being  handed  to  the  Hongkong 
and    Shanghai    Banking    Corporation    and    Deutsch-Asiatische    Bank    at    their 


58  ■  CHINA  TREATIES  AND  AGREEMENTS 

Branches  in  Shanghai  on  due  date  shall  be  available  for  payment  of  Imperial 
Maritime  Customs  duties  at  all  or  any  of  the  treaty  ports  of  China,  the  authori- 
ties of  which  shall  be  instructed  by  Imperial  Edict  accordingly  or  shall  be  avail- 
able in  such  other  manner  as  stated  in  the  Bonds. 

10. — No  further  loans  shall  be  issued  by  the  Chinese  Imperial  Government 
until  a  period  of  six  months  has  elapsed  after  the  issue  of  the  total  amount  of 
this  loan. 

11. — All  bonds  and  coupons  and  payments  made  and  received  in  connec- 
tion with  the  service  of  this  loan  shall  be  exempt  from  Chinese  taxes  and  im- 
posts forever. 

12. — All  details  necessary  for  the  prospectus  and  connected  with  the  service 
to  the  bondholders  of  the  interest  and  repayments  of  the  principal  of  this  loan, 
not  herein  explicitly  provided  for,  shall  be  left  to  the  arrangement  of  this  Syndi- 
cate who  shall  issue  and  are  hereby  authorized  to  issue  a  prospectus  of  the  loan 
as  soon  as  possible  after  the  signing  of  this  agreement.  The  Imperial  Govern- 
ment of  China  will  instruct  the  Chinese  Ministers  in  London  and  Berlin  in  com- 
munication with  the  Commissioner  of  Chinese  Customs  in  London  to  co-operate 
with  the  representatives  of  the  Syndicate  in  any  matters  requiring  conjoint 
action ;  and  the  Chinese  Minister  in  Berlin  will  sign  the  prospectus  of  the  loan  as 
required  by  the  rules  of  the  Berlin  Stock-Exchange. 

13. — The  Syndicate  hereby  takes  the  loan  firm  at  the  price  of  ninety-four 
per  cent  net  on  the  nominal  principal  to  the  Chinese  Government  and  will  hold 
the  net  proceeds  namely  fifteen  millions  and  forty  thousand  pounds  sterling  to 
the  order  of  the  Chinese  Government  in  London  as  soon  as  possible  after  the 
signing  of  this  Agreement,  and  in  such  instalments  and  at  such  dates  as  the 
provisions  of  the  Prospectus  shall  admit.  The  sum  of  eight  million  pounds 
sterling  shall  be  made  so  available  not  later  than  the  sixth  day  of  May 
next. 

14. — In  the  event  of  any  extraordinary  political  or  financial  crisis  taking 
place  in  Europe  within  six  months  by  which  the  markets  and  the  prices  of  exist- 
ing Government  stocks  are  so  violently  afifected  as  to  render  the  successful 
issue  of  the  balance  of  this  loan  impossible  on  the  terms  herein  named  the 
Syndicate  have  the  right  to  withdraw  from  their  contract  with  the  Chinese  Im- 
perial Government  which  shall  in  that  case  become  null  and  void  so  far  as  regards 
the  balance  of  this  loan  then  unissued. 

15. — ^The  provisions  of  this  Agreement  shall  immediately  after  signature 
and  before  the  issue  to  the  public  of  the  prospectus  of  the  loan,  be  confirmed  and 
sanctioned  by  an  Imperial  Edict,  which  shall  be  of^cially  communicated  by  the 
Tsungli  Yamen  to  the  Minister  for  Germany  and  Charge  d'Afifaires  for  Great 
Britain  in  Peking. 

16. — The  English  and  German  Syndicates  shall  take  the  loan  in  equal  shares 
and  without  responsibility  for  each  other. 

17. — Triplicate  sets  of  this  agreement  are  executed  in  English  and  Chinese, 
one  set  to  be  retained  by  each  contracting  party.  In  the  event  of  any  doubt 
arising  regarding  the  interpretation  of  the  contract  the  English  text  shall  be 
accepted  as  the  standard. 

18. — Signed  by  the  contracting  parties  this  10th  day  of  the  second  month 


NUMBER  1896/3:  JULY  11,  1896 


59 


of  the  twenty  second  year  of  the  Emperor  Kuang  Hsu,  being  the  twenty  third  day 
of  March  one  thousand  eight  hundred  and  ninety  six  Western  Calendar. 

For    the    Hongkong    and    Shanghai 
Banking   Corporation, 

(Sgd.)       E.  G.  HiLLIER, 

Agent. 

For  the  Deutsch-Asiatische  Bank, 

(Sgd.)     Franz  Urbig. 

Schedule  of  interest  and  sinking  fund  payments. 


Date. 


Interest. 


1896. 


August  20 

September  5. . 
September  20. 


October  20. . . 
November  20. 
December  20. 


£  s.  d. 

U2,,Z3i  6  8 

U3,Z2,i  6  8 

Ui,iZi  6  8 


66,666  13  4 
66,666  13  4 
66,666  13   4 


Sinking  fund. 


£  s.  d. 

27,825  6   8 

27,825  6   8 

27,825  6  8 


13,912  13  4 
13,912  13  4 
13,912  13    4 


Total. 


£   s. 
161,158  13 
161,158  13 
161,158  13 

d. 
4 
4 
4 

«  483.476 

80,579  6 
80.579  6 
80,579   6 


o  Less  interest  at  5  per  cent  on  £6,000,000  calculated  from  first  April  to  the  first  day  of 
the  month  of  its  issue,  Western  Calendar. 

The  same  payment  of  eighty  thousand  five  hundred  and  seventy  nine  pounds 
six  shilHngs  and  eight  pence  shall  be  repeated  on  the  twentieth  day  of  each  month 
of  the  year  one  thousand  eight  hundred  and  ninety  seven  Western  Calendar  and 
of  each  succeeding  year  until  the  twentieth  day  of  March  one  thousand  nine 
hundred  and  thirty  two  inclusive  that  being  the  last  payment  when  the  loan  will 
be  extinguished. 

(Sgd.)   E.  G.  HiLLIER. 

(Sgd.)  Franz  Urbig. 


NUMBER  1896/3. 


DENMARK  (Great  Northern  Telegraph  Company),  GREAT  BRITAIN 
(Eastern  Extension,  Australasia  and  China  Telegraph  Company,  Ltd.)  AND 
CHINA. 

Convention  regulating  the  relations  hettveen  the  Chinese  Telegraph  Administra- 
tion and  the  companies.* — July  11,  1896. 

The  Imperial  Chinese  Telegraph  Administration,  hereinafter  called  the  Ad- 
ministration, on  the  one  part,  and  the  Great  Northern  Telegraph  Company  of 

*  Text  as  printed  in  Herts! et,  p.  1140.     Printed  also  in  Recueil,  p.  183.     In  connection 
with  this  convention  see  the  following  telegraph  conventions :     With  Great  Northern,  May 


60  CHINA  TREATIES  AND  AGREEMENTS 

Copenhagen,  and  the  Eastern  Extension,  Australasia,  and  China  Telegraph 
Company  (Limited),  hereinafter  called  the  Companies,  on  the  other  part,  being 
desirous  of  facilitating  international  telegraphic  communication,  have  decided  to 
conclude  a  Convention,  with  a  view  to  regulate  the  relations  between  the  Ad- 
ministration and  the  Companies.  Consequently,  the  following  stipulations  have 
been  agreed  on,  and,  under  date  below  given,  signed  by  the  Administration 
represented  by  its  Director-General  Sheng  Hsuen  Huai,  and  by  the  Companies 
represented  by  their  respective  managers  in  China,  viz.,  Mr.  J.  Henningsen  and 
Mr.  W.  Judd,  all  three  duly  furnished  with  full  and  special  powers  for  this 
purpose. 

Article  I. — 1.  The  total  charge  per  word  fixed  in  francs  in  the  annexed 
Table  stipulated  in  Article  XI  of  the  present  Convention  for  telegrams  ex- 
changed terminally  between  China,  on  the  one  side,  and  Europe  (Russia excepted )y 
America,  and,  when  transiting  Europe,  all  other  countries  beyond  Europe  on 
the  other  side,  is  to  be  the  same  by  the  routes  of  the  Companies  via  India 
(Madras),  and  via  Russia  in  Asia,  as  by  the  routes  of  the  Administration  via 
Russia  in  Asia. 

2.  This  equalisation  of  total  charges  shall  be  effected  by  the  necessary  regu- 
lation of  the  Administration's  terminal  charge  via  Russia  in  Asia,  and  of  the 
Companies'  cable  charges  respectively  between  China  and  India  (Madras),  and 
between  China  and  Russia  in  Asia. 

3.  For  the  same  telegrams  as  described  under  Section  I  in  this  Article  via 
other  routes,  present  and  future,  across  the  land  frontiers  of  China  the  Adminis- 
tration undertakes,  when  concluding,  renewing,  or  revising  Telegraph  Conven- 
tions, to  fix  their  proportion  of  the  total  charges  in  such  manner  that  the  total 
charges  collected  for  the  said  telegrams  via  such  routes  at  the  time  of  the  con- 
cluding, renewing,  or  revising  of  such  Conventions  shall  in  no  case  be  lower  than 
the  total  charges  collected  for  the  same  telegrams  when  exchanged  by  the  normal 
routes  above  described  under  Section  1  of  this  Article. 

The  Companies  on  their  side  undertake  a  corresponding  obligation  for  the 
same  telegrams  via  all  routes,  present  or  future,  established  beyond  the  termini 
of  their  systems  in  India  and  in  Russia  in  Asia. 

4.  The  stipulations  under  Sections  1,  2,  and  3  of  this  Article  shall  apply 
equally  to  telegrams  exchanged  terminally  between  the  British  Colony  of  Hong 
Kong,  on  the  one  side,  and  Europe  (Russia  excepted),  America,  and,  transit- 
ing Europe,  all  other  countries  beyond  Europe  on  the  other  side. 

5.  With  regard  to  the  telegrams  specified  under  Sections  1,  3,  and  4  of  this 
Article  transmitted  by  other  routes,  present  or  future,  than  those  specified  under 
Sections  1  and  3  of  this  Article,  the  Administration  and  the  Companies  recipro- 
cally undertake  to  do  all  in  their  power  to  protect  the  joint  interests  established 
by  the  present  Convention,  and  to  carry  to  the  Joint  Purse  stipulated  in  Article 
II  of  the  present  Convention  all  revenues  accruing  to  the  Administration  or  to 
the  Companies  from  the  said  traffic  coming  under  Sections  1  and  3  of  this  Article, 

13,  1897  (No.  1897/3,  post);  with  Great  Northern  and  Eastern  Extension,  October  26,  1900 
(No.  1900/6,  post)  ;  with  Great  Northern,  and  with  Eastern  Extension,  October  22,  1902. 
See  also  the  agreement  of  the  British  Government  with  the  Eastern  Extension,  April  23, 
1901  (No.  1901/1,  post).    See  also  Note  to  this  document,  post,  p.  67. 


NUMBER  1896/3:  JULY  11,  1896  61 

and  passing  any  of  their  lines,  excepting  the  revenue  accruing  to  their  lines  in 
Europe. 

II. — 1.  The  total  revenue  of  the  proportions  of  the  total  charges  of  the 
Administration  and  of  both  Companies  for  all  telegrams  coming  under  Article  I, 
Sections  1,  3,  and  5,  as  fixed  in  the  Table  stipulated  in  Article  XI  of  the  present 
Convention,  whichever  be  the  route  followed,  shall  be  carried  to  a  Joint  Purse 
account  and  divided  between  the  Contracting  Parties  in  the  following  propor- 
tion, viz. : — 

One-third  to  the  Administration,  one-third  to  each  of  the  two  Companies, 
provided  always  that  each  of  the  Contracting  Parties  shall  bear  its  own  working 
expenses. 

2.  Considering  this  division  of  revenue  the  Administration  undertakes 
to  levy  no  additional  terminal  charge  for  telegrams  specified  in  Section  1  of 
Article  I  of  the  present  Convention,  forwarded  via  the  cables  of  the  Com- 
panies. This  also  applies  to  the  same  telegrams  transmitted  by  the  existing  route 
via  Saigon-Moulmein,  as  defined  in  the  Table  stipulated  in  Article  XI  of  the 
present  Convention. 

3.  The  Administration,  as  well  as  the  Companies,  shall  maintain  their  sec- 
tions of  the  routes  mentioned  in  Article  I  of  the  present  Convention  in  good 
condition. 

III. — The  Companies  renounce  the  special  charges  hitherto  levied  on  their 
telegraph  lines  by  land  and  sea  between  the  Kowloon  boundary  and  Hong  Kong, 
in  accordance  with  the  Agreement  dated  the  21st  January,  1884,  between  the 
Administration  and  the  Eastern  Extension,  Australasia,  and  China  Telegraph 
Company  (Limited)  ;  and  the  Administration  renounces  the  special  charges 
hitherto  levied  on  their  telegraph  lines  by  land  and  sea  between  Woosung  and 
Shanghai  and  between  Sharp  Peak  and  Foochow,  in  accordance  with  the  Agree- 
ment dated  the  19th  May,  1883,  between  the  Administration  and  the  Great 
Northern  Telegraph  Company  of  Copenhagen,  and  in  accordance  with  Agree- 
ments dated  the  7th  May,  1883,  and  the  17th  October,  1884,  between  the  Adminis- 
tration and  the  Eastern  Extension,  Australasia,  and  China  Telegraph  Company 
(Limited). 

IV. — 1.  The  collection  of  the  charges  mentioned  in  Article  I  of  the  present 
Convention  shall  take  place  at  the  same  rate  of  exchange  of  the  coin  in  which 
the  charges  are  collected  by  the  Administration  and  by  the  Companies  at  their 
stations  in  China  and  at  Hong  Kong. 

2.  To  this  end  the  Administration  and  the  Companies  shall  annually  at  the 
€nd  of  the  foreign  calendar  year  determine  the  average  value  of  that  coin  in 
francs,  and  this  value  shall  serve  as  the  rate  of  exchange  for  the  collection  of 
charges  and  for  the  settlement  of  accounts  during  the  year  following. 

3.  Should  the  Administration  and  the  Companies  be  unable  to  agree  on  the 
average  value  of  that  coin  in  francs,  the  question  shall  be  referred  for  settle- 
ment to  the  Manager  of  one  of  the  leading  foreign  banks  at  Shanghai. 

V. — For  telegrams  transiting  China,  and  exchanged  between  Europe  (Rus- 
sia excepted),  America,  and,  when  transiting  Europe,  all  other  countries  beyond 
Europe,  on  the  one  side,  and  all  other  countries  on  the  other  side,  the  Administra- 


52  CHINA  TREATIES  AND  AGREEMENTS 

tion  undertakes,  when  concluding,  renewing,  or  revising  Telegraph  Conventions, 
to  fix  a  transit  charge  which  shall  not  be  less  than  its  terminal  charge  at  the  time 
collected  for  telegrams  described  under  Sections  1  and  3  of  Article  I  of  the  pres- 
ent Convention. 

VI. — The  Contracting  Parties  recognise  the  principle  of  collecting  charges 
and  settling  accounts  at  the  actual  silver  equivalent  of  international  charges  fixed 
in  gold,  and  undertake  in  each  case  when  so  requested  by  the  other  Administra- 
tions concerned  with  whom  they  have  concluded  Telegraph  Conventions,  also  to 
apply  this  principle  to  the  collection  and  settlement  of  such  international  charges. 

VII. — For  international  telegrams  exchanged  by  the  Companies'  cable  routes 
with  other  countries  than  those  specified  in  Article  I  of  the  present  Convention, 
the  Administration  undertakes  to  establish  an  uniform  terminal  charge  in  francs, 
which  shall  not  be  higher  than  the  average  of  the  terminal  charges  which  are 
fixed,  or  shall  be  fixed,  for  such  traffic  when  sent  by  the  other  telegraph  routes  of 
China. 

VIII. — 1.  The  Administration  and  the  Companies  undertake  to  fix  equal 
charges  on  their  respective  lines  between  Shanghai,  Foochow,  Amoy,  Hong 
Kong,  for  telegrams  exchanged  terminally  between  these  ports. 

2.  The  Administration  as  well  as  the  Companies  undertake  to  transmit 
between  all  the  said  ports  all  terminal  telegrams  handed  to  their  offices,  and 
the  total  charges  collected  for  these  telegrams  by  the  two  Contracting  Parties 
shall  be  divided  in  the  following  manner,  viz.: — 

The  Administration's  share  is  the  total  of  the  charges  collected  for  all  tele- 
grams exchanged  terminally  between  Shanghai  and  Foochow,  between  Shanghai 
and  Amoy,  and  between  Foochow  and  Amoy. 

The  Company's  share  is  the  total  of  the  charges  collected  for  all  telegrams 
exchanged  terminally  between  Hong  Kong,  on  the  one  side,  and  Amoy,  Foochow, 
and  Shanghai  on  the  other  side. 

3.  International  telegrams  other  than  those  provided  for  in  Article  II  of 
the  present  Convention,  and  which  pass  between  the  above  four  stations,  are 
not  comprised  in  the  division  stipulated  in  the  present  Convention,  but  each  of 
the  Contracting  Parties  retains  its  own  revenue  for  such  telegrams.  However, 
they  agree  to  fix  equal  charges  for  such  telegrams. 

IX. — 1.  The  Administration  and  the  Companies  shall  at  all  their  con- 
trolling stations  keep  correct  abstracts  of  all  telegrams  specified  in  Article  II  and 
in  Article  VIII  of  the  present  Convention. 

2.  A  Controller  of  the  Administration  at  the  Companies'  stations  at  Shang- 
hai, Foochow,  Amoy,  and  Hong  Kong,  and  a  Controller  of  the  Companies  at  the 
Administration's  controlling  stations,  present  and  future,  shall  have  free  admit- 
tance to  the  offices,  in  order  to  check  and  control  the  correctness  of  the  journals, 
abstracts,  and  accounts  as  far  as  necessary  for  the  purposes  of  the  present  Con- 
vention. 

3.  The  appointment  of  Controllers  is  in  each  case  subject  to  the  approval 
respectively  of  the  Administration  or  the  Companies  to  whom  they  are  ac- 
credited, which  shall  also  have  the  right  to  demand  their  recall  if  considered 
necessary. 


NUMBER  1896/3:  JULY  11,  1896  63 

4.  All  the  said  Controllers  of  the  Companies  at  the  Administration's  con- 
trolling stations  shall  have  their  names  placed  on  the  registers  of  their  respective 
nationalities.  Each  of  them  shall  respect  the  laws  of  China,  and  conform  with 
the  Treaties  made  by  their  respective  countries  with  the  Government  of  China. 
But  the  Administration  cannot  undertake  any  responsibility  for  their  personal 
safety. 

5.  They  shall  respect  the  authority  of  the  local  Manager;  and  their  salaries 
as  well  as  all  other  expenses  are  to  be  paid  by  their  employers. 

X. — 1.  The  settlement  of  accounts  for  all  telegrams  exchanged  between  the 
Administration  and  the  Companies,  as  well  as  of  the  division  of  revenue  stipu- 
lated in  Article  II  and  in  Article  VIII  of  the  present  Convention,  shall  be  estab- 
lished monthly  at  Shanghai,  and  paid  at  Shanghai  within  six  weeks  after  the 
end  of  the  month  in  account. 

2.  To  this  end  the  results  of  the  abstracts  of  the  controlling  stations,  signed 
by  the  Controllers  of  the  two  Contracting  Parties,  stipulated  for  in  Article  IX 
of  the  present  Convention,  or  by  the  representative  of  the  Administration  at  the 
controlling  stations  where  no  Controller  of  the  Companies  be  actually  present, 
shall  be  telegraphed  to  Shanghai,  to  be  entered  in  the  accounts  settled  there, 
subject  to  subsequent  revision,  after  receipt  in  Shanghai  of  the  said  signed 
abstracts  and  copies  of  telegrams  abstracted. 

3.  The  month  shall  be  reckoned  according  to  the  European  calendar, 

4.  Telegrams  referring  to  the  settlement  and  payment  of  accounts  shall  be 
considered  as  service  telegrams,  and  transmitted  free  of  charge. 

XI. — 1.  To  the  present  Convention  is  annexed  a  Table  signed  by  the  Con- 
tracting Parties,  and  showing  the  charges  which  shall  be  applied  by  the  Ad- 
ministration and  by  the  Companies  to  telegrams  described  in  Articles  II  and 
VIII  of  the  present  Convention,  as  soon  as  it  comes  into  force,  and  also 
the  rate  of  exchange  at  which  the  collection  of  charges  and  the  settlement  of 
accounts  shall  take  place,  as  well  as  the  amount  of  contribution  to  the  Joint 
Purse. 

2.  This  Table  will  be  subject  to  revision  by  the  Contracting  Parties  periodi- 
cally, and  in  accordance  with  the  stipulations  of  the  present  Convention. 

XII. — The  rules  laid  down  in  the  Service  Regulations  of  the  International 
Telegraph  Convention  shall  be  observed  with  regard  to  the  technical  treatment  of 
telegrams  exchanged  between  the  Administration  and  the  Companies ;  and  both 
Contracting  Parties  undertake  to  do  all  in  their  power  to  prevent  re-transmission 
and  other  circumventions  of  the  rules  to  the  detriment  of  either  party. 

XIII. — As  both  the  Administration  and  the  Companies  are  under  obligations 
to  treat  certain  Government  or  press  telegrams  passing  the  routes  named  in  Sec- 
tions 1,  3,  and  5  of  Article  I  and  Article  VIII  of  the  present  Convention  in  an 
exceptional  manner,  it  is  agreed  that  the  proceeds  of  the  proportions  of  the  total 
charges  accruing  to  the  Administration  or  the  Companies  shall  be  carried  to  the 
Joint  Purse,  and  divided  according  to  Article  II  and  Article  VIII  of  the  present 
Convention,  as  shown  in  the  Table  stipulated  in  Article  XI  of  the  present  Con- 
vention. 

XIV. — 1.    The  present   Convention  cannot  be  mortgaged,   sold,   or  other- 


64  CHINA  TREATIES  AND  AGREEMENTS 

wise  transferred,  wholly  or  partly;  neither  can  any  creditor  or  others  acquire 
it  wholly  or  partly,  in  case  of  liquidation,  compulsory  or  otherwise. 

2.  Any  difference  arising  between  the  Contracting  Parties  touching  the 
construction  of  the  present  Convention  shall  be  referred  for  decision  to  the 
Governments  (or  their  Legations  at  Peking)  which  have  ratified  it. 

XV. — The  Companies  shall  not  extend  their  present  cable  system  on  Chinese 
territory  without  the  consent  of  the  Administration ;  but  the  following  existing 
Agreements  between  the  Administration  and  the  two  Companies  are  to  be  ex- 
tended, to  continue  in  force  for  the  period  of  the  present  Convention  unaltered, 
excepting  as  varied  by  the  present  Convention: — 

Agreement  between  the  Administration  and  the  Great  Northern  Telegraph 
Company  of  Copenhagen,  dated  the  19th  May,  1883 ;  Agreements  between  the 
Administration  and  the  Eastern  Extension,  Australasia,  and  China  Telegraph 
Company  (Limited),  dated  the  31st  March,  1883,  7th  May,  1883,  21st  January, 
1884,  and  17th  October,  1884. 

XVI. — 1.  The  present  Convention  shall  be  ratified  by  Tsung-li  Yamen,  and 
by  the  Ministers  at  Peking  for  Russia,  Great  Britain,  and  Denmark. 

2.  It  shall  be  put  into  execution  from  the  first  day  of  the  month  follow- 
ing the  date  of  its  ratification,  and  shall  remain  in  force  until  the  31st  December, 
1910,  and  shall  thereafter  continue  in  force  until  six  months  after  one  of  the 
Contracting  Parties  shall  have  given  notice  of  its  intention  to  modify  or  to  abro- 
gate it. 

In  witness  whereof  the  Undersigned,  duly  authorized  to  this  effect,  have 
signed  the  present  Convention. 

Done  in  Shanghai  in  the  French  language,  in  the  English  language,  and  in 
the  Chinese  language.  Three  expeditions  duly  compared  and  found  to  be  in 
agreement,  have  been  signed  in  each  of  these  languages,  on  the  11th  day  of  the 
month  of  July,  1896,  corresponding  with  the  1st  day  of  the  6th  moon,  of  the 
22nd  year  of  the  reign  of  Kwang  Hsu. 

For  the  Imperial  Chinese  Telegraph  Administration, 

Sheng  Hsuen  Hum,  Director-General. 
(Seal  of  Administration.) 
For   the   Great    Northern    Telegraph    Company    of 
Copenhagen, 

J.  Henningsen,  Manager  in  China. 
For  the  Eastern  Extension,  Australasia,  and  China 
Telegraph  Company  (Limited), 

Walter  Judd,  Manager  in  China. 
Seen  and  approved : 

Claude  M.  MacDonald.  (Seal  of  Legation.) 

Her  Britannic  Majesty's  Minister  Plenipotentiary. 
Vu  et  approuve : 

CoMTE  Cassini.  (Seal.) 

Ministre  de  Riissie  et  de  Danemark. 

(Seal  of  Tsung-li  Yamen.) 


NUMBER    1896/3:    JULY    11,    18%  65 


Table  drawn  up  in  Execution  of  the  Stipulation  in  Article  XI  of  the  Convention 

DATED  July  11,  1896. 

Charges  per  Single  Word  of  Ordinary  Telegrams. 

1.  Total  charge  for  terminal  telegrams  by  the  routes  defined  in  Article  I,  Section  1, 
of  the  Convention  betv^reen  China  and  Hong  Kong,  on  the  one  side,  and  Europe  (Russia 
excepted),  on  the  other  side,  8  fr.  50  c,  at  the  rate  of  exchange  of  8  fr.  50  c,  equal  to  2  dol. 
75  c.   (Mexican),  to  v^^hich  must  be  added  the  out-payments  beyond  Europe. 

This  total  charge  of  8  fr.  50  c.  will  be  reduced  to  7  fr.  simultaneously  with  the  coming 
into  force  of  the  Tariffs  adopted  by  the  International  Telegraph  Conference  at  Buda-Pesth, 
1896. 

2.  Transit  charge  stipulated  in  Article  V  of  the  Convention,  5  fr. 

This  charge  will  be  calculated  at  the  rate  of  exchange  stipulated  in  the  Administration's 
Conventions  with  other  Administrations. 

3.  Local  charges  between  the  ports  of  Shanghai,  Foochow,  Amoy,  Hong  Kong  (Article 
VIII  of  the  Convention)  : — 

(a)  Between  the  ports  of  Shanghai  and  Hong  Kong,  40  cents  of  a  Mexican  dollar. 

(&)  Between  either  of  the  ports  of  Shanghai  or  Hong  Kong,  on  the  the  one  side, 
and  the  ports  of  Amoy  and  Foochow,  on  the  other  side ;  and  between  the  ports 
of  Amoy  and  Foochow,  20  cents  of  a  Mexican  dollar. 

(c)  Bona  fide  Chinese  telegrams  at  half  the  charges  stipulated  under  (a)  and  (fc). 
Bona  fide  Chinese  telegrams  will  be  defined  from  time  to  time  by  mutual  agree- 
ment between  the  Administration  and  the  Companies. 

Contribution  to  the  Joint  Purse  per  Single  Word  of  Ordinary  Telegrams.  {Article  I, 
Sections  1,  3,  and  5;  Article  XIII  of  the  Convention.) 

1.  By  routes  described  in  Article  I,  Section  1,  of  the  Convention,  5  fr.,  at  the  rate  of 
exchange  of  8  fr.  50  c,  equal  to  2  dol.  75  c.  (Mexican). 

2.  By  routes  described  in  Article  I,  Section  3,  of  the  Convention — 

(o)  Via  cable  termini,  5  fr.,  at  the  rate  of  exchange  of  8  fr.  50  c,  equal  to  2  dol. 
75  c.  (Mexican). 

(6)  Via  land  frontiers,  5  fr.,  at  the  rate  of  exchange  stipulated  in  the  Administra- 
tion's Conventions  for  those  junctions  for  the  collection  of  charges. 

3.  By  the  Companies'  cables  via  Saigon-Moulmein,  2  fr.  42>^  c,  at  the  rate  of  exchange 
of  8  fr.  50  c,  equal  to  2  dol.  75  c.  (Mexican). 

4.  Chinese  Government  telegrams  exchanged  between  China,  on  the  one  side,  and  Europe 
(Russia  excepted),  America,  and,  when  transiting  Europe,  all  other  countries  beyond 
Europe,  on  the  other  side,  pass  at  half  charges  over  the  cables  in  Asia  of  both  Companies, 
and  whichever  be  the  route  followed  contribute  nothing  to  the  Joint  Purse,  and  are  not 
included  in  the  division  described  in  Article  II  of  the  Convention. 

5.  British  Government  telegrams  and  French  Government  telegrams  coming  under 
Article  II  of  the  Convention  pass  the  cables  of  the  Eastern  Extension,  Australasia,  and 
China  Telegraph  Company  (Limited),  at  half  charges;  and  shall,  when  passing  by  those 
cables,  contribute  to  the  Joint  Purse  one-half  of  the  normal  contribution. 

6.  French  Government  telegrams  coming  under  Article  II  of  the  Convention  pass  free 
of  charge  over  the  cables  of  the  Great  Northern  Telegraph  Company  of  Copenhagen;  and 
shall,  when  passing  by  those  cables,  contribute  nothing  to  the  Joint  Purse. 

7.  Press  telegrams  between  the  Companies'  stations  in  China,  on  the  one  side,  and 
Europe  (Russia  excepted),  on  the  other  side,  shall,  when  passing  the  cables  of  the  Eastern 
Extension,  Australasia,  and  China  Telegraph  Company  (Limited),  contribute  to  the  Joint 
Purse  the  full  amount  of  the  proportion  due  to  those  cables,  which  is  at  present  fixed  at  1  fr. 
82^  c,  at  the  exchange  of  1  fr.,  equal  to  40  cents  of  a  Mexican  dollar. 

Should  such  press  telegrams  be  admitted  at  reduced  charges  over  the  lines  of  the 
Administration,  or  the  Great  Northern  Telegraph  Company  of  Copenhagen,  they  will  con- 


56  CHINA  TREATIES  AND  AGREEMENTS 

tribute  to  the  Joint  Purse  the  actual  proportion  of  the  charges  due  to  the  Administration  or 
the  Great  Northern  Telegraph  Company  of  Copenhagen. 

8.  Simultaneously  with  the  reduction  from  8  fr.  50  c.  to  7  fr.  of  the  total  charge 
named  in  Article  I,  Section  1,  of  the  Convention,  the  contribution  to  the  Joint  Purse  shall 
be  revised,  and  shall  be  calculated  upon  the  same  principle  as  that  adopted  in  fixing  that 
contribution  in  the  present  table. 

Special  Telegrams  at  reduced  Charges. 

1.  Chinese  Government  telegrams  originating  and  terminating  in  China  shall  pass  at 
half  charges  over  the  Companies'  cables  between  Shanghai,  Foochow,  Amoy,  Hong  Kong, 
always  provided  that  Chinese  Government  telegrams  exchanged  terminally  between  Hong 
Kong,  on  the  one  side,  and  Amoy,  Foochow,  Shanghai,  on  the  other  side,  by  the  lines  of  the 
Administration  shall  not  be  included  in  the  division  stipulated  in  Article  VHI  of  the 
Convention. 

2.  British  Government  telegrams  exchanged  between  Shanghai,  Foochow,  Hong  Kong, 
by  the  Eastern  Extension,  Australasia,  and  China  Telegraph  Company's  cables,  shall  pass 
at  half  charges. 

3.  French  Government  telegrams  exchanged  between  Shanghai,  Amoy,  Hong  Kong, 
by  the  Great  Northern  Telegraph  Company's  cables  shall  pass  free  of  charge. 

4.  Japanese  Government  telegrams  between  Shanghai,  Foochow,  Amoy,  Hong  Kong,  by 
the  cables  of  both  Companies  shall  pass  at  half  charges. 

5.  Press  telegrams  exchanged  terminally  between  Hong  Kong  and  Shanghai  by  the 
cables  of  both  Companies  shall  pass  at  half  charges. 

6.  Chinese  Government  telegrams  are  those  which  emanate  from  the  Chief  of  the  State, 
Tsung-li  Yamen,  the  Board  of  Admiralty,  the  Viceroys  and  Governors  of  provinces,  Com- 
manders-in-chief of  land  and  sea  forces,  Ministers  and  Diplomatic  and  Consular  Agents  of 
China.  Such  Government  telegrams  should  bear  the  seal  or  stamp  of  the  authority  that 
sends  them. 

7.  Other  Government  telegrams  named  in  this  table  are  defined  according  to  the  Service 
Regulations  of  the  International  Telegraph  Convention. 

Rate  of  Exchange. 
Except  as  otherwise  provided  in  the  present  table  and  until  further  agreed  on,  the  normal 
rate  of  exchange  between  francs  and  Mexican  dollars  shall  be  taken  to  be  1  fr.  equal  to  40 
cents  of  a  Mexican  dollar. 

In  witness  whereof  the  Undersigned,  duly  authorized  to  this  effect,  have  signed  the 
present  table.  Done  in  Shanghai,  in  th«  French  language,  in  the  English  language,  and  in  the 
Chinese  language.  Three  expeditions  duly  compared  and  found  to  be  in  agreement  have  been 
signed  in  each  of  these  languages,  on  the  11th  day  of  the  month  of  July,  1896,  corresponding 
with  the  1st  day  of  the  6th  moon  of  the  22nd  year  of  the  reign  of  Kwang  Hsu. 

For  the  Imperial  Chinese  Telegraph  Administration, 

Sheng  Hsuen  Hum,  Director-General. 
(Seal  of  Administration.) 

For  the  Great  Northern  Telegraph  Company  of  Copenhagen, 

J.  Henningsen,  Manager  in  China. 
For  the  Eastern  Extension,  Australasia,  and  China  Telegraph 
Company  (Limited), 

Walter  Judd,  Manager  in  China. 
Seen  and  approved : 

Claude  M.  MacDonald.  (Seal  of  Legation.) 

Her  Britannic  Majesty's  Minister  Plenipotentiary. 
Vu  et  approuve : 

CoMTE  Cassini.  (Seal.) 

Ministre  de  Russie  et  dc  Danemark. 

(Seal  of  Tsung-li  Yamen.) 


NUMBER  1896/3:  JULY  11,  1896:  xXOTE  67 

Note. 

The  situation  of  the  Chinese  Telegraph  Administration  in  relation  to  the  several  cable 
companies  is  somewhat  obscure  by  reason  of  the  fact  that  some  of  the  more  important 
agreements  have  not  been  made  public.  It  is  understood  that,  by  agreements  of  1904  and 
1905,  the  Commercial  Pacific  and  German-Dutch  Cable  Companies  were  admitted  to  partici- 
pation with  the  Eastern  Extension  and  Great  Northern  Companies  in  their  interest  under  the 
joint  purse  arrangement  provided  in  Article  2  of  this  Convention;  and  that  further  agree- 
ments concluded  between  the  Chinese  Administration  and  the  latter  two  companies  were 
concluded  in  1904,  1911  and  1913,  in  which  provision  was  made  for  the  modification  of  the 
joint  purse  arrangement,  and  the  term  of  all  telegraph  agreements  between  the  Chinese 
Administration  and  the  Eastern  Extension  and  Great  Northern  Companies  was  extended  to 
December  31st,  1930. 

The  following  is  the  text,  as  printed  in  B.  &  F.  State  Papers,  Vol.  107,  p.  726,  of  the 
Additional  Article  to  the  Convention  of  July  11,  1896,  which  was  signed  at  Peking,  Decem- 
ber 22,  1913  :— 

Additional  Article  to  Telegraph  Convention  of  1896, — December  22,  1913. 

"In  connection  with  the  Agreement  entered  into  on  the  11th  July,  1896,  between  the 
Imperial  Chinese  Telegraph  Administration,  on  the  one  part,  and  the  Great  Northern 
Telegraph  Company  (Limited)  and  the  Eastern  Extension  Australasia  and  China  Telegraph 
Company  (Limited),  on  the  other  part,  the  following  additional  Article  has  been  agreed 
upon  and  under  date  given  signed  by  the  Chinese  Government,  represented  by  Air.  C.  C. 
Lung,  the  Director-General  of  Telegraph  Directorates  of  Chiao  Tung  Pu,  and  by  the 
companies  represented  by  Captain  H.  Rothe,  Co-General  Manager  of  the  Great  Northern 
Telegraph  Company  (Limited),  and  Mr.  W.  Bullard,  Manager  in  China  of  the  Eastern 
Extension  Australasia  and  China  Telegraph  Company  (Limited),  each  duly  furnished  with 
full  and  special  powers  for  this  purpose,  and  now  witnesseth  that  in  the  interest  of  both 
parties  to  the  Agreement,  dated  the  11th  July,  1896,  and  for  the  same  term  of  years,  that  is, 
till  the  31st  December,  1930,  no  other  party  will  be  allowed  without  the  consent  of  both 
the  said  parties  to  land  telegraph  cables  on  the  coast  of  China  and  islands  belonging 
thereto,  or  to  work  such  cables  in  connection  with  the  Chinese  lines,  or  otherwise  to 
establish  telegraph  connections  which  might  create  competition  with  or  injure  the  interests 
of  the  existing  lines  belonging  to  China  or  to  the  cable  companies.  This  shall,  however, 
not  prevent  the  Chinese  Government  from  establishing  local  internal  cables  where  no 
competition  can  arise,  neither  shall  it  prevent  the  transmission  of  terminal  Formosa  traffic 
over  the  Foochow-Formosa  cable,  now  belonging  to  Japan,  whilst  other  traffic  must  not  be 
exchanged  by  this  line  except  with  the  consent  of  China  and  of  the  cable  companies. 

"  The  present  additional  Article  shall  be  ratified  by  the  Wai  Chiao  Pu  and  by  the 
Ministers  at  Peking  for  Denmark  and  Great  Britain. 

"  In  witness  whereof  the  undersigned,  duly  authorized  to  this  effect,  have  signed  the 
present  additional  Article. 

"  Done  in  Peking  in  the  English  language  and  in  the  Chinese  language.     Six  expeditions 
duly  compared  and  found  to  be  in  Agreement  have  been  signed  in  each  of  these  languages 
on  the  ^2nd   day  of  the  month   of  December,   1913,  corresponding  with  the  22nd  day  of 
the  12th  moon  of  the  2nd  year  of  the  Chinese  Republic. 
"  For  the  Chinese  Government, 

"  C.  C.  Lung, 
"  The  Director-General  of  Telegraph  Directorates. 
"For  the  Great  Northern  Telegraph  Company   (Limited), 

■'  H.  RoTHE, 

Co-General  Manager. 
"  For  the  Eastern  Extension  Australasia  and  China  Telegraph 
Company  (Limited), 

"  W.  Bullard, 

Manager  in  China. 
"  Seen  and  approved : 

"  P.  Ahlefeldt  Laurvig, 

Minister  for  Denmark.  (Seal.) 

"J,  N.  Jordan, 

His  Britannic  Majesty's  Minister.  (Seal  of  British  Legation.) 

"  (Seal  of 
Wai  Chiao  Pu.)  " 
This    Additional    Article    is    stated    (op.    cit.)    to    have   been    ratified   by    the    Chinese, 
Danish  and  British  Governments  on  December  31,  1913. 


68  CHINA  TREATIES  AND  AGREEMENTS 

NUMBER  1896/4. 

JAPAN  AND  CHINA. 
Treaty  of  Commerce  and  Navigation.^ — July  21,  1896. 

His  Majesty  the  Emperor  of  Japan  and  His  Majesty  the  Emperor  of  China, 
having  resolved,  in  pursuance  of  the  provisions  of  Articles  VI,  of  the  Treaty 
signed  at  Shimonoseki  on  the  17th  day  of  the  4th  month  of  the  28th  year  of 
Meiji,  corresponding  to  the  23rd  day  of  the  3rd  month  of  the  21st  year  of  Kuang 
Hsii,  to  conclude  a  Treaty  of  Commerce  and  Navigation,  have  for  that  purpose 
named  as  Their  Plenipotentiaries,  that  is  to  say: 

His  Majesty  the  Emperor  of  Japan,  Baron  Hayashi  Tadasu,  Shoshii,  Grand 
Cross  of  the  Imperial  Order  of  the  Sacred  Treasure,  Grand  Officer  of  the  Im- 
perial Order  of  the  Rising  Sun,  Minister  Plenipotentiary  and  Envoy  Extraordi- 
nary; and  His  Majesty  the  Emperor  of  China,  Chang  Yen  Hoon,  Minister 
Plenipotentiary,  Minister  of  the  Tsungli-yamen,  Holding  the  rank  of  the  Presi- 
dent of  a  Board  and  Senior  Vice-President  of  the  Board  of  Revenue : 

Who,  after  having  communicated  to  each  other  their  Full  Powers  found  to  be 
in  good  and  due  form,  have  agreed  upon  and  concluded  the  following  Articles : — 

Article  I. — Peace  and  friendship. — There  shall  be  perpetual  peace  and 
friendship  between  His  Majesty  the  Emperor  of  Japan  and  His  Majesty  the  Em- 
peror of  China,  and  between  their  respective  subjects  who  shall  enjoy  equally 
in  the  respective  countries  of  the  High  Contracting  Parties  full  and  entire  pro- 
tection for  their  persons  and  property. 

Article  II. — Diplomatic  agents;  prerogatives,  immunities. — It  is  agreed 
by  the  High  Contracting  Parties  that  His  Majesty  the  Emperor  of  Japan  may, 
if  he  see  fit,  accredit  a  Diplomatic  Agent  to  the  Court  of  Peking  and  His  Majesty 
the  Emperor  of  China  may,  if  he  see  fit,  accredit  a  Diplomatic  Agent  to  the 
Court  of  Tokio. 

The  Diplomatic  Agents  thus  accredited  shall  respectively  enjoy  all  the 
prerogatives,  privileges  and  immunities  accorded  by  international  law  to  such 
Agents  and  they  shall  also  in  all  respects  be  entitled  to  the  treatment  extended 
to  similar  Agents  of  the  most  favoured  nation. 

Their  persons,  families,  suites,  establishments,  residences  and  correspondence 
shall  be  held  inviolable.  They  shall  be  at  liberty  to  select  and  appoint  their  own 
officers,  couriers,  interpreters,  servants  and  attendants  without  any  kind  of  moles- 
tation. 

Article  III. — Consular  agents;  privileges,  immunities. — His  Majesty  the 
Emperor  of  Japan  may  appoint  Consuls-General,   Consuls,  Vice-Consuls,  and 

*Text  as  printed  in  Rockhill,  p.  30.  Printed  also  in  Customs,  Vol.  II,  p.  604;  Traites  et 
Conventions,  137;  Hertslct,  p.  2i7Z;  Recueil,  p.  197. 

In  connection  with  this  treatv,  sec  also  the  Protocol  in  regard  to  Japanese  settlements 
and  other  matters,  October  19,  1896  (No.  1896/6,  post),  and  Supplementary  Treaty  of  Com- 
merce and  Navigation,  October  8,  1903  (No.  1903/4,  post). 


NUMBER  1896/4:  JULY  21,  1896  69 

Consular  Agents  to  reside  at  such  of  the  ports,  cities  and  towns  of  China,  which 
are  now,  or  may  hereafter  be,  opened  to  foreign  residence  and  trade,  as  the  inter- 
ests of  the  Empire  of  Japan  may  require. 

These  officers  shall  be  treated  with  due  respect  by  the  Chinese  Authorities, 
and  they  shall  enjoy  all  the  attributes,  authority,  jurisdiction,  privileges  and  im- 
munities which  are,  or  may  hereafter  be,  extended  to  similar  officers  of  the 
nation  most  favoured  in  these  respects. 

His  Majesty  the  Emperor  of  China  may  likewise  appoint  Consuls-General, 
Consuls,  Vice-Consuls  and  Consular  Agents  to  reside  at  any  or  all  of  those  places 
in  Japan,  where  Consular  officers  of  other  nations  are  now,  or  may  hereafter, 
be  admitted,  and,  saving  in  the  matter  of  jurisdiction  in  respect  of  Chinese  sub- 
jects and  property  in  Japan,  which  is  reserved  to  the  Japanese  Judicial  Courts, 
they  shall  enjoy  the  rights  and  privileges  that  are  usually  accorded  to  such  officers. 

Article  IV. — Residential,  trading,  and  other  rights  of  Japanese  in 
China. — Japanese  subjects  may,  with  their  families,  employes  and  servants,  fre- 
quent, reside  and  carry  on  trade,  industries  and  manufactures,  or  pursue  any 
other  lawful  avocations  in  all  the  ports,  cities  and  towns  of  China,  which  are  now, 
or  may  hereafter  be,  opened  to  foreign  residence  and  trade.  They  are  at  liberty 
to  proceed  to  or  from  any  of  the  open  ports  with  their  merchandise  and  effects, 
and  within  the  localities  at  those  places  which  have  already  been,  or  may  here- 
after be,  set  apart  for  the  use  and  occupation  of  foreigners,  they  are  allowed 
to  rent  or  purchase  houses,  rent  or  lease  land,  and  to  build  churches,  cemeteries 
and  hospitals,  enjoying  in  all  respects  the  same  privileges  and  immunities  as  are 
now,  or  may  hereafter  be,  granted  to  the  subjects  or  citizens  of  the  most  favoured 
nation. 

Article  V. — Ports  of  call  in  China. — Japanese  vessels  may  touch  for 
the  purpose  of  landing  and  shipping  passengers  and  merchandise  in  accordance 
with  the  existing  Rules  and  Regulations  concerning  foreign  trade  there  at  all  those 
places  in  China,  which  are  now  ports  of  call,  namely,  Ngan-ching,  Ta-tung,  Hu- 
kow,  Wu-sueh,  Lu-chi-kow  and  Woosung  and  such  other  places  as  may  here- 
after be  made  ports  of  call  also.  If  any  vessel  should  unlawfully  enter  ports 
other  than  open  ports  and  ports  of  call  in  China  or  carry  on  clandestine  trade 
along  the  coast  or  rivers,  the  vessel  with  her  cargo  shall  be  subject  to  con- 
fiscation by  the  Chinese  Government. 

Article  Vl.f — Passports. — Japanese  subjects  may  travel,  for  their  pleasure 
or  for  purposes  of  trade,  to  all  parts  of  the  interior  of  China,  under  passports 
issued  by  Japanese  Consuls  and  countersigned  by  the  Local  Authorities.  These 
passports,  if  demanded,  must  be  produced  for  examination  in  the  localities  passed 
through.  If  the  passports  be  not  irregular,  the  bearers  will  be  allowed  to  proceed 
and  no  opposition  shall  be  offered  to  their  hiring  of  persons,  animals,  carts 
or  vessels  for  their  own  conveyance  or  for  the  carriage  of  their  personal  effects 
or  merchandise.  If  they  be  without  passports  or  if  they  commit  any  offence 
against  the  law,  they  shall  be  handed  over  to  the  nearest  Consul  for  punishment, 
but  they  shall  only  be  subject  to  necessary  restraint  and  in  no  case  to  ill-usage. 

t  In  reference  to  this  Article,  see,  however,  the  Exchange  of  Notes  of  January  29th, 
1918  (No.  1918/3,  post). 


70  CHINA  TREATIES  AND  AGREEMENTS 

Such  passports  shall  remain  in  force  for  a  period  of  thirteen  Chinese  months 
from  the  date  of  issue.  Any  Japanese  subject  travelling  in  the  interior  without 
passport  shall  be  liable  to  a  fine  not  exceeding  three  hundred  Taels.l  Japanese 
subjects  may,  however,  without  passports  go  on  excursions  from  any  of  the  ports 
open  to  trade,  to  a  distance  not  exceeding  one  hundred  Chinese  li  and  for  a  period 
not  exceeding  five  days.  The  provisions  of  this  Article  do  not  apply  to  crews  of 
ships. 

Article  VII. — Chinese  employed  by  Japanese. — Japanese  subjects  resid- 
ing in  the  open  ports  of  China  may  take  into  their  service  Chinese  subjects  and 
employ  them  in  any  lawful  capacity  without  restraint  or  hindrance  from  the 
Chinese  Government  or  Authorities. 

Article  VIII. — Hiring  of  boats.  Monopolies.  Smuggling, — Japanese  sub- 
jects may  hire  whatever  boats  they  please  for  the  conveyance  of  cargo  or  pas- 
sengers and  the  sum  to  be  paid  for  such  boats  shall  be  settled  between  the  parties 
themselves,  without  the  interference  of  the  Chinese  Government  or  officers.  No 
limit  shall  be  put  upon  the  number  of  boats,  neither  shall  a  monopoly  in  respect 
either  of  the  boats  or  of  the  porters  or  coolies  engaged  in  carrying  goods  be 
granted  to  any  parties.  If  any  smuggling  takes  place  in  them  the  offenders  will 
of  course  be  punished  according  to  law. 

Article  IX. — Tariff.  Favored-nation  treatment. — The  Tariffs  and  Tariff 
Rules  now  in  force  between  China  and  the  Western  Powers  shall  be  applicable  to 
all  articles  upon  importation  into  China  by  Japanese  subjects  or  from  Japan,  or 
upon  exportation  from  China  by  Japanese  subjects  or  to  Japan.  It  is  clearly 
understood  that  all  articles,  the  importation  or  exportation  of  which  is  not  ex- 
pressly limited  or  prohibited  by  the  Tariffs  and  Tariff  Rules  existing  between 
China  and  the  Western  Powers,  may  be  freely  imported  into  and  exported  from 
China,  subject  only  to  the  payment  of  the  stipulated  import  or  export  duties. 
But  in  no  case  shall  Japanese  subjects  be  called  upon  to  pay  in  China  other  or 
higher  import  or  export  duties  than  are,  or  may  be,  paid  by  the  subjects  or  citi- 
zens of  the  most  favoured  nation ;  nor  shall  any  article  imported  into  China  from 
Japan  or  exported  from  China  to  Japan  be  charged  upon  such  importation  or 
exportation,  other  or  higher  duties  than  are  now,  or  may  hereafter  be,  imposed 
in  China  on  the  like  article  when  imported  from  or  exported  to  the  nation  most 
favoured  in  those  respects. 

Article  X. — Exemption  of  all  Japanese  goods  from  transit  and  other 
taxes  between  open  ports. — All  articles  duly  imported  into  China  by  Japanese 
subjects  or  from  Japan  shall,  while  being  transported,  subject  to  the  existing  Regu- 
lations, from  one  open  port  to  another,  be  wholly  exempt  from  all  taxes,  imposts, 
duties,  lekin,  charges  and  exactions  of  every  nature  and  kind  whatsoever,  irre- 
spective of  the  nationality  of  the  owner  or  possessor  of  the  articles,  or  the 
nationality  of  the  conveyance  or  vessel  in  which  the  transportation  is  made. 

Article  XI. — Transit  dues. — It  shall  be  at  the  option  of  any  Japanese  sub- 
ject desiring  to  convey  duly  imported  articles  to  an  inland  market  to  clear  his 
goods  of  all  transit  duties  by  payment  of  a  commutation  transit  tax  or  duty,  equal 
to  one-half  of  the  import  duty  in  respect  of  dutiable  articles,  and  two  and  a  half 

t  See  the  German  Treaty  of  1880,  Article  6,  U  2. 


NUMBER  1896/4:  JULY  21,  1896  71 

per  cent,  upon  the  value  in  respect  of  duty  free  articles ;  and  on  payment  thereof 
a  certiticate  shall  be  issued,  which  shall  exempt  the  goods  from  all  further  inland 
charges  whatsoever.  It  is  understood  that  this  Article  does  not  apply  to  im- 
ported opium. 

Article  XII. — Goods  purchased  for  exportation  only  subject  to  transit 
and  export  duties. — All  Chinese  goods  and  produce  purchased  by  Japanese 
subjects  in  China  elsewhere  than  at  an  open  port  thereof  and  intended  for  export 
abroad,  shall  in  every  part  of  China  be  freed  from  all  taxes,  imposts,  duties, 
lekin,  charges  and  exactions  of  every  nature  and  kind  whatsoever,  saving  only 
export  duties  when  exported,  upon  the  payment  of  a  commutation  transit  tax 
or  duty  calculated  at  the  rate  mentioned  in  the  last  preceding  Article  substituting 
export  duty  for  import  duty,  provided  such  goods  and  produce  are  actually  ex- 
ported to  a  foreign  country  within  the  period  of  twelve  months  from  the  date  of 
the  payment  of  the  transit  tax;  all  Chinese  goods  and  produce  purchased  by 
Japanese  subjects  at  the  open  ports  of  China  and  of  which  export  to  foreign 
countries  is  not  prohibited  shall  be  exempt  from  all  internal  taxes,  imposts,  duties, 
lekin,  charges  and  exactions  of  every  nature  and  kind  whatsoever,  saving  only  ex- 
port duties  upon  exportation  and  all  articles  purchased  by  Japanese  subjects  in 
any  part  of  China,  may  also,  for  the  purposes  of  export  abroad,  be  transported 
from  open  port  to  open  port,  subject  to  the  existing  Rules  and  Regulations. 

Article  XIII. — Re-exportation  of  foreign  goods.  Drawback  certifi- 
cates.— Merchandise  of  a  bona  fide  foreign  origin,  in  respect  of  which  full  import 
duty  shall  have  been  paid,  may  at  any  time  within  three  years  from  the  date  of 
importation  be  re-exported  from  China  by  Japanese  subjects  to  any  foreign 
country,  without  the  payment  of  any  export  duty ;  and  the  re-exporters  shall,  in 
addition,  be  entitled  forthwith  to  receive  from  the  Chinese  Customs  drawback 
certificates  for  the  amount  of  import  duty  paid  thereon,  provided  that  the  mer- 
chandise remains  intact  and  unchanged  in  its  original  packages.  Such  draw- 
back certificates  shall  be  immediately  redeemable  in  ready  money  by  the  Chinese 
Customs  Authorities  at  the  option  of  the  holders  thereof. 

Article  XIV. — Bonded  warehouses. — The  Chinese  Government  consents 
to  the  establishment  of  Bonded  Warehouses  at  the  several  open  ports  of  China. 
Regulations  on  the  subject  shall  be  made  hereafter. 

Article  XV. — Tonnage  dues. — Japanese  merchant  vessels  of  more  than  one 
hundred  and  fifty  tons  burden,  entering  the  open  ports  of  China,  shall  be  charged 
tonnage  dues  at  the  rate  of  four  mace  per  registered  ton ;  if  of  one  hundred 
and  fifty  tons  and  under,  they  shall  be  charged  at  the  rate  of  one  mace  per 
registered  ton.  But  any  such  vessel  taking  its  departure  within  forty-eight  hours 
after  arrival,  without  breaking  bulk,  shall  be  exempt  from  the  payment  of  tonnage 
dues. 

Japanese  vessels  having  paid  the  above  specified  tonnage  dues  shall  there- 
after be  exempt  from  all  tonnage  dues  in  all  the  open  ports  and  ports  of  call  of 
China  for  the  period  of  four  months  from  the  date  of  clearance  from  the  port 
where  the  payment  of  such  tonnage  dues  is  made.  Japanese  vessels  shall  not, 
however,  be  required  to  pay  tonnage  dues  for  the  period  during  which  they  are 
actually  undergoing  repairs  in  China. 


72  CHINA  TREATIES  AND  AGREEMENTS 

No  tonnage  dues  shall  be  payable  on  small  vessels  and  boats  employed  by 
Japanese  subjects  in  the  conveyance  of  passengers,  baggage,  letters  or  duty  free 
articles  between  any  of  the  open  ports  of  China.  All  small  vessels  and  cargo 
boats,  however,  conveying  merchandise  which  is,  at  the  time  of  such  conveyance, 
subject  to  duty,  shall  pay  tonnage  dues  once  in  four  months  at  the  rate  of  one 
mace  per  ton. 

No  fee  or  charges  other  than  tonnage  dues  shall  be  levied  upon  Japanese 
vessels  and  boats,  and  it  is  also  understood  that  such  vessels  and  boats  shall  not 
be  required  to  pay  other  or  higher  tonnage  dues  than  the  vessels  and  boats  of 
the  most  favoured  nation. 

Article  XVI. — Use  of  pilots. — Any  Japanese  merchant  vessel  arriving  at 
an  open  port  of  China  shall  be  at  liberty  to  engage  the  services  of  a  pilot  to  take 
her  into  port.  In  like  manner,  after  she  has  discharged  all  legal  dues  and  duties 
and  is  ready  to  take  her  departure,  she  shall  be  allowed  to  employ  a  pilot  to  take 
her  out  of  port. 

Article  XVII. — Vessels  seeking  place  of  refuge.  Rescued  cargo  and 
persons. — Japanese  merchant  vessels  compelled  on  account  of  injury  sustained 
or  any  other  cause  to  seek  a  place  of  refuge  shall  be  permitted  to  enter  any 
nearest  port  of  China,  without  being  subject  to  the  payment  of  tonnage  dues  or 
duties  upon  goods  landed  in  order  that  repairs  to  the  vessel  may  be  effected, 
provided  the  goods  so  landed  remain  under  the  supervision  of  the  Customs  Au- 
thorities. Should  any  such  vessel  be  stranded  or  wrecked  on  the  coast  of  China, 
the  Chinese  Authorities  shall  immediately  adopt  measures  for  rescuing  the 
passengers  and  crew  and  for  securing  the  vessel  and  cargo.  The  persons  thus 
saved  shall  receive  friendly  treatment,  and,  if  necessary,  shall  be  furnished  with 
means  of  conveyance  to  the  nearest  Consular  station.  Should  any  Chinese 
merchant  vessel  be  compelled  on  account  of  injury  sustained  or  any  other  cause 
to  seek  a  place  of  refuge  in  the  nearest  port  of  Japan,  she  shall  likewise  be 
treated  in  the  same  way  by  the  Japanese  Authorities. 

Article  XVIII. — Smuggling. — The  Chinese  Authorities  at  the  several 
open  ports  shall  adopt  such  means  as  they  may  judge  most  proper  to  prevent  the 
revenue  suffering  from  fraud  or  smuggling. 

Article  XIX. — Robbers  and  pirates. — If  any  Japanese  vessel  be  plun- 
dered by  Chinese  robbers  or  pirates,  it  shall  be  the  duty  of  the  Chinese  Au- 
thorities to  use  every  endeavor  to  capture  and  punish  the  said  robbers  or  pirates, 
and  to  recover  and  restore  the  stolen  property. 

Article  XX. — Jurisdiction  over  Japanese  persons  and  property. — Juris- 
diction over  the  persons  and  property  of  Japanese  subjects  in  China  is  reserved 
exclusively  to  the  duly  authorized  Japanese  Authorities,  who  shall  hear  and 
determine  all  cases  brought  against  Japanese  subjects  or  property  by  Japanese 
subjects,  or  by  the  subjects  or  citizens  of  any  other  Power;  without  the  inter- 
vention of  the  Chinese  Authorities. 

Article  XXI. — Mixed  cases. — If  the  Chinese  Auhorities  or  a  Chinese  sub- 
ject make  any  charge  or  complaint  of  a  civil  nature  against  Japanese  subjects  or 
in  respect  of  Japanese  property  in  China,  the  case  shall  be  heard  and  decided 
by  the  Japanese  Authorities. 


NUMBER  1896/4:  JULY  21,  1896  73 

In  like  manner  all  charges  and  complaints  of  a  civil  nature  brought  by 
Japanese  Authorities  or  subjects  in  China  against  Chinese  subjects  or  in  respect  of 
Chinese  property,  shall  be  heard  and  determined  by  the  Chinese  Authorities. 

Article  XXII. — Crimes  and  offenses. — Japanese  subjects  charged  with 
the  commission  of  any  crimes  or  offences  in  China  shall  be  tried,  and,  if  found 
guilty,  punished  by  the  Japanese  Authorities  according  to  the  laws  of  Japan. 

In  like  manner  Chinese  subjects  charged  with  the  commission  of  any  crimes 
or  offences  against  Japanese  subjects  in  China  shall  be  tried,  and,  if  found  guilty, 
punished  by  the  Chinese  Authorities  according  to  the  laws  of  China. 

Article  XXIII. — Debts — absconding  debtors. — Should  any  Chinese  sub- 
ject fail  to  discharge  debts  incurred  to  a  Japanese  subject,  or  should  he  fraudu- 
lently abscond,  the  Chinese  Authorities  will  do  their  utmost  to  effect  his  arrest, 
and  enforce  recovery  of  the  debts.  The  Japanese  Authorities  will  likewise  do 
their  utmost  to  bring  to  justice  any  Japanese  subject  who  fraudulently  absconds 
or  fails  to  discharge  debts  incurred  by  him  to  a  Chinese  subject. 

Article  XXIV. — Surrender  of  Japanese  and  Chinese  absconding 
debtors. — If  Japanese  subjects  in  China,  who  have  committed  offences  or  have 
failed  to  discharge  debts  and  fraudulently  abscond,  should  flee  to  the  interior 
of  China  or  take  refuge  in  houses  occupied  by  Chinese  subjects  or  on  board  of 
Chinese  ships,  the  Chinese  Authorities  shall,  at  the  request  of  the  Japanese  Con- 
sul, deliver  them  to  the  Japanese  Authorities. 

In  like  manner  if  Chinese  subjects  in  China,  who  have  committed  offences 
or  have  failed  to  discharge  debts  and  fraudulently  abscond,  should  take  refuge 
in  houses  occupied  by  Japanese  subjects  in  China  or  on  board  of  Japanese  ships 
in  Chinese  waters,  they  shall  be  delivered  up  at  the  request  of  the  Chinese 
Authorities  made  to  the  Japanese  Authorities. 

Article  XXV. — Most  favored  nation  treatment. — The  Japanese  Govern- 
ment and  its  subjects  are  hereby  confirmed  in  all  privileges,  immunities  and 
advantages  conferred  on  them  by  the  Treaty  stipulations  between  Japan  and 
China,  which  are  now  in  force ;  and  it  is  hereby  expressly  stipulated  that  the 
Japanese  Government  and  its  subjects  will  be  allowed  free  and  equal  participation 
in  all  privileges,  immunities  and  advantages  that  may  have  been,  or  may  be 
hereafter,  granted  by  His  Majesty  the  Emperor  of  China  to  the  Government 
or  subjects  of  any  other  nation. 

Article  XXVI. — Revision. — It  is  agreed  that  either  of  the  High  Contract- 
ing Parties  may  demand  a  revision  of  the  Tariffs  and  of  the  Commercial  Articles 
of  this  Treaty  at  the  end  of  ten  years  from  the  date  of  the  exchange  of  the 
ratifications ;  but  if  no  such  demand  be  made  on  either  side  and  no  such  revision 
be  effected,  within  six  months  after  the  end  of  the  first  ten  years,  then  the  Treaty 
and  Ta.Y\fis,  in  their  present  form,  shall  remain  in  force  for  ten  years  more, 
reckoned  from  the  end  of  the  preceding  ten  years,  and  so  it  shall  be  at  the  end  of 
each  successive  period  of  ten  years. 

Article  XXVII. — Rules  and  regulations  putting  treaty  in  effect. — The 
High  Contracting  Parties  will  agree  upon  Rules  and  Regulations  necessary  to 
give  full  effect  to  this  Treaty.  Until  such  Rules  and  Regulations  are  brought 
into  actual  operation,  the  Arrangements,  Rules  and  Regulations  subsisting  be- 


74  CHINA  TREATIES  AND  AGREEMENTS 

tween  China  and  the  Western  Powers,  so  far  as  they  are  appHcable  and  not  in- 
consistent with  the  provisions  of  this  Treaty,  shall  be  binding  between  the  Con- 
tracting Parties. 

Article  XXVIII. — English  text  authoritative. — The  present  Treaty  is 
signed  in  the  Japanese,  Chinese  and  Enghsh  languages.  In  order,  however,  to 
prevent  future  discussions,  the  Plenipotentiaries  of  the  High  Contracting  Parties 
have  agreed  upon  that  in  case  of  any  divergence  in  the  interpretation  between 
the  Japanese  and  Chinese  texts  of  the  Treaty,  the  difference  shall  be  settled  by 
reference  to  the  English  text. 

Article  XXIX. — The  present  Treaty  shall  be  ratified  by  His  Majesty  the 
Emperor  of  Japan  and  His  Majesty  the  Emperor  of  China,  and  the  ratifications 
thereof  shall  be  exchanged  at  Peking  as  soon  as  possible,  and  not  later  than  three 
months  from  the  present  date.§ 

In  witness  whereof,  the  respective  Plenipotentiaries  have  signed  the  same, 
and  have  affixed  thereto  the  seal  of  their  arms. 

Done  at  Peking  this  21st  day  of  the  7th  month  of  the  29th  year  of  Meiji, 
corresponding  to  the  eleventh  day  of  the  sixth  month  of  the  22nd  year  of  Kuang 
Hsu. 

[l.  s.]  Hayashi  Tadasu, 

Shoshii,  Grand  Cross  of  the  Imperial  Order  of  the  Sacred 
Treasure,  Grand  Officer  of  the  Imperial  Order  of  the 
Rising  Sun,  Minister  Plenipotentiary  and  Envoy  Ex- 
traordinary. 
[l.  s.]  Chang  Yen  Hoon, 

Minister  Plenipotentiary,  Minister  of  the  Tsungli-yamen, 
holding  the  rank  of  the  President  of  a  Board  and 
Senior  Vice  President  of  the  Board  of  Revenue. 


NUMBER  1896/5. 

RUSSIA  (Russo-Chinese  Bank)*  AND  CHINA. 

Contract  for  the  Construction  and  Operation  of  the  Cliinesc  Eastern  Railway.^ — 

September  8,  1896. 

Between  the  undersigned,  His  Excellency  Shu  King-chen,  Minister  Pleni- 
potentiary of  His  Majesty  the  Emperor  of  China,  at  St.  Petersburg,  acting  by 
virtue  of  an  Imperial  Edict,  dated  Kuang  Hsii,  22nd  year,  7th  month,  20th  day 
(August  16/28,  1896),  of  the  one  part,  and  the  Russo-Chinese  Bank,  of  the 
other  part,  it  has  been  agreed  as  follows : 

The  Chinese  Government  will  pay  the  sum  of  five  million  Kuping  taels 

*  See  Note  1  to  this  document,  posi.  p.  78. 

t  Translation  from  the  French  text  as  printed  in  Soglashenia,  p.  4.  French  text  printed 
also  in  Customs,  Vol.  I,  p.  208;  Kent,  p.  211;  Wang,  p.  1.  See  Note  2  to  this  document, 
post.  p.  78. 

§  Ratifications  exchanged  at  Peking,  October  20,  1896. 


NUMBER  1896/5 :  SEPTEMBER  8,  1896  75 

(Kuping  Tls. 5,000,000.)  to  the  Russo-Chinese  Bank,  and  will  participate  in  pro- 
portion to  this  payment  in  the  profits  and  losses  of  the  bank,  on  conditions  set 
forth  in  a  special  contract. 

Ihe  Chinese  Government  having  decided  upon  the  construction  of  a  rail- 
w^ay  line,  establishing  direct  communication  between  the  city  of  Chita  and  the 
Russian  South  Ussuri  Railway,  entrusts  the  construction  and  operation  of  this 
railway  to  the  Russo-Chinese  Bank  upon  the  following  conditions : 

1. — The  Russo-Chinese  Bank  will  establish  for  the  construction  and  opera- 
tion of  this  railway  a  company  under  the  name  of  the  Chinese  Eastern  Railway 
Company  .$ 

The  seal  which  this  Company  will  employ  will  be  given  to  it  by  the  Chinese 
Government.  The  statutes  of  this  Company  will  be  in  conformity  with  the  Rus- 
sian usages  in  regard  to  railways.  The  shares  of  the  Company  can  be  acquired 
only  by  Chinese  or  Russian  subjects.  The  president  of  this  Company  will  be 
named  by  the  Chinese  Government,  but  paid  by  the  Company.  He  may  have 
his  residence  in  Peking. 

It  will  be  the  duty  of  the  president  to  see  particularly  to  the  scrupulous 
fulfilment  of  the  obligations  of  the  Bank  and  of  the  Railway  Company  towards 
the  Chinese  Government ;  he  will  furthermore  be  responsible  for  the  relations 
of  the  Bank  and  of  the  Railway  Company  with  the  Chinese  Government  and 
the  central  and  local  authorities. 

The  president  of  the  Chinese  Eastern  Railway  Company  will  likewise  be 
responsible  for  examining  all  accounts  of  the  Chinese  Government  with  the 
Russo-Chinese  Bank. 

To  facilitate  local  negotiations,  the  Russo-Chinese  Bank  will  maintain  an 
agent  at  Peking. 

2. — The  route  of  the  line  will  be  determined  by  the  deputies  of  the  presi- 
dent (named  by  the  Chinese  Government)  of  the  Company,  in  mutual  agree- 
ment with  the  engineers  of  the  Company  and  the  local  authorities.  In  laying 
out  this  line,  cemeteries  and  tombs,  as  also  towns  and  villages,  should  so  far  as 
possible  be  avoided  and  passed  by. 

3. — The  Company  must  commence  the  work  within  a  period  of  twelve 
months  from  the  day  on  which  this  contract  shall  be  sanctioned  by  imperial 
decree,  and  must  so  carry  it  on  that  the  whole  line  will  be  finished  within  a  period 
of  six  years  from  the  day  on  which  the  route  of  the  line  is  definitely  established 
and  the  lands  necessary  therefor  are  placed  at  the  disposal  of  the  Company. 
The  gauge  of  the  line  should  be  the  same  as  that  of  the  Russian  railways  (5 
Russian  feet — about  four  feet,  two  and  one-half  inches,  Chinese). 

4. — The  Chinese  Government  will  give  orders  to  the  local  authorities  to  assist 
the  Company  to  the  extent  of  their  ability  in  obtaining,  at  current  prices,  the 
materials  necessary  for  the  construction  of  the  railway,  as  also  laborers,  means 
of  transport  by  water  and  by  land,  the  provisions  necessary  for  the  feeding  of 
men  and  animals,  etc. 

The  Chinese  Government  should,  as  needed,  take  measures  to  facilitate 
such  transportation. 

t  See  Note  3  to  this  document,  post,  p.  84. 


76  CHINA  TREATIES  AND  AGREEMENTS 

5. — The  Chinese  Government  will  take  measures  to  assure  the  safety  of 
the  railway  and  of  the  persons  in  its  service  against  any  attack. 

The  Company  will  have  the  right  to  employ  at  will,  as  many  foreigners  or 
natives  as  it  may  find  necessary  for  the  purpose  of  administration,  etc. 

Criminal  cases,  lawsuits,  etc.,  upon  the  territory  of  the  railway,  must  be 
settled  by  the  local  authorities  in  accordance  with  the  stipulations  of  the  treaties.§ 

6. 1 1 — The  lands  actually  necessary  for  the  construction,  operation,  and 
protection  of  the  line,  as  also  the  lands  in  the  vicinity  of  the  line' necessary  for 
procuring  sand,  stone,  lime,  etc.,  will  be  turned  over  to  the  Company  freely, 
if  these  lands  are  the  property  of  the  State ;  if  they  belong  to  individuals,  they 
will  be  turned  over  to  the  Company  either  upon  a  single  payment  or  upon 
an  annual  rental  to  the  proprietors,  at  current  prices.  The  lands  belonging  to 
the  Company  will  be  exempt  from  all  land  taxes  (impot  fonder). 

The  Company  will  have  the  absolute  and  exclusive  right  of  administra- 
tion of  its  lands.  (La  Societe  aura  le  droit  absolii  et  exclusif  de  I'a-dmhiistra^ 
tion  de  ses  terrains.) 

The  Company  will  have  the  right  to  construct  on  these  lands  buildings  of  all 
sorts,  and  likewise  to  construct  and  operate  the  telegraph  necessary  for  the  needs 
of  the  line.jf 

The  income  of  the  Company,  all  its  receipts  and  the  charges  for  the  trans- 
portation of  passengers  and  merchandise,  telegraphs,  etc.,  will  likewise  be  exempt 
from  any  tax  or  duty.  Exception  is  made,  however,  as  to  mines,  for  which 
there  will  be  a  special  arrangement. 

7. — All  goods  and  materials  for  the  construction,  operation,  and  repair  of 
the  line,  will  be  exempt  from  any  tax  or  customs  duty  and  from  any  internal 
tax  or  duty. 

8. — The  Company  is  responsible  that  the  Russian  troops  and  war  material, 
despatched  in  transit  over  the  line,  will  be  carried  through  directly  from  one 
Russian  station  to  another,  without  for  any  pretext  stopping  on  the  way  longer 
than  is  strictly  necessary. 

9.* — Passengers  who  are  not  Chinese  subjects,  if  they  wish  to  leave  the 
territory  of  the  railway,  should  be  supplied  with  Chinese  passports.  The  Com- 
pany is  responsible  that  passengers,  who  are  not  Chinese  subjects,  should  not 
leave  the  territory  of  the  railway  if  they  do  not  have  Chinese  passports. 

10. — Passengers'  baggage,  as  well  as  merchandise  despatched  in  transit 
from  one  Russian  station  to  another,  will  not  be  subject  to  customs  duties ;  they 
will  likewise  be  exempt  from  any  internal  tax  or  duty.  The  Company  is  bound 
to  despatch  such  merchandise,  except  passengers'  baggage,  in  special  cars,  which, 
on  arrival  at  the  Chinese  frontier,  will  be  sealed  by  the  office  of  the  Chinese  Cus- 
toms, and  cannot  leave  Chinese  territory  until  after  the  office  of  the  Customs 
shall  have  satisfisd  itself  that  the  seals  are  intact;  should  it  be  established 
that  these  cars  have  been  opened  on  the  way  without  authorization,  the  mer- 
chandise would  be  confiscated. 

*  See  Note  6  to  this  document,  post,  p.  90. 
§  See  Note  4  to  this  document,  post,  p.  88. 
II  See  Note  5  to  this  document,  post,  p.  90. 

11  See  the  Agreement  of  October  7,  1907,  in  regard  to  the  working  of  the  Raihvay's  tele- 
graph lines   (No.  1907/7,  post). 


NUMBER  1896/5  :  SEPTEMBER  8,  1896  TJ 

Merchandise  imported  from  Russia  into  China  by  the  railway,  and  likewise 
merchandise  exported  from  China  into  Russia  by  the  same  route,  will  respectively 
pay  the  import  and  export  duty  of  the  Chinese  Maritime  Customs,  less  one- 
third. 

If  merchandise  is  transported  into  the  interior  it  will  pay  in  addition  the 
transit  duty — equivalent  to  a  half  of  the  import  duty  collected — which  frees  it 
from  any  further  charge. 

Merchandise  not  paying  the  transit  tax  will  be  subject  to  all  the  barrier 
and  likin  duties  imposed  in  the  interior. 

The  Chinese  Government  must  install  customs  offices  at  the  two  frontier 
points  on  the  line.f 

11. — The  charges  for  the  transportation  of  passengers  and  of  merchandise, 
as  well  as  for  the  loading  and  unloading  of  merchandise,  are  to  be  fixed  by  the 
Company,  but  it  is  obliged  to  transport  free  of  charge  the  Chinese  official  letter 
post,  and,  at  half  price,  Chinese  land  or  sea  forces  and  also  Chinese  war  ma- 
terials. 

12. — The  Chinese  Government  transfers  to  the  Company  the  complete  and 
exclusive  right  to  operate  the  line  on  its  own  account  and  risk,  so  that  the 
Chinese  Government  will  in  no  case  be  responsible  for  any  deficit  whatsoever  of 
the  Company,  during  the  time  allotted  for  the  work  and  thereafter  for  a  further 
eighty  years  from  the  day  on  which  the  line  is  finished  and  traffic  is  in  opera- 
tion. This  period  having  elapsed,  the  line,  with  all  its  appurtenances,  will  pass 
free  of  charge  to  the  Chinese  Government. 

At  the  expiration  of  thirty-six  years  from  the  day  on  which  the  entire  line 
is  finished  and  traffic  is  in  operation,  the  Chinese  Government  will  have  the 
right  to  buy  back  this  line  upon  repaying  in  full  all  the  capital  involved,  as  well 
as  all  the  debts  contracted  for  this  line,  plus  accrued  interest.:!: 

If — in  case  the  profit  realized  exceeds  the  dividends  allowed  to  the  share- 
holders— a  part  of  such  capital  is  repaid,  that  part  will  be  deducted  from  the 
price  of  repurchase.  In  no  case  may  the  Chinese  Government  enter  into  pos- 
session of  this  line  before  the  appropriate  sum  is  deposited  in  the  Russian  State 
Bank. 

The  day  when  the  line  is  finished  and  traffic  is  in  operation,  the  Company 
will  make  to  the  Chinese  Government  a  payment  of  five  million  Kuping  taels 
(Kuping  Tls.  5,000,000). 

Kuang  Hsii,  22nd  year, 
8th  month,  2nd  day. 
(Signed)     Shu. 

Berlin,  August  27/September  8,  1896. 
RUSSO-CHINESE  BANK 
•  (Signed)     Rothstein. 

(Signed)     Prince  Oukhtoaisky. 

t  See  the  Experimental  Regulations  for  the  establishment  of  customs  houses  in  North 
Manchuria,  agreed  upon  by  an  exchange  of  notes  between  the  Chinese  and  Russian  Govern- 
ments, July  6  and  8,  1907  (No.  1907/10,  post),  and  the  Provisional  Regulations  for  the  work- 
ing of  Chinese  customs  houses  at  the  stations  of  Manchuria  and  Pogranichnaya  (Suifenho), 
May  30,  1908  (attached  to  No.  1907/10,  post). 

t  See  Note  7  to  this  document,  post,  p.  91. 


78  CHINA  TREATIES  AND  AGREEMENTS 

Note  1. 

The  Russo-Chinese  Bank  was  subsequently  merged  with  the  Banque  du  Nord  under 
the  name  of  the  Russo-Asiatic  Bank  {Banque  Russo-Asiatiquc)  by  a  charter  approved  by  the 
Russian  Minister  of  Finance  on  July  30/August  12,  1910  (Sobranie  Uzakonenii  i  Raspor- 
yazhenii  Pravitelstva,  §719,  October  2/15,  1910,  No.  96,  Section  1).  For  extracts  embodying 
the  substance  of  the  original  charter  of  the  Russo-Chinese  Bank,  under  date  of  December 
10/22  see  Rockhill,  p.  207.  At  page  185  of  Shina  Kankei  Tokushu  Joyaku  Isan  is  given  the 
Japanese  translation  of  an  agreement  stated  to  have  been  concluded  on  the  20th  day  of  the 
7th  moon  of  the  22nd  year  of  Kuang  Hsii  (August  28,  1896)  in  regard  to  the  Russo-Chinese 
Bank  Association.  The  text,  apparently  translated  from  a  Chinese  original,  is  obscure;  but 
the  following  is  an  approximate  rendering: 

Alleged  Agreement  between  China  and  Russia  regarding  Russo-Chinese  Bank 
Association. — August  28,  1896. 

"  Hsii,  Chinese  Minister  Plenipotentiary  to  Russia,  in  pursuance  of  Imperial  Orders  of 
the  20th  day  of  the  7th  month  of  the  22nd  year  of  Kuang  Hsii,  signed  the  following  agree- 
ment in  regard  to  the  Russo-Chinese  Bank  Association  : 

"  1. — The  Chinese  Government  shall  contribute  a  capital  of  5,000,000  Kuping  taels,  and 
undertake  the  business  in  the  form  of  an  association  under  the  name  of  the  Russo-Chinese 
Bank.  That  is  to  say  that,  from  the  date  that  this  amount  is  handed  over  to  the  Bank, 
all  profit  and  loss  will  be  borne  in  proportion  to  shares. 

"  2. — When  a  general  account  is  made  up  on  the  first  day  of  the  first  month  of  the  Rus- 
sian calendar,  the  account  of  profit  and  loss  of  the  Chinese  Government  up  to  the  end  of  the 
year  shall  be  calculated  in  Kuping  taels,  in  proportion  to  the  shares  held  by  the  Chinese 
Government. 

"  3. — With  regard  to  the  profits  which  are  obtained  in  accordance  with  the  Statutes  of  the 
Bank,  after  first  deducting  a  certain  portion  which  is  to  be  offered  to  the  Bank  Manager(s) 
as  a  bonus  in  reward  for  diligence,  the  remainder  of  the  profits  shall  be  divided  between 
the  Chinese  Government  and  the  Bank  in  proportion  to  the  shares  held  by  each.  Provided, 
however,  that  10%  shall  be  deducted  from  the  profits  of  the  dividends  as  a  reserve  fund, 
and  that  when  the  profit  exceeds  6%  of  the  capital,  20%  shall  be  deducted  from  the  amount 
that  exceeds  6%,  and  shall  be  given  as  a  bonus  to  the  Manager (s).  If  there  is  a  loss  in  the 
business,  the  loss  for  which  the  Chinese  Government  is  liable  shall  be  paid  out  of  the  reserve 
fund 

"4 — The  monthly  and  annual  reports  of  the  said  Bank  shall,  after  obtaining  the  consent 
of  the  general  meeting  of  shareholders,  be  transmitted  by  the  IManager  of  the  Bank  residing 
in  China  to  the  Manager  of  the  Chinese  Eastern  Railway  appointed  by  the  Chinese  Govern- 
ment.    After  he  has  inspected  them,  the  reports  shall  be  returned. 

"5. — If  the  Bank  in  question  is  closed  as  a  result  of  circumstances  or  on  account  of 
losses,  what  remains  of  the  capital  is  to  be  returned  to  the  Chinese  Government  if,  after 
balancing  the  accounts,  the  loss  is  found  to  be  small." 

Note  2. 

In  connection  with  this  contract  see  also  the  following  documents : 

1.  Convention  between  Russia  and  China  for  the  lease  of  the  Liaotung  Peninsula, 
March  27,  1898  (No.  1898/5,  post); 

2.  Additional  Agreeement  between  Russia  and  China,  defining  the  boundaries  of  the 
leased  and  neutralized  territory  in  the  Liaotung  Peninsula,  May  7,  1898  (No.  1898/9,  post)  ; 

3.  Agreement  between  the  Chinese  Eastern  Railway  Companv  and  the  Chinese  Govern- 
ment for  the  Southern  Manchurian  Branch  of  the  Railway,  July  6,  1898  (No.  1898/15, 
post)  ; 

4.  Exchange  of  Notes  between  Great  Britain  and  Russia  with  regard  to  their  respective 
railway  interests  in  China,  April  28,  1899  (No.  1899/3,  post.)  ; 

5.  Declaration  of  the  Chinese  Government  in  regard  to  railways  north  and  north-east 
of  Peking,  June  1,  1899  (1899/5,  post)  ; 

6  Agreement  between  Russia  and  China  with  regard  to  Manchuria,  April  8,  1902 
(No_  1902/3,  post); 

7.  Treaty  of  peace  between  Japan  and  Russia,  September  5,  1905  (No.  1905/8,  post)  ; 

8.  Treaty  and  Additional  Agreement  between  Japan  and  China  relating  to  Manchuria, 
December  22.  1905   (No.  1905/18,  post)  ; 

9.  Convention  and  Protocol  relating  to  Japanese  and  Russian  railway  connections  in 
Manchuria,  June  13,  1907  (No.  1907/9.  post)  ; 

10.  Political  Convention  between  Japan  and  Russia,  July  30,  1907  (No.  1907/11,  post)  ; 

11.  Political  Convention  between  Japan  and  Russia,  July  4,  1910  (No.  1910/1,  post)  ; 

12.  Agreement  between  Great  Britain  and  Russia  respecting  the  inclusion   of   British 


NUMBER  1896/5:  SEPTEMBER  8,  1896:  NOTES  79 

subjects  within  the  scheme  of  municipal  administration  and  taxation  established  in  the  area 
of  the  Chinese  Eastern  Railway,  December  3,  1914  (No.  1914/14,  post)  ;  and 

13.  Treaty  between  Japan  and  Russia  in  regard  to  cooperation  in  the  Far  East,  July  3, 
1916  (No.  1916/9,  post). 

It  was  long  persistently  rumored  that  the  concession  for  the  Chinese  Eastern  Railway 
was  a  first-fruit  of  a  secret  political  agreement  between  China  and  Russia,  which  attained 
notoriety  under  the  name  of  "  The  Cassmi  Convention."  In  its  issue  of  October  30,  1896,  the 
North  China  Herald  published  what  purported  to  be  a  translation  of  that  Convention,  in 
an  article  which  is  of  sufficient  historical  interest  to  warrant  its  reproduction  in  full,  as 
follows : 

The   Cassini  Convention. 

"  28th  Oct. 
"  As  our  Peking  correspondent  told  us  in  his  last  letter,  Count  Cassini,  the  Russian 
Minister,  left  Peking  for  Russia  on  the  30th  of  September.  His  baggage  had  been  packed  for 
three  or  more  weeks,  and  the  carts  and  mule  litters  were  actually  standing  in  the  courts  of 
the  Russian  Legation,  but  the  Minister  would  not  go  until  he  could  take  with  hirn  duly 
signed  and  sealed  '  an  important  agreement  supposed  to  be  the  right  of  way  for  the  Siberian 
railway  across  northern  Manchuria.'  With  great  difficulty  we  have  succeeded  in  obtaining 
a  copy  of  this  agreement,  and  we  now  proceed  to  give  an  English  translation  of  it.  The 
numbers  to  the  various  clauses  in  this  Convention  have  been  added  by  us  for  convenience' 
sake : — 

"  A    SPECIAL    CONVENTION    BETWEEN    CHINA    AND    RUSSIA. 

"  His  Imperial  Majesty  the  Emperor  of  China  having  received  the  various  benefits 
arising  from  the  loyal  support  of  His  Imperial  Majesty  the  Emperor  of  Russia  at  the  close 
of  the  late  war  between  China  and  Japan,  and  being  desirous  that  the  communications  be- 
tween the  frontier  territories  of  their  respective  empires  and  the  international  commerce  of 
the  two  countries  be  managed  to  their  mutual  advantage,  has  commanded  the  mutual  settle- 
ment of  certain  matters  in  order  the  better  to  consolidate  the  basis  of  friendship  between 
the  two  empires.  In  this  connection,  therefore,  H.I.M.  the  Emperor  of  China  has  specially 
appointed  the  Imperial  High  Commissioners  the  Princes  and  Great  Officers  of  the  Crown 
composing  the  Imperial  Chinese  Ministry  of  War,  with  plenipotentiary  powers,  to  confer 
and  agree  upon  certain  matters,  at  Peking,  with  His  Excellency  Count  Cassini,  Envoy 
Extraordinary  and  Alinister  Plenipotentiary  of  H.I.M.  the  Emperor  of  Russia  to  the  Court 
of  China,  concerning  the  connecting  of  the  railway  system  of  the  Three  Eastern  Provinces 
[Fengtien,  Kirin,  and  Heilungchiang]  with  that  of  the  Imperial  Russian  railway  in  the 
province  of  Siberia,  with  the  object  of  facilitating  the  transport  of  goods  between  the 
two  empires  and  of  strengthening  the  frontier  defences  and  seacoasts.  And,  furthermore,  to 
agree  upon  certain  special  privileges  to  be  conceded  by  China  to  Russia  as  a  response  to  the 
loyal  aid  given  by  Russia  in  the  retrocession  of  Liaotung  and  its  dependencies. 

"  1. — Owing  to  the  fact  that  the  Russian  Great  Siberian  Railway  is  on  the  point  of  com- 
pletion, China  consents  to  allow  Russia  to  prolong  her  railway  into  Chinese  territories  (a) 
from  the  Russian  port  of  Vladivostock  into  the  Chinese  city  of  Hunch'un  in  the  province 
of  Kirin,  from  thence  northwestwards  to  the  provincial  capital  of  Kirin,  and  (b)  from  a 
railway  station  of  some  city  in  Siberia  to  the  Chinese  town  of  Aiyun  in  Heilungchiang 
province,  from  thence  southwestwards  to  the  provincial  capital  of  Tsitsihar  and  from  thence 
to  the  town  of  Petune,  in  Kirin  province,  and  from  thence  southeastwards  to  the  provincial 
capital  of  Kirin. 

"  2. — All  railways  built  by  Russia  into  the  Chinese  provinces  of  Heilungchiang  and 
Kirin  shall  be  built  at  the  sole  expense  of  Russia  and  the  regulations  and  building  thereof 
shall  be  solely  on  the  Russian  system,  with  which  China  has  nothing  to  do,  and  the  entire 
control  shall  be  in  the  hands  of  Russia  for  the  space  of  thirty  years.  At  the  end  of  the 
said  period  China  shall  be  allowed  to  prepare  the  necessary  funds  wherewith,  after  proper 
estimation  of  the  value  of  the  said  railways,  she  shall  redeem  them,  the  rolling  stock, 
machine  shops,  and  buildings  connected  therewith.  But  as  to  how  China  will  at  that  date 
redeem  these  railways  shall  be  left  for  future  consideration. 

"  3. — China  is  now  in  the  possession  of  a  railway  which  she  intends  to  extend  from 
Shanhaikuan  into  the  provincial  capital  of  Fengtien,  namely,  Moukden  (Shengking),  and 
from  Moukden  to  the  provincial  capital  of  Kirin.  If  China  should  hereafter  find  it  incon- 
venient to  build  this  road  she  shall  allow  Russia  to  provide  the  funds  to  build  the  railway 
from  the  city  of  Kirin,  on  behalf  of  China,  the  redemption  of  which  road  shall  be  per- 
missible to  China  at  the  end  of  ten  years.  With  reference  to  the  route  to  be  taken  by  this 
railway,  Russia  shall  follow  the  surveys  already  made  by  China  in  connection  therewith, 
from   Kirin  to  Moukden,  Newchwang,  etc. 

"  4. — The  railway  to  be  built  by  China  beginning  from  Shanhaikuan,  in  Fengtien,  to  New- 
chwang, to  Kaiping,  to  Chinchou,  to  Lushunk'ou  [Port  Arthur],  and  to  Talienwan,  and  their 
dependencies,  shall  follow  the  Russian  Railway  regulations  in  order  to  facilitate  the  com- 
mercial intercourse  between  the  respective  Empires. 


80  CHINA  TREATIES  AND  AGREEMENTS 

"  5. — With  reference  to  the  railways  to  be  built  by  Russia  into  Chinese  territory,  the 
routes  along  which  the  said  roads  shall  pass  must  be  protected,  as  usual,  by  the  local  civil 
and  military  officials  of  the  country.  They  shall,  moreover,  afford  all  facilities  and  aid  to 
the  civil  and  military  officials  of  Russia  at  the  various  railway  stations,  together  with 
all  the  Russian  artisans  and  labourers  connected  therewith.  But  owing  to  the  fact  that 
the  said  railways  will  pass  for  the  greater  part  through  barren  and  sparsely  inhabited 
territory  in  which  it  will  be  difficult  for  the  Chinese  authorities  to  be  always  able  to 
grant  the  necessary  protection  and  aid,  Russia  shall  be  allowed  to  place  special  battalions 
of  horse  and  foot  soldiers  at  the  various  important  stations  for  the  better  protection 
of  the  railway  property. 

"6. — With  reference  to  the  Customs  duties  to  be  collected  on  goods  exported  from 
and  imported  into  the  respective  countries  by  the  said  railways,  they  shall  follow  the 
regulations  provided  by  the  Treaty  of  Commerce  between  China  and  Russia,  ratified  in 
the  1st  year  of  the  reign  of  T'sung  Chih,  4th  day,  2nd  moon  [20th  February  1862  O.S.], 
regulating  overland  transit  of  goods  between  the  two  empires. 

"  7. — There  has  always  been  in  existence  a  rule  prohibiting  the  exploitation  of  the 
mines  in  Heilungchiang  and  Kirin  provinces  and  in  the  Ch'angpai  mountains  [Long 
White  Mountain  range].  After  the  ratification  of  this  treaty,  Russians  and  subjects  of  the 
Chinese  empire  shall  be  permitted  hereafter  to  exploit  and  open  any  of  the  mmes  therein 
mentioned ;  but  before  doing  so  they  shall  be  required  first  to  petition  the  Chinese  local 
authorities  on  the  subject  who.  on  the  other  hand,  shall  grant  the  necessary  commissions 
(huchao)  in  accordance  with  the  mining  regulations  in  force  in  China  Proper. 

"8. — Although  there  exist  certam  battalions  of  foreign-drilled  troops  (Licnchun)  in 
the  Three  Eastern  Provinces,  yet  the  g:reater  portion  of  the  local  territorial  army  corps 
thereof  still  follow  the  ancient  regulations  of  the  empire.  Should,  therefore,  China  in 
the  future  require  to  reform  in  accordance  with  the  Western  system  the  whole  army  organi- 
zation of  the  said  provinces,  she  shall  be  permitted  to  engage  from  Russia  qualified  military 
officers  for  that  purpose  and  the  rules  for  the  guidance  of  this  arrangement  shall  be  in  accord- 
ance with  those  obtaining  in  the  Liangkiang  provinces  in  regard  to  the  German  rmilitary 
officers  now  engaged  there. 

"  9. — Russia  has  never  possessed  a  seaport  in  Asia  which  is  free  from  ice  and  open  all 
the  year  round.  If,  therefore,  there  should  suddenly  arise  military  operations  in  this 
continent  it  will  naturally  be  difficult  for  the  Russian  Eastern  Seas  and  Pacific  fleets  to 
move  about  freely  and  at  pleasure.  As  China  is  well  aware  of  this  she  is  willing  to  lease 
temporarily  to  Russia  the  port  of  Kiaochou  [Chiaochou]  in  the  province  of  Shantung,  the 
period  of  such  lease  being  limited  to  fifteen  years.  At  the  end  of  this  period  China 
shall  buy  all  the  barracks,  godowns,  machine  shops  and  docks  built  there  by  Russia  [during 
her  occupation  of  the  said  port].  But,  should  there  be  no  danger  of  military  operations, 
Russia  shall  not  enter  immediately  into  possession  of  the  said  port  or  hold  the  important 
points  dominating  the  port,  in  order  to  obviate  the  chance  of  exciting  the  jealousy  and 
suspicions  of  other  Powers.  With  reference  to  the  amount  of  rent  and  the  way  it  is  to 
be  paid,  this  shall  form  the  subject  of  consideration  in  a  protocol  at  some  future  date. 

"  10. — As  the  Liaotung  ports  of  Lushunk'ou  [Port  Arthur]  and  Talienwan  and  their 
dependencies  are  important  strategical  points,  it  shall  be  incumbent  upon  China  to  properly 
fortify  them  with  all  haste,  and  to  repair  all  their  fortifications,  etc.,  in  order  to  provide 
against  future  dangers;  Russia  shall  therefore  lend  all  necessary  assistance  in  helping  to 
protect  these  two  ports  and  shall  not  permit  any  Foreign  Power  to  encroach  upon  them. 
China,  on  her  part,  also  binds  herself  never  to  cede  them  to  another  country;  but,  if  in 
future  the  exigencies  of  the  case  require  it  and  Russia  should  find  herself  suddenly  in- 
volved in  a  war,  China  consents  to  allow  Russia  temporarily  to  concentrate  her  land, 
and  naval  forces  within  the  said  ports  in  order  the  better  to  enable  Russia  to  attack 
the  enemy  or  to  guard  her  own  position. 

"11. — If.  however,  there  be  no  dangers  of  military  operations  in  which  Russia  is 
engaged  China  shall  have  entire  control  over  the  administration  of  the  said  ports  of 
Lushunk'ou  and  Talienwan,  nor  shall  Russia  interfere  in  any  way  therein.  But  as  regards 
the  building  of  the  railways  in  the  Three  Eastern  Provinces  and  the  exploitation  and 
opening  of  the  mines  therein,  they  shall  be  permitted  to  be  proceeded  with  immediately 
after  the  ratification  of  this  Convention  and  at  the  pleasure  of  the  people  concerned 
therein.  With  reference  to  the  civil  and  military  officers  of  Russia  and  Russian  merchants 
and  traders  traveling  [in  any  part  of  the  territories  herein  mentioned],  wherever  they 
shall  go.  they  shall  be  given  all  the  privileges  of  protection  and  facilities  within  the  power 
of  the  local  authorities,  nor  shall  these  officials  be  allowed  to  put  obstructions  in  the  way 
or  delay  the  journeys  of  the  Russian  officers  and  subjects  herein  mentioned. 

"  12. — After  this  Convention  shall  have  received  the  respective  signatures  of  their  Im- 
perial Majesties  [the  Emperors  of  China  and  Russia],  the  articles  included  therein  shall 
go  into  immediate  force,  and,  with  the  exception  of  the  clauses  regarding  Port  Arthur, 
Talienwan,  and  Kiaochou,  shall  be  notified  to  the  various  local  authorities  of  the  two 
Empires.  As  to  the  place  for  the  exchange  of  ratifications,  it  shall  be  left  to  be  decided 
at  some  future  time,  but  the  exchange  shall  take  place  within  the  space  of  six  months. 


NUMBER  1896/5  :  SEPTEMBER  8,  1896 :  NOTES  81 

"  It  has,  furthermore,  been  agreed  upon  between  the  respective  Plenipotentiaries  of 
the  High  Contracting  Powers  to  make  this  Convention  out  m  three  languages,  namely, 
Chinese,  Russian  and  French;  one  copy  of  each  language  to  be  held  by  the  respective  High 
Contracting  Parties,  after  the  signing  and  sealing  thereof.  And  it  has,  furthermore,  been 
shown,  upon  comparison,  that  the  contents  of  the  documents  as  given  in  the  three  languages 
aforesaid  tally  with  each  other  in  all  respects;  but  in  case  of  dispute  in  the  future  the 
wording  of  the  French  copy  shall  be  deemed  the  correct  version. 

"  This  document  speaks  for  itself,  and  gives  Russia  all  she  can  want  at  present.  It 
gives  her  the  right  to  carry  her  Trans-Siberian  Railway  to  Kirin  in  two  directions,  from 
some  station  in  Siberia  to  the  west  of  Kirin,  and  from  Vladivostock.  It  provides  that  China 
may  apply  to  Russia  to  build  a  continuation  from  Kirin  to  Shanhaikuan  and  Port  Arthur, 
and  it  gives  Russia  the  right  to  protect  these  lines  when  built  with  her  own  troops.  All 
these  lines  are  to  be  built  to  the  Russian  gauge.  China  gives  Russians  the  right  to 
work  mines  in  Manchuria,  and  provides  for  the  employment  of  Russian  officers  to  drill 
the  ]Manchurian  levies.  It  gives  Russia  (on  lease)  the  port  of  Kiaochou,  and  on  emergency 
the  use  of  Port  Arthur  and  Talienwan,  which  are  not  to  be  ceded  to  any  other  Power ; 
and  it  promises  every  facility  to  Russian  merchants  and  travellers  and  Russian  trade.  All 
the  most  important  points  in  the  secret  treaty  which  we  gave  to  the  world  in  March  last  are 
embodied  in  this,  and  time  will  show  whether  this  is  the  full  extent  of  China's  gratitude 
to  Russia." 

For  a  criticism  of  this  document,  see  Cordier's  Histoire  des  Relations  de  la  Chine  avec 
les  Puissances  Occidentales,  1860-1902,  vol.  2,  p.  343. 

In  an  article  entitled  "  Manchuria — A  Chinese  View  of  the  Situation,"  by  "  An  Admirer 
of  Li  Hung  Chang,"  which  was  published  in  the  London  Daily  Telegraph  of  February  15, 
1910,  it  was  stated  that  while  attending  the  Coronation  ceremonies  of  Emperor  Nicholas  at 
Moscow,  in  May,  1896,  Li  Hung  Chang  concluded  with  the  Russian  Minister  for  Foreign 
Affairs  (Prince  Lobanoff-Rostovsky)  a  secret  treaty  of  alliance,  the  French  text  of  which 
was  given  together  with  the   following  English  translation : 

Treaty  of  Alliance  between  China  and  Russia. — May,  1896. 

"  Article  I. — Every  aggression  directed  by  Japan,  whether  against  Russian  territory  in 
Eastern  Asia,  or  against  the  territory  of  China  or  that  of  Korea,  shall  be  regarded  as 
necessarily  bringing  about  the  immediate  application   of  the  present  treaty. 

"  In  this  case  the  two  High  Contracting  Parties  engage  to  support  each  other  reciprocally 
by  all  the  land  and  sea  forces  of  which  they  can  dispose  at  that  moment,  and  to  assist 
each  other  as  much  as  possible  for  the  victualling  of  their  respective  forces. 

"Article  II. — -As  soon  as  the  two  High  Contracting  Parties  shall  be  engaged  in 
common  action  no  treaty  of  peace  with  the  adverse  party  can  be  concluded  by  one  of 
them  without  the  assent  of  the  other. 

"  Article  III. — During  the  military  operations  all  the  ports  of  China  shall,  in  case  of 
necessity,  be  open  t-o  Russian  warships,  which  shall  find  there  on  the  part  of  the  Chinese 
authorities  all  the  assistance  of  which  they  may  stand  in  need. 

"  Article  IV. — In  order  to  facilitate  the  access  of  the  Russian  land  troops  to  the 
menaced  points,  and  to  ensure  their  means  of  subsistence,  the  Chinese  Government  consents 
to  the  construction  of  a  railway  line  across  the  Chinese  provinces  of  the  Amour  [i.e.,  Heilung- 
kiang]  and  of  Guirin  (Kirin)  in  the  direction  of  Vladivostok.  The  junction  of  this  railway 
with  the  Russian  railway  shall  not  serve  as  a  pretext  for  any  encroachment  on  Chinese  terri- 
tory nor  for  any  infringement  of  the  rights  of  sovereignty  of  his  IMajesty  the  Emperor  of 
China.  The  construction  and  exploitation  of  this  railway  shall  be  accorded  to  the  Russo- 
Chinese  Bank,  and  the  clauses  of  the  Contract  which  shall  be  concluded  for  this  purpose 
shall  be  duly  discussed  between  the  Chinese  Minister  in  St.  Petersburg  and  the  Russo- 
Chinese    Bank. 

"  Article  V. — It  is  understood  that  in  time  of  war,  as  indicated  in  Article  I,  Russia 
shall  have  the  free  use  of  the  railway  mentioned  in  Article  IV,  for  the  transport  and 
provisioning  of  her  troops.  In  time  of  peace  Russia  shall  have  the  same  right  for  the 
transit  of  her  troops  and  stores,  with  stoppages,  which  shall  not  be  justified  by  any  other 
motive  than  the  needs  of  the  transport  service. 

"  Article  VI. — The  present  treaty  shall  come  into  force  on  the  day  when  the  contract 
stipulated  in  Article  IV,  shall  have  been  confirmed  by  his  IMajesty  the  Emperor  of 
China.  It  shall  have  from  then  force  and  value  for  a  period  of  fifteen  years.  Six 
months  before  the  expiration  of  this  term  the  two  High  Contracting  Parties  shall  deliberate 
concerning  the  prolongation  of  this  treaty." 

The  substantial  accuracy  of  the  disclosure  thus  made  would  appear  to  be  adequately 
confirmed  by  the  following  extract  translated  from  Ma  Mission  en  Chine:  1893-1897 
(Paris,  Plon-Nourrit,  1918),  by  ]\I.  A.  Gerard,  who  during  the  period  indicated  was  French 
Minister  to  China : 

"  Although  the  treaty  was  intended  to  remain  secret,  I  one  day  had  in  my  hands   for 


82  CHINA  TREATIES  AND  AGREEMENTS 

a  few  minutes,  during  a  visit  which  I  made  in  the  spring  of  1897  to  Li  Hung  Chang  at 
his  residence  in  Peking,  the  copy  of  the  document  which  he  had  signed  the  previous  year 
with  Prince  Lobanoff  .  .  .  The  EngHsh  translation  of  this  text  was  pubHshed  fifteen 
years  later,  when  the  treaty  itself  had  expired,  in  the  London  Daily  Telegraph,  by  the 
son  of  Li  Hung  Chang,  Li  Ching  Mai,  who  was  then  Chinese  Minister  at  the  Court  of 
St  James,  and  who  sought  to  defend  his  father's  memory  against  unjust  attacks.  The 
treaty  was  in  fact  a  treaty  of  alliance,  concluded  for  a  period  of  fifteen  years,  by  which 
the  Chinese  Government  obligated  itself,  in  the  event  of  an  aggression  by  Japan,  to  place 
at  the  disposal  of  the  Russian  Government  its  ports  and  all  means  of  defence.  The 
principal  clause  of  the  treaty  was  the  assent  given  by  the  Chinese  Government  to  the 
construction  and  operation,  in  the  Manchurian  provinces  of  Amur  (Heilungkiang)  and 
Kirin,  of  a  line  of  railway  connecting  with  the  Russian  Siberian  lines,  the  concession  for 
which  was  made  to  the  Russo-Chinese  Bank  by  a  contract  to  be  signed  between  the  Chinese 
Minister  at  St.  Petersburg  and  the  delegate  of  the  Bank  (Article  IV).  It  was  stipulated 
in  Article  VI  that  the  treaty  should  come  into  force  on  the  day  on  which  the  contract 
for  the  construction  and  operation  of  the  railway  should  have  been  approved  and  ratified 
by  the  Emperor  of  China.  .    .    . 

"  The  English  newspapers  at  Shanghai  had  published,  long  before  it  was  signed,  the 
alleged  text  of  the  treaty  and  of  the  contract.  They  published  another  so-called  version 
in  the  month  of  October,  1896,  some  days  after  the  ratification  at  Peking  of  the  contract 
in  regard  to  the  railway.  These  various  texts,  to  which  the  English  press  gave  the  name  of 
the  '  Cassini  Convention,'  were  apocryphal.  They  confused  the  treaty  of  alliance,  properly 
so  called,  with  the  railway  contract.  .  .  .  The  true  facts  as  here  outlined  establish  that 
there  never  was,  properly  speaking,  any  '  Cassini  Convention ' ;  that  the  treaty  of  alliance 
was  concluded  at  St.  Petersburg  in  the  month  of  May,  1896,  between  Li  Hung  Chang  and 
Prince  Lobanoff;  that  the  railway  contract  was  signed  on  September  8th  following,  also 
at  St.  Petersburg,  by  the  Chinese  Minister,  Shu  Ching  Cheng,  and  the  delegates  of  the 
Russo-Asiatic  Bank ;  and  that  it  was  this  contract  for  whose  definite  ratification  at  Peking 
on  September  30th  Count  Cassini  waited  before  proceeding  on  his  way  to  Russia." 

In  the  summer  of  1918,  the  military  situation  which  had  developed  in  Siberia  led  to  a 
suggestion  by  the  American  Government  for  the  unified  control  of  the  Siberian  railway 
system  (including  the  Chinese  Eastern  Railway),  under  the  direction  of  Mr.  John  F. 
Stevens  and  the  Russian  Railway  Corps  associated  with  him,  which  the  Government  of  the 
United  States  had  placed  at  the  disposal  of  the  Russian  Government  during  the  Kerensky 
regime,  and  which  had  been  entrusted  by  that  administration  with  the  reorganization  of 
traffic  between  European  Russia  and  Vladivostok.  The  overthrow  of  the  Kerensky  Govern- 
ment had  interrupted  the  work  of  Mr.  Stevens  and  his  associates ;  the  Bolsheviks,  in  co- 
operation with  liberated  German  and  Austrian  prisoners  of  war,  had  taken  possession  of  the 
Trans-Baikal,  Amur  and  Ussuri  sections  of  the  Siberian  system,  and  inhibited  all  traffic 
thereon  save  in  their  own  interests ;  the  liberated  Czecho-Slovak  prisoners  had  been  pre- 
vented from  passing  eastwards  over  the  line  in  order  to  join  the  forces  of  the  Allies  in 
Europe ;  to  assist  them  and  to  protect  the  military  stores  accumulated  at  Vladivostok,  the 
American,  British,  Chinese,  French,  Italian  and  Japanese  Governments  had  despatched  ex- 
peditionary forces  to  occupy  Vladivostok  and  take  possession  of  the  several  branches  of  the 
Ussuri  Railway ;  the  Japanese  and  Chinese  Governments,  in  pursuance  of  the  military 
agreement  of  INIarch  25,  1918  (No.  1918/4,  post),  had  taken  possession  of  the  Chinese 
Eastern  Railway,  and,  after  the  opening  of  the  main  Trans-Siberian  line  by  the  Czecho- 
slovak forces,  of  the  Trans-Baikal  Railway  as  far  west  as  Chita.  The  railway  service  had 
become  so  disorganized  as  to  be  incapable  of  satisfying  the  economic  needs  of  Siberia,  or 
even  the  military  requirements  of  the  Allied  forces.  Under  these  circumstances,  the  Ameri- 
can Government  offered  the  suggestion  that,  for  the  purpose  of  more  efficient  technical  man- 
agement, and  without  prejudice  to  any  claims  of  financial  or  political  interest,  the  Siberian 
railway  system  (including  therein  the  Chinese  Eastern  Railway)  should  during  the  existing 
emergency  be  entrusted  to  a  Commission  directed  by  Mr.  Stevens.  The  other  interested 
Governments  having  indicated  their  willingness  to  accept  any  arrangement  to  that  end 
which  might  be  agreed  upon  between  the  American  and  Japanese  Governments,  negotiations 
ensued  between  the  American  Ambassador  at  Tokyo  and  the  Japanese  Minister  for  Foreign 
Affairs,  which  on  January  9,  1919,  resulted  in  an  informal  agreement  as  subsequently  (March 
17,  1919)   announced  by  the  Japanese  Foreign  Office,  to  the  following  effect: — 

Agreement  regarding  Inter-Allied  Supervision  of  Siberian  Railway  System. — 

January  9,  1919. 

"  Plan  for  the  supervision  of  the  Chinese  Eastern  and  the  Trans-Siberian  Railways  in 
the  zone  in  which  the  Allied  military  Force?  are  now  operating.^ 

"  1. — The  general  supervision  of  the  railways  in  the  zone  in  which  the  Allied  Forces 
are  now  operating  shall  be  exercised  by  a  special  Inter-Allied  Committee,  which  shall  consist 
of  representatives  from  each  Allied  Power  having  military  forces  in  Siberia,  including 
Russia,  and  the  Chairman  of  which  shall  be  a  Russian. 


NUMBER  1896/5:  SEPTEMBER  8,  1896:  NOTES  83 

"The  following  boards  shall  be  created,  to  be  placed  under  the  control  of  the  Inter- 
Allied  Committee, 

(a)  A  Technical  Board  consisting  of  railway  experts  of  the  nations  having  mili- 
tary forces  in  Siberia,  for  the  purpose  of  administering  technical  and  economic  manage- 
ment of  all  railways  in  the  said  zone. 

(b)  An  Allied  Military  Transportation  Board,  for  the  purpose  of  co-ordinating 
military  transportation  under  instructions  of  the  proper  military  authorities. 

"  2. — The  protection  of  the  railways  shall  be  placed  under  the  Allied  military  forces.  At 
the  head  of  each  railway  shall  remain  a  Russian  manager  or  director  with  the  powers 
conferred  by  existing  Russian  law. 

"  3. — The  Technical  Board  shall  elect  a  President  to  whom  shall  be  intrusted  the 
technical  operation  of  the  Railways.  In  matters  of  such  technical  operation,  the  President 
may  issue  instructions  to  the  Russian  officials  mentioned  in  the  preceding  clause.  He  may 
appoint  assistants  and  inspectors  in  the  service  of  the  Board,  chosen  from  among  the  na- 
tionals of  the  Powers  having  military  forces  in  Siberia,  to  be  attached  to  the  central  office 
of  the  Board,  and  define  their  duties.  He  may  assign,  if  necessary,  the  corps  of  railway 
experts  to  the  more  important  stations.  In  assigning  railway  experts  to  any  of  the  stations, 
interests  of  the  respective  Allied  Powers  in  charge  of  military  protection  of  such  stations 
shall  be  taken  into  due  consideration.  He  shall  distribute  the  work  among  the  clerical  stafif 
of  the  Board  whom  he  may  appoint  in  his  discretion. 

"4. — The  clerical  staff  of  the  Inter-Allied  Committee  shall  be  appointed  by  the  Chairman 
of  the  Committee  who  shall  have  the  right  of  distributing  the  work  among  such  employees, 
as  well  as   of   dismissing  them. 

"  5. — The  present  arrangement  shall  cease  to  be  operative  upon  withdrawal  of  the 
foreign  military  forces  from  Siberia,  and  all  the  foreign  railway  experts  appointed  under 
this  arrangement  shall  then  be  recalled  forthwith." 

Simultaneously  and  in  furtherance  of  this  Plan  the  Japanese  Minister  for  Foreign 
Affairs  approved  and  adopted  the  following  Memorandum  in  reference  thereto : — 

"  Me>noraiidum. 

"American  Embassy,   Tokye. 

"  As  the  result  of  informal  conversations  with  Viscount  Uchida  it  is  understood — 

"  First :  That  Viscount  Uchida  will  forward  the  amended  plan  to  Viscount  Ishii,  with 
instructions  to  present  it  to  the  Department  of  State  and  to  explain  that  it  is  submitted 
with  the  understanding  that  Mr.  Stevens  be  named  as  President. 

"Second:  That  the  Inter-Allied  Committee  shall  be  composed  of  one  representative  of 
each  of  the  following  Governments:  China,  France,  Great  Britain,  Italy,  Japan,  Russia,  the 
United  States,  leaving  question  of  Czecho-Slovaks  to  be  discussed. 

"Third:  That  each  of  the  above  named  Governments  shall  select  one  technical  rail- 
way expert  for  membership  on  the  Technical  Board. 

"Fourth:  That  Mr.  Stevens'  selection  as  President  shall  not  prevent  his  selection  as  a 
member  of  the  Technical  Board. 

"Fifth:  That  the  Government  of  Japan  and  the  United  States  shall  at  once  advise  the 
above  named  Associated  Governments  of  agreed  plan,  including  the  understanding  in  refer- 
ence to  the  selection  of  Mr.  Stevens  and  request  their  adherence  and  cordial  cooperation. 

"  Sixth :  That  this  plan  shall  be  interpreted  as  a  sincere  effort  temporarily  to  operate 
the  Chinese  Eastern  and  Trans-Siberian  Railways  in  the  interest  of  the  Russian  people,  with 
a  view  to  their  ultimate  return  to  those  in  interest,  without  the  impairing  of  any  existing 
rights;  That  in  intrusting  to  Mr.  Stevens,  as  President,  the  Technical  operation  of  these 
railways  it  is  understood  the  Government  of  Japan  and  the  United  States  are  both  prepared 
to  give  him  the  authority  and  support  which  will  be  necessary  to  make  his  efforts  effective. 

"  Tokyo,  January  9,  1919." 

The  Plan,  as  construed  by  the  ^Memorandum  of  January  9th,  having  thereafter  been 
formally  approved  by  the  Government  of  the  United  States,  under  a  reservation  of  financial 
responsibility,  and  on  the  explicit  understanding  that  the  word  "interests"  (as  used  in 
section  3  of  the  Plan)  should  be  construed  as  implying  only  military  convenience  as  dis- 
tinguished from  any  political  or  territorial  rights  or  spheres  of  interest,  was  later  sub- 
mitted to  the  other  Governments  concerned,  and  accepted  by  them.  The  system  of  tech- 
nical control  thus  contemplated  was  put  into  effect  on  March  10,  1919. 

At  a  meeting  of  the  commanders  of  the  allied  expeditionary  forces  in  Siberia,  held  at 
Vladivostok  during  April,  1919,  it  was  decided  to  allocate  as  follows  the  military  protection 
of  the  several  sections  of  the  Trans-Siberian  and  Chinese  Eastern  Railway  systems : — 
United  States: 

Ussuri   Railway,   from  Vladivostok    (inclusive)   to  Nikolsk    (exclusive)  ;  branch  to 

Suchan   Mines  ;  and  section   from   Spasskoe  to  Ussuri ; 
Trans-Baikal  Railway,  from  Verkhneudinsk  (inclusive)  to  Baikal  City  (inclusive)  ; 

and 
At  Harbin,  garrison  of  1,000  men. 


84  CHINA  TREATIES  AND  AGREEMENTS 

China : 

Chinese  Eastern  Railway,  from   Nikolsk   (inclusive)   to  Manchuli    (exclusive),  and 
from  Harbin  to  Changchun  (inclusive)  ;  and 
Ussuri  to  Guberovo. 
Japan : 

Ussuri  Railway,  from  Nikolsk  to  Spasskoe,  and  from  Guberovo  to  Habarovsk ; 

Amur  Railway,  entire ;  and 

Trans-Baikal  Railway,  from  Manchuli  (inclusive)  to  Verkhneudinsk  (exclusive). 

Note  3. 

The  statutes  or  charter  of  the  Chinese  Eastern  Railway  Company  are  given  as  follows 
(in  abridged  translation)  in  Rockhill,  p.  215  (citing  B.  &  F.  State  Papers,  Vol.  88,  p.  773, 
and  Official  Gazette,  No.  137,  December  11/23,  1896)  : 

Statutes  of  the  Chinese  Eastern  Railway  Company 

"  St.  Petersburg,  December  4/16,  1896. 

[Translation.] 

"  The  Minister  of  Finances  presented  on  the  8/20th  December,  1896,  to  the  Ruling 
Senate  for  publication  a  copy  of  the  Statutes  of  the  Chinese  Eastern  Railway  Company, 
which  were  Imperially  confirmed  on  the  4/16th  December,  1896. 


Statutes  of  the  Chinese  Eastern  Railway  Company. 

"  Formation  of  the  Company. — §  1.  On  the  strength  of  the  Agreement  concluded  on 
the  27th  August/8th  September,  1896,  by  the  Imperial  Chinese  Government  with  the  Russo- 
Chinese  Bank,  a  Company  is  formed  under  the  name  of  the  "  Eastern  Chinese  Railway 
Company "  for  the  construction  and  working  of  a  railway  within  the  confines  of  China 
from  one  of  the  points  on  the  western  borders  of  the  Provinces  of  Hei-Lun-Tsian,  to  one 
of  the  points  on  the  eastern  borders  of  the  Province  of  Ghirin  and  for  the  connection  of 
this  railway  with  those  branches  which  the  Imperial  Russian  Government  will  construct 
to  the  Chinese  frontier  from  Trans-Baikalia  and  the  southern  Ussuri  lines.  [Observation. 
The  Company  is  empowered,  subject  to  the  sanction  of  the  Chinese  Government,  to  exploit, 
in  connection  with  the  railway  or  independently  of  it,  coal  mines,  as  also  to  exploit  in 
China  other  enterprises — mining,  industrial,  and  commercial.  For  the  working  of  these 
enterprises  which  may  be  independent  of  the  railway,  the  Company  shall  keep  accounts 
separate  from  those  of  the  railway.] 

"  The  formation  of  the  Company  shall  be  undertaken  by  the  Russo-Chinese  Bank. 

"With  the  formation  of  the  Company  all  rights  and  obligations  are  transferred  to  it  in 
regard  to  the  construction  and  working  of  the  line  ceded  in  virtue  of  the  above-named 
Agreement  of  the  27th  August/8th    September,   1896. 

"  The  Company  shall  be  recognized  as  formed  on  the  presentation  to  the  Minister  of 
Finances  of  a  warrant  of  the  State  Bank  certifying  the  payment  of  the  first  instalment  on 
the  shares.  In  any  case  such  payment  must  be  made  not  later  than  two  months  from  the 
day  of  confirmation  of  the  present  Statutes. 

"  The  succeeding  instalments  on  the  shares  shall  be  paid  in  such  orders  of  gradation  that 
the  shares  shall  be  fully  paid  up  at  their  nominal  value  not  later  than  one  year  from  the 
day  of    formation   of   the   Company. 

"Owners  of  shares  of  the  Company  may  only  be  Russian  and  Chinese  subjects. 

"Term  of  Concession. — §2.  In  virtue  of  the  Agreement  with  the  Chinese  Government, 
the  Company  shall  retain  possession  of  Chinese  Eastern  Railway  during  the  course  of 
eighty  years   from  the  day  of  the  opening  of  traffic  along  the  whole  hne. 

"  Obligation  towards  the  Russian  Government. — §  3.  In  recognition  that  the  enter- 
prise of  the  Chinese  Eastern  Railway  will  be  realized  only  owing  to  the  guarantee  given  by 
the  Russian  Government  in  regard  to  the  revenue  of  the  line  for  covering  working  expenses 
as  well  as  for  effecting  the  obligatory  payments  on  the  bonds  (§§11,  16),  the  Company,  on 
its  part,  binds  itself  to  the  Russian  Government  during  the  whole  term  of  the  Concession 
under  the   following  obligations : — 

"  (a)  The  Chinese  Eastern  Railway  with  all  its  appurtenances  and  rolling-stock  must 
be  always  maintained  in  full  order  for  satisfying  all  the  requirements  of  the  service  of 
the  line,  in  regard  to  the  safety,  comfort,  and  uninterrupted  conveyance  of  passengers 
and  goods : 

"  (b)  The  traffic  on  the  Chinese  Eastern  line  must  be  maintained  conformably  with  the 
degree  of  traffic  on  the  Russian  railway  lines  adjoining  the  Chinese  line; 

"  (c)   The   trains   of   all    descriptions    running   between    the   Russian    Trans-Baikal   and 


NUMBER  1896/5:  SEPTEiMBER  8,  1896:  NOTES  85 

Ussuri    lines   shall   be   received   by   the    Chinese   Eastern    Railway   and    dispatched   to   their 
destination  in   full  complement   without  delay ; 

••  {d)  All  through  trains,  both  passenger  and  goods,  shall  be  dispatched  by  the  Eastern 
Chinese  Railway  at  rates  of  speed  not  lower  than  those  which  shall  be  adopted  on  the 
Siberian  Railway ; 

"  (e)  The  Chinese  Eastern  Railway  is  bound  to  establish  and  maintain  a  telegraph  along 
the  whole  extent  of  the  line  and  to  connect  it  with  the  telegraph-wire  of  the  Russian 
adjoining  railways,  and  to  receive  and  dispatch  without  delay  through  telegrams  sent  from 
one  frontier  station  of  the  line  to  another,  as  also  telegrams  sent  from  Russia  to 
China,  and  conversely ; 

"  (/)  Should,  with  the  development  of  traffic  on  the  Chinese  Eastern  Railway,  its  techni- 
cal organization  prove  insufficient  for  satisfymg  the  requirements  of  a  regular  and  unin- 
terrupted passenger  and  goods  traffic,  the  Chinese  Eastern  Railway  shall  mimediately,  on 
receipt  of  a  notification  on  the  part  of  the  Russian  railways  to  augment  its  capacity  to  a 
corresponding  degree,  adopt  the  necessary  measures  for  further  developing  its  technical 
organization  and  the  traffic  on  it.  In  the  event  of  a  difference  of  opinion  arising  between 
the  above-mentioned  railways,  the  Chinese  Eastern  Railway  shall  submit  to  the  decision 
of  the  Russian  Minister  of  Finances.  If  the  means  at  the  command  of  the  Chinese  Eastern 
Railway  prove  insufficient  for  carrying  out  the  necessary  work  of  its  development,  the  Board 
of  Alanagement  of  the  railway  may  at  all  times  apply  to  the  Russian  Minister  of  Finances 
for    pecuniary    assistance    on    the    part    of    the    Russian    Government; 

"  (g)  For  all  transit  conveyance  of  passengers  and  goods,  as  also  for  the  transmission 
of  telegrams  there  will  be  established -by  agreement  of  the  Company  with  the  Russian 
Government  for  the  whole  term  of  duration  of  the  Concession  (§2),  maximum  tariffs, 
which  cannot  be  raised  without  the  consent  of  the  Russian  Government  during  the  whole 
term  above  referred  to.  Within  these  limits  the  tariffs  of  direct  communication  both 
for  railway  carriage  and  telegrams  will  be  fixed  by  the  Board  of  Management  of  the 
Company  on  the  strength  of  a  mutual  agreement  with  the  Russian  Minister  of  Finances; 

"  (h)  The  Russian  letter  and  parcels-post,  as  also  the  officials  accompanying  the  same, 
shall  be  carried  by  the  Chinese  Eastern  Railway  free  of  charge. 

"  For  this  purpose  the  company  shall  set  apart  in  each  ordinary  passenger  train  a  car- 
riage compartment  of  3  fathoms  in  length.  The  Russian  postal  authorities  may,  moreover, 
if  they  deem  it  necessary,  place  on  the  line  postal  carriages,  constructed  by  them  at  their 
own  cost;  and  the  repair,  maintenance  (interior  fittings  excepted)  as  well  as  the  running 
of  such  carriages  with  the  trains  shall  be  free  of  charge  and  at  the  cost  of  the  railway. 

"  The  above-mentioned  engagements,  by  which,  as  already  stated,  the  grant  of  a 
guarantee  by  the  Russian  Government  is  conditioned  and  the  consequent  realization  of  the 
enterprise  of  the  Chinese  Eastern  Railway,  shall  be  binding  on  the  railway  until  the 
same,  after  the  expiration  of  the  eighty  years'  term  of  the  Concession,  shall  without  pay- 
ment become  the  property  of  the  Chinese  Government  (§29).  The  redemption  of  the  line 
from  the  Company  before  the  above-mentioned  term  in  accordance  with  §  30  of  the  present 
Statutes  shall  not  in  any  way  diminish  the  effect  of  the  above  specified  engagements,  and 
these  latter,  together  with  the  railway,  shall  be  transferred  to  its  new  proprietor. 

'■  In  the  same  manner  during  the  course  of  the  whole  eighty  years'  term  of  the  Conces- 
sion (§2)  the  following  privileges  granted  to  the  railway  by  the  Imperial  Chinese  Govern- 
ment shall  remain  in  force : — 

"  (a)  Passengers'  luggage,  as  also  goods,  carried  in  transit  from  one  Russian  station 
shall  not  be  liable  to  any  Chinese  customs  duties,  and  shall  be  exempt  from  all  internal 
Chinese  dues  and  taxes ; 

"  (b)  The  rates  for  the  carriage  of  passengers  and  goods,  for  telegrams,  &c.,  shall  be 
free  from  all  Chinese  taxes  and  dues ; 

"  (r)  Goods  imported  from  Russia  into  China  by  rail  and  exported  from  China  to 
Russia  in  the  same  manner  shall  pay  respectively  an  import  or  export  Chinese  duty  to 
the  extent  of  one-third  less  as  compared  with  the  duty  imposed  at  Chinese  seaport  custom- 
houses. 

(d)  If  goods  imported  by  the  railway  are  destined  for  conveyance  inland  they  shall 
in  such  case  be  subject  to  payment  of  transit  duty  to  the  extent  of  one-half  of  the  import 
duty  levied  on  them,  and  they  shall  then  be  exempted  from  any  additional  imposts.  Goods 
which  shall  not  have  paid  transit  duty  shall  be  liable  to  payment  of  all  established  internal 
barrier  and  likin  dues. 

"Immunities  of  the  Company  in  Regard  to  Russian  Customs  Dues. — §4.  In  regard 
to  the  place  of  acquisition  of  materials  for  the  requirements  of  the  railway,  the  Com- 
pany shall  notbe  liable  to  any  limitations. 

"If  materials  be  obtained  beyond  the  confines  of  Russia,  they  shall,  on  importation 
through  Russian   territory,  be   freed   from   payment  of   Russian  customs   duties. 

"Technical  Conditions;  Periods  of  Time  for  the  Commencement  and  Termination 


86  CHINA  TREATIES  AND  AGREEMENTS 

of  the  Work. — §5.     The  breadth  of  the  railway  track  must  be  the  same  as  that  of  the 
Russian  hnes   (5  feet). 

"  The  Company  must  commence  the  work  not  later  than  the  16th  August,  1897,  and 
conduct  it  in  such  a  manner  that  the  whole  line  shall  be  completed  not  later  than  six  years 
from  the  time  when  the  direction  of  the  line  shall  be  finally  determined  and  the  necessary 
land   assigned   to   the    Company. 

"  When  tracing  the  line  of  the  railway,  cemeteries  and  graves,  as  also  towns  and  vil- 
lages,  must  as    far   as   possible,   be   left  aside   of   the   railway. 

"  When  effecting  the  connection,  m  accordance  with  §  1  of  these  Statutes,  of  the  Chinese 
Eastern  Railway  with  the  Russian  Trans-Baikal  and  South  Ussuri  lines  the  Company 
shall  have  the  right,  with  a  view  of  reduction  of  expenditure,  of  abstaining  from  build- 
ing its  own  frontier  stations  and  of  utilizing  the  frontier  stations  of  the  above-named 
Russian  lines.  The  conditions  on  which  they  shall  be  utilized  shall  be  determined  by 
agreement  of  the  Board  of  the  Company  with  the  Boards  of  the  respective  railways. 

"  Tariffs. — §  6.  The  tariffs  for  the  carriage  of  passengers  and  goods,  as  also  for  sup- 
plementary carriage  rates,  shall  be  determined  by  the  Company  itself,  within  the  limits 
indicated  in  §  3. 

"  Order  of  Examination  of  Legal  Suits,  and  the  Establishment  of  Rules  for  Railway 
Conveyance. — §7.  Offences,  litigation,  &c.,  on  the  territory  of  the  Chinese  Eastern  Rail- 
way shall  be  dealt  with  by  local  authorities,  Chinese  and  Russian,  on  the  basis  of  existing 
Treaties. 

"  In  regard  to  the  carriage  of  passengers  and  goods,  the  responsibility  for  such  con- 
veyance, the  lapse  of  time  for  claims,  the  order  of  recovering  money  from  the  railway 
when  adjudged,  and  the  relations  of  the  railway  to  the  public  shall  be  defined  in  rules 
drawn  up  by  the  Company  and  established  before  the  opening  of  the  railway  traffic;  these 
rules   shall  be   framed   in   accordance   with   those   existing  on   Russian   railways. 

"  Maintenance  of  Security  and  Order  on  the  Railway. — §  8.  The  Chinese  Govern- 
ment has  undertaken  to  adopt  measures  for  securing  the  safety  of  the  railway  and  of  all 
employed  on   it   against   any   extraneous   attacks. 

"  The  preservation  of  law  and  order  on  the  lands  assigned  to  the  railway  and  its  ap- 
purtenances shall  be  confided  to  police  agents  appointed  by  the  Company. 

"  The  Company  shall  for  this  purpose  draw  up  and  establish  police  regulations. 
"  Foundation  Capital  of  the   Company. — §  9.     The  whole  amount  of  the  capital  of 
the  Company  shall  be  determined  according  to  the  cost  of  construction  calculated  on  the 
basis  of  estimates   framed  when  the  survey  of  the  line  was  carried  out.     The   foundation 
capital   shall  be  charged  with — 

"  (a)  The  payment  of  interest  and  amortization  of  the  foundation  capital  during  the 
construction  of  the  railway ; 

"  (b)  The  purchase  from  the  Russian  Government  of  the  results  of  the  surveys  of  the 
direction  of  the  railway  to  Manchuria,  which  were  made  by  Russian  engineers,  the  sum 
payable  for  these  surveys  being  determined  by  agreement  of  the  Russian  Minister  of 
Finances   with   the   Company. 

"  The  capital  of  the  Company  shall  be  formed  by  the  issue  of  shares  and  bonds. 
"  Share  Capital.— §  10.     The  share  capital  of  the  Company  shall  be  fixed  at  5,000,000 
nominal  credit  roubles,  and  divided  into   1,000  shares  at  5,000  nominal  credit  roubles. 
"  The  shares  are  to  be  issued  at  their  nominal  value. 
"  The  guarantee  of  the  Russian  Government  does  not  extend  to  them. 
"Bond  Capital;  Guarantee  of  Russian  Government  on  Bonds. — §  11.     The  remaining 
portion  of  the  capital  of  the  Company  will  be  formed  by  the  issue  of  bonds.     The  bonds 
will   be   issued   as   required,   and   each   time  with   the   special   sanction   of   the    Minister   of 
Finances.     The  nominal  amount  and  value  of  each  separate  issue  of  bonds,  the  time  and 
condition   of  the  issue,  as  also  the   form  of  these  bonds,  shall  be  subject  to  the  sanction 
of    the    Minister    of    Finances. 

"  The  Russian  Government  will  guarantee  the  interest  on  and  amortization  of  the  bonds. 

"  For  the  realization  of  these  bonds  the  Company  must  have  recourse  to  the  Russo- 

Chinese  Bank,  but  the   Russian   Government  reserves  to  itself  the   right  of  appropriating 

the  bond  loan  at  a  price  which  shall  be  determined  between  the  Company  and  the  Bank, 

and  to  pay  the  Company  the  agreed  amount  in  ready  money. 

"  Guarantee  of  Realized  Bond  Capital. — §  12.  As  payments  are  received  for  bonds 
guaranteed  by  the  Russian  Government,  the  Company  shall  be  bound  to  keep  such  sums, 
or  interest  bearing  securities  purchased  with  the  same  by  permission  of  the  Russian 
Minister  of  Finances,  imder  the  special  supervision  of  the  Russian  Ministry  of  Finances. 

"  Out  of  the  above  receipts  the  Company  shall  have  the  right  to  make  the  following 
payments : — 

"  (a)  According  to  actual  fulfilment  of  the  work  in  progress,  and  execution  of  orders, 
and  at  the  time  when  various  expenditures  shall  become  necessary,  such  payments  to  be 
made   on   the   scale  and   on   the   conditions   specified   in   the   working   estimates ; 

"  (b)  During  the  construction  of  the  line,  of  interest,  as  it  becomes  due,  on  the 
bonds  issued  by  the  Company,  subject  to  the  conditions  of  their  issue,  and  the  Company 


NUMBER  1896/5  :  SEPTEMBER  8,  1896 :  NOTES  87 

shall    pay   the    sums    necessary    for   the    above    purpose    within    the    limits    of    the    amount 
realized  by  it  in  the  issue  of  its  bonds. 

"  Shares.— §  13.  On  the  payment  of  the  first  allotment  on  the  shares,  the  founders 
shall  receive  temporary  certificates  on  which  subsequently,  when  the  Board  of  Manage- 
ment of  the  Company  shall  have  been  formed,  the  receipt  of  the  further  instalments  on 
the  shares  will  be  inscribed. 

"  When  the  shares  shall  be  fully  paid  up  the  temporary  certificates  issued  to  the 
founders    shall    be    replaced    by    shares. 

'■  The  shares  of  the  Company  are  issued  to  bearer,  under  the  signature  of  not  fewer 
than  three  members  of  the  Board  of  Management.  To  the  shares  will  be  attached  a  coupon 
sheet  for  the  receipt  once  yearly  under  them  of  any  dividend  that  may  be  payable. 
"  On  the  coupon  sheets  becoming  exhausted  new  sheets  will  be  issued. 
"  A  dividend  on  the  shares  out  of  the  net  profits  of  any  year,  supposmg  such  accrue, 
shall  be  payable  on  the  adoption  by  the  general  meeting  of  shareholders  of  the  Annual 
Report  for  that  year,  and  the  dividend  shall  be  payable  at  the  offices  of  the  Company, 
or  at  such  places  which   it  may  indicate. 

"The  Company  shall  notify  for  general  information  in  the  'Official  Gazette'  and  in 
the  'Finance  ^Messenger,'  as  also  in  one  of  the  Chinese  newspapers,  the  amount  and  place 
of  payment  of  the  dividend. 

"  Reserve  Capital. — §  14.    The  reserve  capital  is  destined — 
"  (a)   For  the  capital  repair  of  the  railway,  its  buildings  and  appurtenances; 
"  lb)   For  defraying  extraordinary  expenditure  of  the  Company  in  repairing  the  railway 
and  its  appurtenances. 

"  The  reserve  capital  of  the  Company  is  formed  out  of  annual  sums  put  aside  from 
the  net  profits  of  the  working  of  the  railway    (§17). 

"  The  reserve  capital  must  be  kept  in  Russian  State  interest  bearing  securities,  or  in 
railway  bonds 'guaranteed  by  the  Russian  Government. 

"  At  the  expiration  of  the  term  of  possession  of  the  railway  by  the  Company  the 
reserve  capital  shall  be  first  of  all  employed  in  the  payment  of  the  debts  of  the  Company, 
including  among  them  sums  due  to  the  Russian  Government,  if  such  exist ;  after  the 
debts  of  the  Company  shall  have  been  paid,  the  remainder  of  the  reserve  capital  shall  be 
divided  among  the  shareholders.  In  the  event  of  the  redemption  of  the  railway  by  the 
Chinese  Government  the  reserve  capital  becomes  the  property  of  the  shareholders. 

"  Net  Revenue.— §  IS.     The  net  revenue  of  the  Company  shall  be  the   remainder  of 
the  gross  receipts,  after  deduction  of  working  expenses. 
"  Under  these  expenses  are  classed : — 

"  (a)  General  outlays,  including  assignments  towards  pension  and  relief  funds,  if  such 
be   established   on   the    line ; 

"  {b}  Maintenance  of  the  Staff  of  the  Board  of  Management,  and  of  all  the  services; 
as  also  the  maintenance  of  employes  and  labourers  not  on  the  permanent  list; 

"  (c)  Outlays  for  materials  and  articles  used  for  the  railways  as  also  expenditure  in  the 
shape  of  remuneration  for  the  use  of  buildings,  rolling-stock,  and  other  various  requisites, 
for  the  purposes  of  the  railway. 

"  (d)  Outlays  for  the  maintenance,  repair  and  renewal  of  the  permanent  way,  works  of 
construction,  buildings,  rolling-stock,  and  other  appurtenances  of  the  railway ; 

"  (e)   Expenditure   connected  with   the   adoption   of   the   measures   and  instructions  of 
the  Board  of  Management  for  insuring  the  safety  and  regularity  of  the  railway  service; 
"  (/)   Expenditure   for  the  improvement  and  development  of  the  railway,  as  also   for 
creating  and   developing  its   resources. 

"  Additional  Payments  by  the  Russian  Government  Under  the  Guarantee,  and  the 
Order  of  Settlement  of  Accounts  between  the  Company  and  the  Russian  Government 
in  Respect  of  these  Additional  Payments. — §  16.  Should  the  gross  receipts  of  the  rail- 
way prove  insufficient  for  defraying  the  working  expenses  and  for  meeting  the  yearly 
payments  due  on  the  bonds,  the  Company  will  receive  the  deficient  sum  from  the  Russian 
Government  through  the  Russian  Minister  of  Finances.  The  payments  referred  to  will  be 
made  to  the  Company  as  advances,  at  a  rate  of  interest  of  6  per  cent,  per  annum.  Sums 
paid  in  excess  to  the  Company  in  consequence  of  its  demands  and  on  account  of  the 
guarantee  will  be  deducted  from  succeeding  money  payments. 

"On  the  presentation  to  the  general  meeting  of  shareholders  of  the  annual  report  of 
the  working  of  the  railway  for  a  given  year  the  Company  shall  at  the  same  time  submit 
to  the  general  meeting,  for  confirmation,  a  detailed  statement  of  the  sums  owing  by  the 
Company  to  the  Russian  Government,  with  the  interest  that  has  accrued  thereon.  On 
the  confirmation  of  this  statement  by  the  general  meeting,  the  Board  of  Management  shall 
deliver  to  the  Russian  Government  an  acknowledgment  of  the  Company's  debt,  to  the 
full  determined  amount  of  the  same,  and  this  acknowledgment,  until  its  substitution  by 
another,  shall  bear  annually  interest  at  the  rate  of  6  per  cent. 

"  The  acknowledgment  above  mentioned  given  by  the  Board  of  Management  to  the 
Russian  Government  shall  not  be  subject  to  bill  or  deed  stamp  tax. 


88  CHINA  TREATIES  AND  AGREEMENTS 

"  [Subjects  of  minor  importance  are  dealt  with  in  the  following  sections: — 

"  §  17.    Distribution  of  net  profits  of  the  railway. 

"  §  18.  Functions  of  Board  of  Management,  the  seals  of  which  will  be  at  Peking  and 
St.   Petersburg. 

"  §  19.  Constitution  of  the  Board,  which  is  to  consist  of  nine  members  elected  by  the 
shareholders.  The  Chairman  is  to  be  appointed  by  the  Chinese  Government ;  the  Vice- 
Chairman  is  to  be  chosen  by  the  members  of  the  Board   from  among  themselves. 

"§20.    Order  of  transaction  of  the  business  of  the  Board. 

"§21.  General  meetings  of  shareholders  and  the  subjects  that  shall  come  under  their 
notice. 

"  §  22.    Order  of  convening  general  meetings. 

"  §  23.    Conditions  under  which  general  meetings  shall  be  recognized  as  legally  held. 

"§24.    Participation  of  shareholders  in  proceedings  of  general  meetings. 

"§25.    Local  management  of  works  of  construction. 

"  §  26.    Local  management  of  railway  when  in  working  order. 

"§27.    Questions  to  be  submitted   for  confirmation  by   Russian   Minister   of   Finances. 

"§28.    Committee  of  audit.] 

"  Gratuitous  Entrance  into  Possession  of  Railway  by  Chinese  Government. — 
§  29.  In  accordance  with  the  Agreement  concluded  with  the  Chinese  Government,  the  lat- 
ter, after  the  expiration  of  eighty  years  of  possession  of  the  railway  by  the  Company, 
enters  into  possession  of  it  and  its  appurtenances. 

"  The  reserve  and  other  funds  belonging  to  the  Company  shall  be  employed  in  paying 
the  money  due  to  the  Russian  Government  under  the  guarantee  (§  16)  and  in  satisfaction 
of  other  debts  of  the  Company,  and  the  remainder  shall  be  distributed  among  the  share- 
holders. 

"  Any  money  that  may  remain  owing  by  the  Company  to  the  Russian  Government 
at  the  expiration  of  eighty  years  in  respect  of  the  guarantee  shall  be  written  off. 

"  The  Russo-Chinese  Bank  will  incur  no  responsibility  in  respect  of  the  same. 

"  Right  of  the  Chinese  Government  to  Acquire  the  Railway  on  the  Expiration  of 
Thirty-six  Years. — §  30.  In  accordance  with  the  agreement  concluded  with  the  Chinese 
Government,  on  the  expiration  of  thirty-six  years  from  the  time  of  completion  of  the 
whole  line  and  its  opening  for  traffic,  the  Chinese  Government  has  the  right  of  acquiring 
the  line,  on  refunding  to  the  Company  in  full  all  the  outlays  made  on  it,  and  on  payment 
for  everything  done  for  the  requirements  of  the  railway,  such  payments  to  be  made  with 
accrued  interest. 

"  It  follows  as  a  matter  of  course  that  the  portion  of  the  share  capital  which  has  been 
amortized  by  drawing  and  the  part  of  the  debt  owing  to  the  Russian  Government  under 
the  guarantee  and  repaid  out  of  the  net  profits  (§  17)  will  not  constitute  part  of  the 
purchase   money. 

"  In  no  case  can  the  Chinese  Government  enter  into  possession  of  the  railway  before 
it  has   lodged   in   the   Russian    State   Bank   the  necessary   purchase   money. 

_"  The  purchase  money  lodged  by  the  Chinese  Government  shall  be  employed  in 
paying  the  debt  of  the  Company  under  its  bonds  and  all  sums,  with  interest,  owing  to  the 
Russian  Government,  the  remainder  of  the  money  being  then  at  the  disposal  of  the 
shareholders." 

See,  also,  the  first  supplement  to  the  charter,  February  5/17,  1899,  printed  at  p.  157, 
post,  as  an  annex  to  the  Agreement  concerning  the  Southern  Manchurian  Branch  of  the 
Chinese  Eastern  Railway,  July  6,  1898  (No.  1898/15,  post). 

Note  4. 

See  in  this  connection  the  agreements  of  July  5/18,  1901  (No.  1901/2)  and  January  1/14, 
1902  (No.  1902/1,  post),  in  regard  to  the  jurisdiction  over  Chinese  subjects.  As  to  the 
jurisdiction  over  Russian  subjects  in  the  zone  of  the  Chinese  Eastern  Railway,  consult 
the  Ukazto  the  Governing  Senate  on  that  subject,  under  date  of  July  20/August  2, 
1901 — originally  secret,  but  subsequently  made  public  in  the  course  of  a  judicial  proceeding 
— of  which  the  translation  is  as  follows : 

Russian  Imperial  Ukaz  regarding  Jurisdiction  in  Chinese  Eastern  Railway  Zone. — 

August  2,  1901. 

"The  construction  of  the  Chinese  Eastern  Railway  and  the  realization  of  the  enter- 
prises dependent  upon  it  have  attracted  a  great  number  of  Russians  to  the  line  of  the 
railway,  which  passes  through  the  territories  of  China,  where  Our  subjects,  by  virtue  of  the 
treaties  concluded  between  the  Imperial  Government  and  the  Government  of  the  Bogdokhan, 
have  the_  right  of  being  judged  in  accordance  with  Russian  laws.  Desiring  to  place  on  a 
firm  basis  of  justice  the  actions  that  may  arise  between  Russian  subjects  on  the  line  of 
exploitation  of  the  above-mentioned  railway.  We  have  found  it  good  to  submit  these 
actions  to  the  competence  of  the  nearest  tribunals  of  the  Empire. 


NUMBER  1896/5:  SEPTEMBER  8,  1896:  NOTES  89 

"Having  studied  and  approved  the  proposals  elaborated  on  this  subject  by  a  Special 
Commission  under   Our  orders,  We  decree:  ,   •      • 

'•  1. — In  order  to  enforce  justice  and  preventive  measures  upon  the  line  of  exploitation 
of  the  Chinese  Eastern  Railway,  in  matters  which  are  within  the  competence  of  the 
Russian  judicial  authorities,  to  establish  the  posts  of  Justices  of  the  Peace,  submitting 
the  above-mentioned  line  of  exploitation  to  the  jurisdiction  of  the  nearest  district  courts 
of  the  Empire.  ... 

"2.— To  define  as  follows  the  jurisdiction  of  the  judicial  institutions  mentioned  in 
§1: 

"a)  The  competency  of  these  institutions  includes  matters  arising  on  the  line  of 
exploitation  of  the  Chinese  Eastern  Railway  between  Russian  subjects  exclusively,  and 
particularly,  in  criminal  matters,  where  the  accused  and  the  injured  parties  are  Russians, 
and  in  civil  matters,  where  both  sides,  plaintiff  and  defendant,  are  Russian  subjects:  the 
judicial  institutions  act,  in  the  examination  and  decision  of  cases,  as  well  as  in  preliminary 
investigations,  in  accordance  with  §§  84,  88,  89  and  90  of  the  Temporary  Regulations  for 
the  Administration  of  the  Kwantung  Region. 

"b)  The  Russian  judicial  authorities  have  the  right  to  make  preliminary  investiga- 
tions in  criminal  matters  arising  on  the  above-mentioned  line,  when  the  identity  of  the 
accused  person  is  unknown  but  the  injured  party  is  a  Russian  subject;  but  if  in  the 
course  of  the  inquiry  it  appears  that  the  accused  person  is  not  a  Russian  subject,  the 
case  .should  be  referred  to  the  proper  quarter  by  the  official  of  the  Ministry  for  Foreign 
Affairs  stationed  in  Manchuria,  or  by  the  Russian  Consul  in  Xewchang  if  the  matter 
arose  within  the  limits  of   the  above-mentioned  open  port. 

"  c)  To  extend  the  arrangement  outlined  in  this  paragraph  to  the  Southern  Branch 
of  the  Chinese  Eastern  Railway,  with  the  exception  of  that  portion  of  it  which  traverses 
the  Kwantung  Region. 

"3._To  transfer  to  the  Governor-General  of  the  Amur  Region,  in  so  far  as  concerns 
matters  that  arise  within  the  jurisdiction  of  the  Justices  of  the  Peace  who  are  under 
the  control  of  the  district  courts  of  the  Governor-General  of  the  Amur  Region,  the  rights 
and  duties  attaching  to  the  chief  of  the  Kwantung  Region  in  those  cases  specified  in 
Remark  (a)  to  Article  96  of  the  Temporary  Regulations  for  the  Administration  of  the 
Kwantung  Region. 

"  4. — To  impose  upon  the  frontier  guards  of  the  Trans-Amur  Region  the  duty  of 
executing  the  judgment  and  orders  of  the  Justices  of  the  Peace  and  other  legal  institutions, 
as  well  as  the  serving  of  summons  and  other  documents  on  the  parties,  on  the  line  of  the 
Chinese    Eastern    Railway. 

"5. — In  supplement  to  the  present  arrangements  of  those  judicial  institutions,  to  in- 
stitute for  each  of  the  district  courts  of  Vladivostok  and  Chita,  as  well  as  for  the  Appeal 
Court  of  Irkutsk,  the  post  of  Assistant  Prosecutor  in  each  of  these  tribunals. 

"  6. — To  give  to  each  of  the  officials  mentioned  above  in  §§  1  and  5  the  maintenance, 
rights  and  privileges  established  by  the  Temporary  Regulations  for  the  Administration 
of  the  Kwantung  Region  for  the  Justices  of  the  Peace  of  that  Region  and  for  the  Assistant 
Prosecutor  of  the  District  Court  of  Port  Arthur,  with  the  exception  that  they  are 
to   receive   lodgings   instead   of  an   allowance   for  that   purpose. 

"  7. — To  entrust  to  the  Minister  of  Justice,  after  a  preliminary  understanding  with 
the  Minister  of  Finance,  the  appointment  of  the  Justices  of  the  Peace  established  on  the 
line  of  the  Chinese  Eastern  Railway,  and  the  determination  of  their  number,  their  place 
of  residence,  and  their  dependence  upon  the  District  Courts  of  the  Empire. 

"  8. — To  insert  annually  in  the  budget  of  the  Ministry  of  Justice  the  sums  necessary 
for  the  maintenance  of  the  officials  mentioned  in  §§  1  and  5,  to  an  amount  to  be  determined 
by  the  Minister  of  Justice  in  accord  with  the  Minister  of  Finance,  and  in  reimbursement 
of  this  expenditure  by  the  State,  to  demand  from  the  treasury  of  the  Chinese  Eastern 
Railway  the  payment  of  a  sum  equivalent  to  this  amount.  Apart  from  the  yearly  pay- 
ment of  the  said  sum,  to  impose  upon  the  said  Company  the  obligation  :  (a)  To  furnish 
the  Justices  of  the  Peace  and  the  Assistant  Prosecutors,  on  the  line  of  the  Chinese  Eastern 
Railway,  lodgings  and  their  transportation  within  the  limits  of  their  districts;  and  (b) 
To  reimburse  to  the  Government  Treasury  all  expenses  incurred  by  them  and  all  the 
transportation  money  and  all  sums  established  by  law  for  their  'maintenance  during  their 
transit  to  their  posts. 

"  9. — To  give  the  Chinese  Eastern  Railway  Company  the  right  to  sue  civil  cases  and 
to  be  defendant  in  civil  cases,  in  matters  concerning  its  property,  upon  the  terms  specified 
in  Section  I,  Book  III,  of  the  Code  of  Civil  Procedure  (Articles  1282-99  [Relating  to  suits 
by  or  against  Governmental  institutions. — Editor.]  ;  Volume  XVI,  Chapter  I,  Collection 
of  Laws,  edition  of  1892),  and  with  the  application  of  the  provisions  contained  in  Remark 
2  to  Article   1289  of  the   Code  of   Civil   Procedure. 

"  10. — To  extend  to  employees  of  the  Chinese  Eastern  Railway,  in  respect  to  criminal 
prosecutions  against  them  for  wrong-doing  in  the  course  of  their  functions,  and  claims 
against  them  for  loss  or  damage  due  to  their  carelessness,  neglect  or  delay,  the  pro- 
visions established  in  Articles  1066-1123  of  the  Judicial  Regulations  and  1316-1330  of  the 


90  CHINA  TREATIES  AND  AGREEMENTS 

Code  of  Civil  Procedure  [Relating  to  claims  against  Government  agents  and  officials  in 
connection  with  their  functions. — Editor]  (Collection  of  Laws,  Volume  XVI,  Chapter  I, 
edition   of   1892). 

"  11. — To  put  the  above  regulations  into  force  at  a  time  to  be  determined  by  the 
Ministers  of  Justice  and  Finance. 

"  12. — Not  to  publish  the  present  ukaz  for  general  information. 

"On  the  original  is  the  signature  of  His  Imperial  Majesty,  in  his  own  hand, 

"  Nikolai." 
Note  5. 

Agreements  for  the  expropriation  of  lands  required  for  railway  purposes  in  the  Man- 
churian  Provinces  of  Heilungkiang  and  Kirin  were  concluded  on  August  30,  1907  (Nos. 
1907/13  and  1907/14,  post). 

An  agreement  concerning  timber  concessions  in  Kirin  Province  was  signed  on  the  same 
date  (No.  1907/15,  post),  and  an  agreement  for  similar  concessions  in  Heilungkiang 
Province  on  April  5,  1908  (No.  1908/6,  post). 

With  the  text  of  the  railway  contract,  as  given  in  Soglashenia,  is  printed  (at  p.  8)  the 
French  text  of  a  letter  from  the  Chinese  Minister  to  the  representative  of  the  bank,  dated 
September  8th,  of  which  the  body  reads   (in  translation)   as  follows: 

"In  discussing  §6  of  the  contract  signed  to-day,  you  have  drawn  my  attention  to  the 
question  of  coal.  I  have  taken  note  of  the  observations  you  made  to  me  in  that  regard, 
and  shall  not  fail  to  make  a  report  to  the  Tsungli  Yamen  on  that  subject,  emphasizing  the 
importance  of  granting  the  Company  the  most  favorable  terms  for  the  working  of  such 
coal  mines  as  may  be  found  in  the  neighborhood  of  the  line  of  the  (Chinese)  Eastern  Rail- 
way." 

See  the  Agreements  for  the  mining  of  coal  in  the  Provinces  of  Heilungkiang  and  Kirin, 
August  30,   1907   (No.   1907/12,  post). 

Note  6. 

In  connection  with  Article  9,  it  is  to  be  noted  that  under  date  of  August  7,  1917,  the 
Russian  Legation  at  Peking  addressed  to  the  Legations  of  other  friendly  nations  there  a 
note  verbale  of  which  the  translation  is  given  herewith,  requesting  their  assent  to  an  exten- 
sion of  the  passport  control  exercised  by  the  Russian  authorities  within  the  zone  of  the 
Chinese  Eastern  Railway,  as  a  temporary  measure  necessitated  by  conditions  arising  out  of 
the  war : 

Temporary  Agreement  regarding  Passport  Control  in  Chinese  Eastern  Railway 

Zone. — August,  1917. 

"The  special  administrative  system  in  force  upon  the  territory  of  the  Chinese  Eastern 
Railway,  arising  out  of  the  fact  that  this  Russian  railway  passes  through  Chinese  territory, 
renders  very  difficult  the  effective  surveillance  of  the  Russian  frontier  on  the  borders  of 
Manchuria.  It  is  because  of  this  that  a  great  number  of  criminals,  anarchists,  and  espe- 
cially  enemy  spies,  have  succeeded  in  entering  Russia  by  that  route. 

"  A  serious  control  over  all  persons,  both  Russian  and  foreign,  proceeding  into  Russia 
by  way  of  Manchuria,  could  be  rendered  really  effective  only  if  it  were  possible  to  subject 
foreigners — upon  their  arrival  at  the  terminal  stations  of  the  railway  mentioned  above,  as 
well  as  during  their  sojourn  at  Harbin  and  other  places  upon  the  territory  conceded  to  the 
railway — to  the  passport  regulations  of  which  the  observance  is  compulsory  for  their  entry 
and  for  their  sojourn  in  Russia. 

"  It  would,  in  particular,  be  necessary  to  require  every  foreigner  proceeding  into 
North  ^lanchuria— that  is,  in  the  case  of  those  proceeding  there  by  railway  from  the  Kwang- 
chengtze-Changchun  station— to  observe  the   following  rules: 

"1 — He  should  be  furnished  with  a  national  passport,  in  good  order; 

"2 — His   photograph    should   be   attached   to  the   passport; 

"3 — The  passport  should  be  visaed  by  the  competent  Russian  authority;  and 

"4 — The  passport  should  embody  an  indication  whether,  as  the  case  may  be,  the  bearer 
is  by  birth  of  the  nationality  that  he  acknowledges,  or  whether  he  acquired  it  by  the 
process  of  naturalization. 

"  Consent  to  the  observance  of  these  rules,  on  the  part  of  their  nationals,  is  hereby 
requested  of  the  Legations  resident  in  Peking, 

"  It  goes  without  saying  that  these  rules,  having  no  other  object  than  that  specified 
above,  will  be  obligatory  only  for  the  period  of  the  war  now  in  progress.  They  are  in  no 
way  designed  to  create  vested  rights  based  on  precedents." 

Acceptances  of  this  proposal  were  communicated  to  the  Russian  Legation  as  follows : 
In  behalf  of  Italy,  August  7,  1917;  Netherlands,  August  11,  1917;  France,  August  17,  1917; 
Great  Britain,  August  17,  1917;  Belgium,  August  20,  1917;  United  States,  August  30.  1917. 


NUMBER  1896/6:  OCTOBER  19,  1896  91 

Note  7. 

To  the  text  of  the  contract  as  printed  in  Wang  is  appended  (at  p.  11)  a  copy  of  a 
letter  addressed  to  the  Chinese  Minister  by  the  representative  of  the  bank,  under  date  of 
September  2,  1896,  of  the  body  of  which  the  translation  is  as  follows: 

"  I  have  the  honor  to  avail  myself  of  Your  Excellency's  permission  to  confirm  to  you 
that  the  accounts  of  the  railway  to  be  constructed  will  be  made  up  annually  and  will  be 
published  officially.  This  report  will  present  the  status  of  the  several  accounts,  the  receipts 
and  expenses  for  operation  and  also  for  the  service  of  debts,  loans,  etc.  The  eventual 
repurchase  would  be  effected  on  the  basis  of  these  balances  as  published  annually.  The 
detailed  conditions  of  repurchase  will  be  provided  for  in  the  Company's  charter  (i.e.,  statuts 
de  la  Societe)." 

See  the  exchange  of  Notes  between  China  and  Japan  concerning  the  extension  of  the 
term  of  lease  of  the  South  Manchuria  Railway,  etc.,  May  25,  1915  (No.  1915/8,  post). 


NUMBER  1896/6. 

JAPAN  AND  CHINA. 

Protocol  concerning  Japanese  settlements,  inland  navigation,  taxes  on  manufac- 
tures, etc.*— October  19,  1896. 

Baron  Hayashi  Tadasu,  Shoshii,  Grand  Cross  of  the  Imperial  Order  of  the 
Sacred  Treasure,  Envoy  Extraordinary  and  Minister  Plenipotentiary  for  Japan; 
and  Ching,  Jung,  and  Chang,  the  Ministers  charged  with  Foreign  Affairs  of  the 
Empire  of  China; 

have  agreed  upon  and  concluded  the  following  four  Articles : — 

Art.  1. — It  is  agreed  that  Settlements  to  be  possessed  exclusively  by  Japan 
shall  be  established  at  the  towns  and  ports  newly  opened  to  trade.  The  man- 
agement of  roads  and  local  police  authority  shall  be  vested  solely  in  the  Japanese 
Consuls. 

Art.  2. — Matters  relating  to  steamboats  and  chartered  or  owned  vessels 
referred  to  in  the  provisional  Regulations  for  the  trade  conducted  by  foreign 
merchants  between  Soochow,  Hang-chow  and  Shanghai,  issued  by  the  Shang- 
hai Customs  on  the  3rd  day  of  the  8th  month  of  the  22nd  year  of  Kuang  Hsii  f 
shall  be  settled  conjointly  with  Japan,  and  until  such  settlement  is  conjointly 
arrived  at  the  Yang-tsze  Regulations  shall  be  enforced  so  far  as  they  are  appli- 
cable. 

Art.  3. — The  Japanese  Government  will  consent  to  the  imposition  by  the 
Chinese  Government  of  such  tax  as  may  be  deemed  expedient  upon  articles  manu- 
factured by  Japanese  subjects  in  China,  but  such  tax  shall  not  be  different  from, 
or  exceed,  the  amount  payable  by  Chinese  subjects. 

Upon  the  request  of  the  Japanese  Government  the  Chinese   Government 

*  Translation  from  the  Chinese  text  as  printed  in  Customs,  Vol.  II,  p.  615.  Other 
translations  printed  in  Rockhill,  p.  39;  For.  Rel.  of  the  U.  S.,  1907,  p.  97;  Hertslet,  p.  382; 
Recueil,  p.  236.    See  Note  to  this  document,  post,  p.  92. 

t  September  9,  1896. 


92  CHINA  TREATIES  AND  AGREEMENTS 

will  promptly  give  their  consent  to  the  establishment  of  Settlements  possessed 
exclusively  by  Japan  at  Shanghai,  Tientsin,  Amoy  and  Hankow. 

Art.  4. — Telegraphic  instructions  will  be  sent  to  the  Governor  of  Shantung 
to  the  effect  that,  in  accordance  with  treaty  stipulations,  no  Chinese  troops 
shall  be  permitted  to  approach  or  occupy  any  ground  within  a  distance  of  5 
Japanese  ri,  that  is,  about  40  Chinese  li,  from  the  boundaries  of  the  territory 
occupied  by  the  Japanese  troops. 

In  witness  whereof  a  Japanese  and  a  Chinese  version  of  the  above  have 
been  prepared,  each  in  duplicate,  and  having  been  compared  together  have  been 
signed  and  sealed,  each  party  retaining  one  copy  of  each  version. 
The  19th  day  of  the  10th  month  of  the  29th  year  of  Meiji. 

Hayashi  Tadasu. 
The  13th  day  of  the  9th  month  of  the  22nd  year  of  Kuang  Hsii. 

Ching  Hsin. 
Jung  Lu. 
Chang  Yin  Huan. 


Note. 

In  connection  with  this  protocol  see  also  the  Sino-Japanese  commercial  treaties  of  July 
21,  1896  (No.  1896/4,  ante),  and  October  8,  1903  (No.  1903/4,  post). 

The  followmg  is  the  translation  as  printed  in  B.  &  F.  State  Papers,  vol.  94,  p.  1317, 
of  the  agreement  between  the  Japanese  and  Chinese  Governments  for  the  establishment  of 
a  Japanese  Settlement  at  Shashi,  concluded  August  18,  1898,  and  approved  by  the  Japanese 
Foreign  Office  on  December  2,  1898: — 

Agreement  for  Establishment  of  Japanese  Settlement  at  Shashi. — August  i8,  1898. 

"  Article  1. — Starting  from  the  western  boundary  of  the  Government  land,  Kungchow, 
foreign  wharf,  Shashi  port,  and  followmg  the  south-east  course  of  the  Changkiang,  the 
land  in  a  straight  line  for  a  distance  of  3,800  shaku  (3,777  99/100  feet),  with  a  breadth  of 
800  shaku  795  36/100  feet)  from  the  said  western  boundary  of  not  more  than  800  shaku 
(795  36/100  feet),  and  for  the  remaining  3,000  shaku  (2,982  63/100  feet)  of  1,200  shaku 
(1,193  5/100  feet)  is  fixed  upon  for  a  Settlement  exclusively  under  Japanese  control.  (See 
separate  Plan.) 

"  If  in  future  another  foreign  Settlement  is  established,  it  shall  be  marked  out  on  a 
situation  below  the  Japanese  Settlement. 

"  Article  2. — All  roads,  bridges,  drains,  wharves,  and  embankments,  and  the  power  of 
police  within  the  Settlement,  shall  be  under  the  official  control  of  the  Japanese  Consulate. 
The  Japanese  Consulate  may  construct  or  repair  such  roads,  bridges,  and  drains  at  any 
time,  and  the  Chinese  authorities  shall  not  be  able  to  interfere  in  the  matter. 

"  Article  3. — For  the  safety  of  the  Settlement,  and  as  a  precaution  against  the  entrance 
of  water,  strong  embankments  shall  be  constructed. 

"  The  expenses  of  construction,  and  the  purchase  price  necessary  for  sites  for  the 
building  of  embankments,  shall  be  calculated  by  the  delegates  of  the  two  countries  (China 
and  Japan),  after  consultation,  and  China  shall  be  responsible  for  half  the  amount. 

"Article  4. — Sites  within  the  Settlement  shall  be  divided  into  three  classes,  and  the 
price  of  land  per  se  (3  92/100  square  poles),  in  each  class  is  fixed  as  follows.  (See  separate 
Table.) 

"  Sites  leased  during  the  period  beginning  with  the  day  on  which  these  Articles  go 
into  operation,  and  ending  with  the  close  of  the  next  Chinese  year  (Kwocho  [Kuanghsij] 
26th  year),  shall  be  per  se  (3  92/100  square  poles),  for  first  class  lots  100  dollars,  for 
second  class  lots  80  dollars,  for  third  class  lots  50  dollars. 

"  On  lots  leased  during  the  four  years  after  Kwocho  [Kuanghsii]  27th  year  (the 
Chinese  year  after  next)  there  shall  be  an  increase  per  annum  of  5  dollars. 

"  As  regards  sites  leased  after  the  expiration  of  the  above  period,  the  basis  of  value 
shall  be  fixed  at  120  dollars  for  first  class,  100  dollars  for  second  class,  and  70  dollars  for 
third  class  sites,  that  is  to  say,  the  price  in  the  fourth  year  mentioned  in  the  preceding 
clause,  and  they  may  at  any  time  be  disposed  of  at  auction. 


NUMBER  1896/6:  OCTOBER  19,  1896:  NOTE  93 

"  For  the  lease  of  the  above  sites  it  shall  not  be  necessary  to  pay  to  China  any  other 
tax  than  1,000  Chinese  cash  per  se  (3  92/100  square  poles)  annually  as  ground  rent. 

■•  The  classification  of  sites  shall  be  discussed  and  settled  between  the  Japanese  Con- 
sulate and  the  Chinese  local  authorities. 

■'  Article  5. — The  price  of  sites  provided  for  roads  and  drains  within  the  Settlement 
shall  be  fixed  per  se  (3  92/100  square  poles)  at  20  dollars  for  first  class,  16  dollars  for 
second  class,  and  10  dollars  for  third  class  sites,  and  the  Japanese  Consulate  shall  hand 
the  amount  to  the  Chinese  local  authorities  at  the  time  of  the  commencement  of  the  work. 

■'  It  shall  not  be  necessary  to  pay  to  the  Chinese  Government  any  ground  rent  or  other 
taxes  in  respect  of  the  above  sites. 

"  Article  6. — A  person  wishing  to  lease  in  perpetuity  a  site  within  the  Settlement 
shall  send  in  an  application  to  the  Japanese  Consulate,  mentioning  clearly  in  writing  the 
site  he  requires.  The  Japanese  Consulate  shall,  after  making  an  examination  of  the  site, 
collect  the  fixed  price  according  to  the  nature  of  the  site,  and  hand  it  to  the  Chinese  local 
authorities.  The  Chinese  local  authorities  shall  prepare  a  title-deed  in  triplicate,  and 
transmit  it  to  the  Japanese  Consulate;  and  the  Japanese  Consulate  shall  affix  their  seal  to 
it,  give  one  copy  to  the  lessee,  return  one  to  the  Chinese  local  authorities,  and  keep  one 
in  the  Japanese  Consulate.  Should  the  lessee  lose  the  title-deed  by  water,  fire,  robbery,  or 
other  cause,  he  may  apply  for  the  issue  of  a  fresh  title-deed.  As  regards  the  form  of  the 
title-deed,  the  Chinese  local  authorities  and  the  Japanese  Consulate  shall  consult  and  decide. 

"Article  7.— After  Kwocho  [Kuanghsii]  31st  year  (six  years  hence),  if  any  person 
wishes  to  lease  a  site  in  perpetuity,  the  Japanese  Consulate  shall  notify  its  disposal  by 
auction  on  a  date  from  fifteen  to  twenty  days  from  the  date  of  application,  and  it  shall  be 
so  disposed  of  in  the  presence  of  the  local  authorities.  The  law  regarding  disposal  of  a 
site  by  auction  shall,  however,  be  that  it  shall  always  be  leased  to  the  highest  bidder.  If  it 
happens  that  two  or  more  persons  bid  the  same  price,  it  shall  be  put  up  again  for  auction. 
When  the  lessee  has  been  determined,  he  shall  be  required  to  pay  at  once  one-fifth  of 
the  price  of  the  site  as  a  deposit,  and  the  remainder  entirely  within  one  month.  The 
procedure  in  remitting  the  price,  and  the  method  of  issuing  the  title-deed  shall  be  similar 
to  that  provided  for  in  the  previous  Article. 

"  Article  8. — The  ground  rent  payable  by  the  lessee  shall  be  collected  each  year  by 
the  Japanese  Consulate,  and  handed  over  to  the  Chinese  local  authorities  on  the  15th  day 
of  the  4th  moon  (Chinese  calendar).  The  Chinese  local  authorities  shall  send  a  receipt 
to  the  Japanese  Consulate.  Under  extraordinary  circumstances,  the  Consul  shall,  after  the 
matter  has  been  settled,  collect  additional  ground  rent  and  hand  it  over. 

"  Article  9. — Chinese  and  foreigners  are  permitted  to  reside  and  carry  on  business 
in  the  Settlement.  But  they  have  none  of  the  rights  of  lease  specified  in  these  Articles. 

"  Article  10. — When  the  lessee  desires  to  sell  or  transfer  his  right  to  the  land  leased, 
both  parties  shall  make  application  in  a  joint  letter  to  the  Japanese  Consulate.  When  the 
Japanese  Consulate  considers  that  there  is  no  objection,  the  Chinese  authorities  shall  be 
communicated  with,  and  they  shall  make  out  a  new  title-deed. 

"  Article  11. — The  fees  for  removing  buildings  connected  with  graves  in  the  Settlement 
shall,  at  any  time,  be  discussed  and  settled  between  the  Japanese  Consulate  and  the  Chinese 
local  authorities. 

"  The  Chinese  authorities  shall  strictly  prohibit  the  additional  construction  of  buildings 
connected  with  graves  in   future. 

■■  Article  12. — The  Japanese  Consulate  may  at  any  time  make  regulations  and  levy 
dues  from  vessels  stopping  at  the  wharves,  and  apply  the  proceeds  to  the  expenses  of  the 
Settlement. 

"  Article  13. — When  it  is  desired  to  repair  the  wharves  within  the  Settlement,  or  erect 
hulks,  a  spot  shall  be  chosen  which  does  not  interfere  with  the  passing  to  and  fro  of 
merchant-vessels,  after  consultation  between  the  Japanese  Consulate  and  the  Commissioner 
of  Customs. 

"Article  14. — It  shall  not  be  permitted  to  construct  within  the  Settlement  buildings 
thatched  with  straw  or  rushes,  or  inferior  shingles,  or  to  store,  carry,  or  transport  gun- 
powder, explosives,  or  other  goods  dangerous  to  life  and  property. 

"  But  when  it  is  desired  to  make  use  of  explosives  under  unavoidable  circumstances, 
an  application  shall  be  made  to  the  Japanese  Consulate  stating  the  nature  of  the  use  to  which 
they  are  to  be  put,  and  permission  obtained. 

"  Article  15. — The  Chinese  local  authorities  shall,  in  consultation  with  the  Japanese 
Consulate,  establish  a  IMixed  Court  in  the  Settlement.  The  Rules  (of  the  Court)  shall 
follow  the  Shanghai  precedent. 

"  Article  16. — Should  it  be  desired  in  future  to  choose  a  suitable  lot  and  establish 
specially  a  cemetery  for  Japanese,  the  Japanese  Consulate  and  the  Chinese  local  authorities 
shall  at  any  time  agree  on  the  matter. 

"Article  17. — If  any  points  superior  to  what  are  specified  in  these  Articles  are  at 
present  permitted,  or  shall  in  future  be  permitted,  to  other  foreigners,  Japanese  residents 
also  shall  equally  enjoy  them  all. 

"  These   Articles   shall   be   prepared   in    duplicate   in   Japanese  and    Chinese,   and    after 


94  CHINA  TREATIES  AND  AGREEMENTS 

being  signed  and  sealed  either  Party  shall  keep  one  copy  in  witness  thereof.     It  is  agreed 
that  they  shall  take  effect  after  the  sanction  of  the  Governments. 

■■   (L.S.)       NOGATAKI    HiSAKICHI, 

"2nd  Class  Imperial  Japanese   Consul  stationed  at  Shashi. 

"  (L.S.)       YU   TSANG   YlNG. 

"The  separate  Table  and  separate  Plan  are  kept  at  the  Foreign  Office  [Tokio]. 
"  August  18,  1898." 


NUMBER  1897/1. 

GREAT  BRITAIN  AND  CHINA. 

Agreement  modifying  the  convention  of  March  1,  1894,  relative  to  Burmah  and 

Tibet.* — February  4,  1897. 

In  consideration  of  the  Government  of  Great  Britain  consenting  to  waive 
its  objections  to  the  alienation  by  China,  by  the  Convention  with  France  of  the 
20th  June,  1895,  of  territory  forming  a  portion  of  Kiang  Hung,  in  derogation  of 
the  provisions  of  the  Convention  between  Great  Britain  and  China  of  the  1st 
March,  1894,  it  has  been  agreed  between  the  Governments  of  Great  Britain  and 
China  that  the  following  additions  and  alterations  shall  be  made  in  the  last-named 
Convention,  hereinafter  referred  to  as  the  original  Convention : — 

Article  I. — Frontier  line. — It  is  agreed  that  the  frontier  between  the  two 
Empires  from  latitude  25  °  35'  north  shall  run  as  follows : 

Commencing  at  the  high  peak  situated  approximately  in  that  latitude  and  in 
longitude  98°  14'  east  of  Greenwich  and  18°  16'  west  of  Peking,  the  line  shall 
follow,  as  far  as  possible,  the  crest  of  the  hills  running  in  a  south-westerly 
direction  to  Warung  Peak  (Kaulyang),  and  shall  extend  thence  to  Sabu  Pum. 

From  Sabu  Pum  the  frontier  shall  run  in  a  line  along  the  watershed  slightly 
to  the  south  of  west  through  Shatrung  Pum  to  Namienku  Pum. 

Thence  it  shall  follow  a  line  to  be  fixed  after  local  investigation,  dividing 
the  Szis  and  the  Kumsas  as  far  as  the  Tabak  Kha ;  thence  the  Tabak  Kha  to  the 
Namtabet ;  thence  the  Namtabet  to  the  Paknoi  Kha ;  thence  the  Paknoi  Kha  to 
its  source  near  Talang  Pum ;  thence  the  Talang  Pum  ridge  to  Bumra  Shikong. 

From  Bumra  Shikong  the  frontier  shall  follow  a  line  running  in  a  south- 
west direction  to  the  Laisa  Kha ;  thence  the  Laisa  Kha  to  the  Mole  stream,  run- 
ning between  Kadon  and  Laisa ;  thence  the  Mole  to  its  confluence  with  the 
Cheyang  Kha ;  thence  the  Cheyang  Kha  to  Alaw  Pum ;  thence  the  Nampaung 
stream  to  the  Taping. 

*  Text  as  printed  in  Rockhill,  p.  40,  from  B.  &  F.  State  Papers,  1896-7,  vol.  49,  p.  25. 
Printed  also  in  Customs,  Vol.  I,  p.  532;  Hertslct,  p.  113;  Recueil,  p.  241;  British  Treaty 
Series,  1897.  No.  7. 

In  connection  with  this  agreement  see  the  Convention  of  March  1.  1894  CNo.  1894/1, 
ante),  particularly  Article  5  and  the  footnotes  thereto;  also  the  Franco-Chinese  delimitation 
convention  of  June  20,  1895  (No.  1895/4),  and  the  Anglo-French  declaration  of  January 
15,  1896  (No.  1896/1,  ante)  ;  also  the  Anglo-Chinese  convention  respecting  Tibet,  .April  27, 
1906  (No.  1906/2,  post). 


NUMBER  1897/1:  FEBRUARY  4,  1897  95 

THE    TAPING    TO    THE    SHWEtl    RIVER. 

II. — From  the  junction  of  the  Taping  and  the  Nampaung  streams  the 
frontier  shall  follow  the  Taping  to  the  neighbourhood  of  the  Lwalaing  ridge; 
thence  a  line  running  approximately  along  the  Lwalaing  ridge  and  the  Lwalaing 
stream  to  the  Namwan ;  thence  the  Namwan  to  its  junction  with  the  Shweli. 

Great  Britain  engages  to  recognize  as  belonging  to  China  the  tract  to  the 
south  of  the  Namwan  River,  near  Namkhai,  which  is  enclosed  to  the  west  by  a 
branch  of  the  Nam  Mak  River  and  the  Mawsiu  range  of  hills  up  to  Loi  Chow 
Peak,  and  thence  by  the  range  running  in  a  north-easterly  direction  to  the 
Shweli  River. 

Jurisdiction. — In  the  whole  of  this  area  China  shall  not  exercise  any  juris- 
diction or  authority  whatever.  The  administration  and  control  will  be  entirely 
conducted  by  the  British  Government,  who  will  hold  it  on  a  perpetual  lease  from 
China,  paying  a  rent  for  it,  the  amount  of  which  shall  be  fixed  hereafter. 


THE  SHWELI  TO  THE   MEKONG. 

III. — From  the  junction  of  the  Namwan  and  Shweli  the  frontier  shall 
follow  the  northern  boundary  of  the  State  of  North  Hsinwi,  as  at  present  con- 
stituted, to  the  Salween,  leaving  to  China  the  loop  of  the  Shweli  River,  and  almost 
the  whole  of  Wanting,  Mong-ko,  and  Mong-ka. 

Starting  from  the  point  where  the  Shweli  turns  northward  near  Namswan, 
i.  e.  from  its  junction  with  the  Namyang,  the  frontier  shall  ascend  this  latter 
stream  to  its  source  in  the  Mong-ko  Hills,  in  about  latitude  24°  7'  and  longitude 
98°  15',  thence  continue  along  a  wooded  spur  to  the  Salween  at  its  junction 
with  the  Namoi  stream.  The  line  shall  then  ascend  the  Salween  till  it  meets 
the  northwest  boundary  of  Kokang,  and  shall  continue  along  the  eastern  frontier 
of  Kokang  till  it  meets  the  Kunlong  circle,  leaving  the  whole  circle  of  Kunlong 
to  Great  Britain. 

The  frontier  shall  then  follow  the  course  of  the  river  forming  the  boundary 
between  Somu,  which  belongs  to  Great  Britain,  and  Meng  Ting,  which  belongs  to 
China.  It  shall  still  continue  to  follow  the  frontier  between  those  two  districts, 
which  is  locally  well-known,  to  where  it  leaves  the  aforesaid  river  and  ascends 
the  hills,  and  shall  then  follow  the  line  of  water  parting  between  the  tributaries 
of  the  Salween  and  the  Mekong  Rivers,  from  about  longitude  99°  east  of 
Greenwich  (17°  30'  west  of  Peking),  and  latitude  23°  20',  to  a  point  about 
longitude  99°  40'  east  of  Greenwich  (16°  50'  west  of  Peking)  and  latitude 
23°,  leaving  to  China  the  Tsawbwaships  of  Keng  Ma,  Mengtung,  and  Mengko. 

At  the  last  named  point  of  longitude  and  latitude  the  line  strikes  a  very 
lofty  mountain  range,  called  Kong-Ming-Shan,  which  it  shall  follow  in  a  southerly 
direction  to  about  longitude  99°  30'  east  of  Greenwich  (17°  west  of  Peking), 
and  latitude  22°  30',  leaving  to  China  the  district  of  Chen-pien  T'ing.  Then, 
descending  the  western  slope  of  the  hills  to  the  Namka  River,  it  will  follow  the 
course  of  that  river  for  about  10  minutes  of  latitude,  leaving  Munglem  to  China 
and  Mangliin  to   Great  Britain. 


96  CHINA  TREATIES  AND  AGREEMENTS 

The  frontier  shall  then  follow  the  boundary  between  Munglem  and  Kiang 
Tong,  which  is  locally  well-known,  diverging  from  the  Namka  River  a  little 
to  the  north  of  latitude  22°,  in  a  direction  somewhat  south  of  east,  and  gen- 
erally following  the  crest  of  the  hills  till  it  strikes  the  Namlam  River  in  about 
latitude  21°  45'  and  longitude  100°  east  of  Greenwich  (16°  30'  west  of 
Peking). 

It  shall  then  follow  the  boundary  between  Kiang  Tong  and  Kiang  Hung, 
which  is  generally  formed  by  the  Namlam  River,  with  the  exception  of  a  small 
strip  of  territory  belonging  to  Kiang  Hung,  which  lies  to  the  west  of  that  river, 
just  south  of  the  last-named  parallel  of  latitude.  On  reaching  the  boundary  of 
Western  Kyaing  Chaing,  in  about  latitude  21°  27'  and  longitude  100°  12' 
east  of  Greenwich  (16°  18'  west  of  Peking),  the  frontier  shall  follow  the 
boundary  between  that  district  and  Kiang  Hung  until  it  reaches  the  Mekong 
River. 

IV. —  (No  addition  to  original  Convention.) 

V. — It  is  agreed  that  China  will  not  cede  to  any  other  nation  either  Mung 
Lem  or  any  part  of  Kiang  Hung  on  the  right  bank  of  the  Mekong,  or  any  part 
of  Kiang  Hung  now  in  her  possession  on  the  left  bank  of  that  river,  without 
previously  coming  to  an  arrangement  with  Great  Britain. 

VI. — Article  VI  of  the  original  Convention  shall  be  held  to  be  modified  as 
follows : 

It  is  agreed  that,  in  order  to  avoid  any  local  contention,  the  alignments  of 
the  frontier  described  in  the  present  Agreement  shall  be  verified  and  demarcated, 
and,  in  the  event  of  their  being  found  defective  at  any  point,  rectified  by  a  Joint 
Commission  appointed  by  the  Governments  of  Great  Britain  and  China,  and  that 
the  said  Commission  shall  meet,  at  a  place  hereafter  to  be  determined  by  the  two 
Governments,  not  later  than  twelve  months  from  the  date  of  the  signature  of 
the  present  Agreement,  and  shall  terminate  its  labours  in  not  more  than  three 
years  from  the  date  of  its  first  meeting. 

If  a  strict  adherence  to  the  line  described  would  intersect  any  districts, 
tribal  territories,  towns,  or  villages,  the  Boundary  Commission  shall  be  empow- 
ered to  modify  the  line  on  the  basis  of  mutual  concessions.  If  the  members  of 
the  Commission  are  unable  to  agree  on  any  point,  the  matter  of  disagreement 
shall  at  once  be  referred  to  their  respective  Governments. 

VII. —  (No  addition  to  original  Convention.) 

VIII. —  (No  addition  to  original  Convention.) 

IX. — Trade  routes  to  be  opened. — Add  as  follows : — 

In  addition  to  the  Manwyne  and  Sansi  routes  sanctioned  by  the  Conven- 
tion of  1894,  the  Governments  of  Great  Britain  and  China  agree  that  any  other 
routes,  the  opening  of  which  the  Boundary  Commissioners  may  find  to  be  in 
the  interests  of  trade,  shall  be  sanctioned  on  the  same  terms  as  those  mentioned 
above. 

X. —  (No  addition  to  original  Convention.) 

XI. —  (No  addition  to  original  Convention.) 

XII. — Add  as  follows: — 

Railways  in  Yunnan. — The  Chinese  Government  agrees  hereafter  to  con- 


NUMBER  1897/1 :  FEBRUARY  4,  1897  97 

sider  whether  the  conditions  of  trade  justify  the  construction  of  railways  in 
Yiinnan,  and,  in  the  event  of  their  construction,  agrees  to  connect  them  with 
the  Burmese  Hnes. 

XIII. — British  and  Chinese  consular  officers. — Whereas  by  the  original 
Convention  it  was  agreed  that  China  might  appoint  a  Consul  in  Burmah  to 
reside  at  Rangoon ;  and  that  Great  Britain  might  appoint  a  Consul  to  reside 
at  Manwyne ;  and  that  the  Consuls  of  the  two  Governments  should  each  within 
the  territories  of  the  other  enjoy  the  same  privileges  and  immunities  as  the  Con- 
suls of  the  most  favoured  nation,  and,  further,  that,  in  proportion  as  the  com- 
merce between  Burmah  and  China  increased,  additional  Consuls  might  be 
appointed  by  mutual  consent  to  reside  at  such  places  in  Burmah  and  Yiinnan  as 
the  requirements  of  trade  might  seem  to  demand. 

It  has  now  been  agreed  that  the  Government  of  Great  Britain  may  station 
a  consul  at  Momein  or  Shunning-fu,  as  the  Government  of  Great  Britain  may 
prefer,  instead  of  at  Manwyne,  as  stipulated  in  the  original  Convention,  and  also 
to  station  a  Consul  at  Ssumao. 

Trading  rights. — British  subjects  and  persons  under  British  protection  may 
establish  themselves,  and  trade  at  these  places,  under  the  same  conditions  as  at 
the  Treaty  ports  in  China. 

The  Consuls  appointed  as  above  shall  be  on  the  same  footing  as  regards 
correspondence  and  intercourse  with  Chinese  officials  as  the  British  Consuls  at 
the  Treaty  ports. 

XIV. — Instead  of  "  Her  Britannic  Majesty's  Consul  at  Manwyne  "  in  the 
original  Convention,  read  "  Her  Britannic  Majesty's  Consul  at  Shunning  or 
Momein,"  in  accordance  with  the  change  made  in  Article  XIII. 

XV. —  (No  addition  to  original  Convention.) 

XVI. —  (No  addition  to  original  Convention.) 

XVII. —  (No   addition  to   original   Convention.) 

XVIII. —  (No  addition  to  original  Convention.) 

XIX.— Add  as  follows:— 

Failing  agreement  as  to  the  terms  of  revision,  the  present  arrangements 
shall  remain  in  force. 

Special  Article. — Wuchou-fu  in  Kwangsi  and  Samshui  City  and  Kong 
Kun  in  Kwangtung  opened  to  trade. — Whereas  on  the  20th  day  of  January, 
1896,  the  Tsung-li  Yamen  addressed  an  official  despatch  to  Her  Majesty's 
Charge  d'Affaires  at  Peking,  informing  him  that  on  the  30th  day  of  December, 
1895,  they  had  submitted  a  Memorial  respecting  the  opening  of  ports  on  the  West 
River  to  foreign  trade,  and  had  received  an  Imperial  Decree  in  approval,  of 
which  they  officially  communicated  a  copy. 

It  has  now  been  agreed  that  the  following  places,  viz.,  Wuchow-fu,  in 
Kwangsi,  and  Samshui  City  and  Kong  Kun  Market,  in  Kwangtung,  shall  be 
opened  as  Treaty  ports  and  Consular  stations,  with  freedom  of  navigation  for 
steamers  between  Samshui  and  Wuchow  and  Hong  Kong  and  Canton,  by  a  route 
from  each  of  these  latter  places  to  be  selected  and  notified  in  advance  by  the 
Imperial  Maritime  Customs,  and  that  the  following  four  places  shall  be  estab- 
lished as  ports  of  call  for  goods  and  passengers,  under  the  same  Regulations  as 


98  CHINA  TREATIES  AND  AGREEMENTS 

the  ports  of  call  on  the  Yang-tzu  River,  namely,  Kongmoon,  Komchuk,  Shiuhing 
and  Takhing. 

It  is  agreed  that  the  present  Agreement,  together  with  the  Special  Article, 
shall  come  into  force  within  four  months  of  the  date  of  signature,  and  that 
the  ratifications  thereof  shall  be  exchanged  at  Peking  as  soon  as  possible.^ 

In  witness  whereof  the  Undersigned,  duly  authorized  thereto  by  their  re- 
spective Governments,  have  signed  the  present  Agreement. 

Done  at  Peking  in  triplicate — three  copies  in  English,  three  in  Chinese — the 
4th  day  of  February,  in  the  year  of  our  Lord  1897. 

[l.  s.]  Claude  M.  MacDonald. 

[l.  s.]  (Chinese  signature  of  his  Excellency  Li.) 


NUMBER  1897/2. 

FRANCE  AND  CHINA. 

Declaration  concerning  the  non-alienation  of  the  Island  of  Hai-nan.'^ — March  15, 

1897. 

The  Tsung-li  Yamen  to  Mr.  Gerard,  Minister  of  the  French  Republic  at 

Peking. 

13th  Day,  2d  Moon,  23d  Year,  Kuang-hsu. 

(15  March,  1897.) 

The  1st  day  of  the  2d  moon  of  the  23d  year  Kuang-hsii  (March  3,  1897),. 
we  received  a  despatch  in  which  you  inform  us  that  France,  considering  the 
close  friendly  and  neighborly  relations  maintained  with  China,  attaches  great 
importance  to  the  island  of  Hai-nan  never  being  either  alienated  or  ceded  by 
China  to  any  other  foreign  Power,  either  as  final  or  temporary  cession,  or  as  a 
naval  station  or  coaling  depot. 

Our  Yamen  considers  Kiung-chou  (the  island  of  Hai-nan)  as  belonging  to 
the  territory  of  China  which  consequently  exercises  over  it  right  of  sovereignty. 
How  could  it  cede  it  to  foreign  nations?  Furthermore,  it  is  nowise  a  fact  at  pres- 
ent that  it  has  lent  it  temporarily  to  foreign  nations.  As  in  duty  bound  we  make 
to  Your  Excellency  this  official  communication. 

(Here  follow  the  signatures  of  the  President  and  the  Members  of  the  Tsung- 
li  Yamen). 

*  Translation,  as  given  in  RockhiJl,  p.  173,  from  the  French  version  as  printed  in  Doc. 
Dip!.,  Chine,  1894-8,  p.  33.     Printed  also  (in  French  text)   in  Hcrtslct,  p.  1148. 

In  connection  with  this  declaration  see  also  the  Declarations  to  France  concerning  the 
non-alienation  of  the  territory  bordering  on  Tongking,  April  10,  1898  (Xo.  1898/6,  post); 
to  Great  Britain  concerning  the  non-alienation  of  the  Yang-tsze  region,  February  11,  1898 
(No.  1898/1,  post)  ;  to  Japan  concerning  the  non-alienation  of  Fukien,  April  26,  1898  (No. 
1898/8,  post)  ;  also  the  Presidential  Mandate  concerning  the  non-alienation  of  the  coasts  of 
China,  May  13,  1915  (1915/7,  post). 

t  Ratifications  exchanged  June  5,  1897. 


NUMBER  1897/3:  MAY  13,  1897  99 

NUMBER  1897/3. 

DENMARK  (Great  Northern  Telegraph  Company)  AND  CHINA. 
Telegraph  convention* — May  13,  1897. 

The  Imperial  Chinese  Telegraph  Administration,  hereinafter  called  the  Ad- 
ministration, on  the  one  part,  and  the  Great  Northern  Telegraph  Company  of 
Copenhagen,  hereinafter  called  the  Company,  on  the  other  part,  being  desirous 
of  facilitating  international  telegraphic  communication,  have  decided  to  conclude 
a  Convention  with  a  view  to  equalize  the  total  charges  by  their  respective  routes 
in  Asia  between  China  and  Russia. 

Consequently  the  following  stipulations  have  been  agreed  on  and  under 
date  below  given  signed  by  the  Administration  represented  by  its  Director- 
General  Sheng-hsuen-huai  and  by  the  Company  represented  by  its  General- 
Manager  in  China  Mr.  J.  Henningsen  both  duly  furnished  with  full  and  special 
powers  for  this  purpose. 

Article  I. — 1.  For  telegrams  exchanged  terminally  between  the  Empire 
of  China,  on  the  one  side,  and  the  Empire  of  Russia,  on  the  other  side,  the 
charge  over  the  present  and  future  cables  in  Asia  connecting  China  with  Russia 
in  Asia  and  belonging  to  or  connected  with  the  Company,  shall  be  the  same_ 
as  the  Administration's  terminal  charge  by  their  land  junctions  with  Russia 
in  Asia  as  fixed  in  the  Telegraph  Convention  dated  13  (25)  August  1892. 

2.  The  stipulation  under  section  1  of  this  Article  shall  apply  equally  to 
charges  for  telegrams  exchanged  terminally  between  the  British  Colony  of 
Hongkong  on  the  one  side  and  the  Empire  of  Russia  on  the  other  side. 

3.  For  the  same  telegrams  as  described  under  sections  1  and  2  of  this 
Article  via  other  routes  across  the  land  frontiers  of  China  the  Administra- 
tion undertakes,  when  concluding,  renewing  or  revising  telegraph  Conventions, 
to  fix  their  proportion  of  the  total  charges  in  such  manner  that  the  total  charges 
collected  for  the  said  telegrams  via  such  routes  at  the  time  of  the  concluding, 
renewing  or  revising  of  such  Convention  shall  in  no  case  be  lower  than  the 
total  charges  collected  for  the  same  telegrams  when  exchanged  by  the  normal 
routes  above  described  under  sections  1  and  2  of  this  Article. 

The  Company  on  their  side  undertakes  a  corresponding  obligation  for  the 
same  telegrams  by  future  cables  connecting  China  or  Hongkong  with  Russia 
in  Asia. 

4.  With  regard  to  telegrams  specified  under  sections  1,  2  and  3  of  this 
Article  transmitted  by  other  routes  present  and  future  than  those  specified 
under  sections  1,  2  and  3  of  this  Article  the  Administration  and  the  Company 
reciprocally  undertake  to  do  all  in  their  power  to  protect  the  joint  interests 
established  by  the  present  Convention. 

Article  II. — 1.    The  revenue  of  the  Administration  and  of  the  Company  of 
all  telegrams  and  by  all  routes  coming  under  Article  I  of  the  present  Conven- 
*  Text  as  printed  in  Rccueil,  p.  252.     See  Note  to  this  document,  post,  p.  103. 


100  CHINA  TREATIES  AND  AGREEMENTS 

tion  shall  be  carried  to  a  Joint  Purse  in  the  proportions  fixed  in  the  Table 
stipulated  in  Article  VII  of  the  present  Convention  and  this  Joint  Purse  shall 
be  divided  between  the  Contracting  Parties  in  the  following  manner:  One  half 
to  the  Administration;  One  half  to  the  Company. 

Each  of  the  Contracting  Parties  shall  bear  its  own  working  expenses. 

2.  Considering  the  division  of  revenue  the  Administration  will  only  levy 
terminal  charge  on  telegrams  by  the  Company's  cable  route  specified  in  sec- 
tion 1  of  Article  I  of  the  present  Convention  if  and  to  the  extent  necessary 
to  equalize  the  total  rates  by  the  routes  of  the  Administration  and  of  the 
Company. 

Such  additional  terminal  charge  shall  belong  to  the  Joint  Purse  and  be 
divided  equally  between  the  Administration  and  the  Company. 

Article  III. — The  Administration  as  well  as  the  Company  shall  maintain 
their  sections  of  the  routes  mentioned  in  sections  1  and  2  of  Article  I  of  the 
present  Convention  in  good  working  order. 

Article  IV. — 1.  The  collection  of  the  charges  mentioned  in  sections  I  and  2 
of  Article  I  of  the  present  Convention  shall  take  place  at  the  same  rate  of 
exchange  of  the  coin  in  which  the  charges  are  collected  by  the  Administration 
and  by  the  Company  at  their  stations  in  China  and  at  Hongkong. 

2.  To  this  end  the  Administration  and  the  Company  shall  annually  at  the 
end  of  the  European  calendar  year  determine  the  average  value  of  that  coin 
in  francs,  and  this  value  shall  serve  as  the  rate  of  exchange  for  the  collection 
of  charges  and  for  settlement  of  accounts  during  the  year  following. 

3.  Should  the  Administration  and  the  Company  be  unable  to  agree  on  the 
average  value  of  that  coin  in  francs,  the  question  shall  be  referred  for  settlement 
to  the  manager  of  one  of  the  foreign  banks  at  Shanghai. 

Article  V. — 1.  The  Administration  and  the  Company  shall  at  all  their  con- 
trolling stations  keep  correct  abstracts  of  all  telegrams  specified  in  Article  I  of 
the  present  Convention  and  furnish  each  other  with  official  copies  of  the  same. 

2.  A  controller  of  the  Administration  at  the  Company's  stations  at  Shang- 
hai, Foo-chou,  Amoy  and  Hongkong  and  a  controller  of  the  Company  at  the 
Administration's  controlling  stations  present  and  future  shall  have  free  ad- 
mittance to  the  offices  in  order  to  check  and  control  the  correctness  of  the  journals 
abstracts  and  accounts  as  far  as  necessary  for  the  purposes  of  the  present 
Convention. 

3.  The  appointment  of  controllers  is  in  each  case  subject  to  the  approval 
respectively  of  the  Administration  or  of  the  Company  to  which  they  are  accredited 
v/hich  shall  also  have  the  right  to  demand  their  recall  if  considered  necessary. 

4.  All  the  said  controllers  of  the  Company  at  the  Administration's  con- 
trolling stations  if  living  on  Chinese  territory  shall  have  their  names  placed 
on  the  register  of  their  respective  nationalities.  Each  of  them  shall  respect  the 
laws  of  China  and  conform  with  the  Treaties  made  by  the  respective  countries 
with  the  Government  of  China.  But  the  Administration  cannot  undertake 
any  responsibility  for  their  personal  safety. 

5.  They  shall  respect  the  authority  of  the  local  Manager.  Their  salaries 
as  well  as  all  other  expenses  are  to  be  paid  by  their  Employers. 


NUMBER  1897/3:  MAY  13,  1897  101 

Article  VI. — 1.  The  settlement  of  accounts  for  all  telegrams  exchanged 
between  the  Administration  and  the  Company  coming  under  the  present  Con- 
vention as  well  as  the  division  of  revenue  stipulated  in  Article  II  of  the  present 
Convention  shall  be  established  monthly  at  Shang-hai  and  paid  at  Shang-hai 
within  six  weeks  after  the  end  of  the  month  in  account. 

2.  To  this  end  the  results  of  the  abstracts  of  the  controlling  stations 
signed  by  the  controllers  of  the  two  contracting  parties  stipulated  for  in  Article  V 
of  the  present  Convention  or  by  the  representative  of  the  Administration  at 
the  controlling  stations,  where  no  controller  of  the  Company  be  actually  present 
shall  be  telegraphed  to  Shang-hai  to  be  entered  in  the  accounts  settled  there 
subject  to  subsequent  revision  after  receipt  in  Shang-hai  of  the  said  signed 
abstracts  and  copies  of  the  telegrams  abstracted. 

3.  The  month  shall  be  reckoned  according  to  the  European  calendar. 

4.  Telegrams  referring  to  the  settlement  and  payment  of  accounts  shall  be 
considered  as  service  telegrams  and  transmitted  free  of  charge. 

Article  VII. — 1.  To  the  present  Convention  is  annexed  a  table  signed  by 
the  contracting  parties  and  showing  the  charges  which  shall  be  applied  by  the 
Administration  and  by  the  Company  to  telegrams  described  in  section  1  and  2 
of  Article  I  of  the  present  Convention  as  soon  as  it  comes  into  force  and  also 
the  rate  of  exchange  at  which  the  collection  of  charges  and  the  settlement  of 
accounts  shall  take  place  as  well  as  the  amount  of  contribution  to  the  Joint  Purse. 

2.  This  Table  will  be  subject  to  revision  by  the  contracting  parties  periodi- 
cally and  in  accordance  with  the  stipulations  of  the  present  Convention. 

Article  VIII. — The  rules  laid  down  in  the  service  regulations  of  the  Inter- 
national Telegraph  Convention  shall  be  observed  with  regard  to  the  technical 
treatment  of  telegrams  exchanged  between  the  Administration  and  the  Com- 
pany and  both  contracting  parties  undertake  to  do  all  in  their  power  to  prevent 
retransmission  and  other  circumventions  of  the  rules  to  the  detriment  of  either 
party. 

Article  IX. — 1.  Chinese  Government  telegrams  exchanged  between  China 
or  Hongkong  on  the  one  side  and  Russia  on  the  other  side  are  treated  in  an 
exceptional  manner  that  is  to  say : 

They  pass  at  half  of  the  ordinary  charge  over  the  cables  in  Asia  of  the 
Company  and  whichever  be  the  route  followed  contribute  nothing  to  the  Joint 
Purse  and  are  not  included  in  the  division  described  in  Article  II  of  the  present 
Convention. 

Article  X. — 1.  The  present  Convention  cannot  be  mortgaged,  sold  or  other- 
wise transferred  either  wholly  or  partly,  neither  can  any  creditor  or  others 
acquire  it  wholly  or  partly  in  case  of  liquidation  compulsory  or  otherwise. 

2,  Any  difference  arising  between  the  contracting  parties  touching  the  con- 
structions of  the  present  Convention  shall  be  referred  for  decision  to  the  Gov- 
ernments or  their  Legations  at  Peking  which  have  ratified  it. 

Article  XI. — 1.  The  present  Convention  shall  be  confirmed  by  Tsung-li- 
yamen  and  by  the  Ministers  at  Peking  for  Russia  and  Denmark. 

2.  It  shall  be  put  into  execution  from  the  first  day  of  the  month  following 
the  date  of  its  confirmation. 


102  CHINA  TREATIES  AND  AGREEMENTS 

3.  It  shall  remain  in  force  until  the  31  December  1910  and  shall  thereafter 
continue  in  force  until  six  months  after  one  of  the  contracting  parties  shall  have 
given  notice  of  its  intention  to  modify  or  to  abrogate  it. 

In  witness  whereof  the  undersigned  duly  authorized  to  this  effect  have 
signed  the  present  Convention. 

Done  in  Shang-hai  in  the  Chinese  language  and  in  the  English  language. 
Three  expeditions  duly  compared  and  found  to  be  in  agreement  have  been 
signed  in  each  of  these  languages  on  the  thirteenth  day  of  the  month  of  May 
1897  corresponding  with  the  twelfth  day  of  the  fourth  moon  of  the  twenty  third 
year  of  the  reign  of  Kuang-siu. 

For  the  Imperial  Chinese  Telegraph  Administration — 

(L.  S.)  The  Director  General  Sheng. 

For  the  Great  Northern  Telegraph  Company  of  Copenhagen — 

The  Manager  in  China  Henningsen, 


Vn  et  approiive: 


Le  Charge  d'  Affaires  de  Russie  et  de  Danemark 
(L.  S.)    (Signe)  :  A.  Pavlow. 
(L.  S.  du  Tsung-li-yamen). 


Table  drawti  up  in  execution  of  the  stipulation  in  Article  VII  of  the  Convention 

dated  the  thirteenth  May  1897. 

Charges  to  be  collected  per  single  word  of  all  telegrams.  The  terminal 
charge  of  the  Administration  and  the  cable  charge  mentioned  in  sections  1  and 
2  of  Article  I  of  the  Convention :  2  francs. 

Contribution  to  the  Joint  Purse  (stipulated  in  Article  II  of  the  Convention) 
per  single  word  of  ordinary  telegrams  by  routes  described  in  sections  1  and  2 
of  Article  I  of  the  Convention  under  which  also  come  the  cables  of  Eastern 
Extension  Australasia  and  China  Telegraph  Company  Limited,  as  being  connected 
with  the  Company. 

Telegrams  exchanged  terminally  with  Hongkong,  Amoy,  Foochou :  1  franc 
60  centimes. 

Telegrams  exchanged  terminally  with  all  other  places  in  China :  2  francs. 

By  routes  described  in  sections  3  and  4  of  Article  I  of  the  Convention  : 

The  total  of  the  revenue  accruing  to  the  Administration  or  to  the  Company 
excepting  the  revenue  accruing  to  their  lines  in  Europe. 

Rate  of  exchange. 

Articles  IV  and  VI  of  the  Conventions  until  1  July  1897. 

8  francs  50  centimes  equal  to  2  Mexican  dollars  75  cents. 

In  witness  whereof  the  undersigned  duly  authorized  to  this  effect  have 
signed  the  present  table. 

Done  in  Shang-hai  in  the  Chinese  language  and  in  the  English  language. 
Three  expeditions  duly  compared  and  found  to  be  in  agreement  have  been  signed 
in  each  of  these  languages  on  the  thirteenth  day  of  the  month  of  May  1897 


NUMBER  1897/3:  MAY  13,  1897:  NOTE  103 

corresponding  with  the  twelfth  day  of  the  fourth  moon  of  the  twenty  third  year 
of  the  reign  of  Kwang-hsu. 

For  the  Imperial  Chinese  Telegraph  Administration — 

(L.  S.)  :  The  Director  General  (signed)  Sheng. 
For  the  Great  Northern  Telegraph  Company  of  Copenhagen — 

The  Manager  in  China    (signed)    Hexningsen. 
Vu  et  approiivc 

Le  Charge  d'AfTaires  de  Russie  et  de  Danemark. 
(L.  S.)   (signe)  :  A.  Pavlow. 

(L.  S.  du  Tsung-H-yamen.) 


Note. 

An  additional  article  to  this  agreement  was  signed  on  March  6,  1899,  in  the  following 
terms  (as  given  in  Rccueil,  p.  355)  : 

Additional  Article  to  Telegraph  Convention  of  1897. — March  6,  1899. 

"  In  connection  with  the  Agreement  entered  into  on  the  13-th  of  May  1897  between  the 
Imperial  Chinese  Telegraph  Administration  on  the  one  part  and  the  Great  Northern  Tele- 
graph Company  of  Copenhagen  on  the  other  part  the  following  '  Additional  Article'  has  been 
agreed  upon  and  under  date  given  signed  by  the  Administration  represented  by  their 
Director  General  Sheng  and  by  the  Company  represented  by  their  Manager  in  China  Mr. 
J.  Henningsen  both  duly  furnished  with  full  and  special  powers  for  this  purpose,  and  now 
witness :  that  in  the  interest  of  both  parties  to  the  Agreement  dated  the  13-th  of  May 
1897,  and  for  the  same  term  of  years  that  is  till  the  31-st  December  1910  no  other  party  will 
be  allowed  without  the  consent  of  both  the  said  parties  to  land  telegraph  cables  on  the  coast 
of  China  and  islands  belonging  thereto  or  to  work  such  cables  in  connection  with  the 
Chinese  lines  or  otherwise  to  establish  telegraph  connection  which  might  create  com- 
petition with  or  injure  the  interests  of  the  existing  lines  belonging  to  China  or  to  the 
Great  Northern  Telegraph  Company  of  Copenhagen.  This  shall  however  not  prevent  the 
Chinese  Government  from  establishing  local  internal  cables  where  no  competition  can  arise 
nor  from  consenting  to  the  junction  by  cable  of  Port  Arthur  with  the  Russian  telegraph 
system  for  the  exchange  of  limitrophe  local  traffic  neither  shall  it  prevent  the  transmission 
of  terminal  Formosa  traffic  over  the  Foochow-Formosa  cable  now  belonging  to  Japan  whilst 
other  traffic  must  not  be  exchanged  by  this  line  except  with  the  consent  of  China  and  of 
the   Great   Northern    Telegraph    Company   of    Copenhagen. 

"  The  present  additional  Article  shall  be  confirmed  by  the  Tsung-li-yamen  and  by  the 
Minister  at  Peking  for  Russia  and  Denmark. 

"  In  witness  whereof  the  undersigned  duly  authorized  to  this  effect  have  signed  the  pres- 
ent additional  Article. 

"  Done  in  Shang-hai  in  the  Chinese  language  and  in  the  English  language.  Three  ex- 
peditions duly  compared  and  found  to  be  in  agreement  have  been  signed  in  each  of  three 
languages  on  the  sixth  day  of  the  month  of  March  eighteen  hundred  and  ninety  nine  cor- 
responding with  the  twenty-fifth  day  of  the  first  moon  of  the  twenty-fifth  year  of  Kuang- 
hsii. 

"(l.  s.)     For  the  Imperial   Chinese   Telegraph   Administration — the    Director   General: 
"  (Signature)  :  Sheng. 

"  (l.  s.)  For  the  Great  Northern  Telegraph  Company  of  Copenhagen— the  Manager  in 
China, 

"  (Signature)  :  J.  Henningsen. 

"  (l.  s.)     Vu  et  approuvc:  le  Ministre  de  Russie  et  de  Danemark. 
"  (Signe)  :  Michel  de  Giers." 

In  connection  with  this  convention  see  also  the  convention  between  the  Chinese  Tele- 
graph Administration  and  the  Great  Northern  and  Eastern  Extension  Companies,  July  11, 
1896   (No.  1896/3,  ante). 


104  CHINA  TREATIES  AND  AGREEMENTS 

NUMBER  1898/1. 

GREAT  BRITAIN  AND  CHINA. 

Declaration  concerning  the  non-alienation  of  the  Yang-tsze  region* — February 

11,  1898. 

Sir  C.  MacDonald  to  the  Tsung-li  Yamen. 

Peking,  February  9,  1898. 

MM.   LES   MiNISTRES, 

Your  Highnesses  and  your  Excellencies  have  more  than  once  intimated  to  me 
that  the  Chinese  Government  were  aware  of  the  great  importance  that  has 
always  been  attached  by  Great  Britain  to  the  retention  in  Chinese  possession  of 
the  Yang-tsze  region,  now  entirely  hers,  as  providing  security  for  the  free  course 
and  development  of  trade. 

I  shall  be  glad  to  be  in  a  position  to  communicate  to  Her  Majesty's  Govern- 
ment a  definite  assurance  that  China  will  never  alienate  any  territory  in  the 
provinces  adjoining  the  Yang-tsze  to  any  other  Power,  whether  under  lease, 
mortgage,  or  any  other  designation.  Such  an  assurance  is  in  full  harmony 
with  the  observations  made  to  me  by  Your  Highnesses  and  Your  Excellencies. 

I  avail,  &c. 

(Signed)  Claude  M.  MacDonald. 


The  Tsung-li  Yamen  to  Sir  C.  MacDonald. 
Kuang-hsii,  24th  year,  1st  moon,  21st  day.     (February  11,  1898.) 

The  Yamen  have  the  honour  to  acknowledge  the  receipt  of  the  British 
Minister's  despatch  of  the  9th  February,  stating  that  the  Yamen  had  more  than 
once  intimated  to  him  that  the  Chinese  Government  were  aware  of  the  great 
importance  that  has  always  been  attached  by  Great  Britain  to  the  retention  in 
Chinese  possession  of  the  Yang-tsze  region,  now  entirely  hers,  as  providing 
security  for  the  free  course  and  development  of  trade.  The  British  Minister 
would  be  glad  to  be  in  a  position  to  communicate  to  Her  Majesty's  Government 
a  definite  assurance  that  China  would  never  alienate  (any  territory)  in  the 
provinces  adjoining  the  Yang-tsze  to  any  other  Power,  whether  under  lease, 
mortgage,  or  any  other  designation. 

*  Translation  and  text  as  reprinted  in  Rockhill,  p.  174,  from  China,  1898,  No.  2. 
Printed  also  in  Hertslet,  p.   119;    Kent,  p.  299;   Recucil,  p.  297. 

In  connection  with  this  declaration  see  other  non-alienation  declarations  noted  under 
that  concerning  Hai-nan,  March  15,  1897  (No.  1897/2,  ante).  See  also  the  arrangement 
between  the  Hongkong  and  Shanghai  Banking  Corporation  and  the  British  and  Chinese 
Corporation,  and  a  German  syndicate,  concerning  spheres  of  interest  in  respect  to  railway 
construction,  signed  September  2,  1898.  printed  as  an  annex  to  the  Anglo-German  agree- 
ment of  October  16,  1900  (No.  1900/5,  post). 


NUMBER  1898/2:  FEBRUARY  13,  1898  105 

The  Yamen  have  to  observe  that  the  Yang-tsze  region  is  of  the  greatest 
importance  as  concerning  the  whole  position  (or  interests)  of  China,  and  it  is 
out  of  the  question  that  territory  (in  it)  should  be  mortgaged,  leased,  or  ceded 
to  another  Power.  Since  Her  Britannic  Majesty's  Government  has  expressed 
its  interest  (or  anxiety)  it  is  the  duty  of  the  Yamen  to  address  this  note  to  the 
British  Minister  for  communication  to  his  Government. 

They  avail  themselves,  &c. 


NUMBER  1898/2. 

GREAT  BRITAIN  AND  CHINA. 

Declaration  that  the  Iiispector-General  of  Maritime  Customs  shall  be  a  British 
subject  while  British  trade  predominates* — February  13,  1898. 

The  Tsung-li  Yamen  to  Sir  C.  MacDonald. 
Kuang-hsii,  24th  year,  1st  moon,  20th  day.     (February  10,  1898.) 

The  Yamen  have  the  honour  to  acknowledge  the  receipt  on  the  3rd  February 
of  a  note  from  the  British  Minister,  to  the  effect  that  on  the  17th  January,  when 
calling  at  the  Yamen,  he  had  informed  the  Ministers  present  that  he  had  re- 
ceived telegraphic  instructions  from  Her  Majesty's  Government  that  in  view 
of  the  immense  preponderance  of  British  trade  with  China  over  that  of  other 
countries,  Her  Majesty's  Government  regarded  it  as  vital  to  the  commercial 
interests  of  Great  Britain  that  the  Inspector-General  of  Maritime  Customs  should 
in  the  future,  as  in  the  past,  be  of  British  nationality.  The  Yamen  had  agreed 
to  this,  and  in  order  that  there  might  be  no  room  for  misunderstanding,  the 
Minister  now  addressed  this  note  to  the  Yamen  to  place  the  matter  formally 
on  record. 

The  Yamen  have  to  observe  that  ever  since  the  opening  of  Chinese  ports 
to  foreign  trade,  commerce  and  revenue  have  been  steadily  increasing.  The 
duties  paid  by  British  merchants  are  nearly  80  per  cent,  of  the  whole  amount 
paid  by  foreign  countries,  and,  therefore,  a  British  subject  (Sir  Robert  Hart)  has 
been  employed  as  Inspector-General  of  Maritime  Customs. 

The  said  Inspector-General  is  versed  in  commercial  matters,  just  in  his 
dealings,  experienced  and  upright,  faithful  and  sincere,  a  man  on  whom  reliance 
can  be  placed,  and  China  has  in  the  past  leant  much  upon  him.  If  he  were 
to  ask  for  leave  China  must  (try  to)  detain  him,  but  if  some  cause  were  to 
necessitate  his  returning  home,  China,  thoroughly  investigating  the  trade  at 
the  various  ports,  (and  finding  that)  British  merchants  are  in  the  majority,  will 

*Text  and  translation  as  reprinted  in  Rockhill,  p.  \76,  from  Cliiiia,  1899,  No.  1,  p.  18. 
Printed  also  in  Hertslct,  1151.     See  Note  to  this  document,  post,  p.  106. 


106  CHINA  TREATIES  AND  AGREEMENTS 

certainly  direct  the  said  Inspector-General  to  recommend  an  Englishman  of 
equal  ability  with  himself  to  take  charge,  and  the  Yamen  will,  after  inquiry, 
appoint  him  as  successor  to  manage  Chinese  Customs  matters.  The  object  be- 
ing the  protection  of  commerce  at  the  various  ports,  (the  Yamen)  could  not 
possibly  regard  this  selection  as  a  light  matter,  and  so  do  injury  to  important 
public  interests. 

The  Yamen  beg  to  make  this  reply  to  the   British   Minister   for  his   in- 
formation. 

They  avail  themselves,  &c. 

(Seal  of  Yamen.) 


The  Tsung-li  Yamen  to  Sir  C.  MacDonald. 
Kuang-hsii,  24th  year,  1st  moon,  23rd  day.     (February  13,  1898.) 

The  Yamen  have  the  honour  to  address  the  British  Minister  with  regard 
to  the  continued  employment  in  the  future  of  an  Englishman  in  succession  to 
the  Inspector-General  of  Maritime  Customs,  on  which  subject  they  addressed 
a  reply  to  his  Excellency  a  few  days  ago. 

They  have  to  observe  that  British  trade  with  China  exceeds  that  of  all  other 
countries,  and,  as  the  Yamen  have  frequently  agreed  and  promised,  it  is 
intended  that  as  in  the  past,  so  in  the  future,  an  Englishman  shall  be  employed 
as  Inspector-General. 

But  if  at  some  future  time  the  trade  of  some  other  country  at  the  various 
Chinese  ports  should  become  greater  than  that  of  Great  Britain,  China  will  then 
of  course  not  be  bound  to  necessarily  employ  an  Englishman  as  Inspector- 
General. 

The  Yamen  write  this  further  despatch  for  the  information  of  the  British 
Minister,  to  be  placed  on  record. 

They  avail  themselves,  &c. 

(Seal  of  Yamen.) 


Note. 

In  connection  with  this  declaration  see  also  China,  1906,  No.  1,  in  which  are  given  the 
following  translations  of  an  imperial  edict  of  May  9,  1906,  and  of  a  note  under  date  of  June 
1.  1906,  from  the  president  of  the  Wai-wu  Pu  (Prince  Ch'ing)  to  the  British  charge 
d'afifaires,  in  reference  thereto : — 

Imperial  Edict  of  May  9,  1906:  "Tieh  Liang,  President  of  the  Board  of  Revenue,  is 
appointed  Imperial  High  Commissioner  of  Customs,  and  T'ang  Shao-yi  is  appointed  Im- 
perial Vice-Commissioner  of  the  same.  All  Chinese  and  foreign  employees  of  the  said 
Customs  are  to  be  under  the  control  and  direction  of  the  above-named  High  Commissioners." 
(See  circulars  of  the  Inspector-General  of  Customs  of  September  22,  1906,  No.  1369,  Second 
Series,  and  October  30,  1906.  No.  1381,  Second  Series.) 

Note  of  Prince  Ch'ing  to  the  British  charge  d'affaires,  June  1st,  1906:  "Sir:  T  had 
the  honor  to  inform  you  in  a  note  of  the  27th  May  that  the  special  appointment  by  China 
of  High  Commissioners  for  the  exclusive  control  (or  management)  of  the  Maritime 
Customs  made  no  change  in  the  mode  of  administration  laid  down  in  the  Loan  Agreements. 


NUMBER  1898/3:  MARCH  1,  1898  107 

At  an  interview  at  the  Wai-wu  Pu  on  the  28th  May  you  intimated  that  the  terms  of  this 
note  were  not  sufficiently  explicit  as  to  China's  intentions,  and  requested  a  further 
statement   in   the   matter. 

■'  In  the  7th  Article  of  the  Loan  Agreement  of  1896  and  in  the  6th  Article  of  the 
Loan  Agreement  of  1898  it  is  stipulated  'that  the  administration  of  the  Chinese  Imperial 
Maritime  Customs  shall  remain  as  at  present  constituted  during  the  currency  of  this 
loan,'  and  I  have  the  honor  to  state  that  the  Imperial  Decree  of  the  9th  May  specially 
appointing  High  Commissioners  to  control  (or  manage j  revenue  affairs  does  not  make 
any  change  in  the  method  of   Administration  laid  down   in  the  Loan  Agreements. 

"  While  communicating  the  above  to  you,  for  the  information  of  His  Majesty's  Govern- 
ment, I  avail,  etc." 

The  references  in  the  second  paragraph  of  the  above  note  are  to  the  loan  agree- 
ments concluded  with  the  Hongkong  and  Shanghai  Banking  Corporation  and  the  Deutsch- 
Asiatische  Bank,  March  23,  1896  (No.  1896/2,  ante)  and  March  1,  1898  (No.  1898/3,  post). 


NUMBER  1898/3. 

GERMANY   (Deutsch-Asiatische  Bank),  GREAT  BRITIAN    (Hongkong  and 
Shanghai  Banking  Corporation)  AND  CHINA. 

Agreement  for  the  Chinese  Imperial  Government  4y2%  Gold  Loan  of 
1898*— March  1,  1898. 

This  Agreement  is  made  between  the  Tsungli  Yamen  Peking  acting  on 
behalf  of  the  Imperial  Government  of  China  of  the  one  part  and  the  Hongkong' 
and  Shanghai  Banking  Corporation  and  the  Deutsch  Asiatische  Bank,  hereinafter 
called  "the  Banks"  of  the  other  part. 

Whereas  a  simple  Memorandum  of  Agreement  for  an  Imperial  Chinese  Gov- 
ernment four  and  a  half  percent  Gold  Loan  of  Sixteen  Million  pounds  sterling 
was  executed  between  the  Imperial  Government  of  China  and  the  Hongkong 
and  Shanghai  Banking  Corporation  on  the  nineteenth  day  of  February  last ; 
and  Whereas  on  the  twenty-fifth  day  of  February  last  telegraphic  advice  was 
received  from  the  Banks  in  Europe  that  they  are  prepared  to  issue  the  loan  on  the 
conditions  specified  in  that  Memorandum  of  Agreement : 

It  is  now  agreed  as  follows. 

1. — The  Imperial  Government  of  China  hereby  authorizes  the  Banks  to 
issue  an  Imperial  Chinese  four  and  a  half  percent  Gold  Loan  for  the  amount  of 
Sixteen  Million  pounds  sterling.  The  Loan  shall  be  dated  the  first  day  of 
March  One  thousand  eight  hundred  and  ninety  eight. 

2.— The  rate  of  interest  for  the  loan  shall  be  four  and  a  half  per  cent  per 
annum  on  the  nominal  principal,  that  is  shall  be  seven  hundred  and  twenty  thou- 
sand pounds  Sterling  per  annum:  the  interest  on  the  loan  shall  be  calculated 
from  the  first  day  of  March  One  thousand  eight  hundred  and  ninety  eight, 
and  shall  be  paid  by  the  Chinese  Imperial  Government  to  the  Banks  in  monthly 

*  In  connection  with  this  agreement  see  also  the  Agreement  for  the  Chinese  Imperial 
Government  5%  sterling  loan  of  1896,  signed  March  23,  1896  (No.  1896/2,  ante). 


108  CHINA  TREATIES  AND  AGREEMENTS 

instalments  in  accordance  with  the  amounts  and  dates  of  the  Schedule  attached 
to  this  Agreement. 

3. — The  term  of  the  loan  shall  be  forty-five  years  and  repayments  of  prin- 
cipal shall  be  made  by  yearly  sinking  fund  of  One  hundred  and  fifteen  thousand 
two  hundred  and  thirty-two  pounds  sterling  which  shall  be  paid  by  the  Chinese 
Imperial  Government  to  the  Banks  in  monthly  instalments  in  accordance  with 
the  amounts  and  dates  of  the  schedule  attached  to  this  agreement.  During  the 
said  term  of  forty-five  years  the  amortization  shall  not  be  increased  nor  the 
loan  redeemed  nor  converted  by  the  Chinese  Imperial  Government. 

4. — The  total  monthly  payment  due  for  amortization  and  interest,  and 
amounting  to  sixty  nine  thousand  six  hundred  and  two  pounds  thirteen  shillings 
and  four  pence  sterling  shall  be  made  in  equal  shares  and  in  accordance  with  the 
amounts  and  dates  of  the  schedule  attached  to  this  Agreement,  to  the  Hongkong 
and  Shanghai  Banking  Corporation  and  the  Deutsch-Asiatische  Bank  by  the 
Chinese  Imperial  Government,  who  shall  hand  to  those  Banks  at  their  Branches 
in  Shanghai  on  the  dates  named  in  the  schedule  funds  in  Shanghai  sycee 
sufficient  to  meet  each  such  payment  in  sterling  in  Europe,  the  rate  of  exchange 
for  which  shall  be  settled  with  those  two  Banks  on  the  same  day.  The  Banks 
retain  the  right  to  rearrange  the  service  of  interest  and  repayments  of  principal 
to  the  Bondholders  on  such  terms  as  they  deem  advisable. 

In  reimbursement  of  expenses  incurred  in  connection  with  the  distribution 
of  the  service  to  Bondholders  of  the  principal  and  interest  of  the  loan,  the 
Banks  shall  receive  from  the  Chinese  Imperial  Government  a  commission  of 
a  quarter  percent  on  the  annual  loan  Service,  say  an  amount  of  two  thousand 
and  eighty  eight  pounds  one  shilling  and  eight  pence  sterling  per  annum,  ro 
be  paid  to  the  Banks  on  the  dates  provided  in  the  schedule  attached  to  this 
Agreem.ent. 

5. — The  Banks  shall  issue,  and  are  hereby  authorized  to  issue  to  subscribers 
to  the  loan.  Bonds  for  the  total  amount  of  the  loan  in  pounds  sterling,  in  such 
form,  in  such  languages  and  for  such  amounts  as  shall  appear  advisable  to 
the  Banks ;  and  these  Bonds  shall  be  sealed  by  the  Minister  for  China  in  Lon- 
don or  Berlin  as  evidence  that  the  Chinese  Imperial  Government  is  bound 
thereby. 

In  the  event  of  Bonds  issued  for  this  loan  being  lost,  stolen  or  destroyed, 
the  Banks  shall  immediately  notify  the  Chinese  Minister  in  London  or  Berlin 
thereof,  who  shall  authorize  the  Banks  to  insert  an  advertisement  in  the  public 
newspapers  notifying  that  payment  of  the  same  has  been  stopped  and  to  take 
such  other  steps  as  required  by  the  laws  of  the  country:  should  such  Bonds 
not  be  recovered  after  the  lapse  of  time  provided  by  the  law  the  Chinese 
Minister  in  London  or  Berlin  shall,  without  further  authority  from  the  Chinese 
Imperial  Government,  seal  and  execute  duplicate  Bonds  for  a  like  amount  and 
hand  them  to  the  Banks,  by  whom  all  expenses  in  connection  therewith  shall 
be  defrayed. 

6. — This  entire  loan  of  Sixteen  Million  pounds  sterling  shall  be  secured  as 
follows : 

(1)   By  a  charge  on  the  revenues  of  the  Imperial   Maritime  Customs  of 


NUMBER  1898/3:  MARCH  1,  1898  109 

China,  subject  to  previous  loans  already  charged  on  the  security  thereof  and 
not  yet  redeemed. 

(2)  By  a  first  charge,  free  from  all  encumbrances,  upon  the  following 
revenues  to  be  forthwith  placed  under  the  control  of  the  Inspector  General  of 
Maritime  Customs : 

General  Lekin  of   Soochow,  estimated  at Tls.  800,000 

General  Lekin  of  Sung  Hu,  estimated  at 1,200,000 

General  Lekin  of  Kiukiang,  estimated  at 200,000 

General  Lekin  of  Eastern  Chekiang,  estimated  at 1,000,000 

Salt  Lekin  of   Ichang,  estimated  at 1,000,000 

Salt  Lekin  of  Hupeh,  estimated  at 500,000 

Salt   Lekin  of   Anhui,   estimated  at 300,000 


Total  five  million  taels.  Tls.  5,000,000 

This  entire  loan  of  Sixteen  million  pounds  Sterling  shall  have  priority,  both 
as  regards  principal  and  interest,  over  all  future  loans,  charges  or  mortgages, 
so  long  as  this  loan  or  any  part  thereof  shall  be  unredeemed.  No  loan,  charge  or 
mortgage  shall  be  raised  or  created  which  shall  take  precedence  of  or  be  on 
an  equality  with  this  loan,  or  which  shall  in  any  manner  lessen  or  impair  its 
security  over  the  said  Customs  and  lekin  revenues,  so  far  as  required  for  the 
Annual  Service  of  this  loan,  and  any  future  loan,  charge  or  mortgage  charged 
on  the  said  Customs  or  lekin  revenue  shall  be  made  subject  to  this  loan,  and  it 
shall  be  so  expressed  in  every  Agreement  for  any  such  future  loan,  charge  or 
mortgage. 

The  Chinese  Imperial  Government  undertake  that  the  administration  of 
the  Chinese  Imperial  Maritime  Customs  service  shall  remain  as  at  present  con- 
stituted during  the  currency  of  this  loan. 

In  the  event  of  the  Customs  and  lekin  revenues  specified  and  pledged  by 
this  clause  being  at  any  future  time  insufficient  for  the  service  of  principal  and 
interest  of  this  loan,  either  owing  to  depreciation  of  Silver,  diminution  of  revenue 
or  any  other  cause  the  Chinese  Imperial  Government  hereby  engages  to  appro- 
priate, and  forthwith  place  under  the  control  of  the  Inspector  General  of 
Maritime  Customs,  further  revenues  sufficient  to  complete  the  amount  required. 

In  the  event  of  the  Chinese  Government,  during  the  currency  of  this  loan, 
entering  upon  negotiations  for  a  revision  of  Customs  tariff  accompanied  by 
stipulations  for  decrease  or  abolition  of  lekin,  it  is  hereby  agreed,  on  the  one 
hand,  that  such  revision  shall  not  be  barred  by  the  fact  that  this  loan  is 
secured  by  lekin  and,  on  the  other  hand,  that  whatever  lekin  is  pledged  for  the 
service  of  this  loan  shall  neither  be  decreased  nor  abolished  except  by  arrange- 
ment with  the  Banks  and  then  only  in  so  far  as  an  equivalent  is  substituted  for 
it  in  the  shape  of  a  first  charge  upon  the  increase  of  Customs  revenue  conse- 
quent on  such  revision. 

7. — This  loan  shall  be  further  secured  by  Customs/lekin  Annual  Bonds  for 
the  total  amount  in  sterling  of  the  loan,  principal  and  interest,  issued  and  sealed 
by  the  Tsungli  Yamen  and  the  Board  of  Revenue  Peking,  and  countersigned 


110  CHINA  TREATIES  AND  AGREEMENTS 

by  the  Inspector  General  of  Maritime  Customs,  and  all  such  Customs/lekin 
Annual  Bonds  shall  contain  the  Clause  No.  6  of  this  Agreement  from  its  com- 
mencement as  far  as  the  words :  "  for  any  such  future  loan  charge  or  mortgage  ". 
These  Customs/lekin  Annual  Bonds  shall  be  handed  in  equal  shares  to  the 
Hongkong  and  Shanghai  Banking  Corporation  and  the  Deutsch-Asiatische  Bank 
before  payment  to  the  Chinese  Imperial  Government  of  the  proceeds  of  the 
loan. 

8. — This  loan  shall  also  be  further  secured  by  deposit  with  the  Hongkong 
and  Shanghai  Banking  Corporation  and  Deutsch-Asiatische  Bank  of  sterling 
Customs/lekin  monthly  Bonds  equal  in  value  altogether  to  the  total  amount  of 
the  loan,  principal  and  interest,  sealed  by  the  Chinese  Superintendent  of  Customs 
at  Shanghai  and  by  the  Viceroy  of  the  Liang-kiang  Provinces,  and  countersigned 
by  the  Foreign  Commissioner  of  Customs  at  Shanghai.  These  Customs/lekin 
monthly  Bonds  shall  be  handed  to  the  Hongkong  and  Shanghai  Banking 
Corporation  and  Deutsch-Asiatische  Bank  at  their  Branches  at  Shanghai 
in  equal  shares  on  or  before  the  first  day  of  June  next  and,  in  the  event  of  the 
money  to  meet  a  payment  of  interest  and/or  sinking  fund  not  being  handed 
to  the  Hongkong  and  Shanghai  Banking  Corporation  and  Deutsch-Asiatische 
Bank  at  their  Branches  at  Shanghai  on  due  date  shall  be  available  everywhere  in 
China  for  payment  of  Imperial  Maritime  Customs  duties  and/or  lekin  dues  or 
in  such  other  manner  as  stated  in  the  Bonds  and  the  Provincial  Authorities  shall 
be  instructed  by  Imperial  Edict  accordingly. 

9. — The  Chinese  Imperial  Government  hereby  undertakes  to  pay  the  entire 
balance  of  the  Indemnity  due  on  the  eighth  day  of  May  next  to  the  Imperial 
Japanese  Government  out  of  the  proceeds  of  this  loan.  No  further  loan  shall 
be  issued  by  the  Chinese  Imperial  Government  except  through  the  Banks,  until 
a  period  of  twelve  months  has  elapsed  after  the  issue  of  the  total  amount  of  this 
loan. 

10. — All  Bonds  and  coupons  and  payments  made  and  received  in  connection 
with  the  service  of  this  loan  shall  be  exempt  from  Chinese  taxes  and  imposts 
forever. 

11. — All  details  necessary  for  the  Prospectus  and  connected  with  the  service 
to  the  Bondholders  of  the  interest  and  repayments  of  the  principal  of  this 
loan,  not  herein  explicitly  provided  for,  shall  be  left  to  the  arrangement  of  the 
Banks,  who  shall  issue,  and  are  hereby  authorized  to  issue  a  Prospectus  of 
the  loan  as  soon  as  possible  after  the  signing  of  this  Agreement.  The  Chinese 
Imperial  Government  will  instruct  the  Chinese  Ministers  in  London  and  Berlin 
in  communication  with  the  Commissioner  of  Chinese  Customs  in  London  to  co- 
operate with  the  Banks  in  any  matters  requiring  conjoint  action,  and  the  Chinese 
Minister  in  Berlin  shall  sign  the  Prospectus  of  the  loan  as  required  by  the  rules 
of  the  Berlin  stock-exchange. 

12. — The  Banks  hereby  take  the  loan  firm  at  the  price  of  eighty  three 
percent  net  on  the  nominal  principal  to  the  Chinese  Imperial  Government,  and 
will  hold  the  net  proceeds,  namely  thirteen  million  two  hundred  and  eighty 
thousand  pounds  sterling  to  the  order  of  the  Chinese  Imperial  Government  in 
London  and/or  Berlin  as   follows: 


NUMBER  1898/3:  MARCH  1,  1898  HI 

On  the  sixth  day  of  May,  one  thousand  eight  hundred  and 

ninety  eight   £12,000,000 

On  the  sixth  day  of  June,  one  thousand  eight  hundred  and 

ninety  eight   1,280,000 


Total    thirteen    milHon    two    hundred    and    eighty    thousand 

pounds  sterling  £13,280,000 

13. — In  the  event  of  any  extraordinary  political  or  financial  crisis  taking 
place  in  Europe  or  elsewhere  by  which  the  markets  are  so  violently  affected  as 
to  render  the  successful  floating  of  this  loan  impossible  on  the  terms  herein 
named  the  Banks  have  the  right  to  withdraw  from  this  contract  with  the  Chinese 
Imperial  Government,  and  it  shall  in  that  case  become  null  and  void. 

14. — Immediately  on  the  signature  of  this  Agreement,  and  before  the  Pros- 
pectus of  the  Loan  shall  be  issued  to  the  public  the  Tsungli  Yamen  shall 
memorialize  the  Throne  and  obtain  an  Imperial  Edict  confirming  and  sanctioning 
the  provisions  of  this  Agreement,  and  shall  then  instruct  the  Inspector  General 
of  Maritime  Customs  to  assume  control  forthwith  over  the  revenues  therein 
indicated;  the  Imperial  Edict  so  received  shall  be  communicated  officially,  and 
without  delay,  by  the  Tsungli  Yamen  to  the  Ministers  for  Great  Britain  and 
Germany  in  Peking. 

15. — The  Hongkong  and  Shanghai  Banking  Corporation  and  the  Deutsch- 
Asiatische  Bank  shall  take  the  loan  in  equal  shares  and  without  responsibility 
for  each  other. 

16. — Quadruplicate  sets  of  this  Agreement  are  executed  in  English  and 
Chinese,  one  set  to  be  retained  by  each  contracting  party  and  one  set  by  the 
Inspector  General  of  Maritime  Customs.  In  the  event  of  any  doubt  arising  re- 
garding the  interpretation  of  this  contract  the  English  text  shall  be  accepted 
as  the  standard. 

Signed  at  Peking  by  the  contracting  parties  this  ninth  day  of  the  second 
month  of  the  twenty  fourth  year  of  the  Emperor  Kuang-hsii  being  the  first  day  of 
March  one  thousand  eight  hundred  and  ninety  eight,  Western  Calendar. 

For  the  Hongkong  and  Shanghai  Banking  Corporation, 

(Sgd.)  E.  G.  HiLLiER,  Agent 

For  the  Deutsch-Asiatische  Bank, 

(Sgd.)  Rump. 

Schedule  of  Interest  and  Sinking-fund  Payments 


Date 

1898  Interest 

July    5th £120,000 

July  20th 120.000 

August  5th 120.000 


Sinking-fund 
£19,205/6/8 
19,205/6/8 
19,205/6/8 


Total 
£139,205/6/8 
139,205/6/8 
139,205/6/8 

£417,616/-/- 


112  CHINA  TREATIES  AND  AGREEMENTS 


September  5th i  60,CX)0 

October   5th 60,000 

November  5th 60,000 

December  5th 60,000 


£  9602/13/4 

9602/13/4 
9602/13/4 
9602/13/4 


£69,602/13/4 
69,602/13/4 
69,602/13/4 
69,602/13/4 


and  the  same  payment  of  sixty  nine  thousand  six  hundred  and  two  pounds 
thirteen  shiUings  and  four  pence  shall  be  repeated  on  the  fifth  day  of  each  month 
of  the  year  one  thousand  eight  hundred  and  ninety  nine  Western  Calendar 
and  of  each  succeeding  year  until  the  fifth  day  of  February  one  thousand  nine 
hundred  and  forty  three  inclusive,  that  being  the  last  payment  when  the  loan  will 
be  extinguished. 

In  addition  to  the  payment  of  principal  and  interest  scheduled  above,  the 
Chinese  Imperial  Government  shall  on  the  fifth  day  of  February  of  each  year, 
commencing  with  the  fifth  day  of  February  one  thousand  eight  hundred  and 
ninety  nine,  pay  to  the  Banks  in  equal  shares  at  their  Branches  in  Shanghai 
the  sum  of  Two  thousand  and  eighty  eight  pounds  one  shilling  and  eight  pence 
being  the  commission  of  one  quarter  percent  on  the  Annual  Service  of  the  loan, 
provided  for  in  clause  four  of  the  accompanying  Agreement. 

(Sgd.)  E.  G.  HiLLiER. 

(Sgd.)     .  Rump. 


NUMBER  1898/4. 

GERMANY  AND  CHINA. 

Convention  respecting  the  lease  of  Kiaochozu* — March  6,  1898. 

The  incidents  connected  with  the  Mission  in  the  Prefecture  of  Tsao-chau-foo, 
in  Shantung,  being  now  closed,  the  Imperial  Chinese  Government  consider  it 
advisable  to  give  a  special  proof  of  their  grateful  appreciation  of  the  friendship 

*  Translation  from  the  German  text  as  printed  in  Customs,  Vol.  II,  p.  208.  The  Ger- 
man text  of  Section  1  was  printed  in  Das  Staatsarchiv,  vol.  61,  No.  11518;  translations  from 
that  version  and  from  an  unofficial  version  of  Sections  II  and  III  are  printed  in  Rockhill, 
p.  45;  Am.  Int.  Law  Journal,  Supplement,  1910,  p.  285;  Hertslet,  p.  350;  Kent,  p.  259.  See 
also  China,  1899,  No.  1,  pp.  67  and  152. 

In  connection  with  this  convention  see  also  the  following  documents: — 

1.  Anglo-German  Declaration  respecting  Weihaiwei,  April  20,  1898  (attached  to  No. 
1898/14,  post)  ; 

2.  Anglo-German  bankers'  arrangement  respecting  spheres  of  interest  in  railway 
construction,   September  2,   1898    (attached  to  No.  1900/5,  post)  ; 

3.  Declarations  made  to  the  United  States  regarding  the  open-door  policy,  March 
20,  1900   (No.  \%0/2,  post)  :  _ 

4.  Anglo-German  Declaration  defining  their  mutual  policy  in  China,  October  16, 
1900    (No.   1900/5,   post)  ; 

5.  Declaration  of  war  by  Japan  against  Germany,  August  23,  1914  (No.  1914/9,  post)  ; 

6.  Treaty  between  Japan  and  China  respecting  the  Province  of  Shantung  (with 
accompanying  exchanges  of  notes).  May  25,  1915   (No.  1915/8,  post)  ;  and 

7.  Treaty  of  Peace  between  the  Allied  and  Associated  Powers,  and  Germanv,  June  28, 
1919  (No.  1919/1,  post). 

Concerning    customs    matters,    see    the    following: — 

1.  Agreement  between  Germany  and  China  for  the  establishment  of  a  maritime  customs 


NUMBER  1898/4:  MARCH  6,  1898  113 

shown  to  them  by  Germany.  The  Imperial  German  and  the  Imperial  Chinese 
governments,  therefore,  inspired  by  the  equal  and  mutual  wish  to  strengthen 
the  bonds  of  friendship  which  unite  the  two  countries,  and  to  develop  the 
economic  and  commercial  relations  between  the  subjects  of  the  two  States,  have 
concluded  the  following  separate  Convention : — 

Section  I 

Article  I. — Rights  ceded  to  German  troops.— His  Majesty  the  Emperor 
of  China,  guided  by  the  intention  to  strengthen  the  friendly  relations  between 
China  and  Germany,  and  at  the  same  time  to  increase  the  military  readiness  of 
the  Chinese  Empire,  engages,  while  reserving  to  himself  all  rights  of  sovereignty 
in  a  zone  of  50  kilometres  (100  Chinese  //)  surrounding  the  Bay  of  Kiao-chau  at 
high-water,  to  permit  the  free  passage  of  German  troops  within  this  zone  at  any 
time,  as  also  to  abstain  from  taking  any  measures,  or  issuing  any  Ordinances 
therein,  without  the  previous  consent  of  the  German  Government,  and  especially 
to  place  no  obstacle  in  the  way  of  any  regulation  of  the  v^ater-courses  which  may 
prove  to  be  necessary.f 

Rights  reserved. — His  Majesty  the  Emperor  of  China,  at  the  same  time, 
reserves  to  himself  the  right  to  station  troops  within  that  zone,  in  agreement 
with  the  German  Government,  and  to  take  other  military  measures. 

Article  II. — Territory  leased. —  With  the  intention  of  meeting  the  legitimate 
desire  of  His  Majesty  the  German  Emperor,  that  Germany,  like  other  Powers, 
should  hold  a  place  on  the  Chinese  coast  for  the  repair  and  equipment  of  her 
ships,  for  the  storage  of  materials  and  provisions  for  the  same,  and  for  other 
arrangements  connected  therewith,  His  Majesty  the  Emperor  of  China  cedes  to 
Germany  on  lease,  provisionally  for  ninety-nine  years,  both  sides  of  the  entrance 

office  at  Tsingtau,  April  17,  1899  (No.  1899/2,  post),  to  which  are  attached  the  agreement 
concerning  inland  waters  steam  navigation,  April  17,  1904;  amendment  of  the  customs 
agreement  of  1899,  December  1,  1905 ;  and  German  ordinances  regulating  procedure  in 
customs  matters,  December  2,  1905,  and  concerning  manufactures  in  German  territory, 
April  17,   1907)  ;   and 

2.  Agreement  between  Japan  and  China  concerning  the  reopening  of  the  maritime 
customs  office  at  Tsingtau,  August  6,  1915   (No.  1915/12,  post). 

In  regard  to  railway  matters,  see  the  following: — 

1.  .'\nglo-German  bankers'  agreement  respecting  spheres  of  interest  in  railway  con- 
struction,  September  2,  1898    (attached  to   No.   1900/5,  post)  ; 

2.  Regulations  for  the  Kiaochow  -  Tsinanfu  Railway,  March  21,  1900  (No.  1900/3, 
post),  to  which  is  attached  the  charter  of  the  Schantung  Eisenbahn-Gesellschaft  for  the 
construction  and  operation  of  a  railway  from  Tsingtau  to  Tsinanfu,  June  1,  1899)  ; 

3.  Agreement  for  a  loan  by  British  and  German  banks  for  the  construction  of  the 
Tientsin  -  Pukow  Railway,  January  13,  1908   (No.  1908/1,  post);  and 

4.  Exchange  of  notes  between  Germany  and  China  in  regard  to  the  extension  of  the 
Shantung  Railway,    December  31,   1913    (No.   1913/16,   post). 

In  regard  to  mining  matters,  see  the  Agreement  for  joint  coal  mining  by  Chinese 
and  Germans,  March  21,  1900  (No.  1900/4,  post).  See  also  note  attached  to  Section  II, 
Article  IV  of  the  convention  (p.  115,  post). 

In  reference  to  postal  matters,  see  the  agreement  between  China  and  Germany, 
November  3,  1905  (attached  to  the  note  on  the  International  Postal  Convention  of  May 
26,  1906.  No.  1906/3,  post),  and  the  Agreement  between  Japan  and  China  concerning 
postal  and  telegraph  operations  at  the  leased  territory  of  Kiaochow  Bay  and  along  the 
Kiao-Tsi  Railway,  March  26,  1917  (No.  1917/5,  post). 

See  further  Note  1  to  this  document,  post,  p.  116. 

t  See  Note  2  to  this  document,  post.  p.  118. 


114  CHINA  TREATIES  AND  AGREEMENTS 

to  the  Bay  of  Kiao-chau.  Germany  engages  to  construct,  at  a  suitable  moment, 
on  the  territory  thus  ceded,  fortifications  for  the  protection  of  the  buildings  to 
be  constructed  there  and  of  the  entrance  to  the  harbour. 

Article  III. — Limits  of  territory  leased. — In  order  to  avoid  the  possibility 
of  conflicts,  the  Imperial  Chinese  Government  will  abstain  from  exercising 
rights  of  sovereignty  in  the  ceded  territory  during  the  term  of  the  lease,  and 
leaves  the  exercise  of  the  same  to  Germany  within  the  following  limits : — 

(1.)  On  the  northern  side  of  the  entrance  to  the  bay: 

The  peninsula  bounded  to  the  north-east  by  a  line  drawn  from  the  north- 
eastern corner  of  Potato  Island  to  Loshan  Harbour. 

(2.)   On  the  southern  side  of  the  entrance  to  the  bay: 

The  peninsula  bounded  to  the  south-west  by  a  line  drawn  from  the  south- 
westernmost  point  of  the  bay  lying  to  the  south-south-west  of  Chiposan  Island 
in -the  direction  of  Tolosan  Island. 

(3.)   The  Island  of  Chiposan  and  Potato  Island. 

(4.)  The  whole  water  area  of  the  bay  up  to  the  highest  water-mark  at 
present  known, 

(5.)  All  islands  lying  seaward  from  Kiao-chau  Bay,  which  may  be  of  im- 
portance for  its  defence,  such  as  Tolosan,  Chalienchow,  &c. 

Delimitation. — The  High  Contracting  Parties  reserve  to  themselves  to 
delimit  more  accurately,  in  accordance  with  local  traditions,  the  boundaries 
of  the  territory  leased  to  Germany  and  of  the  50-kilometer  zone  around  the  bay, 
by  means  of  Commissioners  to  be  appointed  on  both  sides. 

Rights  of  Chinese  ships  in  Kiao-chau  Bay. — Chinese  ships  of  war  and  mer- 
chant-vessels shall  enjoy  the  same  privileges  in  the  Bay  of  Kiao-chau  as  the  ships 
of  other  nations  on  friendly  terms  with  Germany ;  and  the  entrance,  departure, 
and  sojourn  of  Chinese  ships  in  the  bay  shall  not  be  subject  to  any  restrictions 
other  than  those  which  the  Imperial  German  Government,  in  virtue  of  the  rights 
of  sovereignty  over  the  whole  of  the  water  area  of  the  bay  transferred  to 
Germany,  may  at  any  time  find  it  necessary  to  impose  with  regard  to  the  ships 
of  other  nations. 

Article  IV. — Navigation  signals. — Germany  engages  to  construct  the 
necessary  navigation  signals  on  the  islands  and  shallows  at  the  entrance  of  the 
bay. 

Port  dues. — No  dues  shall  be  demanded  from  Chinese  ships  of  war  and 
merchant-vessels  in  the  Bay  of  Kiao-chau,  except  those  which  may  be  levied  upon 
other  vessels  for  the  purpose  of  maintaining  the  necessary  harbour  arrange- 
ments and  quays. 

Article  V. — Return  of  leased  territory. — Should  Germany  at  some  future 
time  express  the  wish  to  return  Kiao-chau  Bay  to  China  before  the  expiration 
of  the  lease,  China  engages  to  refund  to  Germany  the  expenditure  she  has  in- 
curred at  Kiao-chau,  and  to  cede  to  Germany  a  more  suitable  place. 

Germany  engages  at  no  time  to  sublet  the  territory  leased  from  China  to 
another  Power. 

Chinese  in  leased  territory. — The  Chinese  population  dwelling  in  the  ceded 
territory  shall  at  all  times  enjoy  the  protection  of  the  German  Government, 


Tchang-lin? 


c 


NUMBER  1898/4:  MARCH  6,  1898  115 

provided  that  they  behave  in  conformity  with  law  and  order;  unless  their  land 
is  required  for  other  purposes  they  may  remain  there. 

If  land  belonging  to  Chinese  owners  is  required  for  any  other  purpose,  the 
owner  will  receive  compensation  therefor. 

Customs  stations. — As  regards  the  re-establishment  of  Chinese  customs 
stations  which  formerly  existed  outside  the  ceded  territory,  but  within  the 
50-kilometer  zone,  the  Imperial  German  Government  intends  to  come  to  an  agree- 
ment with  the  Chinese  Government  for  the  definitive  regulation  of  the  customs 
frontier,  and  the  mode  of  collecting  customs  duties,  in  a  manner  which  will  safe- 
guard all  the  interests  of  China,  and  proposes  to  enter  into  further  negotiations 
on  the  subject.^ 

Section  II. — Railway  and  Mining  Affairs, 

Article  I. — The  Chinese  Government  sanctions  the  construction  by  Ger- 
many of  two  lines  of  railway  in  Shantung.  The  first  will  run  from  Kiao-chau 
via  Weihsien,  Tsingchofu,  Poshan,  Tzechwan,  and  Tsowping  to  Tsinan  and  the 
boundary  of  Shantung.  The  second  line  will  run  from  Kiao-chau  to  Ichowfu, 
and  from  there  to  Tsinan  via  Laiwuhsien.  But  the  construction  of  the  extension 
from  Tsinan  to  the  boundary  of  Shantung  shall  not  be  begun  until  the  railway  is 
completed  as  far  as  Tsinan  in  order  that  further  consideration  may  be  given  by 
the  Chinese  as  to  how  they  will  connect  this  with  their  own  trunk  line.  The 
route  to  be  taken  by  this  last  branch  will  be  definitely  determined  in  the  regula- 
tions which  will  be  drawn  up  hereafter. 

Article  II. — In  order  to  carry  out  the  above-mentioned  railway  work,  a 
Chino-German  Company  shall  be  formed.  This  Company  may  have  offices  in 
one  place  or  in  several  places,  and  both  German  and  Chinese  merchants  shall 
be  at  liberty  to  invest  money  therein,  and  share  in  the  appointment  of  directors 
for  the  management  of  the  undertaking. 

Article  III. — Germany  and  China  shall  in  the  near  future  draw  up  a 
further  agreement  relative  to  the  management  of  the  railway  by  the  Com- 
pany, and  all  matters  pertaining  thereto  shall  be  discussed  and  decided  upon 
by  these  two  countries  alone.  But  the  Chinese  Government  shall  afiford  every 
facility  to  the  Chino-German  Company  in  the  construction  of  the  road,  and  it 
shall  enjoy  all  the  advantages  and  benefits  extended  to  other  Chinese-foreign 
companies  operating  in  China.  It  is  understood  that  the  object  of  this  agree- 
ment is  solely  the  development  of  commerce,  and  in  constructing  this  railroad 
there  is  no  intention  to  unlawfully  seize  any  land  in  the  Province  of  Shantung. 

Article  IV. — The  Chinese  Government  will  allow  German  subjects  to  hold 
and  develop  mining  property  for  a  distance  of  thirty  //  from  each  side  of  those 
railways  and  along  the  whole  extent  of  the  lines. §  The  following  places  where 
mining  operations  may  be  carried  on  are  particularly  specified :     Weihsien  and 

t  RockhiU,  citing  Rcichsaiiceigcr,  Sept.  5,  1898,  notes  that  Kiaochow  was  opened  as  a 
free   port   on    September  2,    1898. 

§  By  a  subsequent  agreement  dated  July  24,  1911  (attached  to  the  Mining  Regulations  of 
1900,  No.  1900/4,  post),  Article  IV  was  modified  by  the  substitution  of  specific  mining  areas 
in  lieu  of  the  general  grant  of  mining  rights  within  30  li  (appro.ximately  10  miles)  on  either 
side  of  the  line  of  the  Shantung  Railway. 


116  CHINA  TREATIES  AND  AGREEMENTS 

Poshan  along  the  line  of  the  northern  railway  from  Kiao-chau  to  Tsinan,  and 
Ichow,  Laiwuhsien,  etc.,  along  the  southern  or  Kiao-chau-Ichow-Tsinan  line. 
Both  German  and  Chinese  capital  may  be  invested  in  these  mining  and  other 
operations,  but  as  to  the  rules  and  regulations  relating  thereto,  this  shall  be 
left  for  future  consideration.  The  Chinese  Government  shall  afford  every 
facility  and  protection  to  German  subjects  engaged  in  these  works,  just  as 
provided  for  above  in  the  article  relating  to  railway  construction,  and  all  the 
advantages  and  benefits  shall  be  extended  to  them  that  are  enjoyed  by  the 
members  of  other  Chinese-foreign  companies.  The  object  in  this  case  is  also 
the  development  of  commerce  solely. 

Section  III. — Commercial  operations  in  Shantung. 

The  Chinese  Government  binds  itself  in  all  cases  where  foreign  assistance, 
in  persons,  capital  or  material,  may  be  needed  for  any  purpose  whatever  within 
the  Province  of  Shantung,  to  offer  the  said  work  or  supplying  of  materials  in 
the  first  instance  to  German  manufacturers  and  merchants  engaged  in  under- 
takings of  the  kind  in  question.  In  case  German  manufacturers  or  merchants  are 
not  inclined  to  undertake  the  performance  of  such  works,  or  the  furnishing  of 
materials,  China  shall  then  be  at  liberty  to  act  as  she  pleases. 

The  above  Agreement  shall  be  ratified  by  the  Sovereigns  of  both  the  Con- 
tracting States,  and  the  ratifications  exchanged  in  such  manner  that,  after  the 
receipt  in  Berlin  of  the  Treaty  ratified  by  China,  the  copy  ratified  by  Germany 
shall  be  handed  to  the  Chinese  Minister  in  Germany. 

The  foregoing  Treaty  has  been  drawn  up  in  four  copies,  two  in  German  and 
two  in  Chinese,  and  was  signed  by  the  Representatives  of  the  two  Contracting 
States  on  the  6th  March,  1898,  corresponding  to  the  14th  day  of  the  second  month 
in  the  twenty-fourth  year  Kuang-hsii. 

(Great  Seal  of  the  Tsung-li  Yamen.) 

(Signed)  Baron  von  Heyking, 

The  Imperial  German  Minister. 

Li  Hung-Chang  (in  Chinese), 
Imperial   Chinese   Grand  Secretary,  Minister  of   the 
Tsung-li  Yamen,  &c.,  &c. 

Weng  Tung-Ho  (in  Chinese), 
Imperial   Chinese   Grand   Secretary,   Member  of 
the  Council  of  State,  Minister  of  the  Tsung-li 
Yamen,  &c.,  &c. 


Note  1. 

In  the  course  of  a  correspondence,  initiated  by  the  American  Government,  as  to  the 
construction  to  be  placed  upon  this  convention  in  the  hght  of  the  German  Government's 
adherence  to  the  open-door  principle  as  proposed  by  Secretary  Hay  under  date  of  September 


NUMBER  l«98/4:  iMARCH  6,  1898:  NOTES  117 

0,   1899,   the  German   Embassy   at   Washington   submitted   to   the    Department   of    State   on 
February   14,   1902,  the   following  memorandum  : — 

Memorandum  of  German  Embassy  in  Washington  regarding  German  Rights  in 
Shantung. — February  14,  1902. 

"  The  Imperial  German  Government  has  no  intention  whatever  of  abandoning  its 
adherence  to  the  principle  of  the  Open  Door  recognized  also  for  the  province  of  Shantung; 
neither  does  it  contemplate  any  measures  which  might  be  used  by  other  powers  as  an 
encouragement  for  further  disintegrating  on  their  part  the  actual  state  of  possessions  of  the 
Chinese  Empire. 

"The  Imperial  German  Government  wants  to  state  that  any  apprehensions  in  this 
respect  which  may  possibly  have  been  created  by  press-dispatches  emanating  from  English 
sources  are  without  foundation.  The  facts  are  that  a  German  corporation  has  obtained 
mining  concessions  for  certain  strictly  defined  mineral  lands  situated  in  the  province  of 
Shantung;  but  this  does  in  no  way  mean  a  monopoly  for  the  whole  province." 

Under  date  of  April  19,  1902,  the  German  Foreign  Office  addressed  to  the  American 
Embassy  in  Berlin  a  memorandum  of  which  the  translation  is  as  follows : — 

Memorandum  of  German  Foreign  Office  regarding  German  Rights  in  Shantung.— 

April  19,  1902. 
April  19,  1902. 

"I.  The  treaty  between  Germany  and  China  which  was  concluded  on  March  6,  1898, 
regarding  the  transfer  under  lease  of  certain  territory  on  Kiao-chow  Bay,  was  requisitely  rati- 
fied in  due  time  and  has  been  in  force  legally  between  the  two  contracting  parties  ever  since. 

"  II.  The  extract  from  the  treaty  which  was  contained  in  the  Memorandum  from 
the  American  Embassy,  in  the  English  language,  is  incorrect  in  its  first  paragraph.  The 
provisions  referred  to,  in  the  original  text,  read  verbally  rather  as  follows : 

" '  The  Chinese  Government  binds  itself  in  all  cases  where  foreign  assistance,^  in 
persons,  capital  or  material,  may  be  needed  for  any  purpose  whatever  within  the  Province 
of  Shantung,  to  offer  the  said  work  or  furnishing  of  material,  in  the  first  instance,  to 
German  industrialists  and  merchants  who  are  engaged  in  undertakings  of  the  kind  in 
question. 

"  '  In  case  the  German  industrialists  and  merchants  are  not  inclined  to  undertake  the 
performance  of  such  works  or  to  furnish  material,  China  shall  then  be  at  liberty  to  act 
as  she  pleases.' 

"III.  1.)  The  foregoing  provisions  do  not  grant  any  exclusive  rights  to  Germany, 
they  merely  bind  China  to  offer  the  works  and  schemes  concerned  to  Germans,  but  leave 
to  persons  of  other  nationality  absolute  freedom  to  obtain  the  contracts  for  the  furnishing 
of  material  by  offering  more  favorable  terms. 

"  The  Imperial  Government  has  as  yet  not  learned  of  any  instance  where  Americans  or 
any  persons  of  any  other  nationality  have  actually  been  placed  at  disadvantage  through 
the  application   of  these  provisions. 

"2.)  The  declaration  of  the  principle  of  the  'Open-Door'  by  Germany  as  well_  as 
by  the  other  Powers,  was  made  a  long  time  after  the  Kiao-chow  treaty  had  gone  into 
effect.  Hence  the  later  assertion  of  this  principle  cannot  be  applied  retroactively  to  Ger- 
man rights  previously  obtained,  as  moreover,  none  of  the  other  nations  has  renounced 
rights  already  acquired  on  account  or  in  consequence  of  its  acceptance  of  the  principle 
of  the  '  Open-Door.' 

"3.)  France,  in  particular,  on  the  strength  of  older  treaty  provisions  after  which 
those  of  the  Kiao-chow  treaty  of  1898  were  modeled,  claims  similar  but  more  far-reaching 
rights  in  the  southern  Provinces  of  China.  So  long  in  the  first  place  as  France  cannot 
be  induced  to  renounce  these  rights  the  Imperial  Government  is  hardly  in  a  position 
to  consider  the  renunciation  of  similar  rights  obtained  by   it  in   Shantung. 

"4.)  In  other  parts  of  China  various  other  nations  hold  railway  and  other  concessions 
of  so  wide  a  scope  that  their  realization  is  not  to  be  thought  of  within  any  measurable 
time,  and  which  therefore  practically  amount  to  exclusive  privileges.  If  the  Government 
of  the  United  States  is  inclined  to  urge  the  strict  carrying  out  of  _  the  principle  of  the 
'  Open-Door,'  which  Germany  would  only  find  proper  on  the  supposition  that  its  applica- 
tion would  be  absolutely  the  same  to  all,  it  would  above  all  be  necessary  to  raise  objections 
to  such  exclusive  rights  as  are  disguised  under  the  name  of  concession.  _0n  the  other 
hand,  to  begin  with  a  restriction  of  the  German  rights  in  Shantung,  which  are  really 
quite  modest  and  which  in  reality  seriously  prejudice  the  interests  of  no  one,  would 
neither  be  just  nor  acceptable. 

"5.)  Finally,  the  Imperial  Government  cannot  leave  out  of  consideration,  in  taking 
up  its  position,  (the  fact)  that  the  American  Government  has  as  yet  refused  to  recognize 
the  principle  of  the  '  Open-Door '  in  the  Philippines — to  the  serious  disadvantage  of  Ger- 
mans who  have  obtained  rights  there." 


118  CHINA  TREATIES  AND  AGREEMENTS 

Note  2. 

In  the  Claim  of  China  for  direct  restitution  to  herself  of  the  Leased  Territory  of 
Kiaochow,  the  Tsingtao — Chilian  Railway  and  other  German  Rights  in  respect  of  Shantung 
Province,  as  presented  by  the  Chinese  Delegation  for  the  consideration  of  the  Preliminary 
Peace  Conference  at  Paris,  in  February,  1919,  is  given  (at  p.  35)  the  following  translation 
of  a  convention  between  China  and  Germany  respecting  the  withdrawal  of  German  troops 
from  the  cities  of  Kiaochow  and  Kaomi  (in  the  50-kilometer  zone),  concluded  November  28 
1905  :— 

Agreement  for  Withdrawal  of  German  Troops  from  Kiaochow  and  Kaomi. — 

November  28,  1905. 

"  The  Emperor  of  China  has  appointed  Yang  Shih-hsiang,  Civil  and  Military  Governor 
of  Shantung,  and  the  German  Emperor,  Van  Semmern,  Civil  and  Military  Governor  of 
Kiaochow,  who  after  communicating  full  powers  and  finding  them  in  due  form  have  agreed 
upon  the  following  articles. 

"  Whereas  the  German  Emperor  has,  for  the  purpose  of  promoting  friendly  relations, 
figreed  to  withdraw  the  troops  stationed  at  Kiaochow  and  Kaomi,  the  following  articles 
are  hereby  concluded. 

"  Article  1. — The  German  troops  at  Kiaochow  shall  withdraw  immediately  after  this 
Convention  has  been  signed. 

"  Article  2. — One  fourth  of  the  German  troops  stationed  at  Kaomi  shall  withdraw 
immediately  after  the  signing  of  this  Convention,  and  another  fourth,  within  two  months 
therefrom.  The  remaining  troops  shall  withdraw  within  the  next  two  months  during 
which  period  barracks  and  stables  shall  be  so  speedily  built  in  Tsingtao  that  the  said 
troops  may  withdraw  altogether  within  this  said  time-limit.  But  in  case  the  said  works 
cannot  be  finished  within  the  two  months,  a  complete  withdrawal  shall  nevertheless  be 
effected — there  shall  be  no  further  extension  of  time. 

"  Article  3. — from  the  date  of  the  signing  of  this  Convention,  no  matter  whether  the 
German  troops  at  Kiaochow  and  Kaomi  have  completely  withdrawn  or  not,  the  railways 
within  the  surrounding  zone  shall  completely  be  under  the  supervision  and  protection  of 
the  Chinese  local  authorities  and  police  officers.  The  police  officers  shall  despatch  so  many 
policemen  as  they  deem  fit,  but  not  more  than  two  hundrfed  and  forty,  to  be  evenly 
stationed  at  various  sections :  all  matters  relating  thereto  shall  be  conducted  according  to 
the  police  regulations  prevailing  beyond  the  surrounding  zone.  At  some  place  near  the  city 
of  Kaomi  there  shall  be  established  a  police  office  with  a  police  force  of  not  more  than 
one  hundred  men  who  shall,  by  turn,  attend  to  their  duty  in  the  protection  of  the  railway 
and  in  the  suppression  of  disturbances  which  may  arise.  But  if  China  should  station 
troops  in  the  said  place,  all  matters  relating  thereto  shall  be  governed  by  the  Kiaochow 
Lease  Convention. 

"  Article  4. — All  the  works  which  Germany  has  constructed  in  Kiaochow  and  Kaomi 
such  as  barracks,  stables,  drill  grounds,  roads,  waterworks,  and  the  like,  together  with  the 
foundations  thereof,  houses  and  the  fixtures  attached  thereto  cost,  calculated  at  their 
original  prices,  $496,388.48.  From  this  amount  are  to  be  substracted  $5,000.00  as  rent  paid  for 
the  German  Government  by  the  Chinese  Government,  $21,388.48  expended  for  annual 
repairs  and  considered  as  representing  the  annual  dimunition  of  the  value  of  the  properties, 
and  $70,000.00  as  extra  reduction ;  the  net  price  will  then  be  $400,000.00  at  which  the  said 
properties  will  be  purchased  by  and  reverted  to  China  under  a  separate  agreement.  The 
price  of  the  buildings  shall  be  paid  off  in  four  installments  within  two  years  from  the 
day  when  the  barracks  at  Kiaochow  and  Kaomi  are  handed  over.  After  their  purchase 
or  reversion,  all  the  buildings  shall  be  reserved  for  educational  and  other  public  uses. 

"  Article  5. — In  case  Germany  should,  in  accordance  with  the  Treaties,  require  passage 
for  her  troops  through  Kiaochow  and  Kaomi,  and  stay  there  for  a  few  days,  a  few  weeks' 
notice  will  be  necessary,  in  order  that  a  vacant  place  may  be  assigned  for  their  temporary 
stay,  free  of  charge. 

"Of  this  Convention  there  shall  be  made  four  copies  in  Chinese  and  four  in  German, 
identical  in  sense;  and  after  they  have  been  signed,  two  copies  each  of  the  Chinese  and 
German  texts  shall  be  filed  at  the  office  of  the  Governor  of  Shantung,  and  the  other  two 
copies  each  of  the  said  two  languages,  at  the  office  of  the  Civil  and  Military  Governor  of 
Kiaochow,  for  reference,  transmission  and  observance. 

"  The  second  Day,  eleventh  Moon  of  the  Reign  of  Kwanghsu  corresponding  to  the 
28th  of  November,  1905. 

"Signed:    Yang   Shih-Hsiang. 
Van  Semmern." 


NUMBER  1898/5:  MARCH  27,  1898  119 

NUMBER  1898/5. 

RUSSIA  AND  CHINA. 

Convention  for  the  lease  of  the  Liaotung  Peninsula* — March  27,  1898. 

His  Majesty  the  Emperor  and  Autocrat  of  all  the  Russias,  and  His  Majesty 
the  Emperor  of  China,  being  desirous  of  still  further  strengthening  the  friendly 
relations  existing  between  the  two  Empires  and  mutually  wishing  to  insure  the 
means  whereby  to  show  reciprocal  support,  have  appointed  as  their  Plenipo- 
tentiaries, for  the  purpose  of  arriving  at  an  agreement  on  this  matter : 

His  Majesty  the  Emperor  of  Russia — M.  Alexander  Pavlow,  Gentleman  of 
the  Court,  and  His  Majesty's  Charge  d' Affaires  accredited  to  the  Government 
of  H.  M.  the  Emperor  of  China; 

His  Majesty  the  Emperor  of  China — Count  Li,  Chancellor,  Member  of  the 
Ministry  of  Foreign  Affairs,  and  Senior  Preceptor  of  the  Heir  to  the  Throne, 
and  Chang,  Assistant  Minister  of  Finance,  and  Member  of  the  Ministry  of 
Foreign  Affairs,  with  Ministerial  rank. 

The  above-named  Plenipotentiaries,  furnished  with  due  powers,  have  decided 
upon  the  following  stipulations : 

Art.  I. — For  the  purpose  of  ensuring  that  the  Russian  naval  forces  shall 
possess  an  entirely  secure  base  on  the  littoral  of  northern  China,  H.  M.  the 
Emperor  of  China  agrees  to  place  at  the  disposal  of  the  Russian  Government,  on 
lease,  the  Ports  Arthur  (Liou-choun-kow)  and  Ta-lien-wan,  together  with  the 
water  areas  contiguous  to  these  ports.  This  act  of  lease,  however,  in  no  way 
violates  the  sovereign  rights  of  H.  M.  the  Emperor  of  China  to  the  above-men- 
tioned territory. 

Art.  II. — The  frontier  of  the  territory  leased  on  the  above-specified  basis, 
will  extend  northwards  from  the  Bay  of  Ta-lien-wan  for  such  distance  as  is 
necessary  to  secure  the  proper  defence  of  this  area  on  the  land  side.  The  precise 
line  of  demarcation  and  other  details  respecting  the  stipulations  of  the  present 
Convention  will  be  determined  by  a  separate  Protocol  which  shall  be  con- 
cluded at  St.  Petersburg  with  the  dignitary  Siou-tzin-ch'eng  immediately  after 
the  signature  of  the  present  Convention.  Upon  the  determination  of  this  line  of 
demarcation,  the  Russian  Government  will  enter  into  complete  and  exclusive 
enjoyment  of  the  whole  area  of  the  leased  territory  together  with  the  water  areas 
contiguous  to  it. 

Art.  III. — The  term  of  the  lease  shall  be  twenty-five  years  from  the  date 
of  the  signature  of  the  present  agreement  and  may  be  prolonged  subsequently 
by  mutual  consent  of  both  Governments.f 

*  Translation  from  the  Russian  text  as  printed  in  RecueU,  p.  331.  Printed  also  in  Rus- 
sian and  Chinese  texts  in  Customs.  Vol.  II,  pp.  219,  223;  and.  in  a  translation  from  unofficial 
versions,  in  Rockhill,  p.  50:  Herislet,  p.  505  :  Am.  Int.  Law  Journal,  Supplement,  1910,  p.  289; 
F.  E.  Review,  vol.  11,  p.  395.     See  Note  to  this  document,  post,  p.  121. 

t  See,  however,  the  Exchange  of  Notes  between  China  and  Japan  concerning  the  ex- 
tension of  this  term,  May  25.  1915   (No.  1915/8,  post). 


120  CHINA  TREATIES  AND  AGREEMENTS 

Art.  IV. — During  the  above-specified  period,  on  the  territory  leased  by  the 
Russian  Government  and  its  adjacent  water  area,  the  entire  military  command 
of  the  land  and  naval  forces  and  equally  the  supreme  civil  administration  will 
be  entirely  given  over  to  the  Russian  authorities  and  will  be  concentrated  in 
the  hands  of  one  person  who  however  shall  not  have  the  title  of  Governor  or 
Governor-General.  No  Chinese  military  land  forces  whatsoever  will  be  allowed 
on  the  territory  specified.  Chinese  inhabitants  retain  the  right,  as  they  may  de- 
sire, either  to  remove  beyond  the  limits  of  the  territory  leased  by  Russia  or  to 
remain  within  such  limits  without  restriction  on  the  part  of  the  Russian  authori- 
ties. In  the  event  of  a  Chinese  subject  committing  any  crime  within  the  limits 
of  the  leased  territory,  the  offender  will  be  handed  over  to  the  nearest  Chinese 
authorities  for  trial  and  punishment  in  accordance  with  Chinese  laws,  as  laid 
down  in  Article  VIII  of  the  Treaty  of  Peking  of  1860. 

Art.  V. — A  neutral  zone  shall  be  established  north  of  the  above-specified 
frontier  of  the  leased  territory.  The  frontiers  of  this  zone  will  be  fixed  by 
the  dignitary  Siou-tzin-ch'eng  and  the  Ministry  of  Foreign  Afifairs  in  St.  Peters- 
burg. Within  this  specified  neutral  zone  the  civil  administration  will  be  entirely 
in  the  hands  of  the  Chinese  authorities ;  Chinese  troops  will  be  admitted  within 
this  zone  only  with  the  consent  of  the  Russian  authorities. 

Art.  VI. — Both  the  Governments  agree  that  Port  Arthur,  as  an  exclusively 
military  (naval)  port,  shall  be  used  solely  by  Russian  and  Chinese  vessels  and 
shall  be  considered  as  a  closed  port  to  war-ships  and  merchant  vessels  of  other 
States.  As  regards  Ta-lien-wan,  this  port,  with  the  exception  of  one  of  the 
inner  bays  which,  like  Port  Arthur,  shall  be  set  apart  exclusively  for  the  use 
of  the  Russian  and  Chinese  fleets,  shall  be  considered  open  to  foreign  commerce 
and  free  entry  to  it  will  be  granted  to  the  merchant  vessels  of  all  nations. 

Art,  VII. — The  Russian  Government  takes  upon  itself  at  its  own  expense 
and  with  its  own  resources  to  erect  all  buildings  necessary  for  its  fleet  and  land 
forces  on  the  area  leased  to  it  and  especially  in  the  ports  Arthur  and  Ta-lien-wan, 
to  erect  fortifications,  maintain  garrisons  in  them  and  generally  to  take  all  neces- 
sary steps  for  the  proper  defence  of  the  specified  locality  from  hostile  attack. 
Similarly  the  Russian  Government  binds  itself  at  its  own  expense  to  erect  and 
maintain  light-houses  and  other  precautionary  signs  requisite  for  the  security 
of  navigation. 

Art.  VIII. — The  Chinese  Government  agrees  that  the  concessions  granted  by 
it  in  1896  to  the  Chinese  Eastern  Railway  Company,  from  the  date  of  the 
signature  of  the  present  agreement  shall  be  extended  to  the  connecting  branch 
which  is  to  be  built  from  one  of  the  stations  of  the  main  line  to  Ta-lien-wan, 
and  also,  if  deemed  necessary,  from  the  same  main  line  to  another  more  con- 
venient point  on  the  littoral  of  the  Liaotung  Peninsula  between  the  town  of 
In-tzii  and  the  estuary  of  the  River  Yalu-  All  the  stipulations  of  the  contract 
concluded  by  the  Chinese  Government  with  the  Russo-Chinese  Bank  on  August 
27  (Septembers),  1896,  shall  apply  scrupulously  to  these  supplementary  branches. 
The  direction  and  points  through  which  the  above-mentioned  lines  shall  pass  will 
be  determined  upon  by  the  dignitary  Siou-tzin-ch'eng  and  the  administration  of 
the  Chinese  Eastern  Railway.    Consent  to  the  construction  of  the  railway  on  the 


NUMBER  1898/5 :  MARCH  27,  1898 :  NOTE  121 

basis  indicated  shall  never  under  any  form  serve  as  a  pretext  for  the  seizure  of 
Chinese  territory  or  for  an  encroachment  on  the  sovereign  rights  of  China. 

Art.  IX. — The  present  Convention  shall  come  into  force  from  the  date  of 
exchange  of  copies  thereof  by  the  Plenipotentiaries  of  the  two  States. 

The  exchange  of  ratifications  will  take  place  in  St.  Petersburg  with  the 
least  possible  delay. 

In  virtue  of  which  the  respective  Plenipotentiaries  of  the  two  parties  have 
signed  and  afifixed  their  seals  to  two  copies  of  the  present  Convention  in  the 
Russian  and  Chinese  languages.  Of  the  two  texts  which,  upon  comparison, 
have  been  found  to  be  in  agreement,  the  Russian  text  shall  be  that  used  for  the 
interpretation  of  the  Convention. 

Done  in  duplicate  at  Peking,  this  15th  day  of  March  (March  27),  1898,  and 
by  the  Chinese  calendar  the  6th  day  of  the  3rd  moon  of  the  24th  year  of  the 
reign  of  Kuang-Hsii. 

(Seal)  (Signed)  A.   Pavlow 

(Seal)  (Signed)  Li-chang 

(Seal  of  the  Tsung-li-yamen) 


Note. 

In  connection  with  this  convention  see  the  Additional  Convention  defining  the  boundaries 
of  the  leased  and  neutralized  territory  in  the  Liaotung  Peninsula,  ]\Iay  7,  1898  (No.  1898/9, 
post)  ;  see  also  the  Convention  for  the  Retrocession  of  the  Fengtien  (Liaotung)  Peninsula 
by  Japan  to  China,  November  8,  1895  (No.  1895/10,  ante)  ;  Treaty  of  peace  between  Rus- 
sia and  Japan,  September  5,  1905  (No.  1905/8,  post)  ;  Treaty  and  additional  agreement  be- 
tween Japan  and  China  concerning  Manchuria,  December  22,  1905  (No.  1905/18,  post)  ; 
and  the  Exchange  of  notes  between  Japan  and  China,  in  regard  to  the  extension  of  the 
term  of  lease,  accompanying  the  treaty  of  May  25,  1915,  concerning  Manchuria  (No.  1915/8, 
post). 

Rockhill,  p.  370,  prints  the  following  translation  of  an  imperial  order  of  July  30/ 
August  11,  1899,  for  the  building  of  Dalny  and  creating  it  a  free  port: 

Russian  Imperial  Order  regarding  Establishment  of  Dalny  as  a  Free  Port. — 

August  II,  1899. 

"  To  THE  Minister  of  Finance. — Our  Empire,  comprising  as  it  does  immense  territories 
in  Europe  and  Asia,  is  called  upon  by  Divine  Providence  to  contribute  to  the  pacific  inter- 
course of  the  peoples  of  the  East  and  the  West.  For  the  attainment  of  this  historic  object 
we  have  received  the  friendly  assistance  of  the  Chinese  Empire,  which  has  ceded  to  us 
the  use  of  the  Harbour  of  Talienwan  and  Port  Arthur,  with  the  adjacent  territory,  and 
has  furnished  for  the  Great  Siberian  Railway  an  outlet  through  its  possessions  to  the 
Yellow  Sea.  Thanks  to  this  wise  decision  of  the  Government  of  His  Majesty  the  Emperor 
of  China,  the  extreme  limits  of  two  continents  of  the  Old  World  will  very  shortly 
be  connected  by  an  uninterrupted  line  of  rails,  which  will  secure  for  all  nations  the  incal- 
culable advantages  of  easy  communication,  and  bring  new  regions  within  the  operations  of 
the  commerce  of  the  world. 

"  In  our  increasing  solicitude  for  a  scheme  of  such  general  utility  as  this,  we  have 
directed  our  attention  to  the  first-rate  importance  which,  when  once  the  line  is  constructed, 
its  terminus,  the  port  of  Talienwan,  will  acquire.  Having  declared  after  its  occupation 
that  this  port  was  open  to  the  commercial  fleets  of  all  nations,  we  deem  it  advisable  now 
to  proceed  to  the  construction  near  this  port  of  a  town,  to  which  we  give  the  name  of  '  Dalny.' 

"  At  the  same  time,  with  a  view  to  the  commercial  development  of  the  future  town, 
we  grant  to  the  same  for  the  entire  period  for  which  its  territory  is  handed  over  to  Russia 
by  China,  under  the  arrangement  of  the  15th  (27th)  March,  1898,  the  right  of  free  trade 
granted  to  free  ports  on  the  following  conditions : — 

"  1.    The   importation    and   exportation    of   goods   of    every   kind   are   allowed    free   of 


122  CHINA  TREATIES  AND  AGREEMENTS 

customs  dues   in   the  town,   port,  and  adjacent  territory,  within   the  limits  determined   by 
and  liable  to  modification  by  the  Minister  of  Finance. 

"2.  The  right  of  free  trade  thus  granted  does  not  affect  transport,  anchorage,  and 
other  dues  of  various  kinds,  levied  at  ports. 

"  3.  The  Quarantine  Regulations,  issued  with  a  view  to  preventing  the  introduction 
of  infectious  diseases,  must  be  strictly  observed  by  all  ships  entering  the  port. 

"4.  Goods  imported  into  Russia  which  come  from  the  territory  enjoying  the  right 
of  free  trade  will  be  examined,  will  pay  import  duty,  and  will  enter  the  Empire  under  the 
general  conditions  in  force  for  the  importation  of  foreign  goods. 

"  Invoking  the  blessing  of  the  Lord  upon  this  truly  pacific  work  of  the  future,  we 
intrust  to  your  care  the  superintendence  of  the  construction  of  the  town  and  port. 

Nicholas." 

The  following  is  a  translation  of  an  imperial  order  of  July  30/August  12,  1903,  creating 
the  Imperial  Lieutenancy  of  the  Far  East : 

Russian  Imperial  Order  regarding  Imperial  Lieutenancy  of  the  Far  East. — 

August  12,  1903. 

"  The  complicated  problems  of  administration  in  the  provinces  bordering  the  eastern 
frontier  of  the  Empire  induce  us  to  be  solicitous  for  the  institution  of  the  authority  over 
those  provinces. 

"  In  order  to  assure  the  pacific  satisfaction  of  the  urgent  local  requirements  by  the 
exercise  of  that  authority  and  recognizing  the  necessity  of  forming  a  Special  Lieutenancy 
to  include  all  the  Provinces  now  under  the  rule  of  the  Governor  General  of  Pri-Amur  and 
the  Kuantung  Province  it  is  decreed  as  follows: 

"  1.  The  Imperial  Lieutenant  of  the  Far  East  is  invested  with  the  supreme  (or 
high)  power  in  respect  of  civil  administration  over  those  provinces  and  is  independent  of 
different  ministries.  He  is  also  given  the  supreme  authority  regarding  the  maintenance  of 
order  and  security  in  the  localities  appropriated  for  the  benefit  of  the  Chinese  Eastern 
Railway.  Due  care  and  protection  in  regard  to  the  interests  and  wants  of  Russian  subjects 
in  the  neighboring  territories  outside  of  the  border  of  the  Imperial  Lieutenancy  are  also 
confided  to  him. 

"  2.  Until  the  law  of  administration  of  the  Imperial  Lieutenancy  of  the  Far  East 
shall  have  been  promulgated,  the  authority,  rights  and  obligations  of  the  Imperial  Lieutenant 
in  relation  to  both  central  and  local  authorities  shall  be  defined  in  accordance  with  the  prin- 
ciple of  the  Imperial  Decree  of  January  30,  1845,  which  was  promulgated  at  the  time  of 
the  establishment  of  the  Lieutenancy  of  the  Caucasus.  All  administrative  offices  and  all 
officials  under  the  Imperial  Lieutenant  are  not  allowed  to  communicate  with  different 
ministries  and  departments  concerned  except  through  the  Imperial  Lieutenant. 

"3.  All  diplomatic  relations  with  neighboring  powers  in  regard  to  affairs  arising 
in  those  provinces  of  the  Far  East  shall  be  concentrated  in  the  hands  of  the  Imperial 
Lieutenant. 

"4.  The  command  of  the  naval  forces  in  the  Pacific  and  of  all  military  forces  sta- 
tioned in  the  territories  assigned  to  him  is  given  to  the  Imperial  Lieutenant. 

"  5.  In  order  that  the  action  of  the  chief  authority  of  the  Far  East  shall  conform 
with  the  general  policy  of  the  Empire  and  the  activities  of  the  Ministers  a  special  com- 
mittee under  Our  Presidency  shall  be  instituted.  Those  who  assembled  and  participate  in 
the  committee  have  Our  confidence 

"  6.  General  Adjutant  Alexieff  who  is  appointed  as  the  Imperial  Lieutenant  of  the  Far 
East  is  charged  with  the  development  of  this  Imperial  Decree  and  the  drafting  of  the  law 
of  administration  of  those  provinces  of  the  Far  East  together  with  its  enforcement  regula- 
tions. The  Senate  will  not  fail  to  take  due  measures  when  the  project  shall  have  been 
submitted  to  Us   for  Our   Sanction. 

"  Given  at  Peterhof  under  Our  own  signature,  July  30/August  12,  1903. 

Nicholas." 


NUMBER  1898/6:  APRIL  10,  1898  123 

NUMBER  1898/6. 

FRANCE  AND  CHINA. 

Declaration   conceding   the   non-alienation   of   Chinese   territory   bordering   on 

Tongking*— April  10,  1898. 

The  Charge  d'affaires  of  the  French  Republic  to  the  Tsung-li  Yamen. 

Peking,  4th  April,  1898. 

With  the  purpose  of  assuring  the  relations  of  neighbourliness  and  friend- 
ship between  China  and  France ;  with  the  purpose,  equally,  of  seeing  the  terri- 
torial integrity  of  the  Chinese  Empire  maintained  and,  further,  because  of  the 
necessity  of  taking  care  that  no  change  be  introduced  in  the  existing  situation 
as  regards  the  provinces  bordering  on  Tongking  {par  suite  de  la  necessite  de 
veiller  a  cc  que  dans  les  provinces  limitrophes  du  Tonkin,  il  ne  soit  apporte 
aiicune  modification  a  I'etat  de  fait  et  de  droit  existant),  the  Government  of 
the  Republic  would  attach  particular  value  to  receiving  from  the  Chinese  Govern- 
ment an  assurance  that  it  will  not  cede  to  any  other  Power  all  or  a  part  of  the 
territory  of  those  provinces;  either  definitely  or  temporarily,  or  on  lease,  or  by 
any  title  whatsoever. 

I  shall  be  obliged  if  your  Highnesses  and  your  Excellencies  will,  in 
acknowledging  this  letter,  be  good  enough  to  respond  by  an  official  despatch  to 
the  desire  of  the  Government  of  the  Republic. 

(Signed)  Dub  ail. 


The  Tsung-li  Yamen  to  M.  Dubail,  Charge  d'affaires  of  the  French 

Republic,  Peking. 

Peking,  10th  April,  1898. 

On  the  4th  April,  1898,  we  received  from  your  Excellency  the  following 
despatch : 

[Letter  quoted  as  above.] 

Our  Yamen  considers  that  the  Chinese  provinces  bordering  on  Tongking, 
being  important  frontier  points  which  interest  her  in  the  highest  degree,  must 
always  be  administered  by  China  and  remain  under  her  sovereignty.  There  is 
no  reason  that  they  should  be  ceded  or  leased  to  any  Power. 

As  the   French  Government  attaches  a  particular  value  to  receiving  this 

*  Translations,  as  given  in  Rockhill.  p.  178.  from  the  French  versions  as  printed  in  Doc. 
Dipt.,  Chine.  1894-98,  p.  49.  Printed  also,  in  French  versions,  in  Hertslet,  p.  1153;  Reciieil, 
p.  340. 

In  connection  ^n\\\\  this  declaration  see  also  the  similar  Declaration  concernmg  Hai-nan, 
March  15,  1897  (No.  1897/2,  ante),  and  other  declarations  there  cited  in  the  footnote. 


124  CHINA  TREATIES  AND  AGREEMENTS 

assurance,  we  feel  called  on  to  address  this  official  reply  to  your  Excellency, 
begging  you  to  take  note  of  and  forward  it. 


NUMBER  1898/7. 

FRANCE  AND  CHINA. 

Agreement  in  regard  to  a  concession  to  build  a  raihvay  from  Tongking  to  Ynn- 
nan,  the  lease  of  Kuang-chou-wan,  and  the  organization  of  the  Chinese 
postal  serviced— April  10,  1898. 

M.  DuBAiL,  Charge  d'affaires  of  the  French  Republic  to  the  Tsung-li 

Yam  EN. 

Peking,  9th  April,  1898. 

In  pursuance  of  our  interviews,  and  in  execution  of  the  formal  instructions 
of  the  Government  of  the  Republic,  which  has  furnished  me  with  special  powers, 
I  have  the  honour  to  ask  your  Highnesses  and  your  Excellencies  to  acquiesce 
in  the  following  terms  designed  to  draw  closer  the  bonds  of  friendship  and 
neighbourliness  which  unite  the  Chinese  Empire  to  the  French  Republic: — 

1st.  The  Chinese  Government  grant  to  the  French  Government,  or  to  the 
French  Company,  which  the  latter  may  designate,  the  right  to  make  a  railway 
from  the  frontier  of  Tongking  to  Yiin-nan-f u ;  the  Chinese  Government  having 
no  other  responsibility  {charge)  but  to  furnish  land  for  the  road  and  its  depen- 
dencies. The  route  {trace)  of  this  line  is  actually  surveyed  {etudie),  and  will 
be  fixed  later  on  in  agreement  with  the  two  Governments.  Regulations  will  be 
jointly  made. 

2nd.  The  Chinese  Government,  in  consideration  of  its  friendship  for  France, 
leases  the  bay  of  Kuang-chou-wan,  for  99  years,  to  the  French  Government, 
which  may  establish  a  naval  station  and  coal  depot  there.  The  boundaries  of 
the  Concession  will  be  fixed  hereafter  by  agreement  between  the  two  Govern- 
ments, after  examination  on  the  spot-  The  question  of  rental  will  be  arranged 
later  on. 

3rd.  When  the  Chinese  Government  organizes  a  definite  Postal  Service  and 
places  a  high  functionary  at  its  head,  it  proposes  to  call  for  the  help  of  foreign 
officers,  and  declares  itself  willing  to  take  account  of  the  recommendations  of 
the  French  Government  in  respect  to  the  selection  of  the  Staff  .f 

*  Translations  as  given  in  RockhiU,  p.  250,  from  French  versions  printed  in  Doc.  Dipl, 
Chine,  1894-1898.  p.  50.    Printed  also,  in  French  versions,  in  Hertslet,  p.  327;  Recueil,  p.  342. 

See  Note  to  this  document,  posi,  p.  125.  . 

tin  an  article  in  the  London  Times  of  May  30,  1911,  on  the  transfer  of  the  Chmese 
post-office  to  the  Central  Government,  the  Peking  correspondent  stated  that  "  This  en- 
gagement was  made  more  explicit  by  an  Exchange  of  Notes  in  October,  1902,  between 
Prince  Ch'ing,  President  of  the  Wai-wu  Pu,  and  Mr.  Casenave,  Charge  d'Affaires  of  the 
French  Legation." 


NUMBER  1898/7:  APRIL  10,  1898:  NOTE  125 

I  beg  your  Highnesses  and  your  Excellencies  to  be  good  enough  to  acknowl- 
edge receipt  of  this  despatch  by  an  identical  letter  which  will  constitute  the 
agreement  of  our  two  Governments.  The  two  documents  will  serve  as  a  Con- 
vention, 

G.   DUBAIL. 

The  Tsung-li  Yam  en  to  M.  Dubail,  &c. 

(Peking,)  10th  April,  1898. 
On  the  9th  April,  1898,  we  received  from  Your  Excellency  the  following 
despatch : 

[Despatch  quoted  as  above.] 

As  it  is  said  in  the  dispatch  which  you  addressed  to  our  Yamen  that  these 
three  requests  are  destined  to  draw  closer  the  bonds  of  friendship  which  unite 
us,  we  are  able  to  acquiesce  in  them.  China  and  France  ought  to  strengthen  the 
good  relations  which  exist  between  them,  and  avert  forever  any  cause  of  conflict. 

It  is  our  duty  to  address  this  answer  to  Your  Excellency,  in  order  that 
you  may  transmit  it  to  your  Government. 

[Signatures  of  the  President  and  Members  of  the  Tsung-li  Yamen.] 


Note. 

In  connection  with  this  agreement  see  the  Convention  for  the  lease  of  Kuang-chou- 
wan,  May  27,  1898  (No.  1898/10,  post);  see  also  the  contract  for  the  Yunnan  Railw^ay, 
October  29,  1903  (No.  1903/6,  post).  Consult  also  the  memorandum  on  railway  and 
mining  concessions  secured  by  France  and  French  companies  in  China,  Doc.  Dip!.,  Chine, 
1894-1898,  p.  23,  of  which  a  translation  is  printed  in  Rockhill,  p.  402. 

In  Rockhill,  p.  280,  is  given  the  following  translation  (from  Doc.  Dipl.,  Chine,  1894-1898, 
p.  53)  of  an  exchange  of  telegrams  in  regard  to  a  concession  for  building  a  railway  from 
Pakhoi  to  the  West  River: 

"  M.  Hanotaux  to  M.  Pichon. 

"(P.ARIS,)  2  May,  1898. 
"  The  recent  reports  of  our  Consular  Agents  show  the  interest  we  have  in  developing 
means  of  access  (voies  de  penetration)  in  the  region  of  Kwangtung  and  Kwangsi  which 
borders  the  Gulf  of  Tongking.  Be  good  enough  to  ask  the  Chinese  Government  for  the 
concession,  to  a  French  Company,  of  a  railway  destined  to  connect  the  port  of  Pakhoi 
with  a  point  to  be  fixed  upon  on  the  course  of  the  West  River :  such  concession  to  be 
made  on  the  lines  of  the  contract  entered  into  in  June  1896,  for  a  railway  from  Dong- 
dang  to  Lungchow. 

"  M.  PicHON  TO  M.  Hanotaux. 

"(Peking,)  28  May,  1898. 
"The  Chinese  Government  consents  to  our  request  for  a  railway  from   Pakhoi  to  the 
West   River.      It    is    understood   that   the    French,    or   the    Franco-Chinese    Company   only, 
may  construct  all  railways  having  Pakhoi  as  their  starting  point." 


126  CHINA  TREATIES  AND  AGREEMENTS 

NUMBER  1898/8. 

JAPAN  AND  CHINA. 

Declaration  concerning  the  non-alienation  of  the  Province  of  Fukien* — April 

26,  1898. 

The  Tsung-li  Yamen  to  the  Japanese  Minister  at  Peking. 

Peking,  April  26,  1898. 

Prince  Ch'ing  and  the  jMinisters  of  the  Tsung-li  Yamen  have  the  honour 
to  reply  to  a  communication  from  the  Minister  of  Japan  dated  2nd  day,  3rd 
intercalary  month,  24th  year  Kuang-Hsii  (April  22,  1898),  which  reads  as 
follows : — 

"  A  telegram  has  just  been  received  from  the  Minister  of  Foreign  Affairs, 
which  reads  as  follows : — 

"  '  The  Government  of  Japan  has  viewed  with  constant  deep  concern  the 
difficulties  with  which  the  Government  of  China  has  recently  been  confronted- 
The  declaration  made  at  the  time  of  the  evacuation  of  Weihaiwei  is  evidence 
of  this.  It  is  to  be  apprehended  that  trouble  may  arise  with  consequences  disas- 
trous to  China.    In  all  this  there  is  no  mistaking  what  our  real  purpose  is. 

"  '  In  view  of  the  present  state  of  affairs,  the  Government  of  Japan,  mind- 
ful of  its  own  interests,  cannot  act  as  if  entirely  in  ignorance  of  passing  events, 
but  must  take  proper  measures  to  meet  any  situation  that  may  arise.  You  will 
ask  the  Government  of  China  to  make  a  declaration  that  it  will  not  cede  or 
lease  to  any  other  Power  any  portion  of  its  territory  within  the  Province  of 
Fu-kien.'  " 

Referring  to  his  oral  statements  made  in  a  personal  interview,  the  Minister 
of  Japan  requests  that  a  reply  be  given  to  his  communication. 

The  Princes  and  the  Ministers  have  the  honour  to  state  that  the  Province 
of  Fu-kien,  with  all  the  territory  in  the  interior  and  along  the  sea-coast  within 
its  limits,  which  is  an  important  part  of  China,  China  will  never  cede  or  lease 
to  any  other  Power  whatsoever;  and  to  request  that  this  reply  be  communicated 
to  the  Government  of  Japan. 

The  Princes  and  the  Ministers  avail  themselves  of  this  opportunity  to 
renew  to  the  Minister  of  Japan  the  assurances  of  their  most  distinguished  con- 
sideration. 

*  Translation  from  Chinese  text  (?)  as  printed  in  RockhUl,  p.  181.  Printed  also  in 
Hertslet,  p.    1154.  .  ■     ,   •       , 

In  connection  with  this  declaration  see  other  non-alienation  declarations,  cited  in  the 
footnote  to  that  concerning  Hai-nan,  March  15,  1897  (1897/2,  ante)  ;  see  also  the  exchange 
of  notes  between  Japan  and  China  respecting  naval  bases,  etc.,  on  the  coast  of  Fukien, 
May  25,  1915  (No.  1915/8,  post). 


NUMBER  1898/9 :  MAY  7,  1898  127 

NUMBER  1898/9. 

RUSSIA  AND  CHINA. 

Additional  agreement  defining   the   boundaries   of   the   leased   and  neutralised 
territory  in  the  Liaotung  Peninsula.^ — May  7,  1898. 

The  Governments  of  Russia  and  China  being  desirous  of  adding  some 
stipulations  to  the  Treaty  concluded  at  Peking  on  the  15/27th  March,  1898,t 
the  Plenipotentiaries  of  both  Governments  have  agreed  upon  the  following: — 

Article  I. — In  accordance  with  Article  II  of  the  original  Treaty  the 
northern  territory  leased  and  yielded  to  Russia — Port  Arthur,  Talienwan,  and 
the  Liaotung  Peninsula — shall  commence  from  the  north  side  of  Ya  Tang 
Bay  on  the  west  coast  of  Liaotung  and  shall  pass  through  the  ridge  of  Ya-tang 
Mountain  (the  mountain  ridge  being  included  in  the  leased  ground)  to  the  east 
coast  of  Liaotung  near  the  north  side  of  the  P'i-tzu-wo  Bay.  Russia  shall  be 
allowed  the  use  of  all  the  waters  adjacent  to  the  leased  territory  and  all  the 
islands  around  it. 

Both  countries  shall  appoint  special  officers  to  survey  the  ground  and 
determine  the  limits  of  the  leased  territory. 

Article  II. — To  the  north  of  the  boundary  fixed  in  Art.  I,  there  shall,  in 
accordance  with  Art.  V  of  the  Peking  Treaty,  be  a  neutral  ground,  the  northern 
boundary  of  which  shall  commence  on  the  west  coast  of  Liaotung  at  the  mouth 
of  the  Kai-chou  River,  shall  pass  north  of  Yu-yen-cheng  to  the  Ta-yang  River, 
and  shall  follow  the  left  bank  of  the  river  to  its  mouth,  this  river  also  to  be 
included  in  the  neutral  territory. 

Article  III — The  Russian  Government  consents  that  the  terminus  of  the 
branch  line  connecting  the  Siberian  Railway  with  the  Liaotung  Peninsula  shall 
be  at  Port  Arthur  and  Talienwan,  and  at  no  other  port  in  the  said  peninsula. 

It  is  further  agreed  in  common  that  railway  privileges  in  districts  traversed 
by  this  branch  line  shall  not  be  given  to  the  subjects  of  other  Powers.  As 
regards  the  railway  which  China  shall  [may]  herself  build  hereafter  from 
Shan-hai-kuan  in  extension  to  a  point  as  near  as  [lit.,  nearest  to]  possible  to 
this  branch  line,  Russia  agrees  that  she  has  nothing  to  do  with  it. 

Article  IV. — The  Russian  Government  assents  to  the  request  of  the  Chinese 
Government  that  the  Administration  and  police  of  the  City  of  Kinchow  shall  be 
Chinese.  Chinese  troops  will  be  withdrawn  from  Kinchow  and  replaced  by 
Russian  troops.  The  inhabitants  of  the  city  have  the  power  to  use  the  roads 
from  Kinchow  to  the  north  boundary  of  the  leased  territory,  and  the  waters 

*  Translation  from  the  Chinese  text  as  printed  in  Customs.  Vol.  IT,  p.  227.  Printed  also 
in  translations  from  unofficial  versions  in  China  (1899),  No.  1,  p.  188;  RockhiU,  p.  53;  Am. 
Int.  Law  Journal,  Supplement,  1910,  p.  291;  F.  E.  Reviezv.  vol.  11,  p.  395;  Hertslet,  p.  508. 

In  connection  with  this  agreement  see  the  Convention  for  the  lease,  March  27,  1898 
(No.  1898/5,  ante)  ;  also  the  Agreement  for  the  southern  Manchurian  branch  of  the  Chinese 
Eastern   Railway,  July  6,   1898    (No.   1898/15,  post). 

t  No.  1898/5,  ante. 


128  CHINA  TREATIES  AND  AGREEMENTS 

usually  required  near  the  city,  the  use  of  which  has  been  granted  to  Russia; 
but  they  have  no  power  to  use  the  sea-coast  (round  about). 

Article  V. — The  Chinese  Government  agrees  [lit.,  agrees  to  recognize]  : 

1.  That  without  Russia's  consent  no  concession  will  be  made  in  the  neutral 
ground  for  the  use  of  subjects  of  other  Powers. 

2.  That  the  ports  on  the  sea-coast  east  and  west  of  the  neutral  ground 
shall  not  be  opened  to  the  trade  of  other  Powers. 

3.  And  that  without  Russia's  consent  no  road  and  mining  concessions,  in- 
dustrial and  mercantile  privileges  shall  be  granted  in  the  neutral  territory. 

Article  VI. — The  Articles  agreed  to  above  will  be  drawn  up,  one  copy  in 
Chinese  and  one  in  Russian,  and  signed  by  the  plenipotentiaries  of  the  two 
countries. 

For  purposes  of  interpretation,  the  Russian  will  be  the  authoritative  text. 

Kuang-hsii,  24th  year,  3rd  intercalary  month,  17th  day:  Russian  Calendar, 
April  25,  1898  (May  7th,  1898). 


NUMBER  1898/10. 

FRANCE  AND  CHINA. 
Convention  for  the  lease  of  Kuang-chou  Wan.* — May  27,  1898.'\ 

Article  I. — Purpose  of  lease. — The  Chinese  Government,  in  consideration 
of  its  friendship  for  France,  has  given  by  a  lease  for  99  years  Kuang-chou  Wan 
to  the  French  Government  to  establish  there  a  naval  station  with  coaling  depot, 
but  it  is  understood  that  this  shall  not  offset  the  sovereign  rights  of  China  over 
the  territory  ceded. 

Article  II. — Extent  of  territory  leased. — The  leased  territory  shall  include 
the  waters  and  ground  necessary  for  the  security,  the  provisioning  and  the 
normal  development  of  the  naval  station  and  of  the  coaling  depot,  that  is  to  say : 

(a)  The  island  of  Tong-hai ; 

(&)  The  island  of  Nao-chou ; 

{c)  At  Lei-chou,  a  strip  of  land  connecting  a  point  of  the  coast  south  of  Kiu- 
man-sien  (Tiao-man)  and  situated  in  20°  50'  north  latitude,  with  She-men  in 
21 "  25'  north  latitude  along  a  strip  roughly  indicated  on  the  annexed  map. 

(d)  At  Kao-chou,  a  strip  of  land  comprised  between  21°  25'  north  latitude 
and  21  °  04'  north  latitude,  along  a  strip  roughly  indicated  on  the  annexed  map. 

*  Translation,  as  given  in  Rockhill,  p.  55,  from  the  French  text  as  reprinted  in  Doc. 
Dipl,  Chine.  1898-1899,  p.  2.  Printed,  also,  in  French  text,  in  Customs.  Vol.  I,  p.  946; 
Hertslet,  p.  329;  in  translation,  in  Am.  Int.  Law  Journal,  Supplement,  1910,  p.  293. 

In  connection  with  this  convention  see  also  the  Agreement  in  regard  to  a  railway 
from  Tongking  to  Yunnan,  etc.,  April  10,  1898   (No.  1898/7,  ante.) 

t  The  date  given  is  that  of  the  submission  of  the  convention  to  the  Tsnng-Ii  Yamen 
for  approval ;  the  convention  was  ratified  by  China  on  February  19,  1900. 


2-1- 


Xlntree  de  I 


Kiou-Sam-Sh. 


Pte.Pao-Kinei 


Pte.  Haoi 


K        V       U     -         1        (         „ 


^  '^jrv 


CVKTE 

KOI  v\(i.T(iii:or-nAX 

rRUt^'iLi  M  Lii.rriur 


NUMBER  1898/10:  MAY  27,  1898  129 

(e)  The  small  islands  situated  inside  of  Kuang-chou  Wan,  as  well  as  the 
interior  and  exterior  waters  of  the  bay,  and  the  exterior  waters  of  Nao-chou 
and  of  Tong-hai,  within  the  limits  recognized  in  international  law  (six  marine 

miles). 

The  exact  limits  on  the  continent  of  Lei-chou  and  of  Kao-chou  shall  be 
fixed,  after  the  signing  of  the  present  convention,  when  special  surveys  shall 
have  been  made  by  officials  designated  by  the  two  Governments.  Said  officials 
shall  begin  their  work  without  delay,  so  that  all  possible  misunderstanding  be- 
tween the  two  countries  shall  be  obviated. 

Article  III. — Administration. — The  territory  shall  be  governed  and  ad- 
ministered during  the  99  years  of  the  lease  by  France  alone,  so  that  all  possible 
misunderstanding  between  the  two  countries  shall  be  obviated. 

Rights  of  native  inhabitants. — The  inhabitants  shall  continue  to  enjoy  their 
property;  they  may  continue  to  inhabit  the  leased  territory  and  pursue  their 
labors  and  occupations,  under  the  protection  of  France,  so  long  as  they  respect 
its  laws  and  regulations.  France  shall  pay  an  equitable  price  to  the  native  prop- 
erty owners  for  the  land  which  it  may  wish  to  acquire. 

Article  IV. — Right  to  garrison  and  to  insure  navigation. — France  may 
erect  fortifications,  place  garrisons  of  troops  or  take  any  other  defensive 
measure  on  the  leased  land. 

She  may  erect  lighthouses,  set  buoys  and  signals  useful  for  navigation  on 
the  leased  territory,  along  the  islands  and  coasts,  and  in  a  general  w^ay,  take 
all  measures  and  adopt  all  plans  to  insure  the  freedom  and  safety  of  navi- 
gation. 

Article  V. — Rights  of  treaty  power  vessels  in  leased  territory. — Steamers 
of  China  as  well  as  the  ships  of  the  Powers  having  diplomatic  and  commercial 
relations  with  her,  shall  be  treated  within  the  leased  territory  in  the  same 
manner  as  in  the  opened  part  of  China, 

Light-house  and  tonnage  dues. — France  may  issue  all  regulations  she  may 
wish  for  the  administration  of  the  territory  and  of  the  ports  and  particularly 
levy  lighthouse  and  tonnage  dues  destined  to  cover  the  expense  of  erecting  and 
keeping  up  lights,  beacons  and  signals,  but  such  regulations  and  dues  shall  be 
impartially  used  for  ships  of  all  nationalities. 

Article  VI. — Extradition. — If  cases  of  extradition  should  occur,  they  shall 
be  dealt  with  according  to  the  provisions  of  existing  conventions  between  France 
and  China,  particularly  those  regulating  the  neighboring  relations  between  China 
and  Tongking. 

Article  \TI. — Railway  to  be  built. — The  Chinese  Government  authorizes 
France  to  construct  a  railway  connecting  a  point  on  the  bay  of  Kuang-chou  Wan, 
by  Lei-chou,  with  a  point  to  be  designated  on  the  west  coast  of  Lei-chou,  in  the 
neighborhood  of  On-pu.    This  latter  point  shall  be  precisely  designated  later  on. 

China  will  give  the  land,  but  the  expenses  of  building  and  working  shall  be 
borne  by  France-  Chinese  shall  have  the  right  to  travel  and  trade  on  the 
railway,  in  accordance  with  the  general  tariff  in  force. 

The  mandarins  must  see  to  the  protection  of  the  railway  and  the  stock,  but 
the  repairs  and  maintenance  of  said  road  and  its  stock  shall  be  at  the  expense  of 
France. 


130  CHINA  TREATIES  AND  AGREEMENTS 

Article  VIII. — Improvements  at  On-pu. — France  may  also,  at  the  end  of 
the  hne  about  On-pu,  build  landing  stages,  wharves,  storehouses  and  hospitals, 
put  up  lights,  buoys  and  signals.  The  nearest  deep  water  anchorage  to  this 
terminus  (territorial  waters)  shall  be  exclusively  reserved  for  French  and 
Chinese  ships  of  war,  those  of  the  latter  nationality  only  when  neutral. 

The  present  convention  shall  come  into  force  at  once.  It  shall  be  ratified  at 
once  by  the  Emperor  of  China,  and  when  it  shall  have  been  ratified  by  the 
President  of  the  French  Republic,  the  exchange  of  ratifications  shall  take  place 
at within  the  briefest  delay. 

Done  at  Peking  in  eight  copies,  of  which  four  are  in  the  French  language 
and  four  in  Chinese,  the ,  1898. 


NUMBER  1898/11. 

GREAT  BRITAIN  AND  CHINA. 

Convention  respecting  an  extension  of  the  Hongkong  territory  * — June  9,  1898. 

Whereas  it  has  for  many  years  past  been  recognized  that  an  extension  of 
Hong  Kong  territory  is  necessary  for  the  proper  defence  and  protection  of 
the  Colony, 

Territory  leased.-  It  has  now  been  agreed  between  the  Governments  of  Great 
Britain  and  China  that  the  limits  of  British  territory  shall  be  enlarged  under 
lease  to  the  extent  indicated  generally  on  the  annexed  map.  The  exact  boun- 
daries shall  be  hereafter  fixed  when  proper  surveys  have  been  made  by  officials 
appointed  by  the  two  Governments.  The  term  of  this  lease  shall  be  ninety-nine 
years. 

Jurisdiction  in  leased  territory. — It  is  at  the  same  time  agreed  that  within 
the  city  of  Kowloon  the  Chinese  officials  now  stationed  there  shall  continue 
to  exercise  jurisdiction  except  so  far  as  may  be  inconsistent  with  the  military 
requirements  for  the  defence  of  Hong  Kong.  Within  the  remainder  of  the  newly- 
leased  territory  Great  Britain  shall  have  sole  jurisdiction-  Chinese  officials  and 
people  shall  be  allowed  as  heretofore  to  use  the  road  from  Kowloon  to  Hsinan. 

Rights  of  Chinese  ships. — It  is  further  agreed  that  the  existing  landing- 
place  near  Kowloon  city  shall  be  reserved  for  the  convenience  of  Chinese  men- 
of-war,  merchant  and  passenger  vessels,  which  may  come  and  go  and  lie  there 
at  their  pleasure ;  and  for  the  convenience  of  movement  of  the  officials  and 
people  within  the  city. 

*  Text  as  reprinted  in  Rockhill,  p.  58,  from  British  Treaty  Series,  1898,  No.  16.  Printed 
also  in  Customs,  Vol.  I,  p.  539;  Hcrtslet,  p.  120;  Am.  Int.  Law  Journal,  Supplement,  1910, 
p.  295. 

For  the  original  concession  of  the  Hongkong  territory,  see  Article  6  of  the  Anglo- 
Chinese  Convention  of  peace  and  friendship,  October  24,  1860  {Hcrtslet,  p.  48). 


HOXG 

Reproductii 
Convention 
signed  at  P 


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Sh 

HONG  KONG  EXTENSION 

Reproduction  of  the 

Map 

attached   to  the 

Convention   between  Great 

Britain  and  China 

^ 

\ 

signed  at  Peking  on 

he  9th  of  June  1898 

y 

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V      HONG  KONG  ,"1, 

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Territory  preuio 
Boundary  of  are 
Chinese  Territory 

REFERENCE 

1 

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ii  . 

9 

"'T"°'  "'  ~  '',- 

..„,..„.,. 

c 


NUMBER  1898/12:  JUNE  21,  1898  131 

Railway. — When  hereafter  China  constructs  a  railway  to  the  boundary  of 
the  Kowloon  territory  under  British  control,  arrangements  shall  be  discussed.f 

Expropriation  of  natives. — It  is  further  understood  that  there  will  be  no 
expropriation  or  expulsion  of  the  inhabitants  of  the  district  included  within  the 
extension,  and  that  if  land  is  required  for  public  offices,  fortifications,  or  the  like 
official  purposes,  it  shall  be  bought  at  a  fair  price. 

Extradition. — If  cases  of  extradition  of  criminals  occur,  they  shall  be  dealt 
with  in  accordance  with  the  existing  Treaties  between  Great  Britain  and 
China  and  the  Hong  Kong  Regulations.^ 

Chinese  war  ships. — The  area  leased  to  Great  Britain  as  shown  on  the  an- 
nexed map,  includes  the  waters  of  Mirs  Bay  and  Deep  Bay,  but  it  is  agreed 
that  Chinese  vessels  of  war,  whether  neutral  or  otherwise,  shall  retain  the 
right  to  use  those  waters. 

This  Convention  shall  come  into  force  on  the  first  day  of  July,  eighteen 
hundred  and  ninety-eight,  being  the  thirteenth  day  of  the  fifth  moon  of  the  twenty- 
fourth  year  of  Kuang  Hsii.  It  shall  be  ratified  by  the  Sovereigns  of  the  two 
countries,  and  the  ratifications  shall  be  exchanged  in  London  as  soon  as  possible. § 

In  witness  whereof  the  Undersigned,  duly  authorized  thereto  by  their  re- 
spective Governments,  have  signed  the  present  Agreement. 

Done  at  Peking  in  quadruplicate  (four  copies  in  English  and  four  in  Chinese) 
the  ninth  day  of  June,  in  the  year  of  our  Lord  eighteen  hundred  and  ninety- 
eight,  being  the  twenty-first  day  of  the  fourth  moon  of  the  twenty-fourth 
year  of  Kuang  Hsii. 

[l.  s.]  Claude  M.  MacDonald, 

[l.  s.]  (Seal  of  the  Chinese  Plenipotentiary.) 


NUMBER  1898/12. 

GREAT  BRITAIN  (The  Pekin  Syndicate,  Ltd.)  AND  CHINA  (The  Yii-Feng 

Company)- 

Regulations  for  tnining  purposes,  iron  works,  and  transporting  mine  products  of 
all  kinds  in  the  Province  of  Honan.\\ — June  21,  1898. 

1. — The  Governor  of  Honan  having  sanctioned  the  request  of  the  Yii-Feng 
Company  for  the  sole  right  to  work  all  mines  around  Huai  Ching  Fu,  and  in 
all  the  hill  country  in  Honan  Province  north  of  the  Yellow  River,  the  several 

t  See  the   Canton-Kowloon   Railway   agreement   of    March    7,    1907    (No.    1907/2,/»o.yO- 

t  H^rtslet  cites  the  treaty  of  June  26,  1858,  and  the  Hongkong  ordinances  of  1889  and 
1897    (Hertslet,  pp.   18,   1130,   1149). 

§  Ratifications  exchanged  at  London,  August  6,  1898. 

II  Text  as  reprinted  in  Rockhill,  p.  320,  from  China,  1899,  No.  1,  p.  191. 

In  connection  with  these  regulations  see  the  memorandum  of  agreement  with  the 
civil  governor  of  Honan  and  the  Chung  Yuan   Company,   November  9,   1914,  printed  on 


132  CHINA  TREATIES  AND  AGREEMENTS 

concessions  granted  are  now  transferred  for  operation  to  the  Pekin  Syndicate 
for  the  period  of  sixty  years.  Mining  engineers  shall  first  be  sent  to  find  in  what 
township  and  hills  the  mines  are  situated  and  what  they  produce,  and  make 
maps  thereof  with  explanations  inserted,  which  shall  be  submitted  to  the  Gov- 
ernor of  Honan  that  he  may  see  that  the  proposed  works  are  not  injurious  to 
the  place;  and  he  shall  report  thereon  to  the  Tsung-li  Yamen  for  record, 
and  at  the  same  time  issue  a  permit  for  the  mines  to  be  opened  without  the 
least  delay.  If  mining  lands  belong  to  the  people,  the  lease  or  purchase  shall 
be  made  by  arrangement  with  the  owners  for  a  reasonable  price ;  if  it  be 
Government  land  the  tax  to  be  paid  on  it  shall  be  double  the  ordinary  land  tax 
for  that  locality. 

2. — The  Governor  of  Honan  has  authorized  the  Yii-Feng  Company  to 
negotiate  a  foreign  loan  not  to  exceed  10,000,000  taels.  Should  the  mining  en- 
gineers employed  find  this  sum  insufficient,  the  Yii-Feng  Company  may  borrow 
more  only  of  the  Pekin  Syndicate. 

3. — All  matters  of  administration,  exploitation,  employes  and  finances  shall 
be  controlled  by  the  Board  of  Directors  of  the  Pekin  Syndicate,  and  the  chief 
of  the  Yii-Feng  Company  shall  co-operate.  The  Governor  of  Honan  shall  be 
requested  to  send  officials  from  time  to  time  to  inspect  the  accounts  of  receipts 
and  expenditures. 

4. — Each  mine  must  have  one  foreign  and  one  Chinese  Manager,  the  for- 
eigner to  control  the  works,  the  Chinese  to  attend  to  all  matters  between  natives 
and  foreigners.  Accounts  will  be  kept  by  the  foreign  system;  receipts  and  pay- 
ments of  money  to  be  controlled  by  the  foreign  Manager  and  audited  by  the 
Chinese  Manager.  At  all  mines  Chinese  should  be  employed  as  much  as  pos- 
sible.    All  salaries  to  be  paid  by  the  Syndicate. 

5. — When  prospecting  for  mines  if  there  be  any  boring  or  sinking  of  pits 
to  examine  mineral  deposits  an  arrangement  should  first  be  made  with  the 
landowner  to  compensate  him  for  any  crops  injured.  If  a  mine  be  opened  on 
private  land  an  arrangement  must  be  made  with  co-operation  of  the  local  officials 
to  lease  or  buy  the  land  for  a  reasonable  price  fair  to  both  parties  as  a  measure 
to  justice.  Wherever  land  leased  or  bought  for  mines  contains  cemetery  or 
mortuary  shrines  some  plan  must  be  devised  to  avoid  them — there  must  be  no 
excavation.  After  mines  are  opened  should  there  be  damage  to  life  or  build- 
ings from  subsidence  in  the  mines,  the  Syndicate  shall  make  charitable  com- 
pensation. 

6. — Wherever  mines  are  worked  there  shall  be  paid  yearly  to  the  Chinese 
Government  as  producer's  tax  ("  lo-ti-shui  ")  5  per  cent,  on  the  cost  of  extract- 
ing the  output  of  the  mines.  From  the  profits  shown  by  the  yearly  accounts 
there  shall  first  be  paid  6  per  cent,  interest  on  the  capital  employed,  and  next 
10  per  cent,  shall  be  set  aside  as  a  sinking  fund  for  yearly  repayment  of  capital 
and  consequent  reduction  of  interest  payments  to  sinking  fund  ceasing  when  the 

r.  1210,  post,  in  Note  to  the  final  agreement  with  the  same  parties,  May  7,  1915   (No. 
1915/6). 

In  regard  to  the  concessions  of  the  Peking  Syndicate  in  the  Province  of  Shansi,  see 
the  agreement  of  May  21,  1898,  attached  to  the  Redemption  Agreement  of  January  21, 
1908    (No.    1908/2,   post). 


NUMBER  1898/12:  JUNE  21,  1898  133 

invested  capital  is  wholly  repaid ;  and  from  the  remaining  net  profit  25  per  cent, 
shall  be  paid  to  the  Chinese  Government,  and  the  remainder  shall  go  to  the 
Syndicate  for  its  own  disposition.  In  future,  wherever  foreign  capital  is  used 
to  work  coal  and  iron  mines  in  China  this  rule  for  a  5  per  cent.  Government 
tax  on  the  output  shall  be  enforced,  so  that  all  may  be  treated  alike.  This 
capital  being  money  lent  by  merchants  for  mining  purposes,  the  Chinese  Govern- 
ment will  not  in  any  way  be  responsible  for  losses  incurred  in  the  business. 

7. — As  the  Syndicate  will  work  mines  in  several  places,  the  accounts  and 
profits  of  each  mine  must  be  kept  distinct  from  the  others.  The  gains  of  one 
mine  should  not  be  made  to  ofT-set  the  losses  of  another,  and  so  cause  the 
Government  income  to  suffer  reduction. 

8. — All  machinery,  materials,  and  supplies  needed  for  the  mines  shall,  on 
importation,  be  subject  to  the  rules  in  force  with  the  Kai-Ping  and  other  mining 
Companies,  and  pay  one  full  duty  and  a-half  to  the  Maritime  Customs,  and 
shall  be  exempt  from  all  inland  likin  taxes.  The  products  of  the  mines,  when 
exported  from  a  sea-port,  shall  pay  export  duty  according  to  the  Customs  Tariff. 

9. — The  Syndicate  is  to  control  the  mines  for  sixty  years,  on  expiration  of 
which  term  all  the  mines  of  the  Syndicate,  whether  new,  or  old,  profitable  or 
not,  shall,  with  all  plant,  materials,  buildings,  lands,  railways,  bridges,  and  all 
property  acquired  by  the  capital  of  the  mines,  be  handed  over  gratis  to  the 
Chinese  Government,  and  in  due  time  the  Yii-Feng  Company  shall  request  the 
Governor  of  Honan  to  send  deputies  to  take  delivery- 

10. — It  is  important  that  at  each  mine  measures  should  be  taken  to  prevent 
discord  between  officials  and  people.  For  this  purpose,  the  Yii-Feng  Company 
should  request  the  Governor  to  appoint  a  deputy,  and.  the  Syndicate  should 
nominate  one  of  the  gentry.    The  salaries  of  both  to  be  paid  by  the  Syndicate. 

11. — On  first  opening  the  mines  foreigners  must  of  course  be  employed  as 
mining  engineers  and  foremen,  but  later  on  the  Yii-Feng  Company  and  the 
Syndicate  should  arrange  to  select  for  such  positions  any  Chinese  who  may  be 
proficient  in  mining,  engineering,  or  managing  work.  For  subordinate  posi- 
tions of  little  responsibility  Chinese  should  be  entirely  employed,  and  Honan 
natives  as  much  as  possible,  so  as  to  encourage  improvement. 

12. — The  miners  employed  should  be  chiefly  Honan  men,  and  should  be  paid 
fair  wages.  After  the  mines  are  open,  the  Yii-Feng  Company  and  the  Syndicate 
should  select  from  European  and  American  Mining  Regulations  suitable  ones 
to  apply  to  questions  of  compensation  to  miners  for  injuries  while  at  work,  to 
pensions  for  the  aged  after  long  service,  the  limit  of  daily  working  hours,  &c., 
and  obtain  for  such  Regulations  the  approval  of  the  Governor. 

13. — In  opening  the  mines  the  Syndicate  shall  establish  a  school  of  engineer- 
ing and  mining  in  some  locality  convenient  to  the  mines,  and  there  shall  be 
selected  twenty  or  thirty  promising  youths  by  the  local  officials  and  gentry  to 
study  in  this  school  under  foreign  instructors,  and  thus  prepare  for  future  em- 
ployment on  railways  and  in  mines.  The  expenses  for  this  school  to  be  met 
by  the  Syndicate. 

14. — The  10,000,000  silver  taels  to  be  loaned  to  the  Yii-Feng  Company  by 
the  Pekin  Syndicate  is  an  estimated  sum.    After  the  capital  necessary  for  open- 


134  CHINA  TREATIES  AND  AGREEMENTS 

ing  each  mine  has  been  supplied  by  the  Syndicate,  the  Syndicate  will  be  au- 
thorized to  print  share  certificates  and  conditions  for  the  capital  furnished,  and 
fix  the  time  of  sale.  Chinese  merchants  who  apply  for  shares  within  the  fixed 
time  shall  be  allowed  to  buy  of  shares  for  sale  any  number  they  wish. 

15. — Chinese  merchants  who  wish  to  buy  shares  may  get  them  from  the 
Yii-Feng  Company,  who  will  procure  them  at  current  market  rates,  or  they  may 
themselves  buy  or  sell  the  shares  at  pleasure-  If  any  Chinese  gentry  or  mer- 
chant shall,  within  the  term  of  sixty  years,  acquire  three-fourths  of  all  the  shares 
of  any  one  mine,  that  mine  may  then  be  redeemed  from  the  Syndicate,  and  the 
Yii-Feng  Company  shall  report  upon  same,  and  direct  that  shareholder  to  take 
charge  of  the  mine. 

16. — If,  within  the  area  authorized  for  opening  mines,  there  be  mines  already 
worked  by  the  people,  such  private  mines  shall  not  be  appropriated,  but  if  a 
proprietor  be  willing  to  lease  or  sell  his  mine,  the  Yii-Feng  Company  and  the 
Syndicate  shall  offer  a  reasonable  price  for  it,  but  no  compulsion  shall  be  used. 

17. — Whenever  it  may  be  necessary  for  any  mine  to  make  roads,  build 
bridges,  open  or  deepen  rivers  or  canals,  or  construct  branch  railways  to  connect 
with  main  lines,  or  with  water  navigation  to  facilitate  transport  of  Honan  coal, 
iron,  and  all  other  mine  products  from  the  province,  the  Syndicate,  on  reporting 
to  the  Governor  of  Honan,  is  authorized  to  proceed  with  the  works,  using  its  own 
capital,  without  asking  for  Government  funds. 

Regulations  for  the  branch  railways  are  to  be  made  in  due  time. 

Private  land  required  for  the  works  authorized  as  above,  shall  be  leased  or 
bought  according  to  the  rules  already  in  force  with  other  public  Companies. 

No  encroachment  of  private  property  shall  be  allowed,  and  the  local  au- 
thorities must  be  applied  to  for  protection. 

18. — At  the  end  of  every  year  a  printed  account  of  profit  and  loss  shall  be 
rendered  by  each  mine  to  the  Yii-Feng  Company,  and  each  mine  shall  appoint 
one  Chinese  and  one  foreign  auditor  to  examine  the  accounts  and  certify  that 
they  are  correct ;  and  a  general  account  of  profit  and  loss  for  all  the  mines  shall 
be  jointly  prepared  and  submitted  to  the  Governor,  who  will  send  copies  to  the 
Tsung-li  Yamen  and  Board  of  Revenue  for  audit. 

Payments  due  to  the  Government  shall  be  reported  at  same  time. 

19. — These  mines  being  under  the  sovereignty  of  China,  should  China  ever 
be  at  war  with  another  country  the  Syndicate  will  obey  the  orders  of  the  Chinese 
Government  prohibiting  any  aid  to  the  enemy. 

20. — These  Regulations  shall  be  made  out  both  in  Chinese  and  foreign  text, 
each  party  to  have  a  copy  for  reference. 

Signed  in  Peking  on  the  21st  day  of  June,  1898,  being  the  3rd  day  of  the 
5th  month  of  the  24th  year  of  the  Emperor  Kuang-Hsu. 

(Signed)  A.  Luzzatti, 

General  Agent  of  the  Pckin  Syndicate  (Limited) .     • 

[Seal  of  the  Pekin 

Syndicate,  Limited.] 

(Signature  of  the  Chief  of  the  Yii-Feng 

[Seal  of  the  Company.) 

Tsung-h   Yamen.] 


NUMBER  1898/13:  JUNE  26,  1898  135 

NUMBER  1898/13. 

BELGIUM  (La  Societe  d'Etudes  des  Chemins  de  Fer  en  Chine)  AND  CHINA. 

Loan   contract,   and   operating   contract,   for   the   Peking-Hankow   Railway* — 

June  26,  1898. 

Loan  Contract. 

Between  the  undersigned: 

1".  Their  Excellencies  the  Viceroys  of  Chihli  and  of  Hupeh,  acting  in  virtue 
of  full  powers  from  the  Imperial  Chinese  Government,  duly  authorized  by  decree 
of  H.  M.  the  Emperor  of  China,  under  date  the  20  October  1896,  of  which 
communication  has  been  officially  made  to  the  Representatives  of  Belgium  at 
Peking,  by  despatch  of  the  Tsung-li  Yamen,  under  date  of 

2°.  The  Imperial  Government  of  China,  represented  by  H.  E.  Sheng  Hsiian- 
huai ;  Director  General  of  the  Chinese  Railway  Company ; 

3°.  The  Chinese  Railway  Company,  represented  by  H.  E.  Sheng  Hsiian-huai, 
its  Director  General, 

And  the  Societe  d'Etudes  des  Chemins  de  fer  en  Chine,  represented  by  AI. 
Eugene  Hubert,  engineer. 

Has  been  agreed  the  following: 

Article  1. — The  Imperial  Chinese  Government  has,  in  compliance  with  a 
decree  dated  the  20  October  1896,  of  which  copy  is  annexed  to  the  present  con- 
tract, granted  the  concession  of  the  line  from  Lu-kou-chiao  (Peking)  to  Hankow 
(about  1,300  kilometers)  to  the  Chinese  Railway  Company,  which  has  assets 
amounting  to  thirteen  million  taels. 

An  edict  of  H.  M.  the  Emperor  of  China  has  authorized  Their  Excellencies 
the  Viceroys  of  Chihli  and  of  Hupeh  and  H.  E.  Sheng  Hsiian-huai,  Director 
General  of  Chinese  Railways,  to  contract,  in  the  name  and  on  account  of  the  Im- 
perial Chinese  Government,  a  loan  the  product  of  which  is  destined  exclusively  to 
the  building  of  the  above  mentioned  line. 

This  edict,  bearing  date  the  20  October  1896  and  of  which  a  copy  is  annexed 
to  the  present  contract,  is  worded  as  f  ollow^s : 

"Edict  of  His  Majesty  the  Emperor  of  China: 

"  In  response  to  a  request  of  Their  Excellencies  the  Viceroys  of  Chihli  and 
"  of  Hukwang,  presented  to  His  Majesty  the  Emperor  of  China,  an  Imperial 
"  edict,  bearing  date  of  this  day,  authorizes  the  organizing  of  a  Railway  Com- 
"  pany  and  grants  it  the  concession  of  the  line  from  Lu-kou-chiao  (Peking)  to 
"  Hankow.  His  Majesty  the  Emperor  authorizes  the  Railway  Company  to  con- 
"  tract  abroad  a  loan  the  product  of  which  shall  be  devoted  in  full  to  the  building 
"  of  said  line. 

"  H.  E.  Sheng  Hsiian-huai,  under-secretary  of  State,  is  appointed  Director 
"  General  of  this  new  Company. 

"  Peking,  the  20th  October  1896." 

*  Translations  from  the  French  texts,  as  given  in  Rockhill,  p.  232.    French  texts  printed 
in  Wang,  pp.  41,  65.    See  Note  to  this  document,  post,  p.  145. 


136  CHINA  TREATIES  AND  AGREExMENTS 

In  compliance  with  the  terms  of  this  edict,  the  Imperial  Chinese  Government, 
represented  by  Their  Excellencies  the  Viceroys  of  Chihli  and  of  Hupeh  and  the 
Director  General  of  Chinese  Railways,  has  decided  to  contract  a  State  5  p.  c. 
foreign  gold  loan,  of  a  nominal  value  of  112,500,000  francs  (or  4,500,000  pounds 
sterling). 

This  loan  shall  be  known  as  the  Chinese  5  p.  c.  1898  Loan. 

Article  2. — This  loan  will  be  represented  by  225,000  bonds  of  500  francs 
gold- 

These  bonds,  the  text  of  which  is  annexed  to  the  present  Contract,  shall  be 
signed  in  the  name  of  the  Imperial  Chinese  Government  by  the  Viceroys  of  Chihli 
and  of  Hupeh  and  by  the  Director  General  of  the  Chinese  Railway  Company. 

They  shall  be  issued  in  blocks  of  1  to  5  bonds,  in  the  proportion  to  be  indi- 
cated by  the  Societe  d'Etudes  des  Chemins  de  fer  en  Chine  and  are  to  be  manu- 
factured at  its  expense. 

They  shall  bear  5  p-  c.  interest  annually  on  the  par  value  payable  in  gold. 

Interest  shall  accrue  from  the  date  of  the  payments  and  shall  be  payable  the 
1st  September  and  the.  1st  March  of  each  year. 

The  first  coupon  is  payable  in  gold  at  francs. 

Article  3. — The  loan  shall  be  extinguished  in  twenty  years,  from  the  year 
1909,  by  yearly  drawings  by  lot  {tirages  an  sort),  which  will  take  place  at  Brus- 
sels, in  the  offices  of  the  Societe  Generale  pour  favoriser  ITndustrie  Nationale,  in 
conformity  with  the  table  annexed  to  the  present. 

The  drawings  shall  take  place  the  second  Tuesday  of  January  each  year: 
the  first  drawing  shall  take  place  on  that  date  in  1909. 

The  numbers  of  the  bonds  drawn  shall  be  published  in  four  nev/spapers  at 
the  expense  of  the  Societe  d'Etudes  des  Chemins  de  fer  en  Chine. 

Article  4. — The  bonds  drawn  shall  be  refunded  in  gold  at  their  par  value 
on  the  date  on  which  falls  due  the  next  coupon. 

The  bonds  presented  for  reimbursement  must  have  attached  to  them  all  the 
coupons  remaining  unpaid,  and  the  amount  of  missing  coupons  will  be  deducted 
from  the  capital  to  be  refunded. 

Interest  on  bonds  ceases  to  accrue  from  the  date  set  for  reimbursement. 

Article  5. — The  Imperial  Chinese  Government  denies  itself  the  right  before 
the  1st  September  1907  to  increase  the  amortization,  to  pay  off  the  whole  loan 
or  to  make  a  conversion  of  it.  After  that  date  it  shall  be  at  liberty  to  pay  off  the 
loan  at  any  time  before  the  terms  of  payment,  and  once  the  refunding  made, 
the  contract  shall  be  declared  annulled. f 

Article  6. — The  coupons  and  the  bonds  (titres)  redeemed  {amortis)  shall 
be  payable  in  francs,  in  Europe  in  the  office  or  offices  designated  by  the  Societe 
d'Etudes  and  entrusted  by  it  with  the  management  of  the  loan. 

Article  7. — Payment  of  interest  and  refunding  of  bonds  of  the  present  loan 
are  guaranteed  by  the  gross  revenues  of  the  Imperial  Chinese  Government. 

Furthermore,  in  virtue  of  an  authorization  already  granted  by  the  Chinese 

Government  and  in  agreement  with  it,  the  Chinese  Railway  Company  declares 

t  See  loan  agreement  of  Oct.  8,  1908  (No.  1908/12,  post),  and  the  imperial  edict  of 
Oct.  8.  1908  (No.  1908/13,  post).  The  Chinese  Government  took  control  of  the  Peking- 
Hankow  Railway  from  January  1,  1909. 


NUMBER  1898/13:  JUNE  26,  1898  -  137 

that  it  specially  assigns,  preferentially  for  the  payment  of  interest  and  capital 
of  the  present  loan,  and  consequently  cedes  and  delegates  in  favor  of  said 
bonds  all  the  net  revenue  of  the  line  from  Lu-kou-chiao  (Peking)  to  Hankow, — 
after  the  regular  payment  of  all  expenses  of  administration  and  operation,  the 
whole,  as  is  furthermore  set  forth  in  a  treaty  for  operating  (the  line)  concluded 
between  the  Chinese  Railway  Company  and  the  Societe  d'Etudes  des  Chemins 
de  fer  en  Chine,  treaty  hereto  annexed  and  forming  an  integral  part  of  this 
contract. 

This  assignment  (affectation)  is  made  exclusively  and  irrevocably  until  com- 
plete refunding  of  the  bonds  of  the  present  loan. 

Article  8. — The  Chinese  Railway  Company  directs  the  Societe  d'Etudes  to 
deposit  the  funds  from  the  net  revenue  of  the  traffic  with  the  Societe  Generale 
pour  favoriser  ITndustrie  Nationale,  established  at  Brussels,  or  with  the  com- 
pany designated  by  it. 

This  latter  shall  convert  into  gold,  and  to  the  best  interest  of  the  Imperial 
Chinese  Government  and  the  Chinese  Railway  Company,  and  up  to  the  full 
amount  of  the  sum  necessary  to  insure  the  service  of  the  loan  at  the  following 
semi-annual  payment,  the  deposits  made  with  it  by  the  Societe  d'Etudes  empow- 
ered by  the  Chinese  Railway  Company  to  make  them. 

These  deposits  by  the  Societe  d'Etudes  with  the  Societe  Generale  Beige  or 
the  company  designated  by  it  shall  continue  to  be  made  until  the  sum  necessary 
for  the  full  service  of  the  loan  at  the  date  of  the  next  semi-annual  payment  has 
been  completed  in  gold,  and  in  such  manner  that  said  service  is  insured  three 
months  at  least  before  said  semi-annual  payment  falls  due.  The  depositories 
shall  utilize  these  sums  in  the  manner  the  most  advantageous  for  the  Chinese 
Company. 

The  account  on  which  these  sums  are  borne  shall  be  charged  twenty  days 
before  date  of  semi-annual  payment  with  the  sum  necessary  for  the  service  of 
the  loan,  interest,  amortization,  expenses  and  commissions. 

Article  9. — The  bank  having  received  in  deposit  the  funds  shall  have  the 
right  to  take,  without  new  authorization,  from  such  funds  on  deposit,  the  amount 
of  the  coupons  to  be  paid  during  the  period  of  construction. 

Article  10. — So  as  to  insure  the  guarantee  just  mentioned  for  the  bonds  of 
the  present  contract,  the  Chinese  Railway  Company  recognizes  for  these  bonds 
a  prior  special  lien  on  the  railway  from  Lu-kou-chiao  (Peking)  to  Hankow: 
line,  stationary  and  rolling  stock  and  receipts. 

This  special  assignment  is  accepted  in  the  name  of  the  bondholders  by  the 
Societe  d'Etudes.  In  case  of  non-execution  of  the  obligations  assumed  by  the 
Chinese  Railway  Company  in  the  present  contract,  the  Societe  d'Etudes  or  the 
Belgian  Company  designated  by  it,  shall  have  full  power  to  enjoy  as  to  said 
property  all  the  rights  and  powers  resulting  from  said  special  assignment. 

Article  11. — The  preceding  provisions  do  not  relieve  the  Imperial  Chinese 
Government  from  personal  responsibility  relative  to  the  present  loan,  as  this 
responsibility  is  specified  in  Article  7. 

Consequently,  the  Imperial  Chinese  Government  agrees  to  make  up  the 
necessary  amount  for  the  service,  in  gold,  of  the  loan,  in  case  the  sums  accruing 


138  CHINA  TREATIES  AND  AGREEMENTS 

from  the  net  proceeds  of  the  hne  from  Lu-kou-chiao  (Peking)  to  Hankow,  and 
paid  by  the  Societe  d'Etudes,  entrusted  with  this  service  by  the  Chinese  Railway 
Company,  to  the  Societe  Generale  Beige,  or  to  the  Company  which  it  may 
designate,  should  not  have  reached,  after  their  conversion  in  gold,  and  at  least 
three  months  before  the  following  semi-annual  payment,  the  amount  sufficient  to 
cover  said  service. 

In  this  case,  and  upon  the  request  made  it,  the  Imperial  Chinese  Govern- 
ment must  hold  at  the  disposal  of  the  Societe  Generale  Beige  or  of  the  Com- 
pany designated  by  it  60  days  before  the  next  semi-annual  payment,  gold  or 
securities  deemed  sufficient  to  realize  the  amount  in  gold,  which  the  Company 
shall  have  notitfied  the  Government  is  necessary  to  complete  the  payment. 

Article  12. — Out  of  the  sums  coming  from  the  payments  made  by  the 
Societe  d'Etudes  or  the  payments  made  by  the  Imperial  Chinese  Government,  the 
Societe  Generale  Beige  or  the  Company  designated  by  it,  shall  in  due  time  place 
at  the  disposal  of  the  Firms  entrusted  with  the  service  of  the  loan,  the  neces- 
sary amounts,  according  to  the  needs  as  ascertained  during  the  preceding  half- 
year. 

Article  13. — The  Imperial  Chinese  Government  will  pay  to  the  Firms 
entrusted  with  the  service  of  the  loan  a  commission  of  34  per  cent  on  the  amount 
of  paid  coupons  and  a  commission  of  ^^  per  cent  on  the  amount  of  the  bonds 
drawn  or  redeemed  by  anticipated  reimbursement.  The  amount  of  this  allow- 
ance shall  be  deducted  every  six  months  from  the  surplus  of  the  available  ex- 
ploitation receipts,  and,  in  case  of  insufficiency,  it  shall  be  immediately  paid  by 
the  Imperial  Chinese   Government. 

Article  14. — The  Imperial  Chinese  Government  binds  itself  by  the  present 
conventions  to  observe  and  cause  to  be  observed  the  privilege  stipulated  in  favor 
of  the  bonds  in  Article  9,  and  to  maintain,  free  and  exempt  from  all  tax  whatso- 
ever, the  bonds  and  coupons,  as  well  as  all  transactions  of  whatsoever  nature  con- 
nected with  the  service  of  the  loan. 

Article  15. — Coupons  which  shall  not  have  been  presented  for  cashing  within 
five  years  following  their  falling  due,  shall  revert  to  the  Imperial  Chinese  Govern- 
ment ;  thirty  years  shall  be  the  limit  for  redeemed  bonds. 

On  the  death  of  any  bondholder  of  the  present  loan,  the  bonds  shall  be 
transferred  and  shall  belong  to  his  heirs,  according  to  the  inheritance  laws  in 
force  in  the  country  of  which  the  deceased  bondholder  was  citizen. 

Payments  of  coupons  and  the  redemption  of  bonds  shall  be  made  in  time 
of  war,  as  in  time  of  peace,  to  the  bearers  whether  they  be  subjects  of  friendly 
or  hostile  States. 

In  case  of  loss,  of  theft  or  destruction  of  bonds  of  the  present  loan,  the 
Chinese  Government  shall  replace  them,  after  having  been  furnished  satisfactory 
proof  of  their  loss  or  of  the  destruction  of  the  title  deeds  and  of  the  rights 
of  the  claimants. 

Article  16. — The  Imperial  Chinese  Government  through  its  representatives 
in  Europe  shall  immediately  take  the  necessary  steps  and  furnish  the  necessary 
documents  for  the  official  listing  of  the  present  loan  in  the  Bourses  of  Brussels 
and  Paris. 


NUAIBER  1898/13:  JUNE  26,  1898  139 

Article  17. — Out  of  the  total  amount  of  the  present  loan,  representing  as 
nominal  capital  a  sum  of  112,500,000  francs,  the  Societe  d'Etudes  des  Chemins  de 
fer  en  Chine  purchases  outright  {achete  fermc)  39,000,000  francs  of  nominal 
capital,  or  78,000  bonds  of  500  francs,  at  90%,  for  the  total  sum  of  35  million 
100,000  francs,  delivery  to  date  from  the  payment  to  the  banks  designated  in  the 
following  article. 

Article  18. — The  Societe  d'Etudes  des  Chemins  de  fer  en  Chine  shall 
deposit  the  amount  of  this  purchase,  as  follows:  8,600,000  francs  in  the  Russo- 
Chinese  Bank  at  Shanghai,  and  the  remainder  in  a  bank  designated  by  common 
accord  by  the  Director  General  of  the  Chinese  Railway  Company  and  the  Societe 
d'Etudes  and  against  receipt  by  the  Russo-Chinese  Bank  in  Paris  of  definitive 
bonds  for  78,000  bonds  bought  outright  (achctcs  ferme)  and  deposit  in  the  same 
bank  of  the  definitive  bonds  for  147,000  bonds  forming  the  surplus  of  the 
loan. 

The  Russo-Chinese  Bank  and  the  Bank  designated  by  common  accord  by 
the  Chinese  Railway  Company  and  the  Societe  d'Etudes  shall  credit  the  Chinese 
Railway  Company  with  the  sums  deposited  with  them,  it  being  understood  that 
these  depository  establishments  shall  not  be  obliged  to  deliver  these  sums,  except 
under  the  conditions  and  under  the  reservations  indicated  in  undermentioned 
Article  20. 

The  depository  banks  shall  use  these  sums  to  the  best  advantage  of  the 
Chinese  Railway  Company. 

Article  19. — The  Chinese  Railway  Company  declares  that  it  has  resources 
amounting  to  thirteen  million  taels- 

The  construction  of  the  railroad  from  Lu-kou-chiao  (Peking)  to  Hankow 
being  limited  provisionally  to  the  section  from  Lu-kou-chiao  (Peking)  to  Paoting 
(145  kilometers)  and  to  the  Hankow-Sinyang  section  (247  kilometers)  which 
must  be  constructed  first ;  it  is  understood  that  the  thirteen  million  taels  above 
mentioned  shall  in  the  first  place  be  applied  to  the  construction  and  to  putting 
in  complete  working  order  of  the  Lu-kou-chiao-Paoting  section. 

The  construction  of  the  entire  line  (not  including  the  Peking-Paoting 
section)  shall  be  done  under  the  direction  of  the  Societe  d'Etudes  des  Chemins 
de  fer  en  Chine  or  its  representatives,  but  for  the  account  of  the  Chinese 
Railway  Company. 

The  Societe  d'Etudes  shall  make  the  studies,  plans,  surveys,  estimates  for  the 
whole  line,  direct  the  execution  of  all  the  work  and  order  the  materials,  ma- 
chinery and  furniture  necessary  to  insure  the  regular  operation  of  the  line. 
However,  the  Director  General  of  the  Chinese  Railway  Company  reserves  to 
himself  the  right  to  approve  the  building  plans  and  contracts  for  supplies. 

Except  for  supplies  of  materials  and  expenses  of  all  kinds  paid  in  Europe, 
the  Chinese  Railway  Company  must  place  at  the  disposal  of  the  Societe  d'Etudes 
the  necessary  sums  for  settling  all  payments  without  exception  necessitated  in 
the  carrying  out  of  the  work,  as  well  as  the  payment  of  the  staff  under  the  orders 
of  the  Societe  d'Etudes  and,  in  general,  all  expenses  whatsoever. 

Consequently  the  Societe  (d'Etudes)  shall  not  be  obliged  to  pay  any  expenses 
from  its  own  funds. 


140  CHINA  TREATIES  AND  AGREEMENTS 

It  shall  endeavor  to  complete  the  construction  of  the  line  within  three  years. 

Article  20. — On  the  Hankow-Sinyang  section  and  eventually  on  the  other 
sections  between  Paoting  and  Sinyang,  the  Russo-Chinese  Bank  in  the  first  place  and 
afterwards  the  bank  designated  by  common  accord  by  the  Chinese  Railway  Com- 
pany and  the  Societe  d'Etudes,  shall  deposit  each  month  with  the  Chinese  Rail- 
way Company,  out  of  the  available  funds  in  their  hands,  the  amounts  necessary 
to  settle  the  payments  for  the  ensuing  month,  according  to  the  estimates  pre- 
pared by  the  Societe  d'Etudes  or  its  delegates. 

A  first  transfer  equivalent  to  the  estimated  value  of  the  work  already  exe- 
cuted on  the  Hankow-Sinyang  section  shall  be  made  as  a  first  credit. 

The  price  paid  for  the  above  mentioned  bonds  being  exclusively  affected 
to  the  construction  of  the  line  from  Hankow  to  Paoting,  the  Russo-Chinese  Bank 
and  the  bank  referred  to  in  the  first  paragraph  of  the  present  article,  would  have 
the  right  not  to  pay  the  funds  in  case  one  of  their  payments  were  diverted  from 
the  purpose  stipulated,  as  well  as  in  case  the  representatives  of  the  Societe 
d'Etudes  were  not  empowered  by  the  Chinese  Railway  Company  to  continue  the 
management  of  the  construction  works  with  which  this  company  is  exclusively 
entrusted. 

The  balance,  if  there  be  one,  shall  be  held  subject  to  the  order  of  the  Chinese 
Railway  Company. 

Article  21. — The  Chinese  Government  cedes  to  the  Societe  d'Etudes  an 
option  till  December  31,  1901,  to  purchase  the  surplus  of  the  loan,  to  wit :  73,500,- 
000  francs  at  90%  nominal,  plus  the  accrued  fraction  due  on  the  coupon. 

This  option  can  be  availed  of  one  or  several  times,  without  regard  to  the 
amortizations  made,  but  each  notice  must  be  for  a  sum  not  less  than  25,000,000 
francs  net. 

The  delivery  of  the  bonds  taken  on  the  options  shall  be  to  the  Russo- 
Chinese  Bank  in  Paris ;  the  final  bonds  shall  be  delivered  within  a  month  dating 
from  the  telegraphic  notification  to  the  Management  of  the  Chinese  Railway 
Company. 

The  price  of  these  bonds  shall  be  deposited  in  the  bank  designated,  by  com- 
mon accord,  by  the  Chinese  Railway  Company  and  the  Societe  d'Etudes,  and  it 
shall  not  surrender  them  except  under  the  conditions  stipulated  in  the  above 
Article  20. 

Article  22. — If  the  Societe  d'Etudes  takes  advantage  of  the  right  granted 
it  to  purchase  all  or  part  of  the  bonds  on  which  it  holds  an  option,  it  shall  each 
time  confer  with  the  Chinese  Railway  Company  to  determine  upon  the  sections 
(of  line)  to  be  built  with  its  new  fvmds. 

Article  23 — The  surveys  of  the  line,  dating  from  the  signing  of  the  present 
contract,  are  to  be  made  at  the  expense  of  the  Chinese  Railway  Company ;  the 
Hankow-Sinyang  sections  shall  first  be  surveyed,  and  then  successively  each  of 
the  other  sections,  for  building  which  an  agreement  may  be  had  before  the 
Societe  d'Etudes  avails  itself  of  the  right  of  option  conceded  it  by  Article  21. 

It  is  henceforth  understood  that  the  section  to  be  built  with  the  funds 
derived  from  the  first  option  shall  be  the  one  from  Paoting  towards  the  Yellow 
River,  and  the  survey  shall  be  begun  during  the  first  year. 


NUMBER  1898/13:  JUNE  26,  1898  141 

Article  24. — The  Societe  d'Etudes  reserves  the  right  to  make  one  or  more 
issues,  by  pubHc  subscription  or  otherwise,  of  all  or  any  part  of  the  bonds  whether 
bought  outright  (achetees  ferme)  or  included  in  the  option. 

Should  the  issue  be  by  public  subscription,  the  Societe  d'Etudes  shall  have 
the  right  to  include  in  the  total  offered  for  subscription,  exclusive  of  the  78,000 
bonds  taken  outright  (prises  ferme),  all  or  any  part  of  the  bonds  covered  by  the 
option,  without  on  that  account  being  committed  to  take  outright  (prendre 
ferme)  any  part  whatever  of  the  bonds  covered  by  the  options. 

It  shall  be  allowed  fifteen  days,  counting  from  the  closing  of  the  public 
subscription,  to  inform  by  registered  telegram  addressed  to  His  Excellency  Sheng, 
Director  General  of  the  Chinese  Railway  Company  at  Shanghai,  the  number 
of  bonds  it  has  taken,  and  that,  at  the  price  and  under  the  conditions  above 
specified. 

The  payment  and  the  delivery  of  the  bonds  taken  by  the  Societe  d'Etudes 
following  the  public  subscription  shall  take  place  under  the  conditions  specified 
in  the  above  mentioned  articles. 

Article  25. — The  present  contract  shall  only  be  binding  on  the  Societe 
d'Etudes  inasmuch  as  it  shall  have  the  promise  that,  with  the  exception  of  what 
can  be  supplied  by  the  Hanyang  works,  all  the  materials  and  supplies  necessary 
for  the  construction  and  working  of  the  railroad  from  Lu-kou-chiao  (Peking)  to 
Hankow  will  be  ordered  from  the  Societe  d'Etudes,  which  will  fill  the  orders 
under  the  best  possible  terms. 

Exception  is  made  for  the  material  necessary  for  the  equipment  (armement) 
of  the  line  from  Lu-kou-chiao  to  Paoting,  as  this  material  is  almost  entirely 
ready. 

Compliance  with  the  provisions  of  this  clause  by  the  Chinese  Railway  Com- 
pany shall  result  from  the  ordering  of  material  for  each  of  the  sections  under- 
taken. 

Material  ordered  from  the  Societe  d'Etudes  shall  be  exempt  from  all  customs 
and  likin  duties  on  entering  or  crossing  Chinese  territory. 

If  this  franchise  is  not  made  good  before  the  expiration  of  the  month  fol- 
lowing the  date  on  which  the  Belgian  Government  shall  have  notified  the  Societe 
Beige  of  the  receipt  of  the  notifications  stipulated  in  Article  29,  it  (the  Societe 
d'Etudes)    reserves  the   right  not  to  hold   itself   bound. 

It  reserves  the  same  right  and  within  the  same  time  if  extraordinary  events 
should  arise,  as  for  instance  war,  or  if  the  French  Debt  (rente  francaisc)  should 
fall  below  par. 

If.  on  its  side,  the  Societe  Beige  should  not  keep  the  terms  of  the  present 
contract,  it  shall  be  annulled ;  the  Chinese  Railway  Company  shall  be  free  to 
enter  into  contract  with  whomsoever  it  may  see  fit,  and  to  dispense  with  the 
services  of  the  Engineer-in-chief. 

Article  26. — In  case  of  controversies  or  dififerences  between  the  Societe 
d'Etudes  or  its  representatives  and  the  Imperial  Chinese  Government  or  the 
Chinese  Railway  Company,  these  controversies  or  differences  shall  be  submitted 
to  the  judgment  of  a  member  of  the  Tsung-li-Yamen  and  the  Belgian  Minister  in 
China. 


142  CHINA  TREATIES  AND  AGREEMENTS 

In  case  of  disagreement  between  these  latter,  the  Tsung-li-Yamen  and  the 
Belgian  Minister  shall  designate  an  arbitrator  who  shall  decide  finally. 

Article  27- — As  guarantee  for  the  financial  execution  of  the  present  con- 
tract, the  Societe  d'Etudes  has  already  deposited  in  the  Russo-Chinese  Bank 
20,000  pounds  sterling  as  security. 

It  shall  take  full  possession  of  this  sum  as  soon  as  it  shall  have  fulfilled 
the  provisions  stipulated  in  the  first  two  paragraphs  of  article  18  here  above. 

It  is  understood  that  the  payment  of  8,600,000  francs  to  the  Russo-Chinese 
Bank  at  Shanghai  must  be  made  within  the  month  following  the  date  of  the 
signing  of  the  present  contract. 

Article  28. — The  Tsung-li-Yamen  shall  be  bound  in  case  the  Belgian  Min- 
ister at  Peking  request  it  to  give  cognizance  of  the  title  to  the  Minister  of  the 
foreign  country,  indicated  by  him,  as  subscriber  to  the  issue  of  stock  [i.e.,  Si  le 
Ministre  de  Belgiqne  a  Pekin  en  faisait  la  dcmande  au  Tsitng-li-Yatnen,  celui-ci, 
serait  tenit  de  notificr  le  litre  au  Ministre  du  pays  etranger  qn'il  lui  de  signer  atit'j 
conime  prenant  part  a  la  souscription  des  titres.] 

Article  29. — The  present  contract  is  made  in  triplicate,  one  copy  for  the 
Chinese  Government,  one  for  the  Chinese  Railway  Company  and  the  third  for  the 
Societe  d'Etudes  des  Chemins  de  fer  en  Chine. 

In  case  of  doubt  or  disagreement,  the  French  text  alone  shall  be  used  to 
interpret  the  contract. 

The  present  contract  must  be  submitted  through  the  proper  channel  for 
Imperial  Sanction,  and  when  said  Sanction  has  been  obtained,  the  Tsung-li 
Yamen  must  advise  the  Belgian  Representative  at  Peking  by  official  dispatch 
and  eventually  the  Representative  in  Peking  of  the  foreign  country  to  whom  it 
may  give  cognizance  of  the  title  (le  Representant  a  Pekin  du  pays  etranger  aiiqucl 
le  litre  sera  notifie).  These  formalities  shall  be  complied  with  within  the  month 
following  the  signing  of  the  contract.  The  provisions  of  the  contract  signed  at 
Wuchang  the  27th  May,  1897,  and  of  the  protocol  signed  the  21st  July,  1897, 
which  do  not  conflict  with  the  present  contract,  especially  those  of  Article  14 
of  the  Wuchang  contract  and  Article  2  of  the  Shanghai  protocol,  are  and  remain 
in  force.  The  Societe  Generale  of  Brussels  and  the  Russo-Chinese  Bank  are 
parties  to  the  present  contract,  and  they,  after  having  examined  the  preceding 
contract,  declare  that  they,  as  far  as  necessary,  accept  the  duties  imposed-  Ac- 
cording to  Article  14  of  the  above  mentioned  Wuchang  contract,  the  Chinese 
Railway  Company  will  only  recognize  the  Societe  Beige  as  contracting  party. 

Done  at  Shanghai,  the  twenty-sixth  day  of  the  month  of  June,  one  thou- 
sand eight  hundred  and  ninety-eight. 

The  Engineer  representing  the  Societe  d'Etudes 
des  Chemins  de  fer  en  Chine, 


The  Director  General  of  the  Chinese 
Raihvay  Company, 


The  Representatives  of  the  Imperial  Chinese  Government : 
The  Viceroy  of  Hupeh.  The  Viceroy  of  Chihli. 


NUMBER  1898/13:  JUNE  26,  1898  143 


OPERATING   CONTRACT. 
BETWEEN    THE    UNDERSIGNED: 

1°.  The  Imperial  Chinese  Government,  represented  by  Their  Excellencies, 
the  Viceroys  of  Chihli  and  of  Hupeh ; 

2°.  The  Chinese  Raihvay  Company,  represented  by  His  Excellency  Sheng 
Hsiian-huai,  its  Director  General,  Office  of  the  Company  at  Shanghai; 

And  the  Societe  d'Etudes  des  Chemins  de  fcr  en  Chine,  whose  office  is  at 
Brussels, 

Has  been  agreed  as  follows: 

Article  1. — The  Chinese  Railway  Company,  in  accordance  with  the  Imperial 
Chinese  Government,  entrusts  the  Societe  d'Etudes  des  Chemins  de  fer  en  Chine, 
which  shall  appoint  representatives  for  that  purpose,  with  the  direction,  adminis- 
tration, and  operating  of  the  line  from  Hankow  to  Lu-kou-chiao  (Peking),  for 
which  it  holds  a  concession,  under  the  terms  of  an  edict  of  His  Majesty  the 
Emperor  of  China  dated  October  20,  1896,  and  of  which  a  copy  is  annexed  to  the 
present  contract. 

Article  2. — The  Societe  d'Etudes  shall  take  over  the  working  of  the  line 
as  soon  as  each  section  is  completed,  following  final  acceptance  by  the  Imperial 
Administration  of  Chinese  Railways.  Each  section  must  be  completely  and 
previously  equipped  and  provided  with  all  the  material  necessary  for  its  working, 
as  well  as  with  the  supplies  of  tools,  furniture  and  a  fund  for  running  ex- 
penses. The  Societe  d'Etudes  or  the  representatives  it  shall  appoint  under  the 
provisions  of  Article  1,  shall  organize  the  various  services,  shall  have  the  right 
to  hire  the  personnel,  which  it  shall  have  absolute  right  to  dismiss,  or  disband, 
and  to  fix  its  salaries  according  to  a  fixed  schedule  previously  communicated  to 
the  Director  General  of  the  Chinese  Railway  Company.  It  shall  make  all  pur- 
chases necessary  for  operating,  maintaining  or  repairing  the  road ;  it  shall  fix 
the  schedule  of  rates  in  the  terms  of  concession  contracts,  collect  revenues  of  all 
kinds  and  pay  the  operating  and  management  expenses  of  the  Company.  The 
foregoing  measures,  taken  for  the  purpose  of  operating  the  line,  shall  be  sub- 
mitted, for  consultative  purposes,  to  the  Director  General  of  Chinese  Railways. 

The  Chinese  Railway  Company,  which  will  appoint  delegates  for  that  pur- 
pose, shall  have  absolute  right  of  control  over  the  receipts  and  expenses. 

The  purchase  of  all  new  material  or  works  for  the  improvement  or  extension 
of  the  regular  road,  or  of  stations,  which  may  be  found  necessary  after  the 
opening  of  each  section  of  the  line  to  traffic,  shall  be  at  the  sole  expense  of  the 
Chinese  Railway  Company.  As  far  as  possible  the  supplies  necessary  for  the 
maintenance  and  repairing  of  the  road  shall  be  ordered  from  the  works  and 
mines  under  the  control  of  the  Director  General  of  the  Chinese  Railway 
Company. 

Article  3. — In  case  of  war  or  revolution  in  China,  the  transportation  of 
troops,  munitions  and  of  the  supplies  of  the  Chinese  army  shall  have  right  of  way 
over  all  commercial  transportation.  The  rate  for  such  transportation  shall  be  50 
per  cent  of  the  tariff ;  and  it  shall  be  carried  according  to  the  instructions  of  the 


144  CHINA  TREATIES  AND  AGREEMENTS 

Director  General  of  the  Chinese  Railway  Company.  The  transportation  of  any- 
thing of  nature  to  injure  the  Imperial  Chinese  Government  shall  moreover  be 
forbidden. 

Article  4. — Out  of  the  receipts  from  operation  available,  after  payment  of  all 
expenses,  the  Societe  d'Etudes  shall  retain  the  necessary  sum  to  insure  the  pay- 
ment, every  six  months,  and  at  least  three  months  before  its  date  of  payment, 
of  the  service  of  the  loan  of  112,500,000  francs  contracted  by  the  Imperial 
Chinese  Government. 

This  reserve  shall  be  made  as  long  as  said  loan  is  not  entirely  paid  ofif. 

The  amount  of  this  reserve  shall  be  deposited  monthly  with  the  Societe 
Generale  Beige  pour  favoriser  ITndustrie  Nationale,  or  with  the  Company 
designated  by  it.  The  latter  shall  convert  into  gold  on  the  best  terms  procurable, 
the  sums  paid  to  it  for  the  service  of  the  loan. 

When,  by  means  of  the  sums  thus  paid  in,  the  service  in  gold  of  the  loan 
shall  have  been  insured,  the  Societe  d'Etudes  shall  deduct  10%  of  the  surplus, 
which  shall  be  applied  to  the  creation  of  a  reserve  fund  for  rebuilding  or  mak- 
ing extraordinary  repairs  necessary  to  insure  the  working  of  the  lines. 

It  shall  then  pay  the  balance  remaining  available  out  of  the  operating 
revenues  to  the  Chinese  Railway  Company. 

Article  5. — The  duration  of  the  present  operating  contract  is  fixed  at  thirty 
years  dating  from  the  signing  of  the  contract. 

However,  this  period  would  be  fully  entitled  to  extension  in  case  the  loan 
of  112,500,000  francs  should  not  at  that  time  be  wholly  paid  off;  this  ex- 
tension would  continue  as  long  as  the  complete  amortization  had  not  been 
made.  But  if  the  refunding  of  the  loan  should  be  made  before  the  dates  on 
which  they  fall  due,  the  present  working  contract  will  be  annulled  from  the  date 
of  the  total  refunding  of  the  loan. 

Article  6. — During  the  entire  period  of  the  working  of  the  line  by  the 
Societe  Beige,  the  Chinese  Railway  Company  grants  it  20  %  of  the  net  profits 
of  the  railroad  from  Peking  to  Hankow,  as  agreed  upon  by  mutual  consent,  after 
the  closing  of  each  fiscal  term  (exercice),  taking  into  account,  naturally,  the 
sums  necessary  for  the  service  of  the  interest  and  the  amortization  of  the  loans. 

Article  7. — In  case  of  contentions  or  disagreement  between  the  Societe 
d'Etudes  and  the  Management  of  the  Chinese  Railway  or  the  Imperial  Chinese 
Government,  said  contentions  and  disagreements  shall  be  settled  as  specified  in 
Article  26  of  the  loan  contract. 

Article  8. — If  the  revenues  from  operating  the  lines  are  not  sufficient  to 
cover  the  expenses,  the  Chinese  Railway  Company  must  supply  the  Societe 
d'Etudes  with  the  necessary  means  to  insure  the  operating  of  the  lines  under 
normal  conditions. 

Article  9. — All  materials  and  supplies  needed  by  the  Societe  d'Etudes  for 
the  working  of  the  line,  as  well  as  for  the  maintenance  and  repair  of  the  line, 
shall,  when  imported  from  abroad,  be  exempt  from  all  customs  or  Hkin  dues. 

Article  10. — The  present  contract  is  made  in  triplicate ;  one  copy  for  the 
Imperial  Chinese  Government,  one  for  the  Chinese  Railway  Company,  and  the 
third  for  the  Societe  d'Etudes  des  Chemins  de  fer  en  Chine. 


NUMBER  1898/13:  JUNE  26,  1898:  NOTE  145 

In  case  of  doubt  or  disagreement  the  French  text  shall  alone  be  accepted 
for  the  interpretation  of  the  contract. 

The  present  contract  must  be  submitted  through  the  proper  channel  for 
Imperial  sanction,  and,  when  said  sanction  shall  have  been  obtained,  the  Tsung-li- 
Yamen  must  advise,  by  official  dispatch,  the  Belgian  Representative  at  Peking 
and  eventually  the  representative  at  Peking  of  the  foreign  Government  to  which 
the  title  may  be  officially  notified  (auquel  le  litre  sera  notifie). 

Done  in  Shanghai,  the  twenty-sixth  of  the  month  of  June  eighteen  hundred 
ninety-eight. 

The  Engineer  representing  the  Societe  d'Etudes  des  Chemins  dc  fer  en  Chine, 
(s.)         Hubert. 

The  Director-General  of  the  Chinese  Railway  Company, 

(s.)  Sheng  Hsuan-Huai. 

Seen  for  authentication:  Witnesses: 

(s.)         Frere,  (s.)             Hu. 

Belgian  Consul.  (s.)             Ko. 

(Official  seal  of  the  Chinese  Railway  Administration.) 

The  Representatives  of  the  Imperial  Chinese  Government : 

The  Viceroy  of  Hupeh.  The  Viceroy  of  Chihli. 


Note. 

In  Rockhill,  pp.  225,  230,  are  also  given  the  following  translations  of  (I)  the  provisional 
loan  contract,  Alay  27,  1897,  and  (II)  the  additional  protocol,  July  27,  1897:— 

(I) 
Loan  for  the  Railway  from  Lu-kou-chiao  to  Hankow. — May  27,  1898. 

(Provisional)  contract  between  the  Chinese  Railway  Company  and  the  Societe  financiere 
et  industrielle  beige  en  Chine,  the  following  has  been  agreed  upon : 

"  Article  1. — The  Chinese  Government  has  granted  a  concession  for  the  railway  line 
from  Lu-kou-chiao,  near  the  city  of  Peking,  to  Hankow,  to  the  Chinese  Railway  Company 
which  has  already  a  capital  of  thirteen  millions  of  taels. 

"The  said  Company  is  authorized  by  the  Imperial  Government  to  negotiate  a  loan  of 
four  million  five  hundred  thousand  pounds  sterling  to  be  applied  solely  to  the  building 
and  working  of  the  line  from  Lu-kou-chiao  to  Hankow;  the  provisions  hereafter  set  forth 
must  be  observed  by  the  Chinese  Railway  Company  as  well  as  by  the  Societe  financiere  et 
industrielle  beige  en   Chine. 

"  Article  2. — Said  loan,  of  a  nominal  value  of  four  million  five  hundred  thousand 
pounds  sterling,  with  ten  per  cent  discount,  or  a  real  value  of  four  million  fifty  thousand 
pounds  sterling,  is  agreed  to  by  the  Societe  financiere  et  industrielle  beige  en  Chine.  It 
will  be  paid  in  four  installments  of  one  million  twelve  thousand  five  hundred  pounds  sterl- 
ing, representing  the  real  value,  and  at  the  following  dates : 

"First  payment:  January  3,  1898, 

"Second  paj-ment :  July  3,  1898, 

"  Third  payment :  January  3,  1899, 

"  Fourth  payment :  July  3,  1899. 

"  These  payments  will  be  made  into  a  Belgian  bank  of  Brussels,  chosen  by  the  Chinese 
Railway  Company  which  is  at  liberty  to  transfer  this  sum  as  it  sees  fit. 


146  CHINA  TREATIES  AND  AGREEMENTS 

"  Article  3. — The  loan  agreed  to  by  the  Societe  financiere  et  industrielle  beige  en  Chine, 
shall  bear  annual  interest  of  four  per  cent.  Said  interest  shall  be  paid  in  January  and 
July  of  each  year.  .  .  ,    ,   r 

"  Article  4. — The  Chinese  Railway  Company  agrees  to  reimburse  the  loan  provided  for 
in  the  present  convention,  after  the  first  ten  years,  in  twenty  annuities  of  two  hundred  and 
twenty-five    thousand    pounds    sterling,    payable    yearly    after    January    3,    1909. 

"  The  payment  of  interest  and  annuities  will  be  made  in  China,  into  a  bank  designated 
by  the  Societe  financiere  et  industrielle  beige  en  Chine,  and  in  conformity  with  the  table 
of  amortization  annexed  to  the  present  convention. 

"  Article  5. — With  the  authorization  of  the  Imperial  Chinese  Government,  the  payment 
of  interest  and  the  refunding  of  the  loan  will  be  guaranteed  by  the  railway  line  from 
Lu-kou-chiao  to  Hankow  as  also  by  all  the  property  and  material  connected  therewith. 

"  It  is  understood  that  the  guarantees  given  for  the  loan  provided  for  in  the  present 
convention,  are  reserved  for  the  subscribers  to  the  present  loan  and  that  the  guarantees 
given  for  subsequent  loans  can  nowise  prejudice  that  now  granted  the  Societe  financiere 
et  industrielle  beige  en  Chine. 

"  Article  6. — Except  in  case  of  force  majeure,  the  work  of  building  must  be  finished  and 
the  railway  from  Lu-kou-chiao  to  Hankow  put  in  operation  before  the  expiration  of  five 
years,   that   is   to    say   of    1903. 

"  Article  7. — The  contracting  parties  may  not  invoke  a  state  of  war  existing  in  any 
part  of  the  world  not  to  keep  their  engagements.  If  said  state  of  war  should  exist  in 
China,  the  Belgian  staff  shall  remain  in  the  employ  of  the  Chinese  Railway  Company,  unless 
its  assistance  is  asked   for  by  the  Imperial  Chinese  Government. 

"Article  8. — The  Societe  financiere  et  industrielle  beige  en  Chine,  shall  choose  an  ex- 
perienced, reliable  and  honest  engineer  to  represent  it  and  who  shall  be  charged  with 
controlling  the  technical  work ;  he  shall,  furthermore,  be  charged  with  drawing  up  plans 
and  carrying  them  out  under  the  exclusive  authority  of  the  General  Director  of  the 
Chinese  Railway  Company,  under  whose  direct  orders  he  shall  be.  This  Controlling 
Engineer  will  be  under  the  absolute  direction  of  the  General  Director  of  the  Chinese 
Railway  Company.  The  Chinese  Railway  Company  reserves  all  rights  of  management 
of  the  railway.  It  will  be  responsible  until  the  expiring  of  the  present  contract  for  the 
salary  of  this  Controlling  Engineer  as  fixed  upon  in  agreement  with  the  Societe  financiere 
et  industrielle  beige  en  Chine. 

"  Article  9. — The  foreign  staff  needed  by  the  Chinese  Railway  Company  for  building 
and  operating  the  line,  during  the  life  of  the  present  contract,  shall  be  chosen  and  presented 
by  the  technical  Controlling  Engineer  representing  the  Societe  financiere  et  industrielle  beige 
en  Chine ;  it  will  be  appointed  by  decision  of  the  Director  General  of  the  Chinese  Railway 
Company.  The  Chinese  Railway  Company  is  at  liberty  to  settle  for  itself  as  regards  its 
foreign  staff,  the  form  of  engagement  to  be  used,  adopting  long  or  short  term  contracts. 

"  All  the  staff  employed  by  the  Chinese  Railway  Company  and  attached  to  the  working  of 
the  line,  with  the  exception  of  the  Controlling  Engineer,  will  be  required  to  obey  the 
Chinese  delegates  of  the  Director  General  of  the  Company  and  work  harmoniously  with 
all  the  Chinese  and  foreign  staff  of  other  nationalities,  chosen  and  appointed  by  the 
Director  General  to  any  position,  and  this  in  the  interest  of  the  Railway  Company 

"  If  disputes  arise  between  European  and  Chinese  agents,  they  shall  be  impartially 
settled  by  the  Director  General,  aided  by  the  representative  of  the  Belgian  Company. 

"  The  Director  General  of  Chinese  Railways  shall  always  be  at  liberty  to  designate 
foreigners  of  whatever  nationality  to  inspect  the  works  under  way ;  the  Belgian  Company 
shall  never  have  the  right  to  prevent  it. 

"  Nevertheless,  the  duty  of  the  persons  designated  shall  only  consist  in  inspecting  works 
and  they  shall  never  have  the  right  to  give  orders  to  the  staff  employed  in  building  and 
working  the  line.  Such  persons  may  likewise  make  reports  to  the  Director  General  of 
Chinese  Railways  on  the  results  of  their  inspections. 

"  The  staff  employed  in  building  and  operating  shall  furnish  all  necessary  facilities  to 
foreigners  entrusted  with  an  inspection,  and  that  in  the  interest  of  the  Chinese  Railway 
Company. 

"  Article  10. — In  case  one  of  the  foreign  employes  referred  to  in  articles  8  and  9,  irre- 
spective of  duties,  should  through  carelessness,  incapacity,  disobedience  of  the  orders  of  the 
Director  General,  insubordination,  drunkenness,  or  bad  conduct,  be  held  to  be  unfit  for  the 
service,  the  Director  General  shall  have  the  right  to  cancel  the  contract  and  the  dismissed 
agent  shall  leave  at  once  the  service  of  the  Chinese  Railway  Company. 

"Article  11. — The  materials  necessary  for  the  Chinese  Railway  Company,  exclusive  of 
all  that  can  be  manufactured  in  China  or  of  that  that  can  be  manufactured  there  later  on, 
shall  be  bought  abroad. 

"  The  Director  General  shall  decide,  in  consultation  with  the  Controlling  Engineer,  the 
amount  of  materials  to  ask  bids  on;  said  quantity,  however,  shall  never  exceed  fifty  per 
cent  of  that  required. 

"  The  award  shall  be  made  without  any  special  favor  for  the  Societe  financiere  et 
industrielle  beige  en  Chine.     If  this  Company  agrees  to  furnish  at  per  feet,  equality  of  con- 


NUMBER  1898/13:  JUNE  26,  1898:  NOTE  147 

ditions  as  to  quality,  price  and  carriage  with  those  secured  by  the  Chinese  Railway  Company, 
the  Belgian  Company  shall  have  the  furnishing  of  said  materials;  but  if  said  Company  is 
unable  to  supply  under  the  above-mentioned  conditions,  the  Chinese  Railway  Company  will 
make  its  purchase  where  it  likes  ;  the  Belgian  Company  shall  in  no  way  prevent  it  so  doing. 

"As  to  the  materials  which  cannot  be  divided  in  accordance  with  paragraph  2  of  the 
present  article  (50  p.  c.  maximum  asked  for),  if  the  Belgian  Company  agrees  to  furnish  at 
perfect  equality  of  conditions  as  to  quality,  price  and  carriage  with  those  secured  by  the 
Chinese  Railway  Company,  the  furnishing  shall  be  granted  the  Belgian  Company ;  in  the 
contrary  case,  the  Chinese  Railway  Company  will  buy  where  it  chooses ;  the  Belgian  Com- 
pany shall  in  no  way  prevent  it  so  doing. 

"The  Chinese  Railway  Company  reserves  to  itself  the  right  to  use  all  means  it  may 
deem  good  to  inform  itself  as  to  the  best  prices  for  supplying  all  its  materials,  without  the 
Belgian  Company  interfering  in  any  way  with  its  inquiries. 

"  Article  12. — As  a  premium,  the  Chinese  Railway  Company  will  pay  the  Belgian  Com- 
pany a  sum  of  five  per  cent,  on  the  net  value,  less  the  cost  of  transportation,  insurance,  etc., 
on  all  materials  bought  abroad.  The  materials  for  the  branch  from  Lu-kou-chiao  to  Paoting 
is  not  subject  to  the  premium  provided  for  in  the  present  article  because  nearly  the  whole 
amount  of  said  materials  has  already  been  bought. 

"  Article  13. — The  taking  over  of  material  bought  in  Belgium  will  be  in  the  factories 
making  it  and  by  a  commission  consisting  of  a  delegate  of  the  Chinese  Railway  Company 
and  of  a  delegate  of  the  Societe  financiere  et  industrielle  beige  en  Chine ;  in  case  of  disagree- 
ment, these  two  delegates  shall  choose  an  umpire  to  decide  the  question.  The  expenses  of  the 
delegates  shall  be  borne  by  the  Company  designating  them.  The  expense  of  the  umpire  shall 
be  borne  by  the  losing  party. 

"  Article  14. — The  Societe  financiere  et  industrielle  beige  en  Chine  and  its  chosen  agent, 
shall  deal  with  no  other  persons  or  accept  any  other  authority  than  the  Chinese  Railway 
Company.  The  latter,  on  its  side,  shall  only  recognize  the  Societe  financiere  et  industrielle 
beige  en  Chine,  established  at  Brussels,  in  1897,  to  the  exclusion  of  every  other  company. 

"  During  the  life  of  the  present  contract,  the  Belgian  Company  shall  in  no  wise  be 
managed  by  manufacturers  or  subjects  of  other  countries,  and  the  Belgian  Company  shall 
not  be  at  liberty  to  transfer  this  contract  to  any  other  country,  nor  to  the  subjects  of 
another  country. 

"Article  15. — If  the  provisions  set  forth  in  the  present  convention  are  regularly  adhered 
to  by  the  Chinese  Railway  Company,  the  Societe  financiere  et  industrielle  beige  en  Chine 
agrees,  in  case  of  necessity,  to  study  means,  in  conjunction  with  the  said  Company,  to  secure 
to  it  special  facilities  for  extendinig  the  terms  of  paying  oflf  the  annuities  and  interest. 

"  In  case  extensions  are  granted,  the  amounts  which  should  have  been  refunded  shall 
bear  the  same  interest  as  that  provided  for  the  loan  in  the  present  convention. 

"  If  the  Chinese  Railway  Company  wishes  to  refund  the  whole  loan  before  the  date  on 
which  it  falls  due,  it  will  be  at  liberty  to  do  so  and  the  interest  will  cease  from  the  day  of 
such  refunding,  and  the  contract  shall  be  declared  void  from  that  day. 

"  Article  16. — All  the  above  provisions  are  agreed  upon  in  the  provisional  contract  made 
this  day;  this  provisional  convention  is  signed  by  the  Director  General  of  the  Chinese  Rail- 
way Company  on  the  one  part,  and  stamped  with  his  seal,  and,  on  the  other  part,  by  the 
two  representatives  of  the  Societe  financiere  et  industrielle  beige  en  Chine,  and  viseed  for 
authentication  by  the  Consul  of  Belgium  at  Hankow. 

"  Within  two  months  from  the  date  of  signing  of  the  provisional  contract,  the  Chinese 
Railway  Company  and  the  Societe  financiere  et  industrielle  beige  en  Chine,  will  sign  again 
so  as  to  confirm  the  provisional  contract  which  shall  then  become  final. 

"  These  formalities  complied  with,  the  contract  shall  receive  the  seals  of  Their  Excel- 
lencies the  Viceroys  of  Pechihli  and  of  Hu-Kwang,  and  also  that  of  H.  Ex.  the  Minister 
of  Belgium,  at  Peking. 

"  Article  17. — The  present  contract  has  been  drawn  up  in  the  French  and  Chinese  lan- 
guages ;  when  necessity  arises  for  consulting  the  contract,  the  two  texts,  absolutely  identical, 
shall  both  be  authoritative. 

"  Done  at  Wuchang,  the  27  of  the  month  of  May,  1897. 

"  The  Chinese  Raihuay  Company  being  represented  by  H.  Ex.  Sheng-Hsuan-Huai,  its 
Director  General. 

"  The  Societe  financiere  et  industrielle  beige  en  Chine  being  represented  by  MM.  Masy 
and  Rizzardi." 


148  CHINA  TREATIES  AND  AGREEMENTS 

(II) 

Additional  Protocol  to  the  Contract  relating  to  the  Loan  for  Four  Million  Five  Hun- 
dred Thousand  Pounds  Sterling  for  the  Railway  from  Hankow  to  Lu-kou-chiao. — 
July  27,  1897. 

"  A  provisional  contract  was  made,  at  Wuchang,  the  twenty-seventh  day  of  the  month  of 
May  one  thousand  eight  hundred  and  ninety  seven  (twenty-sixth  day,  fourth  month,  twenty- 
third  year  of  the  present  reign)  relating  to  the  loan  for  the  railway  from  Lu-kou-chiao  to 
Hankow. 

"  Between 
"  The  General  Company  of  Chinese  Railways,  established  by  Imperial  decree  of  the  twentieth 

October   one   thousand   eight   hundred   and   ninety    six    (fourteenth    day,    ninth    month, 

twenty-second  year  of  the  present  reign),  and  to  which  was  granted,  by  the  same  decree, 

the  concession  for  the  said  line, 
of  the  first  part, 
"  And  the  Belgian  Company,  established  by  authentic  act  dated  the  third  March  one  thousand 

eight  hundred  and  ninety  seven,  published  in  the  Alonitctir  Beige  (official  newspaper)  of 

the  twenty-second,  twenty-third  March  one  thousand  eight  hundred  and  ninety-seven, 
of  the  second  part. 

"  This  contract  was  authorized  by  Imperial  decree  of  the  twenty-fifth  May  one  thousand 
eight  hundred  and  ninety-seven  (twenty-fourth  day,  fourth  month,  twenty-third  year  of  the 
present  reign).  The  decree  of  that  date  will  be  communicated  to  H.  E.  the  Minister  of 
Belgium  at  Peking  through  the  Tsung-li  Yamen. 

"  The  Chinese  Railway  Company,  represented  by  H.  E.  Sheng,  its  Director  General, 
duly  authorized  for  that  purpose  by  the  above  mentioned  decree  and  the  Belgian  Company, 
represented  by  M.  Alexis  Dufourny,  Chief  Engineer,  Director  of  the  Fonts  et  Chaussees  at 
Brussels,  and  by  M.  Edouard  Walin,  First  class  Engineer  of  the  Fonts  et  Chaussees, 
Director  of  the  intercommunal  waterworks  Company  at  Brussels,  duly  authorized,  on  their 
side,  by  the  Belgian  Company,  authority  confirmed  by  a  telegram  of  H.  E.  the  Belgian  Minis- 
ter at  Peking,  sign  anew,  in  the  name  of  the  interested  parties,  the  provisional  contract 
according  to  the  terms  of  article  sixteen  of  the  latter,  so  as  to  confirm  it  and  make  it  final, 
and  agree  furthermore  on  the  following : 

"  Articxe  I. — The  above  mentioned  Belgian  Company  will  make  a  complete  study  of  the 
line  from  Hankow  to  Lu-kou-chiao  for  the  Chinese  Railway  Company ;  it  undertakes  to 
make  the  surveys,  levelling,  longitudinal  and  sectional  cuts,  to  make  all  plans,  drafts  of 
masonry  works,  bridges,  buildings,  shops,  stations  and  outhouses  of  whatever  nature,  as  also 
the  measurements  and  specifications,  all  charges  for  which  are  included  in  the  forty- 
hundredths  per   cent,   of   additional   interest   mentioned  hereafter   in    Article   III. 

■'  A  similar  study  will  be  made  for  the  rolling  and  fixed  stock.  But  in  conformity 
with  article  eight  of  the  contract,  the  drafts  and  plans  shall  be  successively  submitted 
to  the  approval  of  the  General  Director.  It  is  well  understood  that  all  these  works  are  to 
be  carefully  done,  without  any  omission ;  they  are  not  to  occasion  any  additional  expenses. 

"  Field  work  for  the  carrying  out  of  the  works  must  be  finished  within  a  year  from  the 
date  of  the  conclusion  of  the  last  formalities  of  approval  of  the  contract.  They  must'  be 
carried  out  with  the  necessary  activity  to  permit  of  the  embankment  work  being  begun 
within  six  months  of  the  above  mentioned  date. 

"  Article  II. — The  Belgian  Company  surrenders  its  right  to  a  premium  on  materials, 
conferred  on  it  by  article  twelve  of  the  contract,  and  therefore  said  article  is  considered 
as  void. 

"  Article  III. — On  the  other  hand,  as  compensation  for  the  concessions  mentioned  above 
in  Articles  I  and  II,  and  to  guarantee  its  expenses  of  organization,  mission  abroad  and 
issuing  (the  loan),  inclusive  of  all  disbursements  whatsoever  relating  thereto,  and  finally  its 
general  expenses  during  the  whole  time  of  the  loan,  the  Belgian  Company  shall  receive 
an  increase  of  forty-hundredths  per  cent  (four  per  thousand)  on  the  rate  of  interest 
provided  for  in  article  three  of  the  contract.  This  additional  interest  of  four  per  thou- 
sand will  be  paid  in  the  same  manner  as  the  yearly  interest  of  four  per  cent;  consequently 
the  rate  of  interest  of  four  per  cent,  together  with  all  the  general  expenses,  is  raised,  in  effect, 
to  four  and  forty  per  cent  (4.40  p.  c).  No  charge  whatsoever  in  excess  of  this  rate  of 
interest  shall  be  asked  for. 

"  Article  TV. — The  payments  provided  for  in  article  two  of  the  contract  shall  be  made 
into  the  Belgian  Bank  at  Brussels,  designated  by  the  name  of  "  Societe  Generale  pour 
favoriser  ITndustrie  Nationale,"  and  the  Chinese  Railway  Company  will  transfer  (thereto) 
the  simis  paid  into  the  Commercial  Bank  of  China  at  Shanghai,  organized  by  imperial  decree 
under  date  of  the  twelfth  November  one  thousand  eight  hundred  and  ninety-six  (eighth 
day,  tenth  month,  twenty-second  year  of  the  present  reign).  The  payments  of  interest  and 
annuities  will  be  made  in  pounds  sterling  into  the  above  mentioned  Commercial  Bank. 

"  Article  V. — It  is  understood  that  the  guarantee  of  the  railway  line,  referred  to  in 
article  five  of  the  contract,  has  absolutely  priority  of  rank. 

"  Article  VI. — The  present  protocol  shall  be  stamped  with  the  seal  of  Their  Excellencies 


NUMBER  1898/13:  JUNE  26,  1898:  NOTE  149 

the  Viceroys  of  Pechihli  and  of  Hu-Kwang,  and  also  with  that  of  H.  E.  the  Minister  of 
Belgium  at  Peking. 

"  The  present  protocol  has  been  made  out  in  four  copies  in  the  French  and  Chinese  lan- 
guages ;  both  versions  are  equally  authoritative. 

"  Done  at  Shanghai,  the  twenty-seventh  of  July  one  thousand  eight  hundred  and  ninety- 
seven. 

"  For  the  Chinese  Railway  Company, 

"  The  Director  General, 

"  Sheng. 
"  For  the  Belgian  Company, 

"  The  first  class  Engineer  of  Fonts  et  Chaussees, 
Director  of  the  Intercommunal  Waterworks  Company, 

"  Walin. 
"  The  Chief  Engineer,  Director  of  Fonts  et  Chaussees, 

"  DUFOURNY." 

For  the  French  texts  of  these  agreements,  see  Wang,  pp.  13,  35. 

The  following  correspondence  is  also  attached  to  the  texts  of  the  contracts  as  printed  in 
Rockhill,  p.  246 : 

"letter  of  his  excellency  sheng  relative  to  the  arbitration   clause. 

"  Imperial  Administration  of  Chinese  Railways, 

"  Shanghai,  June  26,  1898. 
"  As  the  contentions  and  disagreements  referred  to  in  Article  26  of  the  loan  contract  and 
in  Article  7  of  the  operating  contract  relating  to  the  Railway  from  Hankow  to  Peking,  may 
relate  to  interest  and  the  amortization  of  the  loan,  the  undersigned  Sheng  Hsiian-huai, 
Director  General  of  the  Chinese  Railway  Company,  duly  authorized  thereto  by  the  Tsung-Ii 
Yamen.  declares,  from  the  present  date,  that  the  arbitrator  to  judge  finally  all  such  con- 
tentions and  disagreements,  will  be  the  Minister  at  Peking  of  the  foreign  country  which 
shall  have  taken  part  in  the  subscription  for  the  loan. 

[Official  Seal  of  the  Chinese  [s]  "  Sheng  Hsuan-Huai, 

Railway  Administration.]  "Director  General  of  Railways." 

"  letter  of  his  excellency  sheng  relative  to  the  preferential  right  to  the 

hankow-canton  line. 

"  Imperial  Administration  of  Chinese  Railways, 

"Shanghai,  June  26,  1898. 
"  The  undersigned,  Sheng  Hsiian-huai,  Director  General  of  the  Chinese  Railway  Com- 
pany, declares  that  he  reserves  to  the  Societe  d'Etudes  des  Chemins  de  fer  en  Chine,  a 
preferential  right  as  regards  the  railway  to  be  built  from  Hankow  to  Canton,  in  case  the 
provisional  contract,  as  drawn  up  in  Washington  between  His  Excellency  Sheng  and  the 
American   Syndicate    (Carey-Washburn),   should  not  become  a  definitive  one. 

"  It  is  well  understood  that  this  preferential  right  is  granted  to  the  Societe  d'Etudes  des 
Chemins  de  fer  en  Chine,  under  the  terms  of  Article  14  of  the  Wuchang  contract,  which 
formally  prohibits  the  Societe  Beige  d'Etudes  des  Chemins  de  fer  en  Chine  from  trans- 
ferring any  of  its  rights  to  any  company  of  foreign  nationality. 

[Official  seal  of  the  Chinese  [s]  "  Sheng  Hsuan-Huai, 

Railway  Administration.]  "Director  General  of  Railways." 

Rockhill,  p.  247,  notes  that  in  connection  with  the  letter  of  Sheng  Hsiian-huai  given  above 
and  relating  to  the  preferential  right  of  the  Belgian  Syndicate  to  build  the  Hankow-Canton 
railway  in  case  the  contract  made  with  the  American  China  Development  Company  should 
not  become  definitive,  the  following  dispatch  from  the  British  Charge  d'Affaires  in  Peking 
to  Lord  Salisbury,  published  in  the  British  Parliamentary  Blue  Book,  China,  No.  1  (1900), 
pp.  155-156,  is  of  interest. 

"  Mr.  Bax-Ironside  to  the  Marquess  of  Salisbury. 
"  [Extract.] 

"  Peking,  May  15,  1899. 
"  I  had  the  honour  to  receive  a  telegram  from  your  Lordship  on  the  28th  ultimo,  in- 
forming me  that  the  prospectus  issued  by  the  Belgian   Syndicate   for  the   Peking-Hankow 
Railway  Loan  states  that  the  Syndicate  have  a  preferential  right  to  the  Hankow-Canton  line 
in  the  event  of  the  Contract  with  the  American  Syndicate  not  being  finally  arranged. 

"Your  Lordship  also  inquired  whether  the  Chinese  Government  had  ever  communicated 
the  text  of  the  Peking-Hankow  Agreement  in  accordance  with  an  undertaking  which  they 
had  previously  given  us. 


150  CHINA  TREATIES  AND  AGREEMENTS 

"  At  an  interview  which  had  already  been  arranged  for  the  following  day  with  the 
Tsung-li  Yamen,  I  took  the  opportunity  to  inquire  whether  the  statement  issued  in  the 
Belgian  prospectus  was  a  correct  one. 

"  The  Ministers  had  no  knowledge  of  any  such  arrangement. 

"  I  pointed  out  that,  according  to  published  reports,  the  American  Syndicate  had  a 
preferential  right  to  the  Peking-Hankow  line  if  negotiations  with  the  Belgian  Syndicate  fell 
through. 

"  The  Ministers  expressed  themselves  equally  ignorant  of  this  arrangement. 

"  On  the  following  day  I  sent  two  members  of  the  staff  to  carefully  compare  our  copy 
of  the  Chinese  text  with  the  original  one  in  the  possession  of  the  Tsung-li  Yamen,  with 
the  result  that  the  comparison  showed  no  material  difference. 

"  The  Secretaries  of  the  Yamen  stated  that  they  had  no  copy  of  the  French  text  which 
is  the  standard  in  case  of  dispute. 

"  On  the  6th  instant  I  addressed  an  official  note  to  the  Tsung-li  Yamen  requesting  to  be 
informed  whether  such  an  arrangement  as  stated  in  the  prospectus  had  been  made,  and  their 
Excellencies  replied  in  the  negative.  .  ,    .     ,        , 

"  Copy  of  my  note,  together  with  reply  thereto,  are  herewith  inclosed. 

"  [Inclosure  1.] 
"  Mr.  Bax-Ironside  to  the  Tsung-li-Yamen. 

"  Peking,  May  6,  1899. 

"  MM.   LES    MiNISTRES, 

"  On  the  29th  April  I  called  at  the  Yamen  and  referred  to  the  Agreement  made  on  the 
26th  June  last  year  with  the  Belgian  Syndicate  for  the  Peking-Hankow  Railway.  I  men- 
tioned that  in  the  prospectus  issued  by  the  Belgian  Syndicate  it  was  stated  that  China  had 
promised  that  if  the  American  Agreement  for  the  Hankow-Canton  line  fell  through,  the 
Belgian  Syndicate  would  be  intrusted  with  the  construction  of  that  line. 

"  Your  Excellencies  informed  me  that  there  was  no  such  stipulation  in  the  Agreement 
of  twenty-nine  Articles,  or  the  Supplementary  Agreement  of  ten  Articles  made  with  the 
Belgian  Syndicate  for  the  Peking-Hankow  line. 

"  I  have  heard,  however,  that  the  promise  referred  to  was  given  subsequently  to  the 
settlement  of  the  aforesaid  Agreements,  and  I  have  the  honour  to  request  your  Highness  and 
your  Excellencies  to  inform  me  whether  such  an  Agreement  has  been  made. 

"  iSigned)  H.  O.  Bax-Ironside. 

"  [Inclosure  2.] 
"The  Tsung-li  Yamen  to  Mr.  Bax-Ironside. 
"  [Translation.] 
«'  Sjp^  "  Peking,  May  10.  1899. 

"  On  the  6th  instant  we  received  your  letter  to  the  effect  that  in  the  prospectus  issued 
by  the  Belgian  Syndicate  it  is  stated  that  China  has  promised  that  in  the  event  of  the  aban- 
donment of  the  American  Contract  for  the  Hankow-Canton  Railway  the  Belgian  Syndicate 
will  be  intrusted  with  the  construction  of  that  line.  You  added  that  you  had  heard  that  this 
promise  was  given  subsequently  to  the  settlement  of  the  Belgian  Agreement,  and  you  inquired 
whether  such  an  arrangement  had  been  made. 

"  We  have  the  honour  to  inform  you  that  neither  the  Belgian  Agreement  in  twenty-nine 
clauses  nor  the  Supplementary  Agreement  in  ten  clauses  contains  any  such  stipulation,  and 
that  there  has  been  no  subsequent  arrangement  of  any  kind. 

"  We  have,  &c.  ,      ,  .  .  .     ,        ,  x  „ 

"  (Cards  of  their  Excellencies  the  Ministers  inclosed.) 

In  the  "  Memorandum  on  railway  and  mining  concessions  secured  by  France  and 
French  companies,"  in  Documents  Dit^lomatiques,  Chine,  fuin-Octobre,  1900,  p.  23,  occurs 
the  following  comment  (as  translated  in  Rockhill,  p.  402)  in  regard  to  the  Peking- Hankow 
Railway  concession : 

"The  Societe  d'etudes  des  chemins  de  fer  en  Chine,  a  Franco-Belgian  syndicate  in 
which  the  French  element  is  represented  by  the  big  financial  establishments  of  Pans  and 
the  big  metallurgical  industries  of  France  has  received  a  concession  for  a  railway  from 
Peking  to  Hankow.  The  two  contracts  relating  to  this  line,  for  a  loan  and  for  operating, 
are  dated  the  26  June  1898.  The  line  will  have  an  extension  of  about  1,250  kilometers,  it 
is  being  built  and  will  be  operated  by  the  Societe  d'etudes  for  the  mutual  profit  and  equal 
advantage  of  the  French  and  Belgian  parties.  ,     ,         ,       t-        i. 

"The  loan  to  be  floated  is  112.500,000  francs.  It  has  been  agreed  that  the  French 
financial  share  shall  be  three  fifths,  that  of  Belgium  two  fifths.  A  first  issue  of  133,000 
bonds  of  500  francs  5%  was  made  at  Paris  and  Brussels  on  April  19,  1899.     226,800  bonds 


NUMBER  1898/13:  JUNE  26,  1898:  NOTE  151 

were  subscribed  for,  190,800  at  Paris  and  36,000  at  Brussels.  The  product  of  this  first 
issue  will  suffice  to  build  500  kilometers  of  which  300  in  the  north  and  200  in  the  south, 
and  which  will  be  soon  finished.  150  kilometers  in  the  north  are  already  being  operated. 
The  building  of  the  remainder  will  be  seen  to  by  a  second  issue  as  soon  as  circumstances 
permit  of  it. 

"  The  Societe  d'etudes  has  secured  the  right  to  work  mines  along  the  line  and  to  make, 
for  the  use  of  these,  branch  lines. 

"  A  branch  company  has  been  organized  under  the  name  of  '  Societe  franco-beige  de 
recherches  minieres  en  Chine  '  to  work  these  mines." 

On  August  13,  1905,  was  concluded  a  Contract  for  a  supplementary  loan  for  the  purpose 
of  completing  the  Peking-Hankow  Railway,  of  which  the  translation  (from  the  French  text 
printed  in  Wang,  p.  73)  is  as  follows: 

Contract  for  Supplementary  Loan  for  Completion  of  Peking-Hankow  Railway. — 

August  13,  1905. 

"Between  the  undersigned: 

"First:  The  Imperial  Chinese  Railway  Company,  represented  by  His  Excellency  Sheng 
HsiJan-huai  Kung  Pao,  Director  General,  duly  authorized  by  the  Chinese  Government. 

"Second:  The  Societe  d'etudes  des  chemins  de  fer  en  Chine,  represented  by  Mr.  Jean 
Jadot,  Engineer-in-chief,  Director  of  the  line  from  Peking  to  Hankow,  holding  full  powers, 
'It   has   been   agreed   as   follows: 

"  Article  I. — To  assure  the  completion  in  good  time  of  the  line  from  Peking  to  Han- 
kow and  of  its  branches,  and  also  to  assure  the  payment  of  interest  on  the  loan,  until  the 
whole  line  has  been  put  into  operation,  the  two  contracting  parties  have  decided  to  issue  a 
supplementary  five  per  cent  gold  loan,  at  the  issue  price  of  ninety  per  cent,  to  the  nominal 
amount  of  twelve  million  five  hundred  thousand  francs  (frs.  12,500,000),  represented  by 
twenty-five  thousand  bonds  of  five  hundred  francs  (frs.  500)  each. 

"Article  II. — This  loan  is  subject  to  all  the  clauses  and  conditions  of  the  principal  Five 
Per  Cent  Loan  Contract,  under  date  of  June  26,  1898,  ?.nd  of  the  operating  contract  annexed 
thereto,  especially  as  regards  the  rate  of  interest,  period,  amortization,  etc. 

"  Article  III. — This  loan,  like  the  principal  loan,  has  the  guarantee  of  the  Chinese 
Government ;  and  it  has,  furthermore,  as  a  special  guarantee,  the  net  revenue  from  the 
operation  of  the  Peking-Hankow  line,  including  the  extension  from  Lu-kou-chiao  to  Peking, 
and  the  branches  forming  part  of  the  same  system,  after  deduction  of  the  sums  necessary 
to  assure  the  services  of  the  principal  loan  of  1898. 

"  Article  IV. — The  purpose  of  the  present  supplementary  loan  being  to  assure  the 
completion  of  the  whole  line,  every  effort  will  be  made  to  avoid  exceeding  it.  If,  how- 
ever, after  the  completion  of  the  line  towards  the  close  of  1905,  besides  the  ordinary  expenses 
of  upkeep  and  current  repairs,  and  besides  the  service  of  the  loan  and  the  deduction  of  ten 
per  cent  (10%)  for  rebuilding  or  extraordinary  repairs  (according  to  Article  IV  of  the 
operating  contract) — expenses  which  will  be  covered  by  the  operating  revenues — there  are 
expenses  to  be  incurred  for  the  final  work  or  orders  for  new  material,  or  any  extension  works 
whatsoever — expenses  which  (according  to  Article  II  of  the  operating  contract,  and 
according  to  the  rules  generally  adopted  in  railway  business)  should  be  charged  to  the 
capital  account — these  expenses  will  be  covered  by  that  share  of  the  net  profits  which  should 
accrue  to  the  Imperial  Chinese  Railway  Company:  if  that  share  should  not  suffice  to  cover 
these  expenses,  the  Imperial  Chinese  Railway  Company  should  of  course,  in  conformity 
with  the  operating  contract,  furnish  the  funds  to  cover  them. 

"  These  expenses  can  only  be  incurred  after  a  previous  agreement  with  the  Director 
General  or  his  delegate. 

"  Article  V. — After  the  completion  of  the  whole  line  the  operating  service  will  become 
more  and  more  important.  The  Imperial  Chinese  Railway  Company  has  named  a  delegate 
who  (in  conformity  with  Article  II  of  the  operating  contract)  should  examine  in  advance, 
with  the  delegate  of  the  Societe  d'etudes  des  chemins  de  fer  en  Chine,  all  measures  for 
the  purpose  of  assuring  the  perfect  organization  of  the  various  services  and  see  to  the 
proper  execution  of  those  measures,  the  Societe  d'etudes  des  chemins  de  fer  en  Chine  being 
charged  by  the  Chinese  Government  with  the  operation  of  the  line,  by  virtue  of  the  operating 
contract. 

"Article  VI. — If,  in  the  future,  the  construction  of  new  branches  is  decided  upon,  the 
Imperial  Chinese  Railway  Company  must  furnish  the  necessary  funds,  either  by  means  of 
its  share  of  the  net  profits,  or  otherwise.  The  Imperial  Chinese  Railway  Company  will  be 
free  to  choose  such  means  as  it  sees  fit. 

"Article  VII. — The  present  contract  is  drawn  up  in  four  (4)  copies,  one  of  them 
for  the  Chinese  Government,  one  for  the  Imperial  Chinese  Railway  Company,  one  for  the 
Legation  of  Belgium  in  Peking,  and  one  for  the  Societe  d'etudes  des  chemins  de  fer  en 
Chine. 

"  In  case  of  doubt  or  difference,  the  French  te.xt  alone  will  be  authoritative  for  the 
interpretation  of  the  contract. 


152  CHINA  TREATIES  AND  AGREEMENTS 

"Article  VIII. — When  the  contract  shall  have  received  imperial  sanction,  the  Ministry 
of  Foreign  Affairs  (Wai-wu  Pu)  will  give  instructions  by  telegraph  to  his  Excellency  the 
Minister  of  China,  in  Brussels,  for  the  signature  of  the  twenty-five  thousand  bonds  for  the 
loan,  in  the  name  of  the  Chinese  Government. 

"  Notice  of  the  imperial  sanction  and  of  the  instructions  given  to  the  Chinese  Minister 
at  Brussels  will  be  given  by  the  Wai-wu  Pu  to  the  Minister  of  Belgium  in  Peking. 

"If  the  Minister  of  Belgium  requests  it  of  the  Wai-wu  Pu,  the  latter  will  advise  the 
minister  of  such  foreign  country  as  may  be  designated  to  him  as  taking  a  part  in  the  sub- 
scription for  the  bonds. 

"  Done  at  Peking  August  thirteenth,  nineteen  hundred  and  five. 

"  (Signed)     J.  Jadot. 
"  (Signed)     Sheng." 

On  October  8,  1908,  the  Chinese  Board  of  Posts  and  Communications  concluded  with 
the  Hongkong  and  Shanghai  Banking  Corporation  and  the  Banque  de  I'lndo-Chine  a  loan 
agreement  for  the  purpose  of  redeeming  the  Peking-Hankow  Railway  Loans  (No.  1908/12, 
post)  ;  and  on  the  same  date  an  imperial  edict  authorized  the  Bank  of  Communications  to 
issue  a  seven  per  cent  Peking-Hankow  Railway  Redemption  Loan  of  $10,000,000  (No. 
1908/13,  post).    The  Chinese  Government  took  control  of  the  railway  from  January  1,  1909. 

The  line  was  originally  to  run,  not  from  Peking  but  from  Lu-kou-chiao  (a  few  miles  to 
the  west),  to  Hankow,  and  from  the  first  character  of  each  name  was  known  as  the  Lu-Haii 
Railway :  upon  its  extension  to  Peking,  it  was  known  first  as  the  Pei-Han,  and  later  as  the 
Kin-Han  Railway  {Kin  being  the  French  transliteration  of  the  second  character  in  the 
name  Peking). 


NUMBER  1898/14. 

GREAT  BRITAIN  AND  CHINA. 
Convention  for  the  lease  of  Wei-hai  Wei* — July  1,  1898. 

In  order  to  provide  Great  Britain  with  a  suitable  naval  harbour  in  North 
China  and  for  the  better  protection  of  British  commerce  in  the  neighbouring 
seas,  the  Government  of  His  Majesty  the  Emperor  of  China  agree  to  lease  to 
the  Government  of  Her  Majesty  the  Queen  of  Great  Britain  and  Ireland,  Wei- 
hai  Wei,  in  the  province  of  Shantung  and  the  adjacent  waters,  for  so  long  a 
period  as  Port  Arthur  shall  remain  in  the  occupation  of  Russia. 

Territory  leased. — The  territory  leased  shall  comprise  the  Island  of  Liu- 
kung  and  all  other  islands  in  the  Bay  of  Wei-hai  Wei,  and  a  belt  of  land  10 
English  miles  wide  along  the  entire  coast  line  of  the   Bay  of   Wei-hai   Wei. 

*Text  as  reprinted  in  Rockhill,  p.  60,  from  China,  1899,  No.  1.  p.  199.  Printed  also  in 
Customs,  Vol.  I,  p.  541;  Hcrtslet,  p.  122;  Am.  Int.  Law  Journal,  Supplement,  1910,  p.  297; 
British  Treaty  Series,  i8g8.  No.  14. 

In  connection  with  this  convention  see  also  the  following  declaration  made  to  the  Ger- 
man Government  by  the  British  Ambassador  at  Berlin,  by  a  note  dated  April  20,  1898, 
and    formally    acknowledged    on    the    same    date : 

"  England  formally  declares  to  Germany  that  in  establishing  herself  at  Wei-hai  Wei, 
she  has  no  intention  of  injuring  or  contesting  the  rights  and  interests  of  Germany  in  the 
Province  of  Shantung,  or  of  creating  difficulties  for  her  in  that  province.  It  is  especially 
understood  that  England  will  not  construct  any  railroad  communication  from  Wei-hai  Wei 
and  the  district  leased  therewith  into  the  interior  of  the  Province  of  Shantung." 

For  full  text  of  notes,  see  Hertslei,  p.  584.  See  also  Rockhill,  p.  180,  and  China,  1899, 
No.  I,  p.  27. 


NUMBER  1898/14:  JULY  1,  1898  153 

Within  the  above-mentioned  territory  leased  Great  Britain  shall  have  sole  juris- 
diction. 

Right  to  fortify. — Great  Britain  shall  have,  in  addition,  the  right  to  erect 
fortifications,  station  troops,  or  take  any  other  measures  necessary  for  defensive 
purposes,  at  any  points  on  or  near  the  coast  of  the  region  east  of  the  meridian 
121  °  40'  east  of  Greenwich,  and  to  acquire  on  equitable  compensation  within 
that  territory  such  sites  as  may  be  necessary  for  water  supply,  communica- 
tions, and  hospitals.  Within  that  zone  Chinese  administration  will  not  be  inter- 
fered with,  but  no  troops  other  than  Chinese  or  British  shall  be  allowed  therein. 

Jurisdictional  rights. — It  is  also  agreed  that  within  the  walled  city  of  Wei- 
hai  Wei,  Chinese  officials  shall  continue  to  exercise  jurisdiction  except  so  far 
as  may  be  inconsistent  with  naval  and  military  requirements  for  the  defence 
of  the  territory  leased. 

Rights  of  Chinese  war  ships. — It  is  further  agreed  that  Chinese  vessels  of 
war,  whether  neutral  or  otherwise,  shall  retain  the  right  to  use  the  waters  herein 
leased  to  Great  Britain. 

Expropriation  of  natives. — It  is  further  understood  that  there  will  be  no 
expropriation  or  expulsion  of  the  inhabitants  of  the  territory  herein  specified, 
and  that  if  land  is  required  for  fortifications,  public  offices,  or  any  official  or 
public  purpose,  it  shall  be  bought  at  a  fair  price. 

This  Convention  shall  come  into  force  on  signature.  It  shall  be  ratified 
by  the  Sovereigns  of  the  two  countries,  and  the  ratifications  shall  be  exchanged 
in  London  as  soon  as  possible.f 

In  witness  whereof  the  undersigned,  duly  authorized  thereto  by  their 
respective  Governments,  have  signed  the  present  agreement. 

Claude  M.  MacDonald, 
Prince  Ch'ing, 
Senior  Member  of  the  Tsung-li  Yamen. 

LiAO  Shou-Heng, 
President  of  the  Board  of  Punishments. 

Done  at  Peking  in  quadruplicate  (four  copies  in  English  and  four  in 
Chinese)  the  1st  day  of  July  in  the  year  of  our  Lord  1898,  being  the  13th  day 
of  the  5th  moon  of  the  24th  year  of  Kuang-hsii. 

t  Ratifications  exchanged  at  London,  October  5,  1898. 


154  CHINA  TREATIES  AND  AGREEMENTS 

NUMBER  1898/15. 

RUSSIA   (Chinese  Eastern  Railway)   AND  CHINA. 

Agreement  concerning  the  southern  branch  of  the  Chinese  Eastern  Raikvay* — 

July  6,  1898. 

Hsii  (Ching-ch'eng),  Ambassador  (?)  of  the  Imperial  Chinese  Government, 
and  Yang(-ju),  Minister  of  the  Imperial  Chinese  Government  to  Russia,  have 
received  an  Imperial  Decree  of  the  7th  of  the  Fifth  Moon,  XXIV  Year  of  Kuang- 
hsii,  that  is  the  13th  of  June,  1898,  Russian  Calendar  (June  25th,  1898,  New 
Style),  authorizing  them  to  draw  up  a  contract  with  the  Chinese  Eastern  Railway 
Company  in  accordance  with  the  provisions  of  the  Treaty  between  China  and 
Russia,  entered  into  at  Peking  on  the  6th  of  the  Third  Moon,  XXIV  Year  of 
Kuanghsii,  i.  e.  March  15,  1898,  Russian  Calendar  (March  27th,  1898,  N.  S.)t 
and  those  of  the  Special  Supplementary  Articles  to  the  same,  agreed  upon  at  St. 
Petersburg  on  the  17th  of  the  Intercalary  Third  Moon— April  25,  1898— (May 
7th,  1898,  N.  S.)$  to  the  effect  that,  from  the  date  of  the  signing  of  said  Treaty 
by  the  Chinese  Government,  in  accordance  with  the  permission  given  in  the 
XXII  Year  of  Kuanghsii  (1896)  to  the  Chinese  Eastern  Railway  Company  to 
construct  certain  railways,  a  branch  line  might  be  built  and  operated,  which 
should  begin  at  a  station,  to  be  selected  on  the  main  line  of  the  Chinese  Eastern 
Railway,  and  extend  to  the  sea-ports,  Dalny  and  Port  Arthur  in  the  Liao-tung 
Peninsula;  the  said  branch  line  to  be  dealt  with  in  careful  compliance  with  the 
terms  of  the  Contract  of  the  2d  of  the  Eighth  Moon,  XXII  Year  of  Kuanghsii, 
August  27,  1896,  Russian  Calendar  (Sept.  8,  1896,  N.  S.)  §  between  the  Chinese 
Government  and  the  Russo-Chinese  Bank. 

In  accordance  with  the  foregoing  provisions,  the  following  Articles  relat- 
ing to  the  construction  and  operation  of  a  railway  through  Manchuria  are 
now  agreed  upon,  to-wit : 

Article  I. — This  branch  of  the  Chinese  Eastern  Railway,  extending  to 
the  sea-ports  of  Port  Arthur  and  Dalny,  shall  be  known  as  the  Southern  Man- 
churian  Branch  of  the  Chinese  Eastern  Railway. 

Article  II. — In  accordance  with  Article  IV  of  the  Contract  of  the  2d.  of 
the  Eighth  Moon,  XXII  Year  of  Kuanghsii,  August  27,  1896  (Sept.  8th,  1896, 
N.  S.),  which  provides  that  the  Chinese  Government  shall  take  steps  as  occasion 
may  require  to  facilitate  the  bringing  in  of  the  materials  needed  for  the  con- 
struction of  the  line,  whether  transported  by  water  or  by  land,  it  is  now  agreed 
that  the  Company  may  employ  steamers  or  other  vessels,  and  such  vessels  flying 
the  Company's  flag  shall  be  permitted  to  proceed  up  the  Liao  River  or  any  of  its 
branches,  and  to  enter  Ying-k'ou  (the  port  of  Newchwang)  or  any  port  in  the 

*  Translation  from  the  Chinese  text  as  printed  in  Customs,  Vol.  II,  p.  233.     See  Note 
to  this  document,  post.  p.  156. 
t  No.  1898/5,  ante, 
t  No.  1898/9,  ante. 
§  No.  1896/5,  ante. 


NUMBER  1898/15:  JULY  6,  1898  155 

Neutral  Territory  which  may  prove  advantageous  to  the  work  of  constructing 
this  hne,  and  may  there  discharge  cargo. 

Article  III. — In  order  to  facihtate  the  bringing  in  by  the  Chinese  Eastern 
Railway  Company  of  the  materials  and  provisions  needed  in  the  construction  of 
the  Southern  Manchurian  Branch,  it  is  permitted  the  Company  to  build  temporary 
branch  lines  from  this  road  to  Ying-k'ou  and  to  sea-ports  in  the  Neutral  Zone, 
but  when  the  work  of  building  the  line  is  completed  and  the  road  is  open  for 
traffic  the  Company  must  at  the  notice  of  the  Chinese  Government  remove 
these  branch  railways ;  that  is  to  say,  within  eight  years  from  the  date  of  the 
survey  and  determination  of  the  line  and  the  appropriation  of  the  land  for  its 
construction  these  temporary  branch  lines  must  be  removed. 

Article  IV. — In  accordance  with  the  permission  granted  to  the  Company 
in  the  XXIII  Year  of  Kuanghsii  (1897)  to  cut  timber  and  mine  coal  for  the  use 
of  the  railway,  it  is  now  agreed  to  allow  the  Company  to  fell  timber  at  its 
pleasure  in  the  forests  on  government  lands,  each  tree  to  be  paid  for  at  a  price 
to  be  fixed  by  the  Engineer-in-Chief  or  his  deputy  in  consultation  with  the 
local  authorities,  but  not  higher  than  the  local  market  rate.  But  no  forests  on 
property  in  the  province  of  Shengking  belonging  to  the  Imperial  Family,  or  on 
sites  that  affect  the  feng-shui  being  under  the  direct  control  of  the  Peking  Gov- 
ernment may  be  injured  or  disturbed. 

The  Company  shall  also  be  allowed  in  the  regions  traversed  by  this  branch 
line  to  mine  such  coal  as  may  be  needed  for  the  construction  or  operation  of 
the  railway,  the  price  of  which  coal  shall  be  fixed  by  the  Engineer-in-Chief  or 
his  Deputy  in  consultation  with  the  local  authorities  but  shall  not  exceed  the 
royalty  paid  by  other  parties  in  the  same  locality. 

Article  V — Within  the  leased  territory  on  the  Liao-tung  Peninsula  Russia 
may  fix  the  Customs  Tariff  to  suit  herself,  and  China  may  levy  and  collect  duties 
at  the  boundaries  on  all  goods  going  from  the  leased  territory  to  the  interior  or 
from  the  interior  to  the  leased  territory.  In  dealing  with  this  matter  China  may 
arrange  with  Russia  for  the  latter  Government  to  establish  the  Customs  at 
Dalny  and  from  the  date  of  the  opening  of  the  said  port  to  international  trade 
to  appoint  the  Chinese  Eastern  Railway  Company  to  act  as  the  Agent  of  the 
Chinese  Imperial  Board  of  Revenue  to  open  and  manage  the  Customs  and 
in  its  behalf  to  levy  and  collect  duties.  The  said  Customs  shall  be  under  the  sole 
control  of  the  Peking  Government,  to  which  the  said  Agent  shall  from  time  to 
time  report  its  management.  In  addition  there  shall  be  appointed  a  Chinese 
civil  official  to  be  stationed  as  Deputy  at  the  said  Customs.  All  baggage  of 
passengers  and  all  goods  brought  from  railway  stations  within  the  Russian  boun- 
daries by  the  said  line  into  the  territory  leased  to  Russia  in  the  Liao-tung 
Peninsula,  or  shipped  from  the  said  leased  territory  into  the  Russian  Empire 
shall  be  entirely  free  of  all  Customs  duties  as  well  as  of  all  Inland  Transit  and 
Likin  dues.  Goods  shipped  by  rail  from  the  interior  of  China  to  the  leased  ter- 
ritory or  from  the  leased  territory  to  the  interior  must  pay  export  or  import 
duties  respectively  according  to  the  Imperial  Maritime  Customs  Tariff  without 
increase  or  reduction. 

Article  VI. — The  Company  may  at  its  pleasure  assume  the  responsibility 


156  CHINA  TREATIES  AND  AGREEMENTS 

of  establishing  a  line  of  sea-going  vessels  flying  the  Company's  flag,  to  be  operated 
under  the  Regulations  for  Foreign  Mercantile  Shipping.  Should  these  vessels 
or  the  management  of  the  business  in  connection  therewith  occasion  any  financial 
loss,  the  Chinese  Government  shall  not  be  held  responsible.  Passenger  fares 
and  freight  rates  shall  be  established  by  the  Company  to  suit  itself,  and  shall  in 
no  wise  concern  the  railway.  The  period  of  the  management  of  the  said  enter- 
prise being  of  course  unlimited,  the  provisions  of  Article  XII  of  the  Contract 
between  the  Chinese  Government  and  the  Russo-Chinese  Bank  of  the  XXII 
year  of  Kuanghsii  (1896)||  fixing  a  price  for  the  purchase  of  the  railway,  and 
a  date  for  its  reversion  to  China  without  payment,  shall  not  apply  to  this  un- 
dertaking. 

Article  VII. — As  to  the  location  of  the  Southern  Manchurian  Railway 
Line,  and  the  determination  of  the  places  through  which  it  shall  pass,  it  will 
be  necessary  to  wait  until  the  Engineer-in-Chief  shall  have  surveyed  the  route 
through  Manchuria  and  made  report  of  the  conditions  to  the  Head  Office  of  the 
Company,  when  the  Company  or  its  Agent  in  Peking  shall  consult  with  the 
Director  General  of  the  Railway  and  decide  the  matter. 


Note. 

To  the  text  as  printed  in  Customs  is  appended  the  reading  of  a  telegram  of  which  the 
translation  is  as  follows  : 

"  In  accordance  with  Treaty  of  Peking  of  6th  of  Third  Moon  and  Special  Articles  of 
Intercalary  Moon,  extension  of  Chinese  Eastern  Railway  Company,  to  build  and  operate 
a  branch  line  from  station  to  be  selected  on  main  line  to  sea-ports  Port  Arthur  and 
Dalny  in  Liao-tung.  Careful  compliance  with  provisions  of  Russo-Chinese  Bank's  contract. 
Supplementary    Articles   proposed    as    follows : — 

"  1.  This  Branch  line,  extending  to  Port  Arthur  and  Dalny,  shall  be  known  as  the 
Southern    Manchurian    Branch    of    Chinese   Eastern    Railway. 

"2.  Original  Agreement,  Article  IV,  (provides)  Chinese  Government  to  take  steps  to 
facilitate  transport  by  land  or  water  of  materials  for  construction  of  railway.  Company 
permitted  to  employ  steamships  or  other  vessels  flying  Company's  flag  which  may  enter 
Liao  River  and  laranches  and  proceed  to  Ying-k'ou  and  all  sea-ports  in  Neutral  Zone  and 
there  unload  materials. 

"  3.  In  order  to  facilitate  shipment  of  materials  and  provisions,  Company  permitted  to 
construct  temporary  branch  lines  from  Southern  Manchurian  line  to  Ying-k'ou  and  sea- 
ports in  Neutral  Zone,  but  when  the  work  of  building  railway  is  completed  and  whole  line 
open  to  traffic,  all  these  temporary  branch  lines  to  be  removed  at  pleasure  of  Chinese 
Government. 

"  4.  The  Chinese  Government  in  First  Moon  last  year  granted  permission  to  obtain 
coal  and  wood.  Company  now  allowed  to  fell  timber  in  forests  on  government  lands,  price 
of  each  tree  to  be  fixed  by  local  authorities  in  conference  with  Engineer-in-Chief,  but  not 
to  be  made  higher  than  local  market  rate.  But,  forests  in  province  of  Shengking,  property 
of  Imperial  Family,  affecting  Feng-shui,  under  control  of  Peking  Government,  not  allowed 
to  be  touched. 

"  Company  also  permitted  in  localities  through  which  this  branch  line  passes  to  mine 
coal,  payment  for  same  also  to  be  determined  by  conference  but  not  to  be  more  than 
paid  by  others. 

"  5.  Within  the  Leased  Territory  Russia  to  determine  for  herself  the  Customs  Tariff. 
China  must  collect  duties  on  goods  at  the  boundary  of  Leased  Territory.  With  respect 
to  this  matter  arrangements  may  be  made  permitting  Russia  on  opening  of  Dalny  to  inter- 
national trade  to  establish  the  Customs  at  that  port  and  appoint  the  Company  to  act 
as  Agent  of  Chinese  Imperial  Board  of  Revenue,  levying  and  collecting  dufies,  under 
direct  control  of   Peking  Government,  and  reporting  its   management  to   same   from   time 


II  i.e.,  No.  1896/5,  ante. 


NUMBER  1898/15:  JULY  6,  1898:  NOTE  157 

to  time.  Goods  coming  from  railway  stations  within  the  Russian  boundaries  into  the 
leased  Territory  or  from  the  latter  into  Russia  to  be  free  of  all  Customs  duty  and  likin 
charges ;  those  going  by  railway  from  leased  territory  into  the  interior  of  China  or  from 
interior  to  leased  territory  to  pay  duty  according  to  tariff  of  Imperial  Maritime  Customs 
without  increase  or  reduction. 

"  6.  Company  allowed  to  establish  line  of  merchant  steamships  flying  Company's  flag. 
If  any  financial  loss,  China  not  responsible;  this  business  not  to  involve  the  railway,  and 
not  to  be  dealt  with  under  provisions  of  original  contract  fixing  price  for  purchase  (of 
railway)    and  date   for  reversion    (without  payment). 

"7.  Location  of  line  of  Southern  Manchurian  Railway  and  determination  of  places 
through  which  it  will  pass  to  await  surveys  iii  Manchuria  by  Engineer-in-Chief  when  (Com- 
pany or  its   Agent  in   Peking  will  consult  with   Director   General   and   decide. 

"  The  above  is  translated  by  Ch'eng  Ju-chiang  from  the  coinplete  text  of  letter  received 
from  Chinese  Eastern  Railway,  omitting  unimportant  words  and  phrases,  this  third  day  of 
Fourth  Moon,  Kuanghsii  XXIV  Year    (May  22, 


In  connection  with  this  agreement  see  the  following  translation  from  the  Russian  text 
of  the  first  supplement  to  the  charter  of  the  Chinese  Eastern  Railway  (printed,  ante,  as  an 
annex  to  the  Chinese  Eastern  Railway  Agreement  of  September  8,  1896,  No.  1896/5), 
dated  February  5/17,  1899: 

First  Supplement  to  Charter  of  Chinese  Eastern  Railway. — February  17,  1899. 

'■  1.  In  accordance  with  the  treaty,  entered  upon  on  June  24  (July  6),  1898,  by  the 
Chinese  Eastern  Railway  Company  and  the  Chinese  Imperial  Government,  this  company  is 
authorized  to  construct  a  branch  line  from  one  of  the  stations  of  the  main  line  to  the 
ports  of  Talien-wan  and  Port  Arthur,  situated  on  the  Kuantung  Peninsula,  also  to  operate 
this  branch  which  shall  be  named  '  the  Southern  M'anchurian  Line,'  of  the  Chinese  Eastern 
Railway. 

"2.  By  Imperial  order  of  May  29  (June  10),  1898,  the  company  is  authorized  to  con- 
struct   a   commercial    port   on   the    Talien-wan    Bay. 

The  Company  is  also  authorized  to  exploit  this  port. 

"3.  According  to  the  Imperial  order  of  June  12  (24),  1898,  the  Chinese  Eastern  Rail- 
way Company  is  permitted  to  establish  its  own  steamship  service  in  the  waters  of  the 
Pacific  Ocean. 

'■  This  steamship  service  is   for  the  purpose : 

(a)  of  securing,  during  the  construction  of  the  Chinese  Eastern  Railway,  the  timely 
delivery  of  the  necessary  freight,  materials  and  workmen,  and  thus  cooperate  in  the 
successful  course  of  the  construction  of  this  railway. 

(6)  during  the  exploitation  of  the  Chinese  Eastern  Railway,  of  joining  by  means  of 
steamship  service  the  terminal  points  of  the  railway  Vladivostok  and  Talien-wan  (i.  e., 
Dalny)  with  the  principal  ports  of  China,  Japan,  and  Korea  and  thus  securing  regular  and 
speedy  transfer  of  passengers  and  freight,  going  from  Russia  and  Western  Europe  to  the 
Far    East    and    back. 

"  Moreover,  upon  the  refusal  of  Commercial  Councillor  Sheveleff  to  maintain  from 
January  1  (13),  1900,  regular  steamship  communication  between  the  ports  of  the  littoral, 
the  Primorski  District  (the  line  of  the  Tartary  Strait  and  that  of  Peter  the  Great),  also 
between  Vladivostok  and  the  open  ports  of  Korea,  Japan  and  China,  the  duties  and  obliga- 
tions of  Commercial  Councillor  Sheveleff  devolve  upon  the  Chinese  Eastern  Railway  Com- 
pany, beginning  with  January  1    (13),  1900. 

"  The  further  determination  as  to  the  direction  of  the  steamship  lines  is  left  to  the 
Board  of  Directors  of  the  Company  upon  approval  of  the  Russian  Minister  of  Finance. 

"  4.  In  order  to  facilitate  the  conveying  of  the  necessary  materials  and  provisions  for 
the  construction  of  the  Southern  INIanchurian  Line,  the  Company  is  authorized  to  establish 
branch  lines  to  the  port  of  Ind-tsi  (Ying-tzu  =  Niuchwang)  and  other  ports  of  the  neutral 
zone  with  the  proviso  that,  upon  completion  of  the  line  and  the  establishment  of  regular 
traffic  on  the  same,  the  branch  lines  to  the  above  named  ports  should  be  destroyed  by  the 
Company,  should  the  Chinese  Government  formulate  that  demand. 

"  5.  The  construction  and  exploitation  of  the  Southern  Manchurian  Line  and  the 
branch  lines  mentioned  in  par.  4,  as  well  as  the  construction  and  exploitation  of  the  com- 
mercial port  at  Talien-wan  (i.  e.,  Dalny),  also  the  establishment  and  exploitation  of  the 
steamship  service,  the  Company  is  under  obligation  to  run  strictly  according  to  the  rules 
of  its  charter,  and  to  the  stipulations  of  the  treaty  concluded  on  June  24  (July  6),  1898, 
between  the  Company  and  the  Imperial  Chinese  Government.  However,  no  term  is  set  to 
the  exploitation  by  the  Company  of  the  steamship  lines,  as  well  as  of  the  commercial  port  at 
Talien-wan,  and  the  s'tipulations  of  par.  12  of  the  treaty  of  August  27  (Sept.  8),  1896,  entered 
upon  by  the  Russo-Chinese  Bank  and  the  Chinese  Government  with  regard  to  the  terms 
of  purchase  and  the  free  transfer  of  the  railway  to  the  above  named  Government,  do  not 
extend  to  the  Company  with  regard  to  the  steamship  lines  and  the  commercial  port. 

"  6.  The  baggage  of  passengers,  as  well  as  the  merchandise  sent  through  over  one  of 


158  CHINA  TREATIES  AND  AGREEMENTS 

the  branches  of  the  railway  from  one  of  the  Russian  frontier  stations  to  some  part  of 
the  Liao-tung  Peninsula  leased  by  Russia,  are  not  subject  to  any  custom  duties;  they  are 
likewise  exempt  of  all  taxes  and  interior  dues.  Merchandise  sent  by  rail  from  the  territory 
leased  by  Russia  into  the  interior  of  China,  as  well  as  those  brought  from  the  interior  of 
China  to  that  territory,  are  subject  to  the  payment  of  import  and  export  duties  of  Chinese 
seaports  without  any  increase  or  diminution  of  the  same. 

"  7.  The  maximum  of  seaport  duties  to  be  collected  in  the  commercial  port  of  Talien- 
wan,  as  well  as  the  maximum  tariff  for  the  carrying  of  passengers  and  freight  on 
the  steamships  of  the  Company,  as  well  as  the  supplementary  payments  to  be  made  for 
their  conveyance,  are  determined  by  the  Russian  iNIinister  of  Finance  upon  their  being 
laid  before  him  for  approval  by  the  Board  of  the  Company.  The  amount  of  seaport  dues, 
the  tariff  for  transportation  by  sea  and  supplementary  dues  for  the  same  within  the  limits 
of  the  above  stated  normal  amounts  determined  by  the  Minister  of  Finance,  are  determined 
by  the  Board  itself. 

"  8.  For  the  purpose  of  covering  the  expenditures  incurred  by  the  construction  of  the 
Southern  Manchurian  Line  and  the  commercial  port  at  Talien-wan,  and  the  establishment  of 
steamship  service  in  the  waters  of  the  Pacific  Ocean,  the  Company  is  authorized  to  issue, 
according  to  its  needs,  upon  conditions  determined  in  paragraphs  11  and  12  of  the  Com- 
pany's Charter  sanctioned  by  Imperial  Ukase  of  December  4  (16),  1896,  supplementary 
obligations,  and  that  part  of  the  debenture  capital  which  is  destined  specially  for  the  needs 
of  the  port  and  the  steamship  service  must  have  separate  accounts  and  books  from  that  of 
the  railway. 

"9.  During  the  exploitation  of  the  commercial  port  at  Talien-wan  as  well  as  the  ex- 
ploitation of  the  steamship  service  organized  by  the  Company  for  the  waters  of  the  Pacific 
Ocean,  the  Company  must  institute  separate  accounts  and  books  from  those  of  the  railway 
as  to  the  income  and  expenditure. 

"  Should  the  gross  profit  of  the  commercial  port  at  Talien-wan  and  from  the  steam- 
ship service  prove  insufficient  to  cover  the  expense  of  their  exploitation,  make  the  annual 
payments  on  the  debenture  capital,  specially  appointed  for  the  needs  of  these  undertakings, 
as  also  to  lay  aside  the  obligatory  amount  of  money  for  the  amortization  of  the  fund — 
the  lacking  sums  may  be  obtained  by  the  Company  from  the  Russian  Government  through 
the  Minister  of  Finance,  the  per  cent  to  be  paid  on  the  guarantee  for  the  debenture  capital 
at  the  rate  of  6  percent  per  annum,  while  all  the  other  payments  will  be  made  to  the  Company 
upon  conditions  determined  for  each  individual  case  by  the  Minister  of  Finance.  The  pos- 
sible surplus  of  net  profit,  that  may  be  left  after  the  payment  of  all  obligatory  amounts  and 
the  deduction  into  the  reserve  fund  of  the  remaining  sum  from  the  exploitation  of  the 
Talien-wan  commercial  port  and  the  steamship  service,  shall  be  first  of  all  used  for  the 
amortization  of  the  debt  to  the  Russian  Government,  incurred  for  the  commercial  port 
and  the  steamship  service,  and  only  in  the  years  when  the  Company  will  have  paid  off  all 
its  debts,  shall  that  surplus  be  added  as  a  supplementary  amount  to  the  dividend  falling  to 
the  shareholders. 

"  10.  Should  the  Chinese  Government  deem  it  necessary  to  establish,  with  the  consent 
of  the  Russian  Government,  a  custom  house  at  Talien-wan  for  the  purpose  of  collecting 
the  duty  on  merchandise  exported  and  imported  by  rail  from  and  to  the  part  of  the  Liao- 
tung  Peninsula,  leased  by  Russia,  the  organization  and  administration  of  this  custom 
house  shall  be  entrusted  to  the  Chinese  Eastern  Railway  Company,  which  will  collect  the 
taxes  in  the  capacity  of  an  agent  of  and  for  the  Chinese  treasury,  the  expenditures  for 
the  maintenance  of  the  same  to  be  paid  from  its  profits  at  a  rate  annually  determined 
jointly  by  the  company  and  the  Chinese  Government.  The  custom  house  shall  be  in  the 
immediate  custody  of  the  central  administration  at  Peking,  accounts  on  its  operations  to 
be  periodically  presented  to  the  same.  The  Chinese  Government  has  the  right  to  appoint  a 
civilian  official  of  Chinese  nationality,  who  shall  fill  the  post  of  Chinese  Agent  at  that 
custom  house. 

"  11.  In  all  cases,  overlooked  in  the  supplement,  the  Company  shall  be  ruled  by  corre- 
sponding regulations  of  the  Company's  Charter  sanctioned  by  Imperial  Ukase  on  December 
4  (16),  1896,  and  those  of  the  treaties  of  August  27  (September  8),  1896,  and  June  24  (July 
6),  1898,  concluded  between  the  Chinese  Government,  the  Russo-Chinese  Bank,  and  the  Board 
of  the  Company." 

See  also  Article  6  of  the  Treaty  of  peace  between  Japan  and  Russia,  September  5,  1905 
(No.  1905/8.  post),  and  the  Treaty  between  Japan  and  China,  December  22,  1905  (No.  1905/18, 
post)  in  regard  to  the  transfer  to  Japan  of  that  portion  of  the  railway  between  Port 
Arthur  and  Chang-chun   (Kuan-cheng-tzu). 


NUMBER  1898/17 :  JULY  28,  1898  159 

NUMBER  1898/16. 

CONGO  FREE  STATE  AND  CHINA. 
Treaty  conferring  mutual  most-favored-nation  treatment* — July  10,  1898. 

Concerning  the  Treaty  of  Amity  and  Commerce  between  the  Chinese  Em- 
peror and  the  Congo  Free  State,  it  is  proposed  that  in  accordance  with  the 
powers  received,  which  are  in  form,  a  special  Article  shall  be  agreed  upon 
mutually  and  promulgated  without  delay. 

Art.  L — All  privileges  of  person,  property,  and  jurisdiction  enjoyed  by 
foreign  nations  under  the  Treaties  concluded  by  China  shall  from  henceforth 
be  granted  to  the  Congo  Free  State. 

II. — It  is  agreed  that  Chinese  subjects  may  at  their  pleasure  proceed  to  the 
territory  of  the  Congo  Free  State,  and  there  sojourn  or  reside,  and  that  they 
may  buy  and  sell,  retain  possession  or  change  ownership  of,  all  species  of  property, 
movable  or  immovable.  As  regards  trade,  navigation,  and  industry,  Chinese  sub- 
jects shall  have  most-favoured-nation  treatment. 

In  witness  whereof  the  High  Officers  of  both  States  have  hereunto  affixed 
their  signatures  and  seals. 


Peking,  July  10,  1898. 


(l.  s.)  Li  Hung  Chang, 

(l.  s.)  Comte  D'Ursel. 


NUMBER  1898/17. 

CHINA. 

Steam  Navigation  inland:  Regulations    {amended),  1898:  and  Supplementary 
Rules  thereunder.^ — July  28,  1898. 

STEAM  NAVIGATION  INLAND:  REGULATIONS   (AMENDED),  1898. 

A — Registration. 
1. — The  inland  waters  of  China  are  hereby  opened  to  all  such  steamers, 
Native  or  Foreign,  as  are  specially  registered  for  that  trade  at  the  Treaty  ports. 

*  Translation  from  the  French  text,  as  reprinted  in  Rockhill,  p.  467,  from  B.  &  F.  State 
Papers,  vol.  90,  p.  956.    French  text  printed  also  in  Customs,  Vol.  II,  p.  829;  Hcrfslet.  p.  240. 

t  Translation,  as  published  bv  Chinese  Maritime  Customs,  from  the  Chinese  text. 
Printed  also  in  Hertslet.  pp.  721,  726. 

In  connection  with  these  regulations  see  the  Yangtze  Regulations,  1898  (No.  1898/18, 
post)  ;  also  the  Additional  Rules  concerning  inland  steam  navigation.  Article  X  and  Annex 
C  to  the  British  Commercial  Treaty  of  September  5,  1902  (No.  1902/7,  post),  and  Article 
VIII  and  Annexes  1  and  2  to  the  Japanese  Commercial  Treaty  of  October  8,  1903  (No. 
\902,/A,post). 


160  CHINA  TREATIES  AND  AGREEMENTS 

They  may  proceed  to  and  fro  at  will  under  the  following  Regulations,  but  they 
must  confine  their  trade  to  the  inland  waters  and  must  not  proceed  to  places 
out  of  Chinese  territory.  The  expression  "  inland  waters  "  is  used  with  similar 
meaning  to  that  given  for  places  in  the  interior  (nei-ti)  in  the  fourth  Article  of 
the  Chefoo  Convention.f 

2. — Trading  steamers,  Native  or  Foreign,  not  being  vessels  of  sea-going 
type,  whether  plying  only  in  the  waters  of  a  Treaty  port  or  going  thence  inland, 
are  to  be  registered  at  the  Custom  House  and  there  take  out  papers — showing 
respectively  the  owner's  name  and  residence,  name  and  type  of  steamer,  number 
of  crew,  etc.,  etc., — in  addition  to  whatever  national  papers  they  are  allowed  or 
required  by  law  to  carry ;  such  Customs  papers  are  to  be  renewed  annually  and 
are  to  be  surrendered  on  change  of  ownership  or  when  the  vessel  ceases  to 
ply.  The  fee  for  the  first  issue  of  Customs  papers  will  be  Tls.  10  and  for  each 
renewal  Tls.  2. 

3. — Such  registered  steamers  may  ply  freely  within  the  waters  of  the  port 
without  reporting  their  movements  to  the  Customs,  but  if  they  go  inland  they 
must  report  both  departure  and  return.  No  unregistered  steamer  will  be  allowed 
to  ply  inland. 

4. — As  regards  exhibition  of  lights,  prevention  of  collision,  shipping  of 
crews,  and  inspection  of  boilers  and  machinery,  etc.,  all  such  steamers  are  to 
observe  the  Rules  in  force  at  the  port  they  belong  to.  These  Rules  will  be 
published  by  the  Customs  and  printed  on  the  vessel's  Customs  papers. 

B. — Revenue. 

5. — Dutiable  cargo  shipped  under  these  Regulations  at  any  Treaty  port  on  a 
registered  steamer  for  conveyance  to  the  interior  must  be  declared  at  the  Custom 
House  and  pay  on  export  such  Duties  as  the  Customs  decide  to  be  leviable- 
Dutiable  cargo  brought  from  inland  to  a  Treaty  port  is  to  be  in  like  manner 
dealt  with  by  the  Custom  House  there.  As  to  the  Duties  to  be  paid  by  vessels 
belonging  to  Foreign  merchants,  they  are  to  be  in  accordance  with  the  Treaty 
Tariff. 

6._Cargo  landed  or  shipped  inland  is  to  pay  at  the  place  of  landing  or 
shipment  whatever  Duty  and  Likin  local  Regulations  call  for.  In  dealing  with 
the  vessels  of  Foreign  merchants  a  procedure  analogous  to  what  the  Treaty 
Tarifif  calls  for  is  to  be  followed. 

7. — If  such  steamers  have  vessels  in  tow,  they  must  bring  to  at  whatever 
Likin  stations  the  vessels  towed  are  required  to  stop  at,  for  inspection  and  for 
the  respective  cargoes  of  both  vessels  to  be  dealt  with  as  local  Rules  prescribe. 
The  Rules  to  be  enforced  on  Foreign  merchants  must  be  in  accordance  with 
Treaty  provisions  and  as  well  be  published  in  full  by  the  Customs.     Steamers 

t  See  Hertslet,  p.  73.  Hertslet  notes  (p.  721),  however,  that  the  reference  should  be  not 
to  Article  TV  but  to  Section  ITT,  §4,  in  which  it  is  provided  that  "The  words  'nei  ti, 
inland,  in  the  clause  of  Article  VI T  of  the  Rules  appended  to  the  Tariff,  regarding  carriage 
of  imports  inland,  and  of  native  produce  purchased  inland,  apply  as  much  to  places  on  the 
sea  coasts  and  to  river  shores  as  to  places  in  the  interior  not  open  to  foreign  trade;  the 
Chinese  Government  having  the  right  to  make  arrangements  for  the  prevention  of  abuses 
thereat." 


NUMBER  1898/17:  JULY  28,  1898  161 

which  have  not  special  Customs  papers  are  not  permitted  to  tow  vessels  on  the 
Yangtze. 

8. — Offences  inland,  whether  against  revenue  laws  or  affecting  person  or 
property,  are  to  be  dealt  with  by  the  local  authorities  of  the  district  in  the 
same  way  as  if  they  were  committed  by  their  own  people;  but  if  the  vessel  con- 
cerned is  Foreign-owned  or  the  Chinese  implicated  is  a  Chinese  employed  on 
board  such  Foreign-owned  vessel,  the  local  authorities  are  to  communicate  with 
the  nearest  Commissioner  of  Customs,  and  the  Commissioner,  in  turn,  with 
the  Consul,  who  may  send  a  deputy  to  watch  the  proceedings.  If  the  offender 
claims  the  status  of  a  Foreigner,  he  is  to  be  treated  in  the  manner  prescribed 
in  the  Treaties  where  Foreigners  without  passports  are  arrested,  and  sent  to  the 
proper  Consul  through  the  Commissioner  of  Customs  at  the  nearest  port. 

9. — If  any  such  steamer  passes  any  inland  station  or  Likin  barrier  that  ought 
to  be  stopped  at  without  stopping,  or  if  any  of  the  passengers,  crew,  etc.,  create 
trouble  inland,  the  vessel  may  be  fined  or  punished  according  to  the  station 
Regulations,  and  the  Customs  may  cancel  the  vessel's  papers  and  refuse  per- 
mission for  her  to  trade  inland  again. 

In  cases  where  Foreign-owned  vessels  are  concerned,  the  merchant  interested 
may  elect  to  bring  the  whole  case  and  the  question  of  fine  before  a  Joint  In- 
vestigation Court,  to  be  dealt  with  according  to  the  Regulations  for  cases  of  fine 
and  confiscation  promulgated  in  the  year  1868. 


The  above  Rules  are  for  the  inauguration  of  steam  traffic  and  suffice  for 
the  time  being;  if  hereafter  it  is  found  that  changes  are  necessary,  they  can  be 
made  from  time  to  time  as  required. 

Peking,  28th  July  1898. 


SUPPLEMENTARY  RULES  UNDER  INLAND  STEAM  NAVIGATION 

REGULATIONS. 

1 — Foreign  goods  going  inland  on  steamers  can  either  be  taken  with  Transit 
Passes  or  by  payment  of  Dues  and  Duties  at  the  several  stations  passed  en  route, 
at  the  merchant's  option.  The  vessels  are  not  to  be  held  in  any  way  responsible 
for  the  terminal  Duties  on  cargo,  but  it  must  not  be  landed  clandestinely. 

2. — Native  goods  leaving  a  Treaty  port  for  the  interior  in  a  steamer  must 
be  declared  at  the  proper  Custom  House  and  pay  Export  Duty  according  to  the 
Regulation  for  outgoing  cargo  shipped  in  Native  vessels.  They  will  pay  inland 
whatever  Dues  and  Duties  are  payable  by  similar  goods  carried  in  Native  ves- 
sels. If  the  goods  declared  are  Native  re-exports  which  have  originally  paid 
Export  Duty  at  another  port,  they  may  be  shipped  free  of  Export  Duty,  but  as 
regards  inland  Dues  and  Duties,  are  on  the  same  footing  as  ordinary  exports. 
The  responsibility  for  any  Duties  payable  on  goods  at  place  of  destination,  no 
matter  where  the  vessel  comes  from,  attaches  to  the  cargo  and  not  to  the  vessel, 
but  the  cargo  must  not  be  landed  clandestinely. 


162  CHINA  TREATIES  AND  AGREEMENTS 

3. — Native  goods  once  regularly  shipped  on  board  a  steamer  in  the  interior 
are  not  later  required  to  produce  proof  of  payment  of  such  local  Duties  as  were 
leviable  there  before  shipment,  but  they  are  liable  for  en  route  Duties. 

On  arrival  at  a  Treaty  port  they  will  if  for  local  Native  consumption  pay 
to  the  proper  office  the  Duties  paid  on  similar  cargo  carried  in  Native  vessels. 
Outside  this  Duty  the  steamer  is  not  to  be  held  responsible  for  any  Duty,  Likin, 
contribution,  or  charge. 

If  the  Native  produce  is  intended  for  export,  it  may  be  brought  from  the 
interior  either  under  a  Transit  Certificate  issued  on  deposit  of  Bond,  according 
to  what  are  known  as  the  Chinkiang  Rules,  or  by  paying  Dues  and  Duties  in 
accordance  with  Regulation  en  route,  at  the  option  of  the  merchant  concerned, 
whether  a  Chinese  or  a  Foreigner. 

Goods  brought  from  the  interior  merely  for  transhipment  into  a  seagoing 
or  river  steamer  are  not  liable  to  any  Duty  at  the  port  except  the  Treaty  Tariff 
Export  Duties. 

4. — All  inland-going  steamers  are  to  pay  Tonnage  Dues  once  in  four  months, 
at  the  Treaty  Tariff  rate,  at  the  port  where  registered.  Towed  Native  boats  are 
liable  to  such  "  Ch'uan-liao  "  as  the  Regulations  provide  for. 

5. — Cargo  shipped  on  Native  boats  to  be  towed  by  steamers  is  to  be  on  the 
same  footing  as  regards  Duty  payment  as  steamers'  cargo. 

6. — Steamers  are  not  allowed  to  land  cargo  except  at  places  ordinarily 
recognized  as  places  of  trade  for  Native  vessels ;  in  the  event  of  their  violating 
this  rule,  they  will  be  dealt  with  as  the  Treaties  provide  in  the  case  of  vessels 
frequenting  places  not  open  to  trade-  Similarly,  vessels  on  the  registers  for 
inland  waters'  trade  carrying  goods  out  of  Chinese  territory  or  jurisdiction  will 
be  liable  to  a  fine  not  exceeding  Tls.  200  for  the  first  offence ;  for  the  second,  the 
penalty  will  be  abrogation  of  the  right  to  carry  on  inland  trade. 

7. — The  Customs  at  the  Treaty  ports  will  give  Cargo  Certificates  detailing 
all  the  cargo  shipped  there  under  its  cognizance.  These  Certificates  will  form  the 
basis  of  Duty  payment  at  way  stations,  and  the  vessels  concerned,  unless  there 
is  reason  to  suspect  them  of  smuggling,  will  not  be  detained  for  rigid  examina- 
tion at  each  place,  but  will  be  released  on  payment  of  proper  Duty. 

Manifests  of  all  cargo  to  be  landed  are  to  be  handed  in  at  the  landing-places 
(in  Chinese  if  the  places  are  away  from  the  Treaty  ports). 

8. — As  regards  the  publication  of  the  Rules  and  Regulations  in  force  at  the 
several  places  where  Dues  and  Duties  are  payable,  referred  to  in  Rule  7,  it  is 
understood  that  the  publication  is  to  take  place  before  the  end  of  this  Chinese 
year.  In  the  meantime,  if  vessels  do  not  stop  at  stations  they  will  not  be  liable 
to  any  penalty  for  passing  them,  unless  they  are  hailed  to  bring  to  by  the 
station  or  one  of  its  boats  and  disregard  the  summons. 

9. — After  the  Regulations  have  been  notified,  the  provincial  authorities  will 
appoint  at  each  Treaty  port  a  responsible  officer,  who  will  collect  on  provincial 
account  the  Dues  and  Duties  prescribed  in  Articles  2  and  3  on  goods  going  to 
or  coming  from  inland  waters  and  report  the  collection  at  stated  intervals  to  his 
superiors.  He  will  receive  in  one  lump  sum  all  the  Dues  and  Duties  a  vessel 
lading  for  a  certain  destination  is  bound  to  pay  at  the  various  stations  she  will 


NUMBER  1898/18:  AUGUST,  1898  163 

pass  on  the  way.  The  officer  will  give  a  Certificate  of  Receipt,  presentation  of 
which  at  the  stations  will  exempt  the  goods  from  levy  of  Duty  or  vexatious 
examination. 

The  officer  appointed  will  have  an  office  in  the  vicinity  of  the  Custom  House 
and  will  work  in  concert  with  and  under  the  guidance  of  the  Commissioner.  In 
case  any  question  or  difficulty  arises,  the  Commissioner  and  the  Superintendent 
of  Customs  will  arrange  it  amicably ;  when  a  Foreigner  is  concerned,  he  has  the 
option  of  having  it  dealt  with  under  the  Joint  Investigation  Rules.:}: 


These  Supplementary  Rules,  like  the  Rules  to  which  they  are  appended, 
are  provisional,  and  liable  to  change  as  required. 
September  1898.§ 


NUMBER  1898/18. 

INTERNATIONAL  AND  CHINA. 

Regulations  governing  trade  on  the  Yangtze-kiang  {with  Yangtze  Port 
Regulations)  * — August,  1898.^ 

THE  YANGTZE  REGULATIONS,  1898. 

Art.  L — Former  Regulations  rescinded. — The  Revised  Regulations  of  Trade 
on  the  Yangtze-kiang  (1862)  having  been  amended  and  the  substance  of  their 
provisions  having  been  incorporated  in  the  present  Yangtze  Regulations,  the 
said  Revised  Regulations  of  Trade  on  the  Yangtze-kiang  are  hereby  abrogated, 
together  with  the   Port  and   Customs   Regulations  thereon  dependent. 

Art.  2. — Ports,  Stages,  and  Passenger  Stations. — The  merchant  vessels  of 
the  Treaty  Powers  are  authorised  to  trade  on  the  Yangtze-kiang  at  the  follow- 
ing Treaty  ports : — 

Chinkiang,  Nanking,  Wuhu,  Kiukiang,  Hankow,  Shasi,  Ichang, 
and  Chungking: 

*  Text  as  published  by  order  of  the  Inspector  General  of  Customs.  Printed  also  in 
China,  1899,  No.  i,  p.  252 ;  Rockhill,  p.  324 ;  Hertslet,  p.  723. 

In  connection  with  these  regulations  see  also  Inland  waters  steam  navigation  Regula- 
tions, July  28,  1898  (No.  1898/17,  ante)  ;  Article  10  and  Annex  C  of  the  British  Com- 
mercial Treaty  of  September  5,  1902  (No.  1902/7,  post)  ;  Article  8  and  Annexes  1  and  2  of 
the  Japanese  Commercial  Treaty  of  October  8,  1903  (No.  1903/4,  post). 

t  In  the  official  print  published  by  the  Maritime  Customs,  these  regulations  bear  no 
indication  of  date  save  that  of  the  year. 

t  Rules  for  joint  investigation  in  cases  of  confiscation  and  fine  by  the  custom-house 
authorities,  signed  at  Peking,  May  31,  1868   (See  Hertslet,  p.  655). 

§  The  date  of  these  supplementary  rules,  as  given  in  Chung  Hua  Fa  Kuei  Ta  Ch'iian 
(published  by  Kuang  I  Shu  Chii,  Shanghai,  1913)  is  September  3,  1898. 


164  CHINA  TREATIES  AND  AGREEMENTS 

and  to  land  and  ship  goods  in  accordance  with  special  regulations  at  the  follow- 
ing non-Treaty  ports : — 

Tatung  and  Anking,  in  Anhwei ;  Hukow,  in  Kiangsi;  Lukikow  and  Wusueh, 

in  Hukwang. 

Shipment  or  discharge  of  cargo  at  any  other  points  on  the  river  is  prohibited, 
and  any  violation  of  the  prohibition  will  be  dealt  with  in  accordance  with  the 
Treaty  provisions  applicable  to  clandestine  trade  along  the  coast ;  but  passengers 
and  their  baggage  may  be  landed  and  shipped  at  any  of  the  regular  passenger 
stations,  at  present  consisting  of — 
Luchingchiang  (Tungchow  district),  Tienhsingchiao  (Taihsing  district),  Kiang- 

yin,  and  Iching,  in  Kiangnan;  Hwangtzekang,   Hwangchow,   Chinghokow 

(also  known  as  Chinghonao),  and  Hsinti,  in  Hukwang: 
passengers'  baggage  must  not  contain  articles  subject  to  Duty,  and  the  presence 
of  dutiable  articles  will  render  the  whole  liable  to  confiscation. 

Art.  3. — Three  Classes  of  Vessels. — Merchant  vessels  trading  on  the  river 
are  to  be  divided  into  three  classes : — 

1st  class  :  sea-going  vessels  trading  for  the  voyage  up  river  beyond  Chinkiang. 

2nd  class :  river  steamers  running  regularly  between  any  of  the  river  ports  or 
Shanghai  and  any  river  port. 

3rd  class:  small  craft  (lorchas,  papicos,  junks,  etc.). 

These  three  classes  of  vessels  will  be  dealt  with  according  to  Treaty  and  the 
i:ules  for  the  ports  traded  at. 

Art.  4. — Sea-going  Vessels. — Sea-going  vessels  trading  no  further  up  river 
than  Chinkiang  will  be  dealt  with  at  Chinkiang  in  every  respect  like  vessels 
trading  at  other  coast  ports ;  but  sea-going  vessels  on  a  voyage  further  Up  river 
than  Chinkiang  become  thereljy  vessels  trading  on  the  river  of  the  first  class  set 
forth  in  the  preceding  Article:  such  merchantmen,  whether  steamers  or  sailing 
vessels,  must  deposit  their  Registers  with  the  Consul,  or,  if,  consularly  unrepre- 
sented, with  the  Customs,  at  Shanghai,  Woosung,  or  Chinkiang,  where  the  Cus- 
toms, on  receipt  of  a  consular  application  or  a  deposit  of  papers,  will  issue  a 
certificate  to  the  vessel,  to  be  called  the  "Special  River  Pass,"  on  which  shall  be 
entered  the  vessel's  name,  flag,  registered  tonnage,  general  cargo,  and  armament. 
The  vessel  may  then  proceed  up  river  and  at  whatever  Treaty  ports  she  trades 
must  report  and  clear,  load  and  unload  cargo,  and  pay  Dues  and  Duties  in  the 
same  manner  as  at  other  Treaty  ports  along  the  coast.  On  return  to  the  port  that 
issued  it — Chinkiang,  Woosung,  or  Shanghai — the  "Special  River  Pass"  is  to  be 
surrendered  to  the  Customs,  and  the  Customs,  on  having  ascertained  that  all 
Dues  and  Duties  have  been  paid  and  all  other  conditions  satisfied,  will  then  issue 
the  Grand  Chop  to  enable  the  vessel  to  procure  her  Register  and  proceed  to  sea. 

Art.  5. — River  Steamers. — Any  steamer  intended  to  trade  regularly  on  the 
river  may  deposit  her  Register  at  the  Consulate  at  Shanghai,  or,  if  consularly 
unrepresented,  at  the  Custom  House,  when  the  Customs,  on  the  receipt  of  a  con- 
sular application  or  on  the  deposit  of  the  Register,  will  issue  a  certificate,  on 
which  shall  be  entered  the  vessel's  name,  flag,  registered  tonnage,  and  armament, 
to  be  called  the  "River  Pass,"  that  shall  be  valid  during  the  current  year :  such 
"River  Pass"  must  be  renewed  every  year  either  at  Shanghai,  or  at  Hankow 


NUMBER  1898/18:  AUGUST,  1898  165 

or  Ichang  in  the  case  of  river  steamers  trading  above  those  places  and  not  re- 
turning to  Shanghai. 

River  Pass  steamers  will  report  and  clear,  load  and  discharge,  and  pay  Dues 
and  Duties  in  accordance  with  the  Customs  Regulations  of  the  port  concerned; 
their  Tonnage  Dues  are  to  be  paid  at  the  ports  which  issue  or  renew  the  River 
Pass  (Shanghai,  Hankow,  or  Ichang). 

Infringement  of  River  Port  Regulations  will  be  punished  by  the  infliction  of 
the  penalties  in  force  at  other  Treaty  ports ;  for  a  second  ofifence  the  River  Pass 
may  be  cancelled  and  the  steamer  refused  permission  to  trade  thenceforward 
above  Chinkiang. 

Any  steamer  not  provided  with  a  River  Pass  if  proceeding  above  Chinkiang 
will  come  under  the  rule  affecting  sea-going  vessels  laid  down  in  Art.  4  and  will 
be  treated  accordingly. 

Art.  6. — River  Pass  Steamers  Cargo. — The  former  regulation  having  been 
abrogated  which  made  it  obligatory  to  deposit  Coast  Trade  Duties  simultaneously 
with  paying  Export  Duties,  River  Pass  steamers  will  now  pay  Duties  in  the  same 
way  as  vessels  at  other  Treaty  ports  along  the  coast ;  that  is,  Export  Duties  at  the 
port  of  departure  before  shipment  of  exports,  and  Import  or  Coast  Trade  Duties 
at  the  port  of  discharge  before  release  of  imports,  and,  similarly,  they  will  ship, 
tranship,  and  discharge  cargo  after  report,  examination,  and  issue  of  Permit,  m 
the  same  way  as  vessels  at  Treaty  ports  along  the  coast. 

When  Tea  is  landed  by  a  River  Pass  steamer,  the  consignee,  instead  of 
paying  Coast  Trade  Duty,  may  deposit  a  Bond  for  the  amount:  on  proof  of 
reshipment  within  a  year  the  Bond  will  be  cancelled.  When  reshipped  Tea 
is  relanded  at  another  port — e.g.,  reshipped  at  Hankow  and  relanded  at  Shanghai, 
— a  new  Bond  will  be  required  in  lieu  of  Coast  Trade  Duty,  to  be  cancelled  on 
subsequent  reshipment ;  and  so  on. 

Art.  7. — Small  Craft  (Lorchas,  Papicos,  Junks,  etc.)  : — 

(fl)  Lorchas,  etc.,  owned  by  Foreigners,  if  provided  with  Registers  and 
entitled  to  fly  national  flags,  are  required  to  take  out  a  Special  River  Pass 
either  through  the  Consulate  or  from  the  Customs  direct  at  Chinkiang  if  pro- 
ceeding further  up  the  river.  They  will  report,  work  cargo,  and  pay  Duties 
like  other  sea-going  Special  River  Pass  vessels. 

(&)  Papicos,  etc.,  owned  by  Foreigners,  but  not  provided  with  Registers  or 
entitled  to  fly  national  flags,  are  to  take  out  Customs  Registers  at  the  port  they 
belong  to,  and  report,  work  cargo,  and  pay  Duties  in  the  same  way  as  lorchas,  etc. 

(c)  Chinese  junks  chartered  by  Foreigners  are  only  available  for  conveying 
Foreign-owned  cargo  from  Treaty  port  to  Treaty  port ;  they  must  take  out  special 
junk  papers  at  the  Customs,  to  be  obtained  in  exchange  for  Bonds  executed  at 
and  deposited  with  the  Customs,  the  conditions  of  the  Bond  being  that  the  cargoes 
are  bond  fide  Foreign  property  and  will  be  landed  and  pay  Duty  at  a  Treaty 
port  and  the  penalty  that  if  the  cargoes  fail  to  be  so  landed  and  pay  Duty  no 
chartered  junk  will  thereafter  be  cleared  for  the  Foreigner  in  question.  Such 
junks  to  report,  work  cargo,  and  pay  Duties  in  the  same  way  as  lorchas,  papicos, 
etc. 

Art.  8. — Cargo  Certificates. — Special  River  Pass  merchantmen,  River  Pass 


166  CHINA  TREATIES  AND  AGREEMENTS 

steamers,  and  lorchas,  papicos,  and  junks,  etc-,  must  apply  to  the  Customs  at 
the  port  of  departure  for  a  Cargo  Certificate  {Tsiing  Tan),  which,  on  the  vessel's 
arrival  at  the  port  of  destination,  must  be  handed  in  to  the  Customs  before  per- 
mission to  discharge  can  be  given.  The  vessel  will  be  responsible  for  the  Duties 
on  all  goods  entered  on  the  said  Cargo  Certificate  and  not  landed  on  Permit  at  port 
of  discharge. 

Art.  9. — Miscellaneous. — Any  trading  vessel  falling  in  with  a  revenue  cruiser 
or  Customs  boat  on  the  Yangtze-kiang  is  to  produce  her  papers  for  inspection  if 
examination  of  them  is  required.  Vessels  unprovided  with  proper  papers  will 
be  dealt  with  under  the  Treaty  Articles  penalising  clandestine  trade  along  the 
coast. 

The  Customs  may  seal  the  hatches  of  any  vessel  trading  on  the  Yangtze  and 
may  place  Customs  officers  on  board  to  accompany  her  on  the  trip,  whether  up 
stream  or  down. 

Special  River  Pass  vessels  of  the  first  class  are  not  required  to  anchor  to 
exhibit  their  papers  at  the  intermediate  ports  passed  and  hot  traded  at. 

Art.  10. — Yangtze  Customs  and  Port  Regulations. — The  adoption  and 
promulgation  of  new  Regulations  for  vessels  trading  on  the  Yangtze  having 
rendered  meaningless  sundry  Customs  and  Port  Regulations  which  guided  pro- 
cedure under  the  former  system,  and  having  necessitated  the  substitution  of  fresh 
regulations  and  different  practice  under  the  system  now  introduced,  the  ports 
concerned  (Shanghai,  Chinkiang,  Nanking,  Wuhu,  Kiukiang,  Hankow,  Shasi, 
Ichang,  and  Chungking)  will  proceed  forthwith  to  arrange  and  publish  new  rules 
and  regulations,  and  these  are,  on  the  one  hand,  to  facilitate  trade  and,  on  the 
other,  to  protect  revenue  and  prevent  smuggling. 

The  above  Regulations  are  open  to  revision  when  and  if  necessary. 


CUSTOMS  REGULATIONS  FOR  YANGTZE  PORTS. 

All  Regulations  hitherto  existing.  Port  and  Customs,  having  been  declared 
abrogated  and  fresh  Regulations  and  different  practice  having  been  thereby  neces- 
sitated, the  following  Customs  Rules,  drawn  up  to  give  effect  to  the  Yangtze 
Regulations  of  1898,  are  now  published  for  general  information,  and  will  be 
operative  on  and  after  the  1st  day  of  April  1899. 

I. — General. 

1.  Anchorages. — For  the  shipment  and  discharge  of  cargo  vessels  must  take 
up  the  berths  in  the  harbour  assigned  them  by  the  Harbour  Master. 

The  harbour  limits  of  the  port  are: — 

{To  he  entered  by  each  port-) 

Cargo-boats,  sampans,  etc.,  are  forbidden  to  approach  incoming  vessels  before 
they  are  properly  moored. 

2.  Cargo-boats. — Cargo-boats  must  be  registered  at  the  Custom  House,  and 
their  numbers  conspicuously  painted  on  them  in  English  and  Chinese. 


NUMBER  1898/18:  AUGUST,  1898  167 

3.  Working  cargo. — The  landing  and  shipment  of  cargo  or  ballast  can  only 
take  place  between  sunrise  and  sunset,  and  cannot  go  on  without  special  per- 
mission on  Sundays  or  holidays. 

Cargo  landed  or  shipped  without  a  Permit  is  liable  to  confiscation. 

4.  Shut-out  cargo. — Cargo  for  which  a  Shipment  Permit  has  been  issued 
but  which  cannot  be  received  on  board  must  be  reported  and  await  Customs 
examination  before  being  relanded. 

5.  Imports  to  be  discharged  before  loading  exports. — River  Pass  steamers 
excepted,  merchant  vessels  must  complete  the  discharge  of  import  cargo  before 
commencing  to  receive  on  board  exports. 

Foreign  Opium. — Foreign  Opium  must  be  landed  into  the  Customs  Opium 
Godown. 

Munitions  of  War. — Munitions  of  War  cannot  be  landed  until  a  Munitions 
Special  Permit  from  the  Customs  has  been  obtained. 

Invoices. — In  the  case  of  Foreign  goods  from  abroad  to  pay  Duty  at  a  river 
port  the  importer  may  produce  his  botid  fide  invoice;  if  the  invoice  does  not  in- 
clude freight  and  insurance,  10  per  cent,  will  be  added  on  to  the  invoice  value  in 
the  case  of  goods  paying  ad  valorem  Duty,  but  the  Customs  reserve  the  right 
not  to  accept  invoices  as  a  statement. 

Through  Cargo. — Through  cargo  from  Ichang  to  Shanghai  and  vice  versa 
may  be  applied  for  at  Hankow  to  be  transhipped  en  bloc. 

Exemption  and  Duty-paid  Certificates,  etc. — Exemption  and  Duty-paid  Cer- 
tificates, etc.,  should  be  presented  to  the  Customs  simultaneously  with  the  con- 
signee's Application  for  Discharge  Permits. 

6.  Exports. — Goods  for  export  must  in  all  cases  be  brought  to  the  Customs 
Jetty,  or,  in  specially  allowed  cases,  to  godowns  approved  by  the  Customs,  or 
to  hulks,  and  will  be  examined  by  the  Customs  upon  the  receipt  of  Application  for 
Shipment  Permit  giving  all  necessary  particulars — destination,  denomination, 
number  of  packages,  marks,  numbers,  weight,  value,  etc. — and  made  out  in 
Chinese  and  English.  Godowns  with  examined  export  cargo  may  be  locked 
by  the  Customs  and,  similarly,  the  hatches  of  cargo-boats  with  such  goods  may 
be  sealed,  and  the  merchandise  must  not  be  removed  until  after  payment  of 
Duty  and  issue  of  Permit.  After  examination  a  Customs  Memo,  will  be  issued, 
and  upon  the  production  of  the  bank  receipt  for  the  Duty  the  Shipment  Permit 
will  be  granted  (i-e.,  the  Shipping  Order  will  be  stamped). 

7.  Duties  (Shanghai  practice). — Cargo  from  or  to  river  ports  being  now 
required  to  pay  Duties  in  the  same  manner  as  at  coast  ports — i.e.,  Export  Duty 
before  shipment  and  Import  or  Coast  Trade  Duty  at  the  port  of  discharge  before 
release, — the  following  changes  in  local  procedure  are  necessitated  at  Shanghai: — 

(a)  Imports  from  River  Ports. — Import  Applications  for  Discharge  Permits 
will  be  required  in  all  cases  and  goods  will  be  examined.  Goods  of  Chinese  origin 
will  pay  Coast  Trade  Duty  if  provided  with  Duty-paid  Certificates,  and  will  also 
lodge  a  full  Export  Duty  if  without  such  Certificates;  Foreign  goods,  unless 
covered  by  an  Exemption  Certificate,  will  pay  Import  Duty. 

Re-export  Certificates  for  imports  reshipped  after  arrival  will  no  longer  be 
required  or  issued  for  return  to  original  port. 


168  CHINA  TREATIES  AND  AGREEMENTS 

(b)  Exports  to  River  Ports. — Chinese  goods  will  pay  Export  Duty  before 
shipment  and  Coast  Trade  Duty  at  port  of  arrival,  and  will  go  forward  under 
cover  of  a  Duty-paid  Certificate. 

(c)  Re-exports  to  River  Ports  will  be  treated  in  the  same  manner  as  re- 
exports to  coast  ports ;  that  is,  Chinese  goods  will  be  granted  Coast  Trade  Duty 
Drawbacks  and  go  forward  under  Duty  Proof,  paying  Coast  Trade  Duty  at  port 
of  re-entry.  Foreign  goods  may,  at  applicant's  option,  go  forward  under  Ex- 
emption Certificate,  or  apply  for  Drawback  and  pay  Import  Duty  at  destina- 
tion. 

Applications  to  re-export  should  be  made  out  on  the  usual  re-export  form, 
and  applicants  must  be  careful  to  state  what  document  is  required  {e.g.,  Exemp- 
tion Certificate,  Drawback,  etc.). 

(d)  Transhipments. — Goods  intended  for  transhipment  at  Shanghai  if  from 
river  ports  should  be  so  described  on  the  Export  Application  at  the  port  of  ship- 
ment ;  failing  such  description,  they  will  be  liable  to  examination  and  payment 
of  Duty  at  Shanghai.  Imports  from  abroad  for  transhipment  to  river  ports  must 
be  applied  for  on  Transhipment  Application  form.  Goods  originally  declared 
for  Shanghai,  but  the  destination  of  which,  either  before  or  on  arrival  of  the 
goods  at  Shanghai,  it  is  subsequently  desired  to  change,  must  be  applied  for 
on  a  Transhipment  Application  form,  or  they  will  be  subjected  to  examination 
and  payment  of  Duty. 

Transhipments  must  in  all  cases  take  place  within  five  days  after  arrival  of 
importing  vessel,  otherwise  the  goods  concerned  will  be  treated  as  imports.  All 
goods  in  course  of  transhipment  are  liable  to  examination  if  required  by  the 
Customs- 

8.  Tea  Bonds. — When  Tea  is  landed  by  a  River  Pass  steamer,  the  con- 
signee, instead  of  paying  Coast  Trade  Duty,  may  deposit  a  Bond  for  the  amount : 
on  proof  of  reshipment  within  a  year  the  Bond  will  be  cancelled ;  if  not  re- 
exported within  that  period  the  amount  of  Coast  Trade  Duty  named  in  the  Bond 
will  be  collected.  When  reshipped  Tea  is  relanded  at  another  port — e.g.,  re- 
shipped  at  Hankow  and  relanded  at  Shanghai, — a  new  Bond  may  be  tendered  in 
lieu  of  Coast  Trade  Duty,  to  be  cancelled  on  subsequent  reshipment ;  and  so  on. 
Bonds  ought  to  be  handed  in  for  cancellation  not  later  than  one  week  after  the 
shipment. 

II. — Sea-going  Vessels. 

N .B. — Two  classes  of  sea-going  vessels  visit  Chinkiang,  viz.,  those  which  do, 
and  those  which  do  not,  pass  on  up  river.  The  first  follow  coast  port  rules ;  the 
second,  Yangtze  Regulations. 

9.  (a.)  Chinkiang  procedure. — Sea-going  vessels,  Ningpo  boats,  lorchas, 
and  such-like  craft,  together  with  steamers  not  provided  with  a  River  Pass,  must 
be  reported  by  the  Consul,  or  lodge  their  papers  with  the  Customs  if  they  have 
no  Consul,  on  arrival  at  Chinkiang,  and  must  deliver  to  the  Customs  a  manifest 
of  the  cargo  on  board  (together  with  the  Tonnage  Dues  and  Cargo  Certificates 
if  they  have  them),  after  which  the  Permit  to  Open  Hatches  will  be  issued. 

Sea-going  vessels  trading  no  further  up  river  than  Chinkiang  will  be  dealt 


NUMBER  1898/18:  AUGUST,  1898  169 

with  at  Chinkiang  in  every  respect  like  vessels  trading  at  other  coast  ports — i.e., 
the  landing  and  shipment  of  cargo  in  accordance  with  the  Customs  Regulations 
having  been  completed,  all  Dues  and  Duties  having  been  paid,  and  the  manifest 
of  the  export  cargo  having  been  handed  to  the  Customs;  the  Customs  Clearance 
will  be  issued,  upon  which  the  vessel  may  receive  back  her  papers  and  clear  at  the 
Consulate. 

In  the  case  of  vessels  arriving  at  Chinkiang  from  sea  and,  after  working 
cargo  there,  about  to  proceed  to  a  port  further  up  river,  the  landing  and  ship- 
ment of  cargo  having  been  completed,  all  Dues  and  Duties  having  been  paid,  and 
a  manifest  of  the  cargo  placed  on  board  at  Chinkiang  having  been  handed  to  the 
Customs,  the  Customs  Clearance  and  Cargo  Certificates  will  be  issued,  and  upon 
the  application  of  the  consul  who  holds  the  ship's  papers,  or  of  the  master  in  the 
event  of  the  papers  having  been  lodged  with  the  Customs,  the  ship's  hatches  will  be 
sealed  and  a  "  Special  River  Pass  "  will  be  granted,  upon  which  the  vessel  may 
leave  the  anchorage  on  her  voyage  up  the  river ;  if  the  ship's  papers  held  by  Con- 
sul or  lodged  at  Customs  are  merely  the  "  Special  River  Pass,"  issued  at  Shanghai 
or  Woosung,  that  document  ought  to  be  vised  by  the  Customs  before  departure. 
On  the  return  to  port  from  up  river  of  vessels  holding  their  "  Special  River 
Pass,"  from  the  Chinkiang  Customs,  the  Clearances  issued  by  the  up-river 
Custom  Houses,  together  with  a  manifest  of  the  cargo  on  board,  must  be  handed 
in  to  the  Chinkiang  Customs,  when,  upon  the  surrender  of  the  "  Special  River 
Pass,"  the  final  Customs  Clearance  (Chinkiang  Grand  Chop)  will  be  issued,  and 
the  vessel  will  be  at  liberty  to  receive  back  her  papers  and  proceed  to  sea. 
"  Special  River  Pass  "  vessels  from  Shanghai  or  Woosung  will  similarly  sur- 
render the  same  papers  there- 

10.  (b.)  Up-river  port  procedure. — On  arrival  at  ports  on  the  river  above 
Chinkiang  vessels  provided  with  the  "  Special  River  Pass  "  shall  lodge  that  docu- 
ment with  the  Consul  or,  where  there  is  no  Consul,  with  the  Customs.  Upon 
receipt  of  Consular  Report  or  "  Special  River  Pass,"  together  with  a  manifest  of 
the  import  cargo  (which  should  be  accompanied  by  Tonnage  Dues  and  Cargo 
Certificates),  the  Permit  to  Open  Hatches  will  be  issued,  and  on  consignees  apply- 
ing, specifying  on  their  Applications,  in  Chinese  and  English,  the  nature  of  the 
goods,  the  number  of  packages,  with  marks  and  numbers,  weight,  value,  etc., 
Permits  will  be  issued  authorising  the  discharge  of  consignments — 

(a)  into  registered  cargo-boats,  which  must  repair  to  the  Customs  Jetty  for 
examination,  after  which  Duty  Memos,  will  be  issued  and,  on  payment  of  Duty, 
Release  Permits  will  be  granted  authorising  the  landing  of  the  goods  (i.e.,  the 
bills  of  lading  will  be  stamped)  ;  or 

(b)  under  approved  guarantee  into  cargo-boats,  godowns,  or  hulks,  where 
they  will  be  examined  by  the  Customs,  after  which  Duty  Memos,  will  be  issued 
and  when  Duty  is  paid,  Release  Permits  granted. 

11.  Up-river  Customs  Clearance. — The  landing  and  shipment  of  cargo 
having  been  completed  and  all  Dues  and  Duties  having  been  paid,  a  manifest 
of  the  export  cargo  must  be  handed  to  the  Customs  before  3  p.  m.  The  Customs 
Clearance  will  then  be  issued,  on  which  the  vessel  may  apply  for  the  return  of  the 
"  Special  River  Pass  "  and  proceed.     The  Customs  will  be  at  liberty  to  seal  the 


170  CHINA  TREATIES  AND  AGREEMENTS 

hatches  and  place  Customs  officers  on  board  to  accompany  vessels  up  or  down 
river. 

N.B. — The  Customs  Clearance  or  Grand  Chop  is  simply  a  receipt  for  Dues 
and  Duties,  on  the  exhibition  of  which  the  Treaties  entitle  vessels  to  recover 
the  papers  deposited  at  the  Consulate.  It  is  the  Consular  Clearance,  and  not 
the  Customs  Grand  Chop,  that  specifies  the  port  to  which  a  vessel  is  to  go  and 
constitutes  her  Port  Clearance. 

III. — River  Pass  Steamers, 

12.  Chinkiang  and  up-river  procedure. — Steamers  plying  under  the  "  River 
Pass  "  on  arrival  at  a  port,  whether  boun.d  up  or  down  river,  shall  exhibit  that 
document  to  the  Customs. 

13.  River  Pass  steamer  imports. — River  Pass  steamers  having  on  board 
cargo  to  be  discharged  shall  deliver  the  Cargo  Certificate  for  the  port  con- 
cerned and  which  was  issued  at  the  port  of  shipment,  together  with  the  inward 
manifest  signed  by  the  master  and  the  Tonnage  Dues  Certificate,  to  the  Cus- 
toms, whereupon  consignees  of  import  cargo  may  hand  in  Applications  con- 
taining all  necessary  particulars,  and  submit  their  consignments  to  Customs 
examination ;  after  payment  of  Duties  they  will  be  granted  Release  Permits.  For 
the  discharge  of  a  river  steamer's  total  manifested  cargo  into  registered  cargo- 
boats,  hulks,  and  godowns,  a  General  Transhipment  Permit  can  be  obtained  on 
complying  with  the  special  rules  therewith  connected.  No  cargo  shall  leave 
cargo-boats,  hulks,  or  godowns  without  a  Permit.  Merchandise  arriving  in 
excess  of  the  quantity  noted  in  the  Cargo  Certificate  or  manifest  is  liable  to 
confiscation.  The  importing  vessel  will  be  held  responsible  for  the  Duties  of  all 
goods  entered  on  the  Cargo  Certificate  and  not  landed. 

14.  River  Pass  steamer  exports. — Goods  for  shipment  by  River  Pass  steam- 
ers must  be  reported  for  examination,  pay  Duties,  and  take  out  Shipment  Per- 
mits in  just  the  same  way  as  goods  for  shipment  by  other  vessels. 

15.  Customs  Clearance. — River  Pass  steamers  neither  landing  nor  shipping 
cargo  may  proceed  on  their  voyage  after  the  inspection  of  the  River  Pass  by  the 
Customs.  Steamers  with  cargo  to  land  or  ship  are  to  hand  the  export  manifest 
to  the  Customs  when  they  have  completed  landing  and  shipment ;  the  Cargo 
Certificates  will  then  be  issued  and  the  River  Pass  and  Tonnage  Dues  Certificate 
returned  to  the  master ;  the  steamer  may  then  proceed  on  her  voyage. 

IV. — Small    Craft    (Lorchas,    Papicos,    Chartered   Junks,    etc.). 

16.  Lorchas,  etc. — Small  craft  (lorchas,  papicos,  junks,  etc)  owned  or 
chartered  by  Foreigners  will  be  treated  in  accordance  with  the  Yangtze  Regula- 
tions of  1898.  They  are  to  take  up  the  berths  assigned  in  the  proper  anchorage, 
and  report,  work  cargo,  and  pay  Duties,  etc.,  like  sea-going  Special  River  Pass 
vessels.  Chartered  junks  are  only  available  for  carrying  Foreign-owned  cargo 
from  Treaty  port  to  Treaty  port,  and  must  take  out  special  papers  at  the  Customs 
in  exchange  for  properly  executed  Bonds. 

17.  Steam-launches. — All  steam-launches,  etc.,  must  be  registered  at  the 


NUMBER  1898/19:  AUGUST  29,  1898  171 

Custom  House.    The  fee  for  first  issue  of  Customs  papers  is  Hk.  Tls.  10  and  for 
each  annual  renewal  Hk.  Tls.  2. 

V — Additional. 

18.  Office  hours. — The  office  will  be  open  for  the  transaction  of  general 
business  from  10  a.m.  to  4  p.m.,  Sundays  and  holidays  excepted.  All  export 
manifests  and  Applications  for  cargo  to  be  shipped  by  steamers  clearing  the  same 
day  should  be  in  the  office  by  3  p.m.  All  communications  regarding  Customs  busi- 
ness should  be  addressed  to  the  Commissioner  of  Customs. 

The  above  regulations  are  open  to  revision  when  and  if  necessary. 


Commissioner  of  Customs. 
Custom  House, 

, 189... 


NUMBER  1898/19. 

FRANCE  AND  GREAT  BRITAIN. 

Exchange  of  notes  respecting  the  reciprocal  protection  of  trademarks  in  China* — 

August  29,  1898. 

(1). — M.  Goeffray  to  the  Marquess  of  Salisbury. 

London,  April  20,  1898. 

M.  LE  Marquis, 

Your  Lordship  is  not  unaware  that  the  arrangement  effected  in  1895 
between  the  French  and  English  Governments,  with  a  view  to  assuring  the 
reciprocal  protection,  in  Morocco,  of  French  trade-marks  regularly  registered 
in  England,  and  of  English  marks  regularly  registered  in  France,  has  brought 
about  the  most  satisfactory  results  in  repressing  counterfeits  in  the  States  of  His 
Shereefian  Majesty. 

In  view  of  this  fortunate  result,  my  Government,  deeming  that  it  would  be 
of  use  to  make  a  new  application  of  the  principle  of  mutual  assurance  thus  con- 
secrated in  the  notes  exchanged  in  1894  between  France  and  England  at  Tangier, 
has  instructed  me  to  inquire  of  Your  Lordship  whether  the  Government  of  His 
Britannic  Majesty  would  not  be  disposed  to  conclude  a  new  arrangement,  which 
in  this  case  would  be  directed  towards  assuring  the  reciprocal  protection,  in 
China,  of  French  and  English  marks,  on  the  same  conditions  upon  which  the 

*  (1)   Translated  from   French  text,  as  printed  in  Hertslct,  p.  585;    (2)    text  as  there 
printed. 


172  CHINA  TREATIES  AND  AGREEMENTS 

agreement  concerning  Morocco  was  drawn  up.  If  so,  M.  Hanotaux  considers 
that  the  arrangement  to  be  reached  could  take  the  form  of  an  exchange  of 
notes  between  the  British  Cabinet  and  the  Ambassador  of  the  RepubHc  in  Lon- 
don :  and  he  is  glad  to  believe  that  Your  Lordship  will  prove  conscious  of  the 
usefulness  which  such  an  agreement  would  possess,  at  a  time  when  China,  whose 
legislation  assures  no  serious  protection  to  trade-marks,  is  opening  its  markets 
more  widely  to  the  products  of  European  industry. 

I  should  be  greatly  obliged  if  Your  Lordship  would  be  so  good  as  to  advise 
me  what  action  seems  possible  to  you  in  reference  to  the  present  communication. 

I  venture  to  take  this  occasion  to  recall  to  Your  Lordship  the  overtures  that 
the  Frendi  Ambassador  made  to  the  British  Cabinet,  under  date  of  May  14, 
1896,  with  a  view  to  arriving  at  an  arrangement  of  the  same  character  in  regard 
to  the  Ottoman  Empire. 

Accept,  &c. 

(Sgd.)     Geoffray. 

(2). — Mr.  Balfour  to  M.  Geoffray. 

Sir,  ■  Foreign  Office,  August  29,  1898. 

In  your  note  of  the  20th  of  April  last  you  conveyed  to  the  Marquess 
of  Salisbury  the  wish  of  the  French  Government  to  enter  into  an  arrangement 
with  this  country  for  the  mutual  protection  of  trade-marks  in  China  similar  to 
that  concluded  in  Morocco  between  Great  Britain  and  France  in  the  year  1895. 

I  have  the  honour  to  inform  you  that  it  has  been  necessary,  before  a 
definite  answer  could  be  sent  to  you,  to  consult  the  Board  of  Trade,  and  the 
Law  Officers  of  the  Crown,  which  has  led  to  some  delay. 

I  have  now,  however,  the  pleasure  of  stating  that  Her  Majesty's  Government 
are  prepared  to  enter  into  an  arrangement  such  as  you  propose  for  the  protec- 
tion of  the  trade-marks  of  the  two  countries  in  China,  which  will  enable  French 
nationals  to  obtain  protection  in  the  British  Consular  Courts  by  registering  their 
marks  in  this  country  in  cases  in  which  they  can  be  properly  registered  under 
English  law,  and  at  the  same  time  obtain  for  British  nationals  who  register  their 
marks  in  France  the  protection  of  the  French  Consular  Courts. 

The  necessary  steps  are  being  taken  for  the  issue  of  an  Order  in  Council 
to  give  effect  to  such  an  arrangement. 

I  have,  &c. 

A.  J,  Balfour. 


NUMBER  1898/20:  OCTOBER  10,  1898  173 

NUMBER  1898/20. 

GREAT  BRITAIN    (British  and  Chinese  Corporation,  Ltd.)   AND  CHINA. 
Shanhaiknan-N ewchwang   Railway  Loan   Agreement.^ — October  10,   1898. 

This  Agreement  is  made  between  his  Excellency  Hii,  Governor  of  Peking, 
as  Administrator-General  of  the  Railways  of  North  China  within  and  without 
Shan-hai-kuan,  acting  under  the  authority  of  the  Imperial  Chinese  Government, 
hereinafter  called  the  "  Administrator-General,"  of  the  one  part,  and  the  Hong 
Kong  and  Shanghae  Banking  Corporation,  for  themselves  and  on  behalf  of 
the  British  firm  of  Jardine,  Matheson,  and  Co.,  representing  as  joint  agents  the 
British  and  Chinese  Corporation  (Limited),  hereinafter  called  the  "Corpora- 
tion," of  the  other  part : 

Whereas,  on  the  7th  day  of  June,  1898,  being  the  19th  day  of  the  4th 
month  of  the  24th  year  of  the  Emperor  Kuang-Hsii,  a  preliminary  Agreement  was 
signed  at  Peking  f  between  the  Administrator-General  and  the  Hong  Kong  and 
Shanghae  Banking  Corporation,  representing  a  British  Syndicate,  for  a  sterling 
loan  for  the  equivalent  of  about  16,000,000  taels  for  the  construction  of  a  rail- 
way line  from  Chung-hou-so  to  Hsin-ming-t'ing  and  a  branch  line  to  Ying-tzu, 
and  for  the  redemption  of  existing  loans  made  to  the  Tien-tsin-Shan-hai-kuan 
and  Tien-tsin-Lukouchiao  Railway  lines ;  and 

Whereas  in  terms  of  the  preliminary  Agreement  a  period  of  three  months 
from  its  date  was  allowed  to  the  Syndicate  to  accept  or  decline  its  conditions ;  and 

Whereas  the  Hong  Kong  and  Shanghae  Banking  Corporation,  before  the 
expiration  of  the  period  named,  duly  notified  the  Administrator-General  that 
it  is  prepared,  with  certain  modifications,  to  arrange  the  issue  of  the  loan  upon 
the  conditions  named  in  the  preliminary  Agreement : 

It  is  now  agreed  as  follows : — 

1. — The  Corporation  agrees  to  issue  on  behalf  of  the  Administrator-General 
a  sterling  loan  for  the  amount  of  2,300,000/-,  the  'proceeds  of  which  are  to  be 
applied  in  the  order  following: — 

(1.) — To  the  redemption  forthwith  or  at  maturity  of  the  loans  and  advances 
specified  in  the  statement  attached  to  this  Agreement  which  have  been  made  by 
foreign  banks  to  the  Tien-tsin-Shan-hai-kuan  and  the  Tien-tsin-Lukouchiao  Rail- 
way lines. $  The  Administrator-General  hereby  certifies  that  the  total  amount  of 
the  liabilities  due  by  the  lines  named  does  not  exceed  the  sum  of  3,000,000  taels. 

*Text  as  reprinted  in  Rockhill,  p.  322,  from  China  (1899),  No.  2.  p.  29.  Printed  also  in 
F.  E.  Review,  vol  5,  p.  132;  Kent,  p.  205;  Wang,  p.  93. 

In  connection  with  this  agreement  see  also  the  Agreement  for  the  transfer  of  the  Peking- 
Shanhaikuan  Railway  to  the  Chinese  Civil  Administration,  and  the  Additional  Agreement 
respecting  the  management  of  the  northern  railways,  April  29,  1902  (Xo.  1902/4,  post)  ; 
and  Agreement  concerning  the  Peking-Mukden  Railway,  March  25,  1908  (No.  1908/5.  post). 

The  Shanhaikuan-Newchwang  Railway  constitutes  a  portion  of  the  line  formerly  known 
as  the  Imperial  Railways  of  North  China,  and  more  recently  as  the  Peking-Mukden  or 
Ching-Feng  Railway. 

t  See  Note  1  to  this  document,  post,  p.  179. 

t  See  Note  2  to  this  document,  post,  p.  181. 


174  CHINA  TREATIES  AND  AGREEMENTS 

(2.)  To  the  carrying  out  within  a  period  of  three  years  from  the  date  of 
this  Agreement  of  certain  improvements  and  additions  to  rolHng-stock  on  the 
existing  Hnes  between  Peking  and  Shan-hai-kuan,  recommended  by  the  European 
Chief  Engineer,  and  estimated  by  him  to  cost  about  1,500,000  taels. 

(3.)  To  the  construction  of  a  railway  hne  from  Chung-hou-so  to  Hsin- 
ming-t'ing,  and  one  from  a  point  on  that  hne  near  Shih-san-chan  to  Ying-tzu, 
and  of  a  branch  hne  from  Nu-erh-ho  to  the  colheries  of  Nan  P'iao.§ 

The  Administrator-General  engages  that  the  construction  of  the  new  lines 
here  specified  shall  be  completed  within  a  period  of  three  years  from  the  date 
of  this  Agreement. 

2. — In  the  event  of  the  proceeds  of  this  loan  being  insufficient  for  the  com- 
pletion of  the  new  lines  here  specified,  the  Administrator-General  will  provide 
or  will  arrange  with  the  Imperial  Government  of  China  to  provide  funds  from 
other  sources  sufficient  to  complete  their  construction. 

3. — This  loan  shall  be  a  first  charge  upon  the  security  of  the  permanent 
way,  rolling-stock,  and  entire  property,  with  the  freight  and  earnings  of  the 
existing  lines  between  Peking  and  Shan-hai-kuan,  and  on  the  freights  and  earn- 
ings of  the  new  lines  when  constructed.  The  Administrator-General  shall,  dur- 
ing the  continuance  of  this  loan,  maintain  the  railway  buildings,  works,  rolling- 
stock,  and  dependencies  in  good  order  and  condition,  and  shall  increase  the  roll- 
ing-stock from  time  to  time  to  such  extent  as  shall  be  necessary  for  the  require- 
ments of  the  traffic. 

Should  it  be  decided  hereafter  to  construct  branch  lines  or  extensions  con- 
necting with  the  lines  herein  named,  their  construction  shall  be  undertaker! 
by  the  Railway  Administration,  and  should  the  funds  of  the  Railway  Adminis- 
tration be  insufficient  for  that  purpose,  it  shall  apply  to  the  Corporation  for  the 
same. 

4. — The  principal  and  interest  of  this  loan  are  guaranteed  by  the  Imperial 
Government  of  China,  and  in  the  event  of  default  in  payment  of  interest  or  re- 
payment of  principal  at  due  date,  the  Corporation  shall  immediately  notify  the 
Imperial  Government  of  China  thereof,  and  the  Imperial  Government  of  China 
will  thereupon  provide  the  funds  necessary  to  meet  such  payment  in  sterling  in 
London.  In  the  event  of  the  Imperial  Government  of  China  being  unable  to 
provide  the  funds  necessary  to  meet  a  payment  of  interest  or  principal  when 
called  upon  by  the  Corporation  to  do  so  in  terms  of  this  clause,  the  said  railway 
lines  and  the  entire  property  shall  thereupon  be  handed  over  to  representatives 
deputed  by  the  Corporation  to  manage,  on  their  behalf,  until  principal  and  in- 
terest of  the  loan  have  been  redeemed  in  full,  when  the  management  will  revert 
to  the  Railway  Administration.  It  is  provided  that  should  arrears  of  interest  or 
principal  be  for  a  small  sum,  and  it  appear  desirable  to  the  Corporation  to  ex- 
tend the  due  date  of  their  payment  for  a  term  not  exceeding  three  months,  it 
shall  be  open  to  the  Corporation  to  do  so. 

This  arrangement,  which  differs  from  other  contracts  in  that  the  Adminis- 
trator-General retains  control  of  the  railway  lines  so  long  as  the  principal  and 
interest  of  this  loan  are  regularly  paid,  has  been  agreed  to  in  consequence  of 

§  See  Note  3  to  this  document,  post  p.  181. 


NUMBER  1898/20:  OCTOBER  10,  1898  175 

the  friendly  relations  which  have  long  existed  between  the  Contracting  Parties. 

5. — No  further  loan  shall  be  charged  upon  the  security  named  above,  except 
through  the  Corporation,  until  this  loan  is  redeemed,  and  the  Tsung-li  Yamen 
will  hand  to  the  British  Minister  in  Peking  a  written  undertaking  on  behalf  of 
the  Imperial  Government  of  China  that  the  railway  lines  named  in  this  Agree- 
ment shall  never  be  alienated  or  parted  with. 

6. — During  the  currency  of  this  loan  the  Chief  Engineer  of  the  railways 
shall  be  a  British  subject.  The  principal  members  of  the  railway  staff  shall 
be  capable  and  experienced  Europeans,  who  shall  be,  as  at  present,  appointed 
by  the  Administrator-General  of  the  Railways,  and  may  be,  in  the  event  of  their 
misconduct  or  incompetency,  dismissed  after  consultation  with  the  Chief  En- 
gineer. 

If  there  are  Chinese  with  sufficient  engineering  or  traffic  experience  they 
may  be  appointed  as  well  as  Europeans. 

Should  it  be  necessary  to  appoint  a  new  Chief  Engineer,  such  appointment 
shall  be  made  in  consultation  with  the  Corporation. 

In  addition  to  the  above,  a  capable  and  efficient  European  Railway  Ac- 
countant shall  be  appointed,  with  full  powers  to  organize  and  direct  the  keeping 
of  the  railway  accounts,  and  to  act  with  the  Administrator-General  and  the 
Chief  Engineer  of  the  railway  in  the  supervision  of  receipts  and  expenditure. 

7. — The  railway  lines  named  in  this  Agreement  being  Imperial  Chinese 
Government  lines,  in  the  event  of  war  or  famine,  Chinese  Government  troops 
and  grain  may  be  transported  over  the  lines  free. 

8. — All  receipts  and  earnings  of  the  lines  herein  specified  shall  be  paid  into 
the  credit  of  the  Railway  Administration  with  the  Hong  Kong  and  Shanghae 
Banking  Corporation,  Tien-tsin,  together  with  50,000  taels  annually,  payable 
under  the  Board  of  Revenue's  arrangement  approved  by  the  Throne,  by  each 
of  the  Provinces  of  Shansi,  Shensi,  Honan,  and  Anhui,  for  railway  purposes 
for  ten  years. 

All  expenses  of  working  and  maintaining  the  lines  will  be  paid  from  their 
receipts  and  earnings,  the  remainder  of  which,  together  with  the  provincial  funds 
above  named,  shall  then  be  charged  with  the  service  of  this  loan.  Payments  of 
interest  and  repayments  of  principal  shall  be  made  in  equal  monthly  instalments, 
and  in  accordance  with  amounts  and  dates  of  a  yearly  Schedule,  which  will  be 
furnished  to  the  Administrator-General  by  the  Bank.  These  payments  shall 
be  made  by  the  Administrator-General  to  the  Hong  Kong  and  Shanghae  Bank- 
ing Corporation,  Tien-tsin,  in  Kungp'ing  sycee  sufficient  to  provide  the  sterling 
amount  due  to  the  bondholders  in  terms  of  the  prospectus  of  the  loan,  the  rate 
of  exchange  for  these  payments  being  fixed  by  that  Bank  as  each  such  payment 
becomes  due.  In  reimbursement  of  expenses  incurred  in  connection  with  the 
distribution  of  the  service  to  the  bondholders  of  the  principal  and  interest  of 
the  loan,  the  Hong  Kong  and  Shanghae  Banking  Corporation,  Tien-tsin,  shall 
receive  from  the  Railway  Administration  a  commission  of  ^  per  cent,  on  the 
annual  loan  service,  which  will  be  included  in  the  yearly  Schedule  for  the  same. 

9. — The  term  of  the  loan  shall  be  forty-five  years,  and,  subject  to  the  modi- 
fication mentioned  hereinafter,  repayment  of  principal  shall  be  made,  so  far  as 


176  CHINA  TREATIES  AND  AGREEMENTS 

regards  the  bondholders,  in  forty  equal  annual  instalments,  commencing  with  the 
sixth  year. 

10. — Interest  on  the  loan  shall  be  charged  at  the  rate  of  5  per  cent,  per 
annum  on  the  nominal  principal,  and  shall  be  calculated  on  the  balance  of  such 
principal  at  any  time  outstanding,  payments  of  interest  being  made  by  the 
Administrator-General  in  accordance  with  the  amounts  and  dates  specified  in 
the  yearly  Schedule  to  be  provided, 

11. — The  loan  will  be  redeemed  by  annual  drawings  in  London  as  provided 
for  in  the  prospectus.  Besides  the  drawings  as  provided  for,  the  Administrator- 
General  may,  on  giving  three  months'  notice  to  the  Corporation,  call  for  extra 
drawings  to  be  held,  for  any  amount.  Bonds  so  drawn  to  be  redeemed  by  the 
Railway  Administration  at  20  per  cent,  premium  on  their  par  value.  Any  such 
extra  drawings  must  take  place  on  the  date  of  the  ordinary  drawing  provided 
by  the  prospectus. 

In  the  event  of  such  extra  drawings  taking  place,  subsequent  payments  of 
interest  will  be  adjusted  in  the  yearly  Schedule  to  be  provided,  but  repay- 
ments of  principal  shall  continue  unaltered  in  terms  of  clause  9  of  this  Agree- 
ment until  the  loan  is  redeemed. 

The  Imperial  Government  of  China  hereby  engages  that  this  loan  shall  not 
be  redeemed  or  converted  otherwise  than  as  herein  provided. 

12. — The  price  agreed  upon  for  this  loan  is  90  per  cent,  net  of  the  nominal 
principal,  but  should  an  unfavourable  state  of  the  market  prevail  at  the  time 
of  issuing  the  prospectus,  the  Corporation  is  hereby  authorized  to  reduce  the 
price  of  the  loan,  at  its  own  discretion,  to  not  less  than  88  per  cent,  net 
to  the  Railway  Administration- 

13. — The  Corporation  are  hereby  authorized  to  issue  to  subscribers  to  the 
loan  bonds  for  the  total  amount  of  the  loan  in  pounds  sterling,  in  such  form  and 
for  such  amounts  as  shall  appear  desirable  to  the  Corporation,  and  the  Minister 
for  China  in  London  will  seal  all  such  bonds  with  his  official  seal,  as  evidence 
that  the  Imperial  Government  of  China  is  bound  thereby.  Each  such  bond  shall 
bear  the  following  clause : — 

"  The    Imperial    Government    of    China,    pursuant    to   an    Imperial    Edict, 

(jated  ,  unconditionally  guarantees  and  declares  itself  responsible  for  the 

payment  of  the  principal  moneys  and  interest  hereby  secured,  and  in  faith 
thereof  it  has  specially  authorized  the  Chinese  Minister  in  London  to  seal  this 
bond  with  his  official  seal." 

14. — All  bonds  and  coupons  and  payments  made  and  received  in  connec- 
tion with  this  loan  shall  be  exempt  from  Chinese  taxes  and  imposts  for  ever. 

15. — All  details  necessary  for  the  prospectus  and  connected  with  the  service 
to  the  bondholders  of  the  interest  and  repayment  of  principal  of  this  loan, 
not  herein  explicitly  provided  for,  shall  be  left  to  the  arrangement  of  the  Cor- 
poration, who  are  hereby  authorized  to  issue  a  prospectus  of  the  loan  as  soon 
as  possible  after  the  signing  of  this  Agreement. 

The  Tsung-li  Yamen  will  instruct  the  Chinese  Minister  in  London  to  co- 
operate with  the  Corporation  in  any  matters  requiring  conjoint  action. 

16. — The  loan  shall  be  issued  to  the  public  as  soon  as  possible  after  the 


NUMBER  1898/20:  OCTOBER  10,  1898  177 

signing  of  this  Agreement,  and  shall  date  from  the  first  day  of  the  month  of 
its  issue.  Payment  of  the  entire  proceeds  will  be  made  in  London  to  the  order 
of  the  Administrator-General  not  later  than  the  31st  day  of  March,  1899;  of  the 
above  proceeds,  the  Corporation  will  advance  to  the  order  of  the  Administrator- 
General  in  London,  on  or  before  the  31st  day  of  October  next,  the  sum  of 
250,000/.;  this  advance  will  bear  interest  at  the  rate  of  5  3^  per  cent,  per  annum 
until  such  time  as  the  first  instalment  of  the  loan  proceeds  shall  be  available, 
when  it  shall  be  deducted  from  those  proceeds  by  the  Corporation. 

17. — In  the  event  of  an  unfavourable  state  of  the  market  rendering  the 
issue  of  this  loan,  and  the  payment  of  its  proceeds  to  the  Railway  Administra- 
tion impossible  on  the  terms  named  without  loss  to  the  Corporation,  the  Cor- 
poration shall  be  granted  such  extension  of  time  for  the  performance  of  its 
contract  with  the  Administrator-General  as  the  circumstances  demand,  any  ad- 
vances or  instalments  of  proceeds  already  made  to  the  Railway  Administration 
being  in  that  case  treated  as  regards  payment  of  interest,  repayment  of  prin- 
cipal, security,  and  Imperial  Chinese  Government  guarantee  in  terms  of  this 
present  Agreement,  and  as  forming  part  of  the  principal  amount  of  this  loan. 
Similar  extension  of  time  for  the  issue  of  this  loan  and  payment  of  its 
proceeds  shall  also  be  granted  in  the  event  of  the  Deutsch-Asiatische  Bank, 
Berlin,  objecting  to  its  issue  before  the  month  of  April  next,  in  accordance  with 
the  terms  of  clause  9  of  the  Agreement  for  the  Chinese  Imperial  Government 
Ay2  per  Cent.  Sterling  Loan  of  1898.!| 

18. — Im.mediately  after  the  signature  of  this  Agreement,  and  before  the 
issue  of  the  prospectus  of  the  loan  to  the  public,  the  Administrator-General 
will  memorialize  the  Throne  and  obtain  an  Imperial  Edict  confirming  and 
sanctioning  the  provisions  of  this  Agreement,  the  Imperial  Edict  so  received 
being  then  communicated  officially  and  without  delay  by  the  Tsung-li  Yamen 
to  the  British  Minister  in  Peking. 

19- — The  Corporation  may,  subject  to  all  its  obligations,  transfer  or  delegate 
all  or  any  of  its  rights,  powers,  and  discretions,  to  any  British  Company,  Directors, 
or  Agents,  in  consultation  with  the  Administrator-General,  with  or  without 
power  of  further  transfer  and  sub-delegation. 

20. — This  Agreement  is  executed  in  quadruplicate  in  English  and  Chinese, 
one  copy  to  be  retained  by  the  Administrator-General,  one  by  the  Tsung-li 
Yamen,  one  by  the  British  Minister  in  Peking,  and  one  by  the  Corporation. 
Should  any  doubt  arise  as  to  the  interpretation  of  the  contract,  the  English 
text  shall  be  accepted  as  the  standard. 

SIGNED  AT  PEKING  by  the  Contracting  parties  this  twenty  fifth  day  of 

the  eighth  month  of  the  twenty  fourth  year  of  the  Emperor  Kuang-hsu.  being 

the  tenth  day  of  October  eighteen  hundred  and  ninety  eight  Western  Calendar. 

For  the  Hong  Kong  and  Shanghae  Banking  Corporation 

(sgd.)     E.  G.  HiLLiER, 

Agent, 
Attorney  for  the  British  and 
Chinese   Corporation   Limited. 
(Chinese  Signatures.) 
II  No.  1898/3,  ante. 


178 


CHINA  TREATIES  AND  AGREEMENTS 


AMORTIZATION  TABLE.* 

i2,300,000  LOAN  @  5%. 

Showing  Repayments  of  Capital  by  Instalments. 


Total  capital 

Capital 

Interest 

Total 

Year 

Date 

repaid  to  date 

payments 

payments 

payments 

£ 

£ 

£ 

£ 

1902 

Feb.         1 

57,500 

57,500 

Aue         1 

57,500 

57.500 

1903 

Feb.         1 

57.500 

57,500 

Aug.        1 
Feb.         1 

57,500 

57,500 

1904 

57,500 

57,500 

Aug.        1 

57,500 

57.500 

1905 

Feb.         1 

57,500 

57.500 

Aug.        1 

57,500 

57,500 

57,500 

115.000 

1906 

Feb.         1 

56,063 

56.063 

Aug.        1 

115,000 

57,500 

56,063 

113,563 

1907 

Feb.         1 

54,625 

54,625 

Aug.        1 

172,500 

57,500 

54,625 

112,125 

1908 

Feb.  .       1 

53,188 

53.188 

Aug.        1 

230,000 

57,500 

53.188 

110.688 

1909 

Feb.         1 

51.750 

51.750 

Aug.        1 

287,500 

57,500 

51.750 

109,250 

1910 

Feb.         1 

50,313 

50.313 

Aug.        1 

345,000 

57,500 

50.313 

107.813 

1911 

Feb.         1 

48.875 

48.875 

Aug.        1 

402,500 

57,500 

48.875 

106.375 

1912 

Feb.         1 

47,438 

47.438 

Aug.        1 

460,000 

57,500 

47,438 

104,938 

1913 

Feb.         1 

46,000 

46,000 

Aug.        1 

517,500 

57,500 

46.000 

103,500 

1914 

Feb.         1 

44.563 

44,563 

Aug.        1 

575,000 

57,500 

44.563 

102,063 

1915 

Feb.         1 

43,125 

43.125 

Aug.        1 

632,500 

57,500 

43,125 

100,625 

1916 

Feb.         1 

41,688 

41.688 

Aug.        1 

690,000 

57,500 

41,688 

99.188 

1917 

Feb.         1 

40,250 

40,250 

Aug.        1 

474,500 

57,500 

40,250 

97.750 

1918 

Feb.         1 

38.813 

38,813 

Aug.        1 

805,000 

57,500 

38.813 

96,313 

1919 

Feb.         1 

Z7,2,7S 

Z7.2,7S 

Aug.        1 

862,500 

57,500 

2>7SS 

94,875 

1920 

Feb.         1 

35.938 

35,938 

Aug.        1 

920,000 

57,500 

35.938 

93,438 

1921 

Feb.         1 

34,500 

34.500 

Aug.        1 

977,500 

57,500 

34,500 

92,000 

1922 

Feb.         1 

Z2>,062, 

33,063 

Aug.        1 

1,035,000 

57,500 

33.063 

90,563 

1923 

Feb.      ■   1 

31.625 

31.625 

Aug.        1 

1,092,500 

57,500 

31,625 

89,125 

1924 

Feb.         1 

30,188 

30,188 

Aug.        1 

1,150,000 

57,500 

30.188 

87,688 

1925 

Feb.         1 

28,750 

28,750 

Aug.        1 

1,207,500 

57,500 

28,750 

86,250 

1926 

Feb.         1 

27,313 

27.313 

Aug.        1 

1,265.000 

57,500 

27.313 

84,813 

1927 

Feb.         1 

25.875 

25,875 

Aug.        1 

1,322,500 

57,500 

25,875 

83.375 

1928 

Feb.         1 

24,438 

24,438 

Aug.        1 

1,380.000 

57,500 

24,438 

81,938 

*T 

his  table  is  r 

eproduced  from  t 

nat  printed  in  Wa 

ng,  p.  110. 

NUMBER  1898/20:  OCTOBER  10,  1898:  NOTES 


179 


Total  capital 

Capital 

Interest 

Total 

Year 

Date 

repaid  to  date 

payments 

payments 

payments 

£ 

£ 

£ 

£ 

1929 

Feb.         1 

23,000 

23,000 

Aug.        1 

1,437,500 

57,500 

23,000 

80,500 

1930 

Feb.         1 

21,563 

21,563 

Aug.         1 

1,495,000 

57,500 

21,563 

79,063 

1931 

Feb.         1 

20,125 

20,125 

Aug.         1 

1,552,500 

57,500 

20,125 

77,625 

1932 

Feb.         1 

18,688 

18,688 

Aug.        1 

1,610,000 

57,500 

18,688 

76,188 

1933 

Feb.         1 

17,250 

17,250 

Aug.        1 

1,667,500 

57,500 

17,250 

74,750 

1934 

Feb.         1 

15,813 

15,813 

Aug.        1 

1,725,000 

57,500 

15,813 

7Z,ZU 

1935 

Feb.         1 

14,375 

14,375 

Aug.        1 

1,782,500 

57.500 

14,375 

71,875 

1936 

Feb.         1 

12,938 

12,938 

Aug.         1 

1,840,000 

57.500 

12,938 

70,438 

1937 

Feb.          1 

11,500 

11,500 

Aug.        1 

1,897,500 

57,500 

11,500 

69,000 

1938 

Feb.         1 

10,063 

10,063 

Aug.        1 

1,955,000 

57.500 

10,063 

67,563 

1939 

Feb.          1 

8,625 

8,625 

Aug.         1 

2,012,500 

57.500 

8,625 

66,125 

1940 

Feb.         1 

7,188 

7.188 

Aug.        1 

2,070,000 

57.500 

7,188 

64,688 

1941 

Feb.         1 

5,750 

5,750 

Aug.        1 

2,127,500 

57,500 

5,750 

63,250 

1942 

Feb.         1 

4,313 

4,313 

Aug.        1 

2,185,000 

57,500 

4,313 

61,813 

1943 

Feb.         1 

2,875 

2.875 

Aug.         1 

2,242,500 

57,500 

2,875 

60,375 

1944 

Feb.         1 

1,438 

1,438 

Aug.         1 

2,300,000 

57,500 

1,438 

58,938 

2,300,000 

2,300.000 

2.702,520 

5,002,520 

Note  1. 

The  text  of  this  preliminary  agreement  is  reprinted  in  Rockhill.  p.  317,  from  China, 
1899,  No.  2,  p.  4,  as  follows : 

Preliminary  Loan  Agreement  for  Peking-Newchwang  Railway,  June  7,  1898. 

"  This  is  a  preliminary  Agreement  made  between  His  Excellency  Hu,  Governor  of 
Peking  and  Administrator-General  of  the  Imperial  Railways  of  North  China  within  and 
without  the  Great  Wall,  hereinafter  called  the  Administrator-General,  of  the  onepart;  and 
the  Hong  Kong  and  Shanghae  Banking  Corporation  representing  a  British  Syndicate  here- 
inafter called  the  Syndicate,  of  the  other  part. 

"  1.— The  Syndicate  is  hereby  authorized  by  the  Administrator-General  to  make  arrange- 
ments to  float  and  issue,  on  behalf  of  the  Railway  administration  on  the  best  terms  obtain- 
able on  the  market,  a  sterling  loan  for  the  equivalent  of  about  (16,000.000  taels),  for  the 
construction  of  a  railway-line  from  Chung-hou-sou  to  Hsin-ming-ting,  and  a  branch  line  to 
Ying-tzu,  and  for  the  "redemption  of  existing  loans  to  the  Tien-tsin-Shan-hai-kuan  and 
Tien-tsin-Lu-kou-chiao  lines. 

"2.— The  security  for  the  loan  shall  be  the  permanent  way,  rolling-stock,  and  entire 
property,  together  with  the  freight  and  earnings  of  the  existing  lines  between  Peking,  Tien- 
tsin, Tang-ku,  and  Chung-hou-sou,  and  also  of  the  proposed  new  lines  when  constructed,  in 


180  CHINA  TREATIES  AND  AGREEMENTS 

addition  to  the  rights  of  mining  coal  and  iron,  which  will  be  retained  by  the  Railway 
administration  on  each  side  of  the  proposed  new  lines,  for  a  distance  to  be  determined. 
In  the  event  of  default  or  arrears  in  payment  of  interest  or  repayments  of  principal,  the 
said  railway  lines  and  mines  shall  be  handed  over  to  representatives  deputed  by  the  Syndicate, 
to  manage  them  on  their  behalf,  until  principal  and  interest  of  the  loan  are  redeemed  in 
full,  when  the  management  will  revert  to  the  Railway  Administration. 

"  It  will,  however,  be  provided  that  if  such  arrears  are  for  a  small  sum,  and  it  appears 
desirable  to  the  Syndicate  to  extend  the  due  date  of  their  payment  for  a  term  not  exceeding 
three  months,  it  shall  be  open  to  the  Syndicate  to  do  so. 

"  In  the  event  of  any  special  circumstances  arising  necessitating  the  introduction  of 
important  changes  by  the  management  aforesaid,  these  changes  shall  be  effected  in  con- 
sultation with  the  Administrator-General,  and  in  the  best  interests  of  the  railway.  In  the 
case  of  war  or  famine,  troops  and  grain  will  be  transported  over  the  lines  on  terms  to  be 
arranged  hereafter. 

"  No  further  loan,  charge,  or  mortgage  shall  be  charged  on  the  security  named  above 
until  this  loan  is  redeemed. 

"  3. — During  the  currency  of  their  loan,  the  principal  members  of  the  railway  staff 
shall  be  capable  and  experienced  Europeans  who  shall  be,  as  at  present,  appointed  by  the 
Administrator-General  of  the  Railway,  and  may  be,  in  the  event  of  their  misconduct  or 
incompetency,  dismissed,  after  consultation  with  the  Chief  Engineer.  If  there  are  Chinese 
with  sufficient  engineering  or  traffic  experience,  they  may  be  appointed  as  well  as  Europeans. 
Should  it  be  necessary  to  appoint  a  new  Chief  Engineer,  such  appointment  shall  be  made 
in  consu'tation  with  the  Syndicate. 

"  In  addition  to  above,  a  capable  and  experienced  European  railway  accountant  shall 
be  appointed  to  inspect  all  the  accounts  of  the  railways. 

"  All  receipts  and  earnings  of  the  lines  herein  specified  shall  be  paid  into  the  credit  of 
the  Railway  Administration  with  the  Hong  Kong  and  Shanghae  Banking  Corporation,  Tien- 
tsin, together  with  50,000  taels  annually  payable  under  the  Board  of  Revenue's  arrange- 
ment, approved  by  the  Throne,  by  each  of  the  Provinces  of  Shansi,  Shensi,  Honan,  and 
Anhui   for  railway  purposes   for  ten  years. 

"  All  expenses  of  repairing  and  maintaining  lines  will  be  paid  from  this  account,  the 
remainder  of  which   shall  then  be  charged  with  the  service  of  this  loan. 

"4. — The  rate  of  interest,  price,  term  of  years,  and  other  particulars  shall  be  left  to  the 
Syndicate  to  arrange  on  the  best  terms  possible  on  the  market  when  the  moment  appears 
favourable  for  floating  the  loan.  Instalments  of  proceeds  will  be  arranged  as  far  as  possible 
to  suit  the  progress  of  construction  and  the  requirements  of  the  Administrator-General, 
interest  being  calculated  from  the  date  of  such  payments.  The  Loan  will  be  redeemable 
by  annual  drawings  to  be  scheduled  in  the  final  Agreement.  Besides  the  drawings  so 
scheduled,  the  Administrator-General  may  from  time  to  time,  on  giving  due  notification 
to  the  Syndicate,  call  for  extra  drawings  to  be  held,  bonds  so  drawn  being  redeemed  by 
the  Railway  Administration  at  20  per  cent,  premium  on  their  par  value. 

"  5. — If  it  should  be  found  that  the  Loan  cannot  be  floated  without  the  introduction  of 
some  special  attraction,  the  Administrator-General  shall  m'-morialize  the  Throne,  recom- 
mending that  a  Concession  of  mining  rights  be  granted  to  the  Syndicate  at  a  point  or  points 
on  the  lines,  and  on  terms  to  be  arranged  with  the  Syndicate  on  the  basis  of  the  mining 
Regulations  newly  established  by  the  Tsung-li  Yamen.  The  requests  of  the  Syndicate  will  be 
confined  to  mines  within  a  distance  of  5  li  of  the  railway. 

"6. — The  date  of  issue  of  this  loan  shall  be  left  t'o  the  discretion  of  the  Syndicate, 
to  be  fixed  in  accordance  with  the  state  of  the  market,  but  should  it  be  found  impossible 
to  issue  it  before  the  1st  day  of  October  next,  the  Syndicate  will  arrange  to  advance  to  the 
Administrator-General  on  or  about  that  date,  an  instalment  of  about  2,000,000  taels  on 
account  of,  and  repayable  out  of  the  proceeds  of  the  loan  when  floated.  The  terms  of 
this  advance  shall  be  left  to  the  arrangement  of  the  Syndicate  on  the  best  terms  obtainable, 
interest  not  to  exceed  the  rate  of  5?/  per  cent,  per  annum,  and  the  Syndicate  shall  be 
authorized  to  issue  temporary  bonds  for  the  amount  if  required. 

"7. — For  the  satisfaction  of  the  investing  public  who  are  unacquainted  with  China,  a 
satisfactory  report  will  be  required  from  District  Engineer,  Mr.  J.  Ginnell,  as  to  the  con- 
dition and  earning  power  of  the  old  lines,  and  as  to  the  route,  prospects,  and  mineral  wealth 
of  the  new  lines  to  be  constructed,  and  Mr.  Ginnell  shall  be  instructed  by  the  Administrator- 
General  to  proceed  to  London  as  soon  as  possible  after  the  signing  of.  this  preliminary 
Agreement,  to  confer  with  the  Syndicate  on  these  matters. 

"  8. The  terms   of  this   preliminary   Agreement  will,    immediately  after   signature,  be 

submitted  by  the  Administrator-General  to  the  Throne  for  sanction  by  Imperial  Edict, 
which  shall  be  officially  comniunicated  by  the  Tsung-li  Yamen  to  the  British  Minister  in 
Peking. 

"  9. — Three  months  from  the  date  of  signature  of  this  preliminary  Agreement  shall 
be  allowed  to  the  Syndicate  to  accept  or  decline  its  terms.  Upon  their  confirmation  by  the 
Syndicate,  this  preliminary  Agreement  shall  be  replaced  by  a  definitive  Agreement,  pro- 
viding for  all  details. 


NUMBER  1898/20:  OCTOBER  10,  1898:  NOTES  181 

"  Signed  at  Peking,  this  7th^  day  of  June,  1898,  being  the  19th  day  of  the  4th  moon  of 
the  24th  year  of  the  Emperor  Kuang  Hsii. 

"  (Seal  of  Administrator-General  of  Railways  within 
and  without  the  Shan-hai-kuan  boundary.) 
"  For  the  Hong  Kong  and  Shanghae  Banking  Corporation, 

"(Signed)  E.  G.  Hillier,  Agent." 


Note  2. 

This  statement  is  given  in  IVang,  p.  109,  as  follows : 

STATEMENT  of  loans  and  advances  by  Foreign  Banks  to  the  Imperial  Railways  Ad- 
ministration to  be  redeemed  in  terms  of  this  Contract. 

"  By  the  Hongkong  and  Shanghai  Banking  Corporation 
2nd  Xov.  1894  to  Shanhaikuan  section  Hongping      Tls.  200,000. 
23rd  Oct.  1896  to  Lukouchiao  section  "  Tls.  400,000. 

8th  June   1897  to  Lukouchiao  section  Kuping  Tls.  300.000. 

8th  June   1897  to  Railway  Bonds  "  Tls.  140,000. 

Tls.     30.000. 
3rd  Dec.    1897  to  Peking  section  "  .  Tls.  200,000. 

■■  By  the  Russo-Chinese  Bank 
One  due  January  1900  Hongping    Tls.  200,000. 

One  repayable  by  monthly 
Instalments  of  Tls.  10,000. 
commencing  1898  "  Tls.  400,000. 

"  By  the  Deutsch-Asi.\tische  Bank 
One  due  Spring  1899    £90,000  say  Hongping    Tls.  700,000. 

"  Due  to  Jardine,  Matheson  and  Co.  Tientsin  Tls.  240,000." 


Note  3. 

The  agreement  for  a  concession  for  the  operation  of  the  Nan-P'iao  mines  was  con- 
cluded on  October  10,  1898,  in  terms  reprinted  in  Rockhill,  p.  328,  from  China,  iSgg,  No.  2, 
p.  40,  as  follows  : 

Agreement  for  Concession  for  Nan-P'iao  Mines. — October  lo,  1898. 

"This  is  an  Agreement  between  his  Excellency  Hu,  Governor  of  Peking,  Administrator- 
General  of  the  railways  of  North  China,  within  and  without  Shan-hai-kuan,  hereinafter 
called  the  '  Administrator-General,'  of  the  one  part,  and  the  Hong  Kong  and  Shanghae 
Banking  Corporation,  for  themselves  and  on  behalf  of  the  British  firm  of  Jardine,  Matheson, 
and  Co.,  representing  as  joint  agents  the  British  and  Chinese  Corporation  (Limited),  here- 
inafter called  the  '  Corporation,'  of  the  other  part. 

"  1. — The  Administrator-General  having  purchased  the  coal  mines  known  as  Shang 
P'iao,  Chung  P'iao,  and  Hsia  P'iao,  at  Nan  P'iao,  in  the  district  of  Ch'ao  Yang,  now  enters 
into  an  Agreement  with  the  Corporation  to  operate  the  same  on  joint  account.  Any  other 
mines  in  the  neighbourhood  of  the  above,  or  the  railway  line  between  Nu-erh-ho  and  Nan 
P'iao,  and  between  Nan  P'iao  and  Chinchou  that  may  subsequently  be  acquired  by  purchase  or 
otherwise  by  the  Administrator-General,  shall  also  come  under  the  terms  of  this  Agreement 
for  operation  either  on  joint  account  or  by  the  Corporation  alone,  it  being  always  provided 
that  all  operations  under  the  terms  of  this  Agreement  are  optional  to  the  Corporation,  and 
subject  to  a  favourable  report  from  its  Mining  Engineer. 

"2. — The  Corporation  shall  send  its  own  Alining  Engineer  as  soon  as  possible  to  examine 
the  property  acquired,  and  will  indicate,  after  consultation  with  the  Administrator-General 
and  the  Chief  Engineer  of  the  Railway  Administration,  the  points  at  which  it  is  desirable 
to  sink  shaft  and  commence  operations.  The  IMining  Engineer  of  the  Corporation  will  also 
make  a  survey  of  the  whole  area  above  named,  with  a  view  to  the  extension  of  operations, 
and  on  the  receipt  of  his  Report  upon  the  same,  the  Administrator-General  will  take  immedi- 
ate steps  for  the  purchase  of  the  necessary  property  at  the  points  recommended  in  the 
Report.  No  compulsion  shall  be  used  in  the  purchase  of  such  property  if  the  owner  refuses 
to  part  with  it,  but  in  such  case  it  will  be  arranged  that  the  Administrator-General  shall  have 
the  first  refusal  thereafter. 

"  3.— An  estimated  capital  of  1,000,000  Kung-p'ing  taels  for  the  opening  and  working 
of  the  mines  shall  be  provided  in  equal  shares  by  the  Administrator-General  and  the  Corpor- 
ation, either  by  private  subscription,  the  public  issue  of  script,  or  in  such  other  manner  as 


182  CHINA  TREATIES  AND  AGREEMENTS 

each  party  may  deem  necessary  in  its  own  interests.  Of  the  estimated  capital  of  1,000,000 
taels  the  sum  of  125,000  taels  shall  be  deposited  by  the  Corporation  at  the  Hong  Kong 
and  Shanghae  Bank,  London,  in  f  sterling  not  later  than  the  30th  November,  1898,  and 
the  sum  of  125,000  taels  shall  be  deposited  by  the  Administrator-General  at  the  Tien-tsin 
branch  of  the  same  bank  on  or  before  the  same  date.  The  balance  of  the  estimated  capital, 
namely,  750,000  taels,  shall  be  similarly  provided  in  equal  shares  by  each  party  not  later 
than  the  30th  November,  1899.  All  such  deposits  shall  be  held  by  the  bank  to  the  order  of 
the  Corporation  for  the  purchase  of  plant  and  the  opening  and  working  of  the  mines. 
Should  an  increase  of  capital  be  found  necessary  later  on,  it  shall  be  similarly  provided  In 
equal  shares  by  the  Administrator-General  and  the  Corporation. 

"4. — The  construction  of  the  branch  line  from  Nu-erh-ho  to  the  Nan  P'iao  collieries 
will  be  carried  out  by  the  Administrator-General  in  terms  of  his  Agreement  with  the 
Corporation   for  the   Shan-hai-kuan-Newchwang  main   line  and   dependencies. 

"  5. — All  matters  of  exploitation,  administration,  employes,  and  finances  shall  be  under- 
taken by  the   Corporation   in  co-operation  with  the   Administrator-General   of   Railways. 

"  6. — The  mines  shall  have  one  foreign  Manager,  appointed  by  the  Corporation,  and  one 
Chinese  Manager,  appointed  by  the  Administrator-General ;  the  foreign  Manager  will  con- 
trol the  works,  and  the  Chinese  Manager  will  attend  to  all  questions  between  natives  and 
foreigners. 

"  Accounts  shall  be  kept  on  the  foreign  system  by  an  European  Accountant. 

"  All  receipts  and  payments  of  money  will  be  controlled  by  the  foreign  Manager,  and 
audited  by  the  Chinese  Manager. 

"  Chinese  shall  be  employed  in  the  mines  as  much  as  possible,  and  where  aptitude  is 
shown,  opportunity  will  be  given  to  Chinese  to  fit  themselves  for  posts  of  responsibility. 

"  7. — The  royalty  and  taxes  to  be  paid  by  the  mines  are  restricted  to  the  following : — 

(1.)  To   the   Taotai   of   Jehol   an    annual    fee   of    15    taels. 

(2.)  To  the  Imperial  Government  of  China  a  royalty  of  5  per  cent,  of  the  output  of 
coal,  or  its  value,  at  the  pit's  mouth. 

(3.)  To  the  Mongolian  Chief  of  the  district  a  commuted  payment  of  1,500  taels 
per  annum. 

(4.)  Duty  payable  by  the  Shang,  Chung,  and  Hsia  P'iao  mines,  amounting  to  a  total 
sum  of  790  taels  per  annum. 

"  8. — Machinery  and  materials  required  for  the  use  of  the  mines  shall  pay  one  customs 
duty  and  a-half  on  importation,  in  accordance  with  the  Regulations  of  the  Kaiping  mines, 
and  shall  thereafter  be  free  from  all  li-kin  or  other  imposts  whatever.  The  products  of  the 
mines  when  exported  from  a  seaport,  shall  pay  export  duty  according  to  the  Customs  Tariff 
on  the  produce  of   Chinese  Government  mines. 

"  9. — The  Railway  Administration  agrees  to  carry  over  its  lines  the  output  of  the  mines 
at  rates  not  exceeding  a  basis  of  720  big  cash  per  ton  from  Nan  P'iao  to  Nu-erh-ho  up  to 
a  monthly  tonnage  of  30,000  tons,  anything  above  that  quantity  to  be  carried  at  25  per 
cent,  discount  on  this  Tariff,  and  10  big  cash  per  ton  per  mile  on  the  main  lines.  These 
rates  include  conveyance  of  the  coal  from  the  junction  of  colliery  sidings  to  the  Mining 
Company's  yard  at  Yingkou,  the  filling  and  discharge  of  cars  being  done  by  the  Mining 
Company.  These  rates  may  be  modified  from  time  to  time  by  arrangement  between  the 
Administrator-General,  the  Chief  Engineer  of  the  Railways,  and  the  Corporation ;  cases  of 
dispute  shall  be  referred  to  an  arbitrator  to  be  agreed  upon  by  the  parties  concerned,  and 
so  far  as  they  refer  to  the  handling  of  coal  at  the  mines,  wharves,  docks,. &c.,  the  rules 
of  the  Kaiping  mines  shall  be  taken  as  a  precedent. 

"  10. — In  consideration  of  the  special  transport  rates  given  by  the  Railway  Administration 
to  the  Mining  Company,  that  Company  will  provide  fuel  to  the  railway  at  the  following 
rates : — 

(1.)  Best  hand-picked  lump  coal  for  locomotives,  4,000  big  cash,  free  in  cars,  per 
ton  at  colliery. 

(2.)  Ordinary  lump  coal  for  stationary  boilers,  &c.,  3,000  big  cash,  free  in  cars,  per  ton 
at  colliery. 

(3.)  Small  coal  for  kilns  and  tank  heating,  2,200  big  cash,  free  in  cars,  per  ton  at 
colliery. 

(4.)   Best  coke,  8,000  big  cash,   free  in  cars,  per  ton  at  colliery. 

Other  qualities  to  be  arranged  on  the  above  basis  of  charges,  as  may  be  from  time 
to  time  necessary. 

"11. — In  matters  of  compensation  to  miners  for  injuries,  of  limit  of  working  hours, 
&c.,  the  Corporation  shall  be  guided  by  European  and  American  Mining  Regulations  bear- 
ing on  these  questions,  so  far  as  these  are  applicable. 

"  12. — Should  the  Corporation  desire  to  issue  a  prospectus  for  the  mines  and  invite 
subscriptions  from  the  public  at  any  time,  the  Administrator-General  will  grant  his 
official  seal  to  such  documents  as  may  be  necessary  for  the  ratification  to  the  public  of  the 
Corporation's  rights. 

"  13. — Wherever  it  shall  be  necessary  to  construct  roads,  bridges  or  accessories  neces- 
sary for  the  working  of  the  mines,  or  for  the  transport  of  their  produce,  the  Corporation 


NUMBER  1899/1 :  APRIL  14,  1899  183 

will  notify  the  Administrator-General,  who  shall  thereupon  make  prompt  arrangements  with 
the  local  officials  to  facilitate  the  carrying  out  of  the  same. 

"  14. — At  the  end  of  every  half-year,  an  account  of  profit  and  loss,  signed  by  the 
foreign  and  Chinese  Managers,  shall  be  rendered  to  the  Administrator-General.  All  the 
working  expenses  of  the  mines,  deterioration  of  plant,  salaries  of  Europeans  and  Chinese 
staff,  the  royalty  and  taxes  on  output,  customs  import  and  export  dues,  and  disburse- 
ments of  every  nature  shall  be  placed  to  the  debit  of  this  account,  the  net  balance  of 
which,  if  a  profit  shall  be  shared  equally  by  the  Administrator-General  and  the  Corpora- 
tion,  if   a   loss,    will    fall   equally   on   both   parties. 

"  15. — Immediately  after  the  signature  of  this  Agreement  the  Administrator-General 
will  memorialize  the  Throne,  and  obtain  an  Imperial  Edict  confirming  and  sanctioning  the 
provisions  of  this  Agreement. 

The  Imperial  Edict  so  received  will  be  then  communicated  officially  and  without  delay 
by  the  Tsung-li  Yamen  to  the  British  ^Minister  at  Peking,  that  he  may  take  the  usual 
steps  with  regard  to  commercial  undertakings. 

"  16. — This  Agreement  is  executed  in  quadruplicate,  in  English  and  Chinese,  one  copy 
to  be  retained  by  the  Administrator-General,  one  by  the  Tsung-li  Yamen,  one  by  the 
British  Minister  at  Peking,  and  one  by  the  Corporation.  Should  any  doubt  arise  as  to  the 
interpretation  of  the  contract  the  English  text  shall  be  accepted  as  the  standard. 

"  Signed  at  Peking  by  the  Contracting  Parties  this  twenty-fifth  day  of  the  eighth 
month  of  the  twenty-fourth  year  of  the  Emperor  Kuang  Hsii,  being  the  tenth  day  of  October, 
one  thousand  eight  hundred  and  ninety-eight.  Western  Calendar. 

(Seal  of  the  Railway  Administration.) 

"  (For  the  Hong  Kong  and   Shanghae  Banking  Corporation.) 

"  (Signed)  E.  G.  Hillier, 

"Agent,  Attorney  for  the  Btitish  and  Chinese  Corporation  {Limited.)  " 

Consult  the  Agreement  of  March  25,  1908  (Xo.  1908/5,  post)  in  regard  to  the  abandon- 
ment of  this  project. 


NUMBER  1899/1. 

GREAT  BRITx\IN  (Mr.  Pritchard  Morgan)  AND  CHINA  (Hua  Yi  Company 

and  Hui  Tung  Company). 

Regulations  for  the  working  of  mines  in  Szechuan,  under  Chinese  and  foreign 

direction/^— April  14,  1899. 

1. — The  Szechuan  Mining  Bureau  establishes  the  Hua  Yi  Company,  by 
whom  an  Agreement  is  drawn  up  with  the  Hui  Tung  Company  that  the  work 
is  to  be  done  by  Chinese  and  foreigners  conjointly  to  their  mutual  benefit.  Prof- 
its are  to  be  divided  proportionately,  so  as  to  avoid  trouble  and  disputes. 

Both  Companies  shall  obey  all  the  Regulations  mentioned  in  the  Agree- 
ment and  the  existing  Rules  memorialized  and  adopted  by  the  head  office. 

2.— The  Hua  Yi  Company  is  to  subscribe  a  sum  of  1.000,000  taels  for  the 
purchase  of  land.     This  must  be  Chinese  and  not  foreign  inoney. 

This  Company  is  to  btiy  and  own  all  mining  lands  and  carry  out  all  negotia- 
tions. The  Hui  Tung  Company  have  no  interest  in  the  prices  of  land,  whether 
dear  or  cheap,  nor  with  the  amount  of  capital  spent  or  reserved.  When  the  Hua 
Yi  Company  has  bought  the  land  and  obtained  the  right  to  open  mines,  the  same 
is  to  be  handed  over  to  the  Hui  Tung  Company  for  working.     In  the  Hui  Tung 

*Text  as  reprinted  in  Rockhill,  p.  348,  from  China,  1900,  No.  1,  p.  135.     Printed  also 
in  the  F.  E.  Review,  vol.  11,  p.  32.    See  also  China,  1899,  No.  1,  passim. 


184  CHINA  TREATIES  AND  AGREEMENTS 

Company  there  are  foreign  merchants ;  they  are  not  to  be  allowed  to  buy  mining 
property  from  any  other  Chinese,  so  as  to  avoid  all  complications. 

3. — The  Hui  Tung  Company,  with  a  Chinese  Managing  Director  and  a 
foreign  Assistant  Director,  is  to  prepare  a  working  capital  of  10,000,000  taels,  to 
be  formed  first  of  50  per  cent.  Chinese  shares  and  next  50  per  cent,  of  foreign 
shares. 

Shareholders  of  all  nationalities  are  allowed  to  take  shares  out  of  the  50 
per  cent,  allotted  to  foreigners.  There  can  be  no  monopoly  for  any  one  country. 
Now  Mr.  Morgan,  an  English  merchant,  has  taken  shares,  and  undertakes  to 
assist  in  carrying  out  the  work.  Shareholders  of  all  other  nationalities  who 
should  hereafter  take  shares  will  be  supplied  with  share  certificates,  paid  divid- 
ends, and  refunded  capital  according  to  the  number  of  shares  they  take.  Should 
any  other  country  also  start  a  Company  on  the  same  lines,  with  both  Chinese 
and  foreign  shareholders,  the  mines  of  the  one  Company  will  have  to  be  kept 
distinct  from  those  of  the  other.  Different  Prefectures  and  districts  will  be 
granted  to  each  Company  to  work  in,  and  their  proceedings  should  be  regularly 
reported  to  the  head  office,  but  the  Rules  and  Regulations  of  this  Agreement 
must,  however,  be  complied  with  by  all  to  prevent  any  unfairness.  Any 
Company  composed  of  foreign  shareholders  only  and  no  Chinese  shareholders 
shall  not  be  allowed  to  work  any  mines. 

4- — The  Hui  Tung  Company  is  to  send  out  mining  engineers  to  find  out 
what  mines  are  worth  opening.  This  Company  is  then  to  consult  with  the 
Hua  Yi  Company  to  make  maps  and  insert  explanations,  and  submit  the  same 
to  the  Mining  Bureau  of  Szechuan.  If  these  mines  are  not  already  being 
worked  by  officials,  gentry,  or  merchants,  and  if  they  are  not  injurious  to  the 
place,  land  is  to  be  at  once  bought;  such  land  is  only  to  be  enough  for  the 
shafts  and  the  necessary  buildings.  If  the  lands  belong  to  the  people,  the  lease 
or  purchase  shall  be  made  by  the  Hua  Yi  Company  by  arrangement  with  the 
owners  for  a  reasonable  price.  It  can  also  be  taken  as  a  subscription  of  capital, 
and  a  proportionate  value  of  shares  granted  to  the  owner.  If  it  be  public  property, 
such  as  a  monastery,  temple,  &c.,  the  owners  have  the  option  of  leasing  it,  rent- 
ing it,  or  subscribing  it  as  capital.  The  Hui  Tung  Company  must  wait  till 
land  is  properly  purchased  before  starting  work,  and  no  compulsory  pur- 
chase or  seizure  of  the  land  will  be  allowed. 

5. — After  each  mining  property  is  bought  by  the  Hua  Yi  Company,  it  is 
to  be  handed  over  to  the  Hui  Tung  Company  for  working.  From  the  mines 
worked  by  the  Hui  Tung  Company,  such  as  coal,  iron,  petroleum,  &c.,  the 
Hua  Yi  Company  is  allowed  to  collect  rent  at  the  rate  of  5  per  cent,  on  the 
value  of  the  output,  no  matter  whether  such  mines  make  money  or  not.  To 
reckon  the  producing  capacity  and  the  prices  of  products,  whether  dear  or 
cheap,  the  rent  is  to  be  paid  on  the  real  price  at  which  the  Hui  Tung  Company 
sells  the  products.  The  value  must  not  be  underestimated,  and  any  undue  advan- 
tage gained.  With  regard  to  gold  sand  obtained  from  gold  mines,  a  rent  of 
5  per  cent,  will  be  charged  on  the  pure  gold  obtained  after  the  gold  sand  has 
been  thoroughly  washed,  but  not  on  the  sand  before  it  has  been  washed. 

6. — Of  the  mines  worked  by  the  Hui  Tung  Company,  such  as  coal,  iron, 


NUMBER  1899/1 :  APRIL  14,  1899  185 

petroleum,  &c.,  there  shall  be  paid  to  the  Chinese  Government,  as  producer's  tax, 
5  per  cent,  on  the  value  of  the  output  of  the  mines.  Export  duty  shall  be 
paid  according  to  the  existing  Rules  now  in  force.  The  Szechuan  Mining 
Bureau  shall  authorize  the  Hua  Yi  Company  to  collect  the  producer's  tax  and  to 
compare  the  same  with  the  rent,  and  thus  there  will  be  no  difference  or 
shortage.  No  officer  shall  be  deputed  for  this  purpose,  so  as  to  save  unneces- 
sary expense.  The  export  duty  is  to  be  collected  by  the  custom-house,  and 
after  the  export  duty  is  paid,  no  inland  li-kin  dues  will  be  required.  As  regards 
the  taxes  to  be  charged  on  precious  metals  of  all  kinds,  they  are  to  be  decided 
by  the  Board  of  Revenue. 

7. — The  Hui  Tung  Company  is  to  send  engineers  to  find  out  all  the  mines 
that  are  to  be  opened  and  to  consult  with  the  Hua  Yi  Company,  which  submits 
the  same  for  the  approval  of  the  Mining  Bureau.  Should  a  mine  be  found  in 
a  Government  hill,  the  opening  of  which  will  not  be  injurious  to  the  place,  per- 
mission will  be  granted  to  open  it.  The  ordinary  land  tax  on  such  land  would, 
however,  be  too  small  a  sum  for  the  Company  to  pay  the  Government  for  its  use. 
In  the  case  of  Government  land,  therefore,  the  5  per  cent,  rent  and  the  5  per 
cent,  producer's  tax  are  to  be  collected  at  the  same  time,  and  both  paid  to  the 
Chinese  Government;  but  10  per  cent,  of  the  rent  is  to  be  reserved  to  pay  the 
expenses  of  the  Mining  Bureau  and  the  Hua  Yi  Company.  The  Hui  Tung 
Company  is  to  pay  the  export  duty. 

8. — The  area  of  Szechuan  is  very  extensive,  and  all  sorts  of  mines  exist. 
Chinese  who  work  on  their  own  property  are  only  required  to  obtain  the  neces- 
sary permission,  pay  the  necessary  taxes,  according  to  the  Rules  in  force,  and 
they  are  in  no  way  restrained.  But  if  foreign  merchants  undertake  to  work 
the  mines,  their  operations  must  be  limited  in  some  way  or  other.  They  must 
confine  themselves  to  certain  intendancies,  prefectures,  or  districts,  and  not  take 
the  whole  province  as  their  sphere  of  work.  Now  work  must  be  started  in  the 
interior  first,  and  at  the  boundaries  afterwards.  The  Hui  Tung  Company  shall 
then  send  engineers  to  find  out  first  where  are  mines  to  be  opened  and  what 
mines  they  are :  if  the  same  be  in  districts  apportioned  to  savages,  the  Hui  Tung 
Company  must  wait  till  they  find  out  whether  the  advantage  will  be  greater 
than  the  injury,  and  devise  other  means  to  open  them.  The  Hui  Tun^ 
Company  in  such  event  cannot  compel  the  Hua  Yi  Company  to  buy  the  land 
quickly  and  hand  it  over  for  working.  Any  possible  cause  of  disturbance  must 
be  avoided. 

9. — When  prospecting  for  mines,  if  any  boring  or  sinking  of  shafts  be  neces- 
sary to  examine  mineral  deposits,  an  arrangement  should  first  be  made  by  the 
Hua  Yi  Company  with  the  land-owner  for  the  Hui  Tung  Company  to  compensate 
him  according  to  market  prices  for  any  crops,  &c.,  injured.  After  the  mines 
are  opened,  should  there  be  any  damage  to  life  or  buildings  caused  by  land- 
slips or  subsidence  in  the  mines,  the  Hui  Tung  Company  shall  make  charitable 
compensation.  If  after  mines  are  opened  cemeteries  or  mortuary  shrines  are 
met  with,  some  plan  must  be  devised  to  avoid  them  if  the  owners  do  not  like 
to  remove  them  for  money  given ;  no  excavation  will  be  allowed.  In  excavating, 
as  long  as  the  galleries  dug  below  the  ground  are  not  injurious  to  the  soil  above, 


186  CHINA  TREATIES  AND  AGREEMENTS 

rascals  are  not  to  be  allowed  to  obstruct  the  work  on  the  grounds  that  it  is  in- 
jurious to  "  Feng  Shui."  Local  authorities  must  be  applied  to  for  protection. 
The  Hui  Tung  Company  is  not,  however,  allowed  to  claim  compensation  on 
these  grounds  in  case  it  cannot  succeed. 

10. — Whenever  it  may  be  necessary  to  make  roads,  build  bridges,  open  or 
deepen  rivers,  erect  sheds,  make  tools,  or  other  necessaries  for  mining  purposes, 
and  land  is  required  for  such  purposes,  the  Hua  Yi  Company  is  to  buy  the  land 
and  the  Hui  Tung  Company  to  pay  for  it.  If  water  power  is  required  for 
machinery,  and  enormous  work  is  done  on  it,  no  other  person  is  allowed  to  make 
use  of  it.  If  branch  railways  have  to  be  constructed  in  order  to  connect  the 
mines  with  the  usual  trade  routes,  a  thorough  survey  must  be  made  of  the  pro- 
posed lines  and  maps  drawn  with  explanations  attached.  These  must  be 
submitted  to  the  Mining  Bureau,  which  will  forward  them  to  the  Szechuan  Vice- 
roy and  head  office  at  Peking  for  record  and  sanction.  Nothing  of  the  kind 
should  be  undertaken  without  such  sanction.  If  telegraphs  and  telephones  are 
wanted  for  connecting  the  various  mines,  the  same  are  to  be  submitted  to  the 
Mining  Bureau  for  approval. 

11. — The  Hua  Yi  Company  is  to  deal  with  all  matters  of  negotiation,  and 
the  collection  of  rent  and  taxes ;  the  Hui  Tung  Company  to  superintend  and 
work  all  mines.  Each  has  its  own  sphere  of  work,  but  each  Company  may  in- 
quire into  the  other's  aflfairs.  A  Chinese  Manager  and  a  foreign  Manager  should 
be  appointed  for  each  mining  work,  whose  salaries  shall  be  paid  by  the  Hui 
Tung  Company.  The  majority  of  the  overseers  should  be  Chinese,  and  all  the 
miners  natives  of  the  province.  All  are  to  receive  adequate  wages,  and  further 
Rules  must  be  made  on  this  subject  by  the  Hua  Yi  and  Hui  Tung  Companies. 
Later  on,  the  Mining  Bureau  should  instruct  the  Company  to  select  for  important 
positions  any  Chinese  who  may  have  become  proficient  in  mining  engineering. 
They  are  to  be  treated  the  same  as  foreigners,  to  encourage  improvement. 

12. — On  opening  the  mines,  the  Hui  Tung  Company  shall  establish  a  School 
of  Mining  and  Railway  Engineering  in  some  locality  convenient  to  the  mines, 
and  there  shall  be  selected  twenty  or  thirty  promising  youths  by  the  local 
officials  and  gentry  to  study  in  this  school,  under  foreign  instructors,  and  be  thus 
prepared  for  future  employment  on  railways  and  in  mines. 

13. — At  places  where  mines  are  opened,  the  Mining  Bureau  should  apply 
to  the  local  authorities  for  protection.  Such  mines  should  also  obey  their  rules, 
and  enrol  volunteers  to  guard  against  thieves,  &c.  If  the  natives  should  enrol 
themselves  as  volunteers  of  their  own  accord  to  protect  the  localities,  the  Hui 
Tung  Company  should  also  subscribe  towards  their  expenses. 

14. — The  Mining  Bureau,  acting  as  intermediary  between  the  superiors  and 
subordinates,  is  to  attend  to  all  negotiations  between  natives  and  foreigners  and 
matters  of  protection.  The  work  involved,  as  well  as  the  expenses,  will  be 
great.  The  Hui  Tung  Company  should  therefore  start  work  within  three  months 
after  the  signing  of  this  Agreement,  and  pay  the  Mining  Bureau  the  sum  of 
100  taels  per  month  for  its  working  expenses  for  each  mine,  reckoning  from 
the  day  when  work  is  started.  There  will  be  no  other  charges  besides  this.  If 
work  be  not  started  after  six  months  this  Agreement  is  considered  cancelled,  and 


NUMBER  1899/1:  APRIL  14,  1899  187 

the  Hua  Yi  Company  will  be  at  liberty  to  invite  other  merchants  to  take  up 
the  work.f    It  will  be  no  concern  of  the  Hui  Tung  Company. 

15- — The  Hui  Tung  Company  shall  work  all  the  mines  according  to  the  exist- 
ing Rules  adopted  by  the  head  office.  After  paying  the  producer's  tax  and  the 
export  duty,  if  there  should  be  a  profit  by  the  annual  accounts,  there  shall  first 
be  paid  6  per  cent,  interest  on  the  capital  employed,  next  10  per  cent,  of  the  re- 
mainder of  the  profit  shall  be  set  aside  as  a  sinking  fund  for  the  yearly  repayment 
of  capital  and  consequent  reduction  of  interest,  payments  to  sinking  fund  ceasing 
when  the  invested  capital  is  wholly  repaid,  and  from  the  remaining  net  profit 
25  per  cent,  shall  be  paid  to  the  Chinese  Government,  and  the  remainder  shall 
go  to  the  Hui  Tung  Company  for  its  own  disposition. 

16. — The  Hui  Tung  Company  is  to  open  not  one  mine,  but  a  large  number. 
The  accounts  and  profits  of  each  mine  must  be  kept  distinct  from  the  others ;  the 
gains  of  one  mine  should  not  be  made  to  offset  the  losses  of  another,  and  so 
cause  the  Government  income  to  suffer  reduction. 

17. — At  the  end  of  every  year,  the  Hui  Tung  Company  shall  make  up 
distinct  accounts  of  the  different  mines,  whether  profitable  or  not,  and  the  same 
must  be  audited  by  the  foreign  and  Chinese  Managers,  and  when  found  correct, 
a  printed  account  of  profit  and  loss  shall  be  rendered  by  each  mine  to  the 
Mining  Bureau  for  approval.  A  general  account  of  profit  and  loss  for  all  the 
mines  shall  then  be  prepared  and  submitted  to  the  head  office  at  Peking,  the 
Board  of  Revenue,  and  the  Viceroy  of  Szechuan  for  audit.  Payments  due  to 
the  Government  shall  be  remitted  at  the  same  time.  The  report  shall  show 
the  real  amount  of  money  due  to  the  Government  in  order  to  avoid  all  discrep- 
ancies in  the  accounts.  The  Chinese  Government  and  the  Hua  Yi  Company  are 
not  to  be  held  responsible  in  case  of  loss. 

18. — The  Hui  Tung  Company  is  to  have  control  of  all  the  mines  opened  by 
them  for  a  period  of  fifty  years,  reckoning  from  the  date  on  which  each  mine  is 
opened,  on  expiration  of  which  term  all  the  mines,  whether  profitable  or  not, 
shall,  with  all  plant,  machinery,  materials,  buildings,  roads,  and  all  property  ac- 
quired by  the  capital  of  the  mines,  be  handed  over  gratis  to  the  Chinese  Govern- 
ment without  asking  for  compensation,  and  in  due  time  the  Mining  Bureau  of 
Szechuan  shall  report  to  the  head  office  at  Peking,  and  the  Viceroy  of  Szechuan 
shall  send  Deputies  to  take  delivery  of  the  same.  The  land  rented  by  the  Hua 
Yi  Company  shall  be  handed  back  to  the  original  owners. 

19. — The  Hui  Tung  Company  being  formed  of  Chinese  and  foreign  shares 
shall,  at  its  own  choice,  sell  and  buy  its  shares  according  to  the  fluctuation  of 
the  market  rates.  If  the  Hua  Yi  Company,  or  any  Chinese  gentry  or  merchants, 
shall,  within  the  said  term  of  fifty  years,  acquire  three-fourths  of  all  the  shares 
in  the  Hui  Tung  Company,  the  mines  may  then  be  taken  over  from  the  Hui 
Tung  Company,  and  the  Mining  Bureau  shall  report  upon  the  same  and  direct 
the  said  shareholders  (merchants)  to  take  charge  of  the  mines. 

20. — Should  any  mines  opened  on  land  bought  by  the  Hua  Yi  Company 

and  handed  over  to  the  Hui  Tung  Company,  be  stopped  on  account  of  no  profits 

t  Although  it  is  understood  that  no  work  has  yet  been  undertaken,  it  appears  that  as 
recently  as  1915  there  was  some  discussion  of  a  payment  by  the  Chinese  Government  to 
the  assigns  of  JVIr.  Morgan  in  liquidation  of  the  rights  accruing  under  these   regulations. 


188  CHINA  TREATIES  AND  AGREEMENTS 

being  made,  and  the  rent  cease  to  be  paid,  then  the  Hua  Yi  Company  has  the 
option  of  adopting  other  means  to  open  such  mines,  or  use  the  land  for  any- 
other  business.  This,  of  course,  is  to  prevent  the  money  spent  on  the  land  from 
being  wasted,  and,  consequently,  has  nothing  to  do  with  the  Hui  Tung  Com- 
pany. 

21. — If  the  Hui  Tung  Company  sends  out  engineers  who  discover  certain 
mines  in  certain  places,  and  report  the  same  to  be  rich,  but  cannot  guarantee  the 
same,  and  it  is  exceedingly  difficult  to  purchase  the  necessary  land  for  working 
such  mines,  the  Hui  Tung  Company  should  in  such  cases  pay  the  purchase- 
money  for  the  land  to  the  Hua  Yi  Company,  who  shall  have  the  said  land  pur- 
chased and  handed  over  for  working.  This  will  prevent  the  purchase-money 
being  wasted.  If  a  mine  is  discovered  in  the  land  purchased,  the  price  paid 
for  the  land  will  be  repaid  to  the  Hui  Tung  Company  by  deducting  the  rent 
of  5  per  cent,  until  the  whole  purchase-money  is  paid  off,  when  the  Hua  Yi 
Company  shall  again  collect  the  rent  of  5  per  cent,  as  usual.  Should  there  be 
no  mine  in  the  land  purchased,  no  rent  shall  be  payable  to  the  Hua  Yi  Com- 
pany, and  the  Hui  Tung  Company,  being  unable  to  recover  the  purchase-money, 
shall  not  deduct  the  same,  with  interest,  from  any  other  mine.  This  is  agreed 
to  by  both  parties,  and  a  further  guarantee  will  be  given  at  the  time. 

22. — All  machinery,  materials,  and  supplies  needed  for  the  mines  opened  by 
the  Hui  Tung  Company  shall,  on  importation,  be  subject  to  the  Rules  in  force  for 
the  Kaiping  and  other  Mining  Companies,  and  pay  one  full  duty  and  one-half 
duty  to  the  Maritime  Customs,  and  shall  be  exempt  from  all  inland  li-kiii  dues. 

23. — These  mines  being  under  the  sovereignty  of  China,  should  China  ever 
be  at  war  with  another  country,  the  said  Company  shall  obey  the  orders  of  the 
Chinese  Government,  and  grant  no  aid  to  the  enemy. 

24. — The  Hua  Yi  Company  and  the  Hui  Tung  Company  shall  obey  all  Rules 
and  Regulations  adopted  and  memorialized  by  the  head  office,  even  if  the  same 
be  not  stipulated  in  this  Agreement. 

25. — This  Agreement,  with  Regulations  agreed  upon,  shall  be  made  out 
both  in  Chinese  and  English,  in  eight  copies,  to  be  signed  by  Director  Li  Tai 
Ching,  of  the  Hua  Yi  Company,  and  Foreign  Assistant  Director  Morgan  and 
Chinese  Assistant  Director  Liu  Hsio  Shun,  of  the  Hui  Tung  Company,  and  to  be 
sealed  by  the  seal  of  the  Mining  Bureau  of  Szechuan.  One  copy  each  of  this 
Agreement  is  to  be  sent  to  the  Mining  and  Railway  Board  at  Peking,  the  Tsung-li 
Yamen,  the  Board  of  Revenue,  the  Viceroy  of  Szechuan,  and  the  Treasurer  of 
Szechuan,  for  reference.  Of  the  remaining  three  copies,  the  Szechuan  Mining 
Bureau,  the  Hua  Yi  Company,  and  the  Hui  Tung  Company  are  to  keep  one  each 
as  proof.  If  there  be  any  mistakes  in  the  translation,  the  Chinese  text  shall  hold 
good. 

Signed  this  14th  day  of  April,  1899. 


NUMBER  1899/2:  APRIL  17,  1899  189 

NUMBER  1899/2. 

GERMANY  AND  CHINA. 

Agreement  concerning  the  establishment  of  a  maritime  customs  office  at  Tsingtao 
(together  ivith  (A)  an  Agreement  concerning  inland  waters  steam  naviga- 
tion, April  17,  1904;  (B)  an  Amoidment  to  the  agreement,  December  1, 
1905;  (C)  an  Ordinance  regulating  procedure  in  customs  matters  in  the 
Kiaochow  Territory,  December  2,  1905;  and  (D)  an  Ordinance  concerning 
manufactures  in  the  German  territory,  April  17,  1907.)  * — April  17th,  1899. 

1 — The  Commissioner  or  the  Chief  of  the  Maritime  Customs  Office  at 
Tsingtao  is  to  be  of  German  nationaHty.  The  Inspector  General  of  Customs 
will  come  to  an  understanding  with  the  German  Legation  at  Peking  in  case  of 
appointing  a  new   Commissioner. 

2. — The  members  of  the  European  staff  of  the  Maritime  Customs  Office 
at  Tsingtao  shall,  as  a  rule,  be  of  German  nationality ;  in  case,  however,  of  a 
suddenly  occurring  vacancy  or  of  temporary  requirements  of  the  service,  mem- 
bers of  other  nationalities  may  be  provisionally  sent  to  Tsingtao. 

3. — The  Inspector  General  of  Maritime  Customs  will  inform  the  Governor 
of  Kiaochow  beforehand  about  all  changes  in  the  staff  of  the  Customs  Office 
at  Tsingtao ;  this,  however,  does  not  apply  to  the  employes  of  the  Chinese  staff. 

4. — All  correspondence  between  the  Customs  Office  at  Tsingtao  and  the 
German  Authorities  and  German  merchants  shall  be  conducted  in  the  German 
language.  Should,  however,  merchants  of  other  nationalities  come  to  reside  at 
Tsingtao,  they  shall  be  at  liberty  to  correspond  in  their  language ;  correspondence 
in  Chinese  shall  be  likewise  permitted. 

5. — On  merchandise  brought  by  sea  to  Tsingtao  no  import  duty  shall  be 
levied.  Import  duty  according  to  existing  Treaties  shall  be  levied  by  the  Maritime 
Customs  Office  on  all  merchandise  or  products  passing  the  German  frontier 
of  Kiaochow  into  the  interior  of  China. 

The  German  Authorities  agree  to  take  suitable  measures  to  assist  as  far  as 
it  is  possible  in  the  prevention  of  merchandise  passing  the  German  frontier  when 
not  provided  with  a  Permit  or  Pass  by  the  Maritime  Customs  Office. 

6. — When  Chinese  merchandise  or  products  brought  from  the  interior  of 
China  into  the  German  territory  of  Kiaochow  are  shipped  from  Tsingtao  to 
other  places,  they  will  pay  the  export  duty  according  to  existing  Treaties.  Pro- 
duce raised  in,  and  merchandise  manufactured  from  produce  raised  in  or  im- 
ported by  sea.  into  the  German  territory  of  Kiaochow  shall  pay  no  export  duty. 
The  duty  to  be  paid  by  articles  manufactured  in  the  German  territory  from 
materials  brought  there  from  the  interior  of  China  will  be  settled  later. 

*  Texts  as  printed  in  Customs,  Vol.  II,  pp.  215,  219,  221,  225,  237. 

In  connection  with  these  agreements,  see  the  Convention  for  the  lease  of  Kiaochow, 
March  6.  1898  (No.  1898/4,  ante),  and  the  Agreement  between  Japan  and  China  concerning 
the  reopening  of  the  Maritime  Customs  office  at  Tsingtao,  August  6,  1915  (No.  1915/12,  post). 

The  Tsingtao  customs-house  was  opened  on  July  1,  1899. 


190  CHINA  TREATIES  AND  AGREEMENTS 

7. — Chinese  merchandise  or  products  brought  from  Chinese  treaty  ports 
to  Tsingtao  shall  pay  no  duty  as  long  as  they  remain  inside  German  territory; 
but  if  these  Chinese  merchandise  or  products  pass  the  German  frontier  into 
the  interior  of  China,  they  shall  pay  according  to  existing  treaties. 

8 — Chinese  merchandise  shipped  from  Tsingtao,  and  having  paid  accord- 
ingly export  duty,  shall  be  provided  with  a  receipt,  on  the  producing  of  which 
it  shall  pay,  on  being  landed  at  a  Chinese  treaty  port,  a  coast  trade  duty 
according  to  existing  treaties. 

9. — For  European  and  other  non-Chinese  merchandise,  on  being  shipped 
to  Tsingtao  from  a  Chinese  treaty  port,  the  import  duty  paid  at  the  latter  port  shall 
be  refunded  by  drawback  according  to  Article  26  of  the  German-Chinese  Treaty 
of  1861.  On  being  imported  to  Tsingtao  such  merchandise  shall  pay  no  duty, 
so  long  as  it  does  not  pass  the  German  frontier  into  the  interior  of  China.  On 
being  re-exported  from  Tsingtao  to  other  places  outside  China,  such  merchandise 
shall  pay  no  export  duty. 

10. — Chinese  merchandise  or  products  having  been  shipped  from  a  Chinese 
treaty  port  to  Tsingtao  and  re-shipped  from  there  to  places  outside  China,  shall 
on  this  occasion  pay  no  export  duty,  in  case  that  documentary  evidence  is  pro- 
duced of  their  having  paid  export  duty  at  the  treaty  port  from  which  they  came. 

11. — The  Maritime  Customs  Office  at  Tsingtao  shall  take  no  part  m  the  col- 
lection or  administration  of  tonnage  dues,  lighthouse  dues,  or  port  dues, 
the  same  duties  and  taxes  (likin)  which  are  levied  on  opium  in  Chinese  treaty 

13. — The  Maritime  Customs  agrees  to  levy  on  all  opium  brought  to  Tsingtao 

12. — The  Customs  tariff  in  vigour  in  the  Chinese  treaty  ports  shall  be  applied 
likewise  by  the  Maritime  Customs  Office  at  Tsingtao. 

ports.  The  duties  and  taxes  collected  on  opium  which  enters  into  consump- 
tion inside  the  German  territory  shall  be  collected  by  the  Maritime  Customs  for 
account  of  the  German  Government,  and  be  paid  over  to  the  latter  at  certain  in- 
tervals, to  be  fixed  at  convenience. 

14. — The  Government  of  Kiaochow  agrees  to  set  apart  for  the  Maritime 
Customs  Office  sufficient  space  at  Tsingtao  for  building  offices,  lodgings  for  the 
staff,  with  suitable  room  for  garden,  stables,  and  servants  quarters.  The  amount 
to  be  paid  for  the  sale  or  lease  of  such  ground  is  to  be  settled  locally  by  mutual 
agreement. 

15. — The  Chief  of  the  Customs  Office  and  the  members  of  the  staff  shall  be 
free  from  any  obligation  to  act  as  jurors  or  assessors  or  from  any  other  personal 
services. 

16. — The  Maritime  Customs  Office  at  Tsingtao,  as  designated  in  the  above 
Articles,  shall  take  charge  of  the  collection  of  duties,  taxes,  or  likin  on  all 
Chinese-built  vessels  (junks)  coming  to  Tsingtao  or  to  other  places  in  the  bay 
of  Kiaochow  and  on  all  merchandise  brought  in  such  vessels.  The  duties,  taxes, 
and  other  charges  collected  from  Chinese-built  vessels  or  from  merchandise 
brought  by  them  to  Tsingtao  shall  not  exceed  the  charges  which  have  hitherto 
been  levied  from  such  vessels  and  such  merchandise  at  Tsingtao  or  in  other  places 
of  the  bay  of  Kiaochow.  Should  at  any  time  the  charges  levied  on  Chinese-built 
vessels  and  on  merchandise  brought  by  them  at  other  ports  in  the  province  of 


NUMBER  1899/2:  APRIL  17,  1899  191 

Shantung  be  less  in  amount  than  such  charges  in  the  bay  of  Kiaochow,  the  latter 
shall  be  reduced  to  the  amount  levied  in  those  other  ports. 

17. — The  aforesaid  Maritime  Customs  Office  at  Tsingtao  shall  be  charged 
likewise  exclusively  with  the  granting  and  issuing  of  transit  passes  for  mer- 
chandise going  into  the  interior  of  China,  as  well  as  for  merchandise  coming  from 
the  interior  of  China  to  Tsingtao ;  and  this  office  will  be  charged  as  well  with  all 
and  every  function,  right,  or  capacity  which  appertain  in  the  treaty  ports  to  the 
so-called  Chinese  Customs  Taotai. 

18. — For  the  transit  passes  mentioned  in  Article  17  the  duty  according 
to  existing  treaties — i.e.,  half  of  the  amount  of  export  or  import  duty — 
shall  be  collected  by  the  Maritime  Customs  Office  at  Tsingtao. 

19. — The  procedure  to  be  observed  in  case  of  frauds  or  contraventions  com- 
mitted by  merchants  against  the  Maritime  Customs  rules  shall  be  settled  here- 
after by  a  separate  Agreement,  but  it  is  understood  in  principle  that  all  judicial 
procedure  rests  with  the  German  tribunals  at  Tsingtao. 

20. — In  view  of  the  possibility  that  with  the  development  of  commercial 
activity  at  Kiaochow  new  requirements  may  arise  which  are  not  to  be  foreseen, 
it  is  understood  that  the  present  Agreement  bears  a  provisional  character,  and 
that  both  parties  to  it  agree  to  introduce  amendments  as  soon  as  required  for  the 
purpose  of  remedying  inconveniences  which  may  arise  in  the  practical  execu- 
tion of  this  Agreement. 

Signed  at  Peking  the  17th  April  1899. 

(Signed)  Heyking, 

Minister  of  Germany- 
(Signed)  Robert   Hart, 

Inspector  General  of  Customs. 

(A) — Agreement  about  the  establishment  of  a  maritime  citstoms  office  at 
Tsingtao:  inland  zvaters  steam  navigation. — Anne.v  A. 

April  17th,  1904. 

1. — The  Kiaochow  Customs  having  been  formally  authorised  to  function  in 
Tsingtao  are  now  empowered  to  issue  inland  steam  navigation  papers :  steamers 
thus  permitted  to  ply  on  the  inland  waters  are  to  be  guided  generally  by  the 
rules  and  regulations  of  July  and  September  1898  f  and  the  additional  rules  of 
September  1902,|  but  more  especially  by  the  regulations  herebelow  set  forth. 

2. — Steamers  about  to  ply  in  the  inland  waters  are  required  to  deposit  their 
national  papers,  Foreign  or  Native,  with  the  Customs,  and  will  receive  in  ex- 
change, on  written  application,  the  Inland  Waters  Certificate ;  such  Certificates 
are  valid  for  one  year,  and  a  fee  of  Tls.  10  is  payable  on  first  issue  and  Tls.  2 
for  each  annual  renewal.     Tonnage  Dues  are  payable  once  every  four  months. 

3. — Such  certificated  steamers  may  ply  either  (a)  freely  in  the  Tsingtao 
waters,  or  (b)  according  to  regulations  (1)  from  Tsingtao  to  a  place  or  places 
inland  and  back,  and  (2)  from  Tsingtao  to  a  place  inland,  thence  to  a  Treaty 
port,  thence  to  a  place  inland,  and  thence  back  to  Tsingtao.     On  making  due 

t  No.  1898/17,  ante. 

$  Annex  C  to  British  Commercial  Treaty  of  September  5,  1902   (No.  1902/7,  post). 


192  CHINA  TREATIES  AND  AGREEMENTS 

report  to  the  local  Customs  or  Tax  Office,  and  paying  local  Dues  or  Duties,  they 
may  land  or  ship  cargo  or  passengers  at  any  recognised  places  of  trade  passed 
on  the  voyage,  but  they  may  not  ply  between  inland  places  exclusively  without 
special  authority.  If  visiting  another  Treaty  port  on  any  such  inland  voyage, 
the  Customs  at  such  port  are  to  be  duly  reported  to  and  all  port  regulations, 
national   and   native,   complied   with. 

4. — Whenever  certificated  steamers  quit  or  return  to  Tsingtao,  they  are  to 
clear  from  and  report  to  the  Kiaochow  Customs,  handing  in  Outward  and  In- 
ward Manifests  of  cargo,  reporting  places  to  be  called  at  or  called  at,  and  pay- 
ing the  prescribed  Duties.  Opium  and  contraband  goods  are  not  to  be  carried 
inwards  or  outwards:  if  carried,  the  goods  are  confiscable  and  the  vessel  subject 
to  a  fine  of  $500,  a  second  offence  entailing  withdrawal  of  Inland  Waters  Cer- 
tificate and  privileges. 

5. — Certificated  steamers  are  required  to  carry  the  Imperial  Chinese  Post 
Office  mails  free  of  charge,  and  the  Postal  Department  of  the  Kiaochow  Customs 
is  empowered  to  transact  all  required  postal  business  in  this  connexion  inde- 
pendently and/or  in  communication  with  the  Colonial  Post  Office. 

6. — The  Colonial  Government  will  assist  the  Kiaochow  Customs  to  suppress 
smuggling— more  especially  the  smuggling  of  Opium  and  contraband, — and 
accord  special  facilities  to  develop  the  legitimate  business  of  the  Postal  Depart- 
ment. 

Signed  at  Peking  the  17th  April  1904. 

(Signed)  A.  v.  Mumm, 

Minister  of  Germany. 
(Signed)  Robert  Hart, 

Inspector  General  of  Customs. 

(B) — Amendment  to  the  agreement  re  the  establishment  of  a  custom  house  in 

Tsingtau. 

December  1st,  1905. 

Preamble. — The  Chinese  and  German  Governments  being  anxious  to  amend 
the  Agreement  of  the  17th  April  1899,  with  a  view  to  putting  the  relations  between 
the  Colony  of  Kiaochow  and  the  Chinese  Customs  on  a  still  better  basis,  have 
agreed  to  the  amendments  represented  in  the  following  Articles. 

The  basis  of  this  arrangement  is  that  the  Chinese  Government  on  its  part 
(1)  agrees  to  pay  to  the  German  Government  a  certain  proportion  of  the 
Jmport  Duties  on  goods,  Opium  included,  landed  in  the  German  territory,  and  (2) 
consents  to  the  modifications  of  Treaty-port  Customs  practice  and  principles 
which  said  Articles  establish ;  and  that  the  German  Government  on  its  part,  in 
consideration  of  the  Chinese  payment  and  consent,  undertakes  to  facilitate  the 
working  of  the  Imperial  Chinese  Customs  establishment  established  and  operat- 
ing in  the  Germa/i  territory  and  to  aid  in  safeguarding  the  Revenue  legitimately 
payable. 

With  the  object  of  carrying  out  the  necessary  amendments,  the  under- 
mentioned Articles,  duly  agreed  to  by  both  parties,  have  been  made. 


NUMBER  1899/2:  APRIL  17,  1899  193 

Art.  I. — After  the  delimitation  of  the  Tsingtau  free  area  by  the  German 
officials,  the  Chinese  Maritime  Customs  established  in  the  German  territory  will 
levy  all  the  Duties  payable  on  goods  passing  outside  the  free  area,  and  the 
Chinese  Government  will  hand  over  annually  to  the  German  officials  at  Tsingtau  20 
per  cent,  of  the  net  Import  Duties  collected,  as  shown  by  the  statistics  of  Kiao- 
chow  Customs,  as  its  contribution  to  the  expenses  of  the  territory.  This  per- 
centage will  be  fixed  for  the  present  provisionally  for  five  years,  and  payment  will 
be  made  in  quarterly  instalments  after  the  end  of  each  quarter.  If  this  arrange- 
ment, fixing  the  contribution  at  20  per  cent.,  should  at  any  time  seem  to  either 
party  to  require  amendment,  notice  is  to  be  given  to  the  other  before  the  begin- 
ning of  the  fifth  year,  in  order  to  afiford  time  for  reconsideration. 

Art.  II. — The  limitation  of  the  free  area,  which  is  to  be  established  at  the 
Great  Harbour,  and  its  probable  extension  later,  on  account  of  the  progressing 
harbour  works,  will  be  made  as  convenient  as  possible  for  carrying  on  Customs 
work. 

Art.  III. — On  articles  which  are  Duty  free  by  existing  Customs  Tariff  no 
Duty  will  be  levied. 

The  following  are  Duty  free : — 

FOR   THE    GERMAN    TROOPS. 

(a)  Articles  for  arming  and  outfitting  the  troops,  including  Uniforms,  if 
directly  ordered  by  the  military  or  naval  authorities  and  if  accompanied  by 
Certificate  of  the  Colonial  Government. 

(b)  Stores  and  Provisions  ordered  by  the  military  or  naval  authorities  in 
anticipation  of  future  requirements,  if  accompanied  by  Certificate  of  the  Colonial 
Government. 

FOR   THE   GENERAL   PUBLIC. 

(c)  Machinery,  Plant,  as  well  as  Parts  of  Machinery,  Implements  and 
Tools  required  for  manufacturing,  industrial,  and  agricultural  purposes ;  also  all 
Building  Materials,  Fittings,  and  other  articles  for  public  and  official  works.  A 
written  Bond  for  the  value  of  the  goods  must  in  each  case  be  handed  to  the  Cus- 
toms certifying  that  the  articles  are  solely  for  use  in  the  German  territory.  If, 
later,  they  are  to  be  conveyed  into  China,  they  must  be  declared  to  the  Customs 
and  pay  Import  Duty.  Failure  to  do  so  will  involve  enforcement  of  the  Bond 
for  recovery  of  double  the  amount  of  Duty  on  the  value  specified  in  it. 

(d)  Articles  (Vehicles  and  such-like)  passing  to  and  fro  between  the  free 
area  and  outside,  solely  for  ordinary  repairs ;  but  they  are  to  be  reported  to  the 
Customs  officers,  that  their  passing  may  be  noted. 

(e)  All  postal  parcels  imported  and  destined  for  private  use  in  the  German 
territory,  if  the  Duty  which  has  to  be  taxed  in  accordance  with  the  attached 
declaration  does  not  exceed  $1  (value  $20).  The  Customs  are  at  liberty  to 
examine  such  parcels  and  verify  declarations  as  occasion  demands. 

(/)  The  personal  luggage  of  passengers,  declared  as  not  containing  dutiable 
or  contraband  goods ;  it  will  only  be  examined  in  cases  where  the  Customs  con- 
sider it  specially  necessary. 


194  CHINA  TREATIES  AND  AGREEMENTS 

Art.  IV. — The  regulations  laid  down  in  Arts.  5,  7,  and  9  of  the  Agreement 
o£  17th  April  1899  as  to  levying  of  Import  Duty  are  hereby  modified,  in  so 
far  that  the  free  Duty  area  is  limited  to  the  free  area.  Payment  of  Duty  there- 
fore will  be  made  according  to  circumstances,  either  when  leaving  the  free  area 
or,  if  to  be  landed  elsewhere,  before  landing.  By  the  payment  of  the  Duty  the 
goods  pass  into  free  circulation,  and  out  of  Customs  control.  Provision  having 
been  thus  made  for  effective  collection  of  Duty  in  Tsingtau,  Customs  Stations 
on  or  near  the  frontier  will,  under  the  provided  conditions,  be  unnecessary,  and 
the  question  of  establishing  such  can  for  the  time  being  be  postponed;  such 
Stations  as  are  required  for  the  control  of  junk  traffic  are  excepted. 

Art.  V. — For  manufactories  which  are  erected  outside  the  free  area, 
arrangements  are  to  be  made  according  to  which  manufactures  will  not  be  treated 
less  favourably  than  if  they  came  from  the  free  area.  Labour  in  the  German 
territory  is  free  of  tax ;  consequently  manufactures  made  in  the  German  terri- 
tory from  raw  materials  which  have  been  imported  from  the  hinterland  or  by  sea 
into  the  German  territory  are,  at  reshipment,  only  subject  to  such  Duty  payment 
as  China  has  by  Treaty  claim  for  on  the  raw  material.  A  list  of  articles  entitled 
to  be  treated  as  raw  material  will,  if  needed,  be  drawn  up  by  the  Customs  and 

Art.  VI. — All  trading  and  shipping  facilities  and  privileges  which  are 
granted  in  Chinese  coast  ports  are  to  be  extended  to  the  German  territory,  with 
such  modifications  as  local  conditions  may  require. 

Art.  VII. — In  cases  of  fraud  and  offences  against  the  Customs  regulations, 
the  procedure  will  be  conducted  in  accordance  with  the  spirit  of  the  "  Joint  In- 
vestigation Rules  of  31st  May  1868" — a  Colonial  officer  specially  named  by 
Colonial  authorities  and  revised  annually  at  the  end  of  each  year. 

Art.  VIII. — It  is  understood  that  this  Agreement  is  an  amendment  of  the 
the  Government  to  take  the  place  of  the  Consul. 

original  Agreement  of  17th  April  1899,  made  in  accordance  with  Art.  20  of  the 
latter,  which,  unless  where  modified  hereby,  remains  in  full  force. 

Signed  and  sealed  at  Peking  this  first  day  of  December  nineteen  hundred 
and  five  by  Baron  Mumm  von  Schwarzenstein,  His  Imperial  German 
Majesty's  Minister,  on  behalf  of  the  German  Government,  and  by  Sir  Robert 
Hart,  Bart.,  G.C.M.G.,  Inspector  General  of  Imperial  Chinese  Customs,  on  behalf 
of  the  Chinese  Government. 

[seal.]  {Signed)  A.  v.  Mumm. 

[seal.]  (Signed)  Robert  Hart. 

(C) — Ordinance  regulating  procedure  in  customs  matters  in  the  Kiaochow 

territory.^ 

December  2nd,  1905. 

I. — General  Rules. 

§  1. — All  goods  imported  by  sea  into  or  exported  from  the  German  territory, 

with  only  such  exceptions  as  are  specified  below,  are  subject  to  Duties  on  im- 

§  Translation  from  German  text.  As  printed  in  Customs,  this  Ordinance  is  headed 
Annex  A,  and  bears  a  notation  that  it  was  "  Issued  by  the  Colonial  Government  on  2nd  De- 
cember 1905,  and  accepted  by  the  Inspectorate  General  of  Customs." 


NUMBER  1899/2:  APRIL  17,  1899  195 

portation  or  exportation  at  the  rates  specified  in  the  Chinese  Tariff  for  Foreign 
trade  for  the  time  being  in  force.  Goods  forwarded  to  or  coming  from  the 
interior  under  Transit  Pass  must  pay  the  Treaty  Transit  Dues  in  addition  to  the 
Import  or  Export  Tariff  Duty. 

§  2. — The  Customs  procedure  is  guided  by  the  principles  and  follows  the 
practice  which  are  in  force  at  the  Chinese  Maritime  Custom  Houses  at  the 
various  Treaty  ports,  and  Customs  control  wherever  necessary  is  exercised  by 
its  officers. 

§  3. — Import  and  Export  Manifests  of  all  vessels  made  out  in  accordance 
with  the  provisions  of  the  Treaties  must  be  handed  to  the  Customs.  The  Mani- 
fests to  be  signed  either  by  the  master  of  the  vessel,  who  in  that  case  is  held 
responsible,  or  by  the  agent  of  the  vessel,  in  which  case  he  will  be  responsible. 

§  4. — Junks  repairing  to  the  special  points  they  frequent  excepted,  no  ves- 
sel is  allowed  to  work  cargo  until  Import  Manifest  has  been  handed  in  to  the 
Customs,  nor  to  allow  it  to  leave  the  ship  outside  the  free  area  until  Customs 
Permit  has  been  issued.  Applications  for  goods  to  be  landed  or  shipped  outside 
the  free  area  must  specify  the  locality — what  jetty,  etc. — they  are  to  be  landed  at 
or  shipped  from. 

II. — Free  Area. 

§  5. — The  free  area  comprises  the  Great  Harbour  including  the  Moles,  the 
wharf  territory  and  the  enclosing  embankment,  and  the  territory  in  front  of  the 
harbour  as  far  as  the  chief  railway  embankment.  It  is  limited  in  the  south- 
west by  a  line  between  Inner  Harbour  and  railway  embankment  near  the 
junction  of  Rechternstrasse  and  Grosse  Hafenweg,  and  in  the  east  by  a  line 
between  railway  and  enclosing  dam  near  the  block  station.  An  extension  of  the 
free  area  is  reserved  for  later  use  at  any  time  according  to  requirement.  The 
following  are  the  boundaries  of  the  area  kept  for  possibly  required  extension  in 
the  future,  viz.,  the  railway  embankment  to  the  block  station,  including  territory 
to  be  filled  in  on  the  one  side  to  the  extent  of  200  metres  east  of  the  enclosing 
dam;  on  the  other  side  (west),  to  the  railway  viaduct  off  the  Shansistrasse  along 
the  road  to  Oster's  Slip,  including  small  and  large  harbours. 

§  6. — The  free  area  shall  not  be  made  use  of  for  dwellings,  with  the  excep- 
tion of  those  which  are  necessary  for  warehouse  and  wharf  controllers,  harbour. 
Customs,  and  police  officers,  nor  for  petty  trade,  with  the  temporary  exception 
of  a  fixed  number  of  Chinese  street  cookeries  for  the  use  of  coolies.  Factories 
are,  in  principle,  allowed. 

§  7. — The  Customs  control  within  the  free  area,  as  well  as  at  the  exits,  is 
exercised  by  the  Chinese  Custom  House. 

§  8. — The  Customs  Duty  account  of  all  vessels  must  be  settled  within  ten 
days  of  the  ship's  clearance,  and  Duty  on  all  Imports  passing  beyond  the  free  area 
paid. 

§  9. — Goods  arriving  by  sea  or  from  the  hinterland,  which  are  intended  to  be 
stored,  sorted,  and  worked  up  in  the  free  area,  shall  be  notified  to  the  Customs, 
who  will  then  take  them  under  supervision.  At  the  time  of  the  notification  the 
following  details  have  to  be  supplied:  mode  of  conveyance  by  which  the  goods 


196  CHINA  TREATIES  AND  AGREEMENTS 

arrived,  and,  if  by  sea,  name  of  ship,  name  and  address  of  consignee,  date  of 
arrival,  number  of  packages,  kind  of  packing,  marks  and  numbers,  and  general 
description  of  the  goods. 

§10. — Goods  which  are  destined  to  be  exported  by  sea  from  the  free  area 
have  to  pass  the  Customs.  Goods  without  Customs  papers  are  not  allowed  to  be 
received  on  board- 

§  11. — Traffic  of  every  kind  (carriages,  carts,  railway,  junks,  sampans,  tugs, 
steamers,  etc.)  by  sea  and  land  frontier  of  the  free  area  is  subject  to  the  super- 
vision of  the  Customs. 

III. — Duty-free  Goods. 
§  12. — On  articles  which  are  Duty  free  by  Treaty  no  Duty  will  be  levied. 
The  following  are  Duty  free : — 

For  the  German  Troops. 

(a.)  Articles  for  arming  and  outfitting  the  troops,  including  Uniforms, 
if  directly  ordered  by  the  military  or  naval  authorities  and  if 
accompanied  by  Certificate  of  the  Government. 

(&.)  Stores  and  Provisions  ordered  by  the  military  and  naval  authorities 
in  anticipation  of  future  requirements,  if  accompanied  by  Cer- 
tificate of  the  Government. 

For  the  General  Public. 
(c.)  Machinery,  Plant,  as  well  as  Parts  of  Machinery,  Implements  and 
Tools  required  for  manufacturing,  industrial,  and  agricultural 
purposes ;  also  all  Building  Materials,  Fittings,  and  other  articles 
for  public  and  official  works.     A  written  Bond  for  the  value 
of  the  goods  must  in  each  case  be  handed  to  the  Customs  certify- 
ing that  the  articles  are  solely  for  use  in  the  German  territory. 
If,  later,  they  are  to  be  conveyed  into   China,  they  must  be 
declared  to  the  Customs  and  pay  Import  Duty.     Failure  to  do 
so  will  involve  enforcement  of  the  Bond  for  recovery  of  double 
the  amount  of  Duty  on  the  value  specified  in  it. 
{d.)  Articles  (Vehicles  and  such-like)  passing  to  and  fro  between  the 
free  area  and  outside,  for  ordinary  repairs  ;  but  they  are  to  be  re- 
ported to  the  Customs  officer,  that  their  passing  may  be  noted. 
{e.)  All  postal  parcels  imported  and  destined  for  private  use  in  the  Ger- 
man territory,  if  the  Duty,  which  has  to  be  taxed  in  accordance 
with  the  attached  declaration,  does  not  exceed  $1   (value  $20). 
The  Customs  are  at  liberty  to  examine  such  parcels  and  verify 
the  declarations  as  occasion  demands. 
§  13. — The  personal  luggage  of  passengers,  declared  as  not  containing  either 
dutiable  or  contraband  goods,  is  passed  free  of  Duty  and,  as  a  rule,  without 
examination;  but  the  right  of  examination  is  reserved  to  the  Customs  in  cases 
where  it  may  be  considered  specially  necessary. 

Duty  is  leviable  on  articles  carried  in  excess  of  those  reasonably  necessary 
for  personal  use  or  if  expected  to  be  sold. 


NUMBER  1899/2:  APRIL  17,  1899  197 

IV. — Manufactures  in  the  German  Territory. || 
§  14. — Manufactures  in  the  German  territory  are  only  subject  to  Duty  in 
so  far  as  China  is  entitled  to  Duty  on  the  raw  material. 

(a.)  Chinese  raw  material  landed  in  German  territory  from  the  hinter- 
land or  non-Treaty  ports  and  intended  for  use  in  a  manufactory 
may  be  declared  to  the  Customs  and  a  Bond  for  any  Duty  pay- 
able on  same  deposited. 

When  the  articles  manufactured  from  this  raw  material 
come  to  be  exported,  they  will  pay  Export  Duty  on  the  material 
used,  and  the  Duty  guaranteed  by  the  Bond  shall  be  cancelled 
to  that  extent. 

Duty  guaranteed  by  the  Bond  must  be  paid  or  accounted 
for  before  the  expiration  of  three  years  from  its  date. 

It  will  be  optional  for  the  exporter  to  pay  full  Tariff  Duty 
on  the  exported  article  instead  of  on  the  raw  material  used  in  its 
manufacture. 

(&.)  Any  Import  or  Coast  Trade  Duty  levied  on  raw  material  arriving 
from  Foreign  countries  or  from  the  Treaty  ports  of  China  will 
be  refunded  at  the  time  of  exportation  by  sea  of  the  manu- 
factured articles  made  therefrom,  provided  that  at  the  time  of 
importation  such  material  was  duly  declared  at  the  Custom 
House  as  for  use  in  a  manufactory. 

(c.)  An  arrangement  will  be  made  by  agreement  of  Colonial  and  Cus- 
toms authorities  that  when  the  various  classes  of  manufactured 
articles  are  exported,  the  amount  of  raw  material  used  will  be 
fixed  as  a  definite  proportion  and  the  Export  Duty  will  be 
diminished  accordingly. 

(d.)  The  factories  entitled  to  claim  the  treatment  as  specified  above 
will  be  registered,  and  a  list  of  them,  revised  as  required  and 
if  needed,  furnished  to  the  Customs. 

V. — Opium. 

§  15. — Opium  can  only  be  imported  by  vessels  in  original  chests.  The  im- 
portation of  smaller  quantities  than  one  chest  is  forbidden.  All  Opium  on  board 
of  ships,  including  that  intended  for  consumption  during  the  journey,  must,  on 
arrival  of  the  ship,  be  reported  without  delay  to  the  Customs,  who  will  supervise 
the  transportation  to  the  Customs  godown  of  so  much  as  is  to  be  landed. 

§  16. — Opium  from  the  German  territory  to  China  or  from  China  to  the 
German  territory  can  only  be  conveyed  by  rail,  on  special  Bill  of  Lading  and  as 
"  Eilgut."  It  is  forbidden  to  carry  it  as  passenger's  luggage.  All  Bills  of  Lading, 
etc.,  for  arriving  Opium  are  handed  by  the  railway  to  the  Customs  in  the  Ger- 
man territory,  who  will  notify  the  addressees. 

§  17. — The  consumption  of  Opium  in  the  German  territory  is  subject  to 

special  regulations. 

II  Section  IV  (§  14)  rescinded  and  replaced  by  the  Ordinance  of  April  17,  1907,  printed 
below  under  (D). 


198  CHINA  TREATIES  AND  AGREEMENTS 

VI. — Arms,  Powder,  Explosives^  etc. 

§  18. — Arms,  Powder,  Explosives,  and  the  like,  as  well  as  materials  used 
in  the  manufacture  of  the  same,  must  be  declared  on  arrival  and  discharged  and 
stored  in  accordance  with  the  regulations  of  the  Colonial  Government. 

§  19. — The  export  of  Arms  and  Munitions  of  War  of  all  kinds,  as  well  as 
materials  used  in  the  manufacture  of  the  same,  from  the  German  into  Chinese 
territory  is  prohibited ;  exception  is  only  made  in  the  case  of  articles  covered  by 
Special  Permit  issued  by  the  Commissioner  of  Customs  in  accordance  with 
Chinese  regulations. 

§  20. — The  storage  of  Arms  and  Explosives  in  the  German  territory,  as  well 
as  the  trade  in  the  same,  is  subject  to  special  regulations. 

VII. — Mail  Matter. 

§  21. — Mail  matter  may  be  landed  or  shipped  by  the  Post  Office  at  any  time, 

§  22. — Postal  parcels  will  be  received  by  the  Post  Office  only  if  accom- 
panied by  a  declaration  form  vised  by  the  Customs. 

§  23. — Parcels  destined  for  Tsingtau  will  be  handed,  immediately  after  ar- 
rival, by  the  Post  Office  to  the  Customs  for  assessment  of  Duty.  The  declara- 
tion form  will  be  delivered  to  the  addressee  in  the  same  way  as  other  mail  matter. 
The  addressee  will  produce  the  declaration  form  at  the  Customs,  and  on  payment 
of  duty,  if  any  (vide  §  12,  {e)  ),  the  parcel  will  be  delivered  by  the  Customs. 
For  such  parcels  as  are  destined  for  other  places  in  the  German  territory  where 
German  Post  Offices  operate,  the  Duty  payment  of  such  parcels  will  be  made, 
on  application  of  the  addressee,  by  the  German  Post  Office,  who  will  collect  the 
Duty  and  a  fee  of  20  cents  at  the  time  of  delivering  the  parcel. 

§  24. — The  importation  of  Opium,  Arms,  Powder,  Explosives  and  the  like, 
as  well  as  materials  used  in  the  manufacture  of  the  same,  by  Post  is  forbidden. 
In  special  cases  the  Government  can  grant  an  exception. 

VIII. — Tank  Kerosene  Oil. 

§  25. — The  Customs  procedure  for  despatching  tank  ships,  storage,  and  valu- 
ation of  Kerosene  Oil  will  be  in  accordance  with  the  procedure  in  force  at  the 
Maritime  Custom  Houses  at  the  Treaty  ports. 

IX. — Office  Hours  of  the  Custom  House. 

§  26. — The  Custom  House  is  open  for  the  receipt  and  issue  of  all  Customs 
papers  from  10  a.m.  to  4  p.m.  on  all  days,  Sundays  and  holidays  excepted.  The 
Customs  Bank  is  open  on  all  weekdays  from  9-12  a.m.  and  2-4  p.m. 

§  27. — Vessels  wishing  to  load  or  discharge  on  Sundays  or  holidays,  as  well 
as  during  night  hours,  must  take  out  a  Special  Permit  from  the  Customs:  this 
Permit  must  be  applied  for  during  office  hours. 

§  28. — The  transport  of  goods  over  land  and  sea  boundary  of  the  free  area 
during  night  hours  is  only  allowed  in  case  a  Special  Permit  has  been  obtained 
from  the  Customs.    This  does  not  apply  to  mail  matter  and  passengers  luggage. 


NUMBER  1899/2:  APRIL  17,  1899  199 

§  29- — Night  hours  are : — 

From  1st  March  to  31st  October:  from  8  p.m.  to  5  a.m. 
From  1st  November  to  28/29  February:  from  6  p.m.  to  6  a.m. 

X. — Fines. 

§  30. — Confiscation  and  fines  will  be  imposed  according  to  the  principles 
which  are  laid  down  by  the  Treaties  and  which  are  in  force  at  the  Maritime 
Custom  Houses.  In  cases  of  appeal  against  confiscation  and  fine  imposed  by  the 
Commissioner  of  Customs,  the  procedure  will  be  conducted  in  accordance  with 
the  spirit  of  the  "  Rules  for  Joint  Investigation  in  Cases  of  Confiscation  and 
Fine  by  the  Custom  House  Authorities.    Peking,  31st  May  1868." 

XI. — Abrogation  of  former  Regulations. 

§  31. — This  Ordinance,  issued  to  carry  out  the  terms  of  the  Agreement  made 
on  17th  April  1899  and  of  the  Amendment  to  same  made  under  its  20th  Para- 
graph on  the  1st  December  1905,  and  accepted  by  the  Chinese  Customs  authori- 
ties,^ will  come  into  force  on  1st  January  1906,  and  will  take  the  place  of  the 
following  Regulations,  which  are  hereby  rescinded : — 

(a.)  The  Provisional  Customs  Regulations  for  the  German  Territory 

of  Kiaochow,  of  23rd  May  1899. 
(b-)   The    Special    Regulations    for   the    Importation    and    Control    of 

Opium,  etc.,  of  23rd  May  1899. 
(c.)   The  Special  Regulations  re  the  Execution  of  the  Customs  Control, 

of  23rd  May  1899. 
(d.)   The   Provisional   Additional   Regulation  to  the   Provisional   Cus- 
toms  Regulations  concerning  Goods   loaded  by   the   Shantung 
Railway,  of  20th  April  1901. 
(e.)  The  Customs  Notification  No.  24  regarding  the  Goods  loaded  by 
the  Railway,  of  31st  March  1902. 
TsiNGTAU,  2nd  December  1905. 

The  Colonial  Governor  p.  t., 

{Signed)  Van  Semmern. 


{D) — Manufactures  in  German  territory. 
April  17th,  1907. 

Whereas  necessity  has  arisen  for  more  clearly  stating  the  procedure  to  be 
followed  in  the  treatment  of  manufactures  by  the  Kiaochow  Customs,  the  under- 
signed agree  to  accept  the  rules  and  explanations  embodied  in  the  document  hereto 
attached,  to  be  substituted  for  Section  IV,  "  Manufactures  in  the  German  Ter- 
ritory," §  14  in  the  Tsingtau  Ordinance  of  the  2nd  December  1905  regulating 

1[  The  acceptance  of  this  ordinance  by  the  Inspectorate  General  of  Maritime  Customs 
was  notified  by  it  to  the  Commissioners  of  customs  by  Circular  No.  1306  (2nd  Series), 
December  23,    1905. 


200  CHINA  TREATIES  AND  AGREEMENTS 

procedure  in  Customs  matters,  and  append  their  signatures  herebelow  to  record 
acceptance  of  the  same.  Graf  Rex, 

Minister  of  Germany. 
Robert  Hart, 

Inspector  General  of  Customs. 
Signed  at  Peking  the  17th  April  1907. 


Ordinance. 
§  14  of  the  Ordinance  regulating  procedure  in  Customs  matters  in  the  Kiao- 
chow  territory  of  2nd  December  1905  is  hereby  rescinded  and  the  following  para- 
graph will  take  its  place : — 

Manufactures  in  the  German  Territory. 
A. — General  Rules. 

1. — Payment  of  Import  Duty  on  goods  of  all  kinds  is  to  be  made  accord- 
ing to  circumstances,  either  when  leaving  the  free  area  or,  if  to  be  landed  else- 
where, before  landing.  By  the  payment  of  Duty  the  goods  pass  into  free  cir- 
culation and  out  of  Maritime  Customs  control  (Amendment,  Art.  IV).  Export 
Duty  is  paid  on  goods  when  shipped  from  Tsingtau  to  other  places  (Agreement, 
Art.  VI).  Goods  between  the  hinterland  and  the  territory  outside  the  free  area 
pass  free  of  Maritime  Customs  control  and  Duty  payment. 

Produce  raised  in  and  merchandise  manufactured  from  produce  raised  in  or 
imported  by  sea  into  the  German  territory  pays  no  Export  Duty  (Agreement, 
Art.  VI).  Articles  made  from  raw  materials  are  treated  like  ordinary  goods 
unless  the  materials  are  declared  to  the  Customs,  when  they  will  be  accorded 
special  treatment.  As  to  Duty  to  be  paid,  manufactories  inside  or  outside  the 
free  area  are  treated  alike. 

2. — Articles  made  in  the  German  territory  may,  when  forwarded  into  the 
interior,  at  the  option  of  the  manufacturer,  be  sent  under  Transit  Pass  and  Pay 
Transit  Dues  on  the  fabricated  article  {vide  Explanatory  Notes). 

3. — Chinese  raw  material  landed  in  German  territory  from  the  hinterland 
or  non-Treaty  ports  and  intended  for  use  in  a  manufactory  may  be  declared  to 
the  Customs  and  a  Bond  for  any  Duty  payable  on  same  deposited. 

When  the  articles  manufactured  from  this  declared  material  come  to  be 
exported,  they  will  pay  Export  Duty  on  the  material  used  and  the  Duty  guaran- 
teed by  the  Bond  shall  be  cancelled  to  that  extent. 

Duty  guaranteed  by  the  Bond  must  be  paid  or  accounted  for  before  the 
expiration  of  three  years  from  its  date. 

It  will  be  optional  for  the  exporter  to  pay  full  Tariff  Duty  on  the  exported 
article  instead  of  on  the  raw  material  used  in  its  manufacture. 

Articles  manufactured  from  material  which  has  not  been  declared  to  the  Cus- 
toms and  for  which  no  Bond  has  been  signed,  pay  full  Export  Duty  at  exporta- 
tion when  passing  the  Customs  station. 

4. — Any  Import  or  Coast  Trade  Duty  levied  on  raw  material  arriving  from 


NUMBER  1899/2:  APRIL  17,  1899  201 

Foreign  countries  or  from  the  Treaty  ports  of  China  will  be  refunded  at  the  time 
of  exportation  by  sea  of  the  manufactured  articles  made  therefrom,  provided 
that  at  the  time  of  importation  such  material  was  duly  declared  at  the  Custom 
House  as  for  use  in  manufactory. 

5. — Manufactures  made  in  the  German  territory  when  forwarded  by  sea  into 
China  are  at  importation  subject  to  full  Tariff  Duty  and  may  obtain  Transit 
privileges  by  paying  Transit  Dues  if  taken  inland. 

6. — An  arrangement  will  be  made  by  agreement  of  Colonial  and  Customs 
Authorities  that  when  the  various  classes  of  manufactured  articles  are  exported 
the  amount  of  raw  material  used  will  be  fixed  as  a  definite  proportion  and  the 
Export  Duty  will  be  diminished  accordingly. 

7. — The  factories  entitled  to  claim  the  treatment  as  specified  above  will  be 
registered,  and  a  list  of  them,  revised  as  required  and  if  needed,  forwarded  to 
the  Customs. 

B. — Explanatory  Notes. 

The  following  notes  refer  only  to  such  materials  as  have  at  the  time  of  their 
arrival  in  German  territory  been  duly  declared  at  the  Kiaochow  Custom  House 
as  for  use  in  a  manufactory  and,  where  needed,  deposited  Bonds  for  Duty 
payable. 

1. — Foreign  Material  arrived  from  Abroad  either  direct  or  through  Treaty  Port, 
(a.)   If  the  manufactured  article  departs  to  go  abroad — 

1.  The  Duty  paid  will  be  refunded. 

(b.)   If  the  manufactured  article  is  shipped  to  a  Chinese  Treaty  port,  the 
Duty  paid  at  importation  is  refunded  and  the  article  pays — 

2.  At  the  port  where  landed  the  same  Duty  as  the  Tariff  pre- 

scribes for  similar  merchandise  arriving  direct  from  For- 
eign countries,  and 

3.  By  paying  a  Transit  Due  afterwards  becomes  entitled  to 

Transit  privileges  if  going  inland. 
(c.)   If  the  manufactured  article  is  sent  away  under  Inland  Waters  Naviga- 
tion Rules,  the  article  is  liable  to — 

4.  Whatever  Duties,  charges,  or  taxes  similar  merchandise  has 

to  pay  on  departure  or  en  route  and  inland  when  simi- 
larly carried.    Such  article  may,  however, 

5.  Free  itself   from   such   inland  liability,   and  enjoy   Transit 

privileges  instead,  by  paying  a  2^  per  cent.  Transit  Due  on 
the  manufactured  article  and  carrying  Transit  documents. 
(d.)   If  the  manufactured  article  is  sent  away  to  the  hinterland  by  a  land 
route,  it  is  treated — 

6.  Like  similar  merchandise  despatched  under  Inland  Waters 

Navigation  Rules. 

2. — Native  Material  arrived  from  Chinese  Treaty  Ports, 
(e.)    If  the  manufactured  article  departs  to  go  abroad — 

7.  The  Coast  Trade  Duty  paid  will  be  refunded. 


202  CHINA  TREATIES  AND  AGREEMENTS 

(/.)   If  the  manufactured  article  departs  to  go  to  a  Chinese  Treaty  port — 

8.  A  Coast  Trade  Duty-paid  Certificate  on  the  raw  material 

contained  in  it  will  be  given  to  free  the  article  from  Duty 
on  arrival  at  the  Treaty  port  landed  at ;  afterwards  it  is 
treated  as  Chinese  merchandise  and  not  entitled  to  Transit 
privileges,  or,  at  the  option  of  the  exporter, 

9.  The  Coast  Trade  Duty  will  be  refunded  and  it  pays  a  full  Im- 

port Duty  on  the  manufactured  article  at  the  Treaty  port 
landed  at,  and,  if  thence  going  inland,  may  obtain  Transit 
privileges 

10.  On  payment  of  a  2^/2  per  cent.  Transit  Due  and  while  accom- 

panied by  Transit  documents. 
(g-)   If  the  manufactured  article  leaves  Tsingtau  under  Inland  Waters  Navi- 
gation Rules,  it  is  liable  to — 

11.  Whatever  Duties,  charges,  or  taxes  similar  merchandise  has 

to  pay  on  departure  or  en  route  and  inland  when  similarly 
carried.     Such  article  may,  however, 

12.  Free   itself    from   such   inland   liability   and   enjoy   Transit 

privileges  on  the  payment  of  2^^  per  cent.  Transit  Due 
at  Tsingtau  on  the  manufactured  article. 
(h)   If  the  manufactured  article  leaves  Tsingtau  by  the  land  route  and  goes 
to  the  hinterland,  it  is  treated — 

13.  In  the  same  way  as  if  leaving  under  Inland  Waters  Naviga- 

tion Rules. 

3. — Native  Material  arrived  under  Inland  Waters  Navigation  Rules. 

(i.)   If  the  manufactured  article  goes  abroad,  it  pays  at  Tsingtau  full  Export 
Duty  on  either — 

14.  The  material  used  or,  at  the  option  of  the  exporter,  on 

15.  The  article  itself,  and  the  quantity  is  written  off  on  the  Bond. 
(;*.)  If  the  manufactured  article  goes  to  a  Chinese  Treaty  port,  it  pays  at 

Tsingtau  full  Tariff  Duty  on  the — 

16.  Material  used,  Coast  Trade  Duty  at  the  port  landed  at,  and 

is  thereafter  treated  as  Chinese  merchandise,  or,  at  the 
option  of  the  exporter,  on  the 

17.  Manufactured  article,  in  which  case  it  is  given  an  Exemp- 

tion Certificate,  which  entitles  it  to  free  entry  as  Foreign 
merchandise  at  the  port  arrived  at,  and,  on  subsequent  pay- 
ment 

18.  Of  2^2  per  cent.  Dues,  to  Transit  privileges  if  going  inland. 
(k.)   If    the    manufactured    article    goes    away    under    Inland    Navigation 

Rules,  it  pays  Coast  Trade  Duty  on — 

19.  Material  used  or,  at  the  option  of  the  manufacturer,  on 

20.  The  manufactured  article,  and  is  liable  to 

21.  Whatever  Duties,  charges,  or  taxes  similar  merchandise  has 

to  pay  en  route  and  inland  when  similarly  carried.     Such 


NUMBER  1899/2:  APRIL  17,  1899  203 

article  after  such  payment  of  Duty  on  material  or  manu- 
factured article  may,  however, 

22.  Free   itself    from   such   inland   liability   and   enjoy    Transit 

privileges  on  the  payment  of  2^/2  per  cent.  Transit  Due  at 
Tsingtau  on  the  manufactured  article. 
(/.)   If  the  manufactured  article  leaves  Tsingtau  for  the  hinterland  by  the 
land  route,  it  is  treated — 

23.  In  the  same   way   as   if   leaving  under   Inland   Navigation 

Rules. 

4. — Native  Material  arrived  by  Land  Route  from  the  Hinterland. 

(m.)  If  the  manufactured  article  goes  abroad,  the  material  is  written  off 
on  the  Bond  and  the  exporter  pays  at  Tsingtau  full  Export  Duty 
either — 

24.  On  the  material  used  or,  at  the  option  of  the  exporter,  on 

25.  The  manufactured  article. 

(n.)  If  the  manufactured  article  goes  to  a  Chinese  Treaty  port,  it  pays  at 
Tsingtau  full  Tariff  Duty  on  the — 

26.  Material  used.  Coast  Trade  Duty  at  the  port  landed  at,  and 

is  thereafter  treated  as  Chinese  merchandise,  or 

27.  On  the  manufactured  article,  in  which  case  it  is  given  an 

Exemption  Certificate,  which  entitles  it  to  free  entry  as 
Foreign  merchandise  at  the  port  arrived  at,  and,  on  sub- 
sequent payment 

28.  Of  2%  per  cent.  Dues,  to  Transit  privileges  if  going  inland, 
(o.)   If  the  manufactured  article  goes  away  under  Inland  Waters  Naviga- 
tion Rules,  it  pays  at  Tsingtau  Coast  Trade  Duty  at  the  option  of 
exporter  either  on — 

29.  Material  used  or  on 

30.  Manufactured   article,   and   will   afterwards   be   liable,   like 

similar  merchandise  similarly  carried,  to  Inland  Duties, 
charges,  and  taxes  unless  protected  by  Transit  documents, 
which  will  entitle  it  to  Transit  privileges  and  may  be  ob- 
tained at  Tsingtau  from  the  Kiaochow  Customs 

31.  On  the  additional  payment  of  2^  per  cent.  Transit  Duty 

on  the  manufactured  article. 
(p.)  If  any  such  declared  material  leaves  German  territory  by  the  land  route 
for  the  hinterland,  either  in  original  condition  or  as  manufactured 
article,  it  re-enters  Chinese  territory  as  Chinese  merchandise  and 
will  be  subject  to  the  same  Duties,  charges,  and  taxes  as  similar 
merchandise  similarly  travelling. 

Graf  Rex, 

Minister  of  Germany. 
Robert  Hart, 

Inspector  General  of  Customs. 
Signed  at  Peking  the  17th  April  1907. 


204  CHINA  TREATIES  AND  AGREEMENTS 

NUMBER  1899/3. 

GREAT  BRITAIN  AND  RUSSIA. 

Identic   notes   exchanged  with   regard   to   railway   interests  in    China* — April 

28,  1899. 

Sir  C.  Scott  to  Count  Mouravieff. 

The  Undersigned,  British  Ambassador,  duly  authorized  to  that  effect,  has 
the  honour  to  make  the  following  declaration  to  His  Excellency  Count  Moura- 
vieff, Russian  Minister  for  Foreign  Affairs. 

Great  Britain  and  Russia,  animated  by  a  sincere  desire  to  avoid  in  China 
all  cause  of  conflict  on  questions  where  their  interests  meet,  and  taking  into 
consideration  the  economic  and  geographical  gravitation  of  certain  parts  of  that 
Empire,  have  agreed  as   follows : — 

1.  Great  Britain  engages  not  to  seek  for  her  own  account,  or  on  behalf 
of  British  subjects  or  of  others,  any  railway  Concessions  to  the  north  of  the  Great 
Wall  of  China,  and  not  to  obstruct,  directly  or  indirectly,  applications  for  railway 
Concessions  in  that  region  supported  by  the  Russian  Government. 

2.  Russia,  on  her  part,  engages  not  to  seek  for  her  own  account,  or  on  behalf 
of  Russian  subjects  or  of  others,  any  railway  concessions  in  the  basin  of  the 
Yangtze,  and  not  to  obstruct,  directly  or  indirectly,  applications  for  railway  con- 
cessions in  that  region  supported  by  the  British  Government. 

The  two  Contracting  Parties,  having  nowise  in  view  to  infringe  in  any  way 
the  sovereign  rights  of  China  or  existing  Treaties,  will  not  fail  to  communicate 
to  the  Chinese  Government  the  present  arrangement,  which,  by  averting  all  cause 
of  complications  between  them,  is  of  a  nature  to  consolidate  peace  in  the  Far 
East,  and  to  serve  the  primordial  interests  of  China  herself. 

Charles  S.  Scott. f 

St.  Petersburg,  April  28,  1899. 


Sir  C.  Scott  to  Count  Mouravieff. 

In  order  to  complete  the  notes  exchanged  this  day  respecting  the  partition 
of   spheres  for  Concessions  for  the  construction  and  working  of   railways  in 

*  Text  as  reprinted  in  Rockhill,  p.  183,  from  B.  &  F.  State  Papers,  vol.  91,  p.  91. 
Printed  also  in  British  Treaty  Series,  1899,  No.  11;  Am.  Int.  Law  Journal,  Suppleni'ent,  1910, 
p.  298;  Hertslet,  p.  586:  Kent,  p.  220;  Recueil,  p.  358. 

In  connection  with  this  exchange  of  notes  see  also  the  note  of  the  Tsung-li  Yamen  to  the 
Russian  Minister,  June  1,  1899  (No.  1899/5,  post)  ;  Agreement  between  Russia  and  China 
concerning  Manchuria,  April  8,  1902  (No.  1902/3,  post)  ;  Agreement  for  the  transfer  of  the 
Peking- Shanhaikuan  Railway  to  the  Chinese  Civil  Administration,  and  the  Additional 
Agreement  respecting  the  management  of  the  northern  railways,  April  29,  1902  (No.  1902/4. 
post),  and  the  note  of  the  Wai-wu  Pu  to  the  Russian  Minister,  June  10,  1902,  attached 
thereto. 

t  The  same,  mutatis  mutandis,  was  sent  the  same  day  by  Count  Mouravieff,  Minister  of 
Foreign  Aflfairs  of  Russia,  to  Sir  Charles  Scott. 


NUMBER  1899/4 :  MAY  2,  1899  205 

China,  it  has  been  agreed  to  record  in  the  present  additional  note  the  agreement 
arrived  at  with  regard  to  the  line  Shanhai-kuan-Newchwang,  for  the  construc- 
tion of  which  a  loan  has  been  already  contracted  by  the  Chinese  Government  with 
the  Shanghai-Hongkong  Bank,  acting  on  behalf  of  the  British  and  Chinese 
Corporation. 

The  general  arrangement  established  by  the  above-mentioned  notes  is  not  to 
infringe  in  any  way  the  rights  acquired  under  the  said  Loan  Contract,  and 
the  Chinese  Government  may  appoint  both  an  English  engineer  and  an  European 
accountant  to  supervise  the  construction  of  the  line  in  question,  and  the  expendi- 
ture of  the  money  appropriated  to  it. 

But  it  remains  understood  that  this  fact  cannot  be  taken  as  constituting  a 
right  of  property  or  foreign  control,  and  that  the  line  in  question  is  to  remain 
a  Chinese  line,  under  the  control  of  the  Chinese  Government,  and  cannot  be 
mortgaged  or  alienated  to  a  non-Chinese  Company. 

As  regards  the  branch  line  from  Siaoheishan  to  Sinminting,  in  addition  to 
the  aforesaid  restrictions,  it  has  been  agreed  that  it  is  to  be  constructed  by  China 
herself,  who  may  permit  European — not  necessarily  British — engineers  to  peri- 
odically inspect  it,  and  to  verify  and  certify  that  the  work  is  being  properly 
executed. 

The  present  special  Agreement  is  naturally  not  to  interfere  in  any  way  with 
the  right  of  the  Russian  Government  to  support,  if  it  thinks  fit,  applications  of 
Russian  subjects  or  establishments  for  Concessions  for  railways,  which,  start- 
ing from  the  main  Manchurian  line  in  a  southwesterly  direction,  would  traverse 
the  region  in  which  the  Chinese  line  terminating  at  Sinminting  and  Newchwang 
is  to  be  constructed. 

Charles  S.  ScoTT.f 
St.  Petersburg,  April  28, 1899. 


NUMBER  1899/4. 

CHINA. 

Proclamation  in  regard  to  the  extension  of  the  international  settlement  at  Shang- 
hais—May 2,  1899. 

Proclamation  of  Li,  Wearer  of  the  Button  of  Second  Grade  by  Imperial 
Grace,  Commissioner  of  Kiangnan  Customs,  Taotai  of  Shanghai,  concurrently  in 
charge  of  copper  mines.  Hereditary  Baron  of  the  Third  Class. 

After  rules  and  regulations  were  made  for  the  first  section  of  a  foreign  set- 
tlement north  of  the  Yang  King  Pang  by  former  Taotai  Kung  and  former  British 

*  Translation  from  the  Chinese  text. 

t  The  same,  mutatis  mutandis,  was  sent  the  same  day  by  Count  Mouravieff,  Minister  of 
Foreign  Affairs  of  Russia,  to  Sir  Charles  Scott. 


206  CHINA  TREATIES  AND  AGREEMENTS 

Consul  Parker  on  the  fifth  day  of  the  eighth  moon,  in  the  twenty-sixth  year  of 
Tao  Kuang  (September  24,  1846),  commerce  was  improved,  the  laboring  classes 
were  benefited  and  the  prosperity  of  the  place  increased. 

So  that  on  the  second  day  of  the  eleventh  moon,  in  the  twenty-eighth  year 
of  Tao  Kuang  (November  27,  1848),  former  Taotai  Lin  and  former  British 
Consul  Allen  had  a  consultation  concerning  extension,  and  agreed  upon  bound- 
aries, mapped  out  the  place  and  set  up  boundary  stones. 

Later  on,  on  the  thirteenth  day  of  the  fifth  moon  of  the  nineteenth  year 
of  Kuang  Hsii  (June  26,  1893),  outside  of  the  first  district  of  the  settlement 
the  Hongkew  district  was  set  aside  for  a  settlement  by  former  Taotai  Nieh,  who 
deputed  former  Shanghai  Magistrate  Huang  to  consult  with  Mr.  Emens,  Vice 
Consul  General  of  the  United  States  acting  in  behalf  of  the  consuls  of  the 
various  countries.     Boundaries  were  surveyed  and  fixed  and  stones  set  up. 

Still  later,  on  the  tenth  day  of  the  second  moon,  in  the  twenty-fourth  year 
of  Kuang  Hsii  (March  2,  1898),  during  the  incumbency  of  former  Taotai  Ts'ai, 
an  application  was  received  from  the  Senior  Consul,  Mr.  Stubel,  Consul  General 
of  Germany,  for  the  extension  of  the  settlement.  Instructions  were  also  received 
from  His  Excellency  Liu,  Superintendent  of  Southern  Trade,  stating  that  com- 
munication had  been  received  from  Mr.  Brenan,  British  Consul  General  at  Shang- 
hai, and  Mr.  E.  T.  Williams,  Acting  Consul  General  of  the  United  States,  point- 
ing out  that  the  present  settlement  was  not  large  enough  for  the  increasing  busi- 
ness of  Shanghai  and  asking  for  an  extension,  not  with  any  idea  of  interfer- 
ing with  the  authority  of  Chinese  officials,  as  all  rules  and  regulations  concerning 
Chinese  must  have  the  previous  approval  of  the  local  authorities  before  they  can 
be  enforced.  As  to  the  extension  of  the  limits  of  the  settlement  a  satisfactory 
arrangement  should  be  made  with  the  local  authorities.  In  obedience  to  this  order, 
former  Taotai  Ts'ai  proposed  boundaries  for  the  extension  of  the  international 
settlement  and  communicated  them  to  the  Senior  Consul,  Mr.  Valdez,  consul  Gen- 
eral of  Portugal.  But  before  a  satisfactory  arrangement  was  arrrived  at,  former 
Taotai  Ts'ai  was  removed. 

I  have  now  assumed  office.  His  Excellency  Liu,  Superintendent  of  South- 
ern Trade,  has  appointed  Deputies  Ferguson  and  Yii  to  come  to  Shanghai,  to  be 
associated  with  me  in  the  settlement  of  the  question.  Realizing  that  business  in 
Shanghai  is  daily  increasing  and  that  the  place  is  not  large  enough,  it  was 
plainly  my  duty  to  have  a  discussion  concerning  the  extension  of  the  International 
Settlement.  A  conference  was  held  between  Deputies  Ferguson  and  Yii,  the 
consuls  of  the  various  countries  and  myself,  when  a  satisfactory  arrangement 
was  concluded. 

In  the  rules  and  regulations  for  the  former  settlement,  which  were  from 
time  to  time  agreed  on,  and  in  the  new  regulations  for  the  Hongkew  settle- 
ment, the  rights  of  the  Chinese  people  with  regard  to  houses  and  land,  graves, 
and  waterways  are  all  plainly  stated  and  will  be  protected.  These  regulations 
were  sometime  ago  printed  and  placed  at  the  gate  of  the  Municipal  Council  as 
well  as  in  other  public  places,  for  the  information  and  compliance  of  everyone. 

The  Shanghai  district  magistrate  is  now  ordered  to  carry  into  effect  our 
decision  regarding  the  international  extension,  make  a  map,  and  set  up  boundary 


NUMBER  1899/5 :  JUNE  1,  1899  207 

Stones  in  conjunction  with  Deputies  Ferguson  and  Yii  and  with  the  chairman 
of  the  Municipal  Council. 

Having  sent  despatches  to  the  consuls  of  the  various  countries  on  the  sub- 
ject, I  feel  in  duty  bound  to  issue  this  proclamation  that  all  classes  of  people 
may  be  informed  about  the  matter;  and  hereafter  all  matters  within  the  settle- 
ment will  be  governed  by  the  rules  and  regulations,  excepting  temples  and 
Chinese  Government  property,  which  are  not  under  the  control  of  the  Munic- 
ipal Council. 

Let  all  obey  this  special  proclamation ! 
Boundaries  of  the  international  settlement  extension. 
East,  from  Yangtzepoo  Bridge  in  the  American  settlement  to  Chou  Chia  Chui. 
West,  from   Ni   Ch'eng  Bridge    (Mud   City   Bridge)    to   Cheng  An   Ssu   Chen 
(Bubbling   Well    Temple),    and    from    a    straight    line    drawn    from 
Bubbling  Well  Temple  to  the  south  bank  of  Soochow  Creek  at  Sinza. 
South,  from  Pa  Hsien  Bridge  (Bridge  of  the  Eight  Fairies)  in  the  French  Set- 
tlement to  Cheng  An  Ssu  Chen  (Bubbling  Well  Temple). 
North,  from  the  fifth  boundary  stone  in  the  Hongkew  settlement  to  the  north 
boundary  of   Shanghai  district ;  that  is,   from  the  boundary  line  be- 
tween  Shanghai  and   Paoshan   districts   in   a   straight  line  to   Chow 
Chia    Chui. 
The  (23)  day  of  the  fourth  moon,  in  the  twenty-fifth  year  of  Kuang  Hsii 
(May   2,    1899). 


NUMBER  1899/5. 

RUSSIA  AND  CHINA. 

Note  of  the  Tsitng-li  Yamcn  to  the  Russian  Minister  at  Peking  in  regard  to  the 
construction  of  railways  northzvard  and  northeastward  front  Peking* — 
June  1,  1899. 

Your  Excellency : 

We  discussed  with  Your  Excellency  a  few  days  ago  the  subject  of  a 
railway  connecting  the  Manchurian  Railway  with  Peking,  and  explained  the 
difficulty  felt  by  the  Chinese  Government  in  acceding  to  the  proposal.  But  we 
stated  clearly  that  no  other  Government  would  be  allowed  to  construct  such  a 
railway. 

We  now  wish  to  reiterate  in  the  plainest  terms  that  China  agrees  that  if 
railways  are  in  future  built  from  Peking  to  the  north  or  to  the  northeast 
towards  the  Russian  border,  China  reserves  the  right  to  construct  such  roads 
with  Chinese  capital  and  under  Chinese  supervision,  but  if  it  is  proposed  to 
have  such  construction  undertaken  by  any  other  nation,  the  proposal  shall  be 
first  made  to  the  Russian  Government  or  to  the  Russian  syndicate  to  construct 

*  Translation  from  the  Chinese  text.     See  Note  to  this  document,  post.  p.  208. 


208  CHINA  TREATIES  AND  AGREEMENTS 

the  railway,  and  on  no  consideration  will  any  other  Government  or  a  syndicate 
of  any  other  nationality  be  allowed  to  construct  the  railway. 

We  ask  Your  Excellency  to  communicate  this  message  to  the  Foreign  Office 
of  Your  Excellency's  Government. 


Note 

The  following  is  a  translation  from  the  Chinese  version  of  the  acknowledgment  ad- 
dressed to  the  Tsung-li  Yamen  by  the  Russian  Minister  (Mr.  de  Giers)  under  date  of 
June  17,  1899:— 

Reply  of  Russian  Mirkister  in  regard  to  Railways  Northward  and  Northeastward  from 

Peking. — June  17,  1899. 

"  Receipt  is  acknowledged  of  Your  Excellencies'  note  of  the  twenty-third  day  of  the 
fourth  moon  of  this  year  (June  1,  1899),  stating  that  the  Chinese  Government  would  not 
allow  any  other  Government  to  construct  a  railway  to  Peking,  and  furthermore  agreeing 
that  if  railways  are  in  future  built  from  Peking  to  the  north  or  to  the  northeast  towards 
the  Russian  border,  no  matter  in  what  direction,  China  reserves  the  right  to  construct  such 
roads  with  Chinese  capital  and  under  Chinese  supervision,  but  if  it  is  proposed  to  have  such 
construction  undertaken  by  any  other  nation,  the  proposal  shall  first  be  made  to  the  Russian 
Government  or  to  the  Russian  syndicate  to  construct  the  railway,  and  on  no  consideration 
will  any  other  Government  or  a  syndicate  of  any  other  nationality  be  allowed  to  construct 
the  railway. 

"The  statements  above  set  forth  were  communicated,  in  accordance  with  your  request,- 
to  my  Government,  and  I  have  now  received  a  reply  from  Count  Mouravieflf,  as  follows: 

'* '  The  assurances  of  the  Chinese  Government  have  been  respectfully  noted.  While 
the  Russian  Government  will  not  at  once  ask  for  the  construction  of  a  road  con- 
necting the  main  line  of  the  Manchurian  Railway  with  Peking,  the  demand  of  Russia 
for  the  construction  of  this  road  was  based  on  the  responsibility  assumed  by  the 
Chinese  Government  in  its  note  of  the  thirteenth  day  of  the  sixth  moon  of  last  year 
(July  31,  1898),  which  is  direct  and  incontrovertible,  the  failure  to  fulfil  which  involves 
an  indemnity.    This  responsibility  cannot  therefore  be  allowed  to  lapse.' " 

In  connection  with  this  note,  see  the  Anglo-Russian  exchange  of  notes  of  April  28,  1899 
(No.  3,  1899/3,  ante)  ;  Agreement  between  Russia  and  China  concerning  Manchuria,  April 
8,  1902  (No.  1902/3,  post)  ;  Agreement  for  the  transfer  of  the  Peking-Shanhaikuan  Railway 
to  the  Chinese  Civil  Administration,  and  the  Additional  Agreement  respecting  the  manage- 
ment of  the  northern  railways,  April  29,  1902  (No.  1902/4,  post),  and  note  of  the  Wai-wu  Pu 
to  the  Russian  Minister,  June  10,  1902,  attached  thereto. 


NUMBER  1899/6. 

KOREA  AND  CHINA. 
Treaty  of  amity  and  commerce* — September  11,  1899. 

His  Majesty  the  Emperor  of  Korea  and  His  Majesty  the  Emperor  of 
China,  being  sincerely  desirous  of  establishing  permanent  relations  of  har- 
mony and  friendship  between  their  respective  subjects,  have  resolved  to  con- 

*  Translation   from  the  Chinese  text,  as  printed  in  Rockhill.  p.  424.     Printed  also  in 
English  translation   in  Hcrtslct,  p.  241;   Customs,  Vol.   II,  p.  864. 

Hertslet  (p.  241)   notes  that  by  Article  2  of  the  convention  between  Japan  and  Korea 


NUMBER  1899/6:  SEPTEMBER  11,  1899  209 

dude  a  treaty  for  that  purpose,  and  have  therefore  named  as  their  plenipoten- 
tiaries, that  is  to  say : 

His  Majesty  the  Emperor  of  Korea,  Pak  Chai  Sun,  Korean  Minister  of 
Foreign  Affairs,  Minister  of  the  Council  of  State,  etc.,  His  Majesty's  Minister 
Plenipotentiary ; 

His  Majesty  the  Emperor  of  China,  Hsii  Shou  Peng,  an  official  of  the 
second  grade,  Director  of  the  Imperial  Stud,  His  Majesty's  Minister  Plenipoten- 
tiary ; 

Who,  after  having  communicated  to  each  other  their  respective  full  powers, 
found  in  due  and  good  form,  have  agreed  upon  and  concluded  the  following 
commercial  treaty : 

Article  I. — Peace,  friendship,  good  offices. — There  shall  be  perpetual 
peace  and  friendship  between  the  Empire  of  Korea  and  the  Empire  of  China, 
and  between  their  respective  subjects,  who  shall  enjoy  equally  in  the  respective 
countries  of  the  High  Contracting  Parties  full  protection  and  the  advantages 
of  favorable  treatment. 

H  other  powers  should  deal  unjustly  or  oppressively  with  either  Government, 
the  other,  on  being  informed  of  the  case,  will  exert  their  good  offices  to  bring 
about  an  amicable  arrangement,  thus  showing  their  friendly  feelings. 

Article  H. — Diplomatic  representatives. — After  the  conclusion  of  this 
treaty  of  amity  and  commerce,  the  High  Contracting  Parties  may  each  appoint 
diplomatic  representatives  to  reside  at  the  court  of  the  other,  and  may  each 
appoint  consular  representatives  at  the  ports  of  the  other  which  are  open  to 
foreign  commerce,  at  their  own  convenience. 

These  officials  shall  have  relations  with  the  corresponding  local  authorities 
of  equal  rank  upon  a  basis  of  mutual  equality. 

The  diplomatic  and  consular  representatives  of  the  two  Governments  shall 
enjoy  mutually  all  the  privileges,  rights,  and  immunities,  without  discrimination, 
which  are  accorded  to  the  same  class  of  representatives  from  the  most  favored 
nation. 

Consular  representatives. — Consuls  shall  exercise  their  functions  only 
on  receipt  of  an  exequatur  from  the  Government  to  which  they  are  accredited. 

No  restrictions  or  difficulties  shall  be  imposed  upon  the  movement  of  the 
members  of  the  official  establishments  of  either  country  or  upon  messengers 
carrying  official  dispatches. 

Consular  authorities  shall  be  bona  fide  officials.  No  merchant  shall  be  per- 
mitted to  exercise  the  duties  of  the  office,  nor  shall  consular  officers  be  allowed 
to  engage  in  trade. 

At  ports  to  which  no  consular  representatives  have  been  appointed  the  con- 
suls of  the  other  powers  may  be  invited  to  act,  provided  that  no  merchant  shall 
be  allowed  to  assume  consular  functions." 

of  November  17,  1905,  providing  for  the  control  of  Korean  foreign  relations  by  Japan, 
it  is  stipulated  that  "The  Government  of  Japan  undertake  to  see  to  the  execution  of  the 
Treaties  actually  existing  between  Korea  and  other  Pov^^ers ".  The  proclamation  of  the 
Japanese  Government  in  connection  with  the  Treaty  of  annexation  of  Korea,  concluded 
August  22,  1910,  made  the  announcement  that  "  Treaties  hitherto  concluded  by  Korea  with 
foreign  Powers  ceasing  to  be  operative,  Japan's  existing  Treaties  will,  so  far  as  practicable, 
be  applied  to  Korea." 


210  CHINA  TREATIES  AND  AGREEMENTS 

If  the  consular  representatives  of  either  country  conduct  their  business  in 
an  improper  manner,  they  shall  be  withdrawn  on  notice  being  given  to  the 
diplomatic  representatives  of  the  country  concerned. 

Article  III. — Merchants,  merchant  vessels. — Merchants  and  merchant 
vessels  of  Korea  visiting  Chinese  treaty  ports  for  purposes  of  trade  shall  pay 
import  and  export  duties  and  tonnage  dues  and  all  other  charges  according  to 
the  Chinese  customs  regulations  and  on  the  same  terms  as  the  similar  duties  levied 
on  the  subjects  of  the  most  favored  nation. 

Chinese  merchants  and  merchant  vessels  visiting  Korean  treaty  ports  for 
purposes  of  trade  shall  pay  import  and  export  duties  and  tonnage  dues  and 
all  other  charges  according  to  the  Korean  customs  regulations  and  upon  the 
same  terms  as  the  duties  levied  upon  the  subjects  of  the  most  favored 
nation. 

The  subjects  of  both  powers  shall  be  allowed  to  resort  for  purposes  of 
trade  to  all  the  open  ports  in  the  dominion  of  the  other. 

Regulations  for  the  conduct  of  trade  and  the  customs  tariff  shall  be  those 
enjoyed  by  the  most  favored  nation. 

Article  IV. — Rights  at  open  ports. — 1.  Subjects  of  Korea  who  may 
proceed  to  the  Chinese  open  ports  may  reside  and  rent  premises  or  lease  land 
and  erect  warehouses  as  they  please  within  the  limits  .of  the  settlements.  They 
shall  be  at  liberty  to  traffic  in  all  kinds  of  native  produce,  in  all  manufactured 
goods,  and  in  all  articles  that  are  not  declared  contraband. 

Subjects  of  China  who  may  proceed  to  the  Korean  open  ports  may  reside 
and  rent  premises  or  lease  land  and  erect  warehouses  as  they  please  within  the 
limits  of  the  settlements.  They  shall  be  at  liberty  to  traffic  in  all  kinds  of 
native  produce,  in  all  manufactured  goods,  and  in  all  articles  that  are  not 
declared  contraband. 

2.  All  questions  affecting  the  renting  of  land,  the  building  of  houses,  the 
laying  out  of  cemeteries,  the  payment  of  rent  and  taxes,  and  other  matters  of 
a  similar  nature  at  the  treaty  ports  of  either  country  are  to  be  determined  in 
accordance  with  the  settlement  and  municipal  council  regulations  of  the  ports, 
which  must  not  be  infringed. 

If  there  is,  in  addition  to  a  general  foreign  settlement  at  a  treaty  port  in 
either  country,  a  settlement  under  the  separate  control  of  a  foreign  power, 
questions  affecting  the  renting  of  land  and  similar  matters  shall  be  governed  by 
the  regulations  of  the  settlement,  which  must  not  be  infringed. 

Leasing  and  purchasing  land. — 3.  Chinese  subjects  shall  enjoy  all  bene- 
fits and  advantages  granted  to  foreigners  with  reference  to  the  leasing  or  pur- 
chase of  land  or  houses  beyond  the  limits  of  the  foreign  settlements  at  the 
treaty  ports  of  Korea.  But  all  lands  so  occupied  shall  be  subject  to  such  con- 
ditions as  to  the  observance  of  Korean  local  regulations  and  payment  of  land  tax 
as  the  Korean  authorities  may  see  fit  to  impose. 

Korean  subjects  shall  enjoy  all  benefits  and  advantages  granted  to  foreigners 
with  reference  to  the  leasing  or  purchase  of  land  or  houses  beyond  the  limits 
of  the  foreign  settlements  at  the  treaty  ports  of  China.  But  all  lands  so  oc- 
cupied shall  be  subject  to  such  conditions  as  to  the  observance  of  Chinese  local 


NUMBER  1899/6:  SEPTEMBER  11,  1899  211 

regulations  and  the  payment  of  land  tax  as  the  Chinese  authorities  may  see 
fit  to  impose. 

4.  The  subjects  of  neither  country  shall  be  permitted  to  rent  land  or 
houses  or  open  warehouses  beyond  the  limits  of  the  area  open  to  foreign  trade 
at  the  treaty  ports  of  the  High  Contracting  Parties.  The  penalty  for  a  breach 
of  this  stipulation  shall  be  the  confiscation  of  the  land  and  a  fine  of  twice  their 
original  value. 

5.  No  coercion  or  intimidation  in  the  acquisition  or  lease  of  land  shall  be 
permitted  and  the  land  so  occupied  shall  remain  an  integral  part  of  the  State. 

6.  If  merchandise  is  sent  by  the  subjects  of  one  of  the  High  Contracting 
Parties  from  one  treaty  port  in  the  other  country  to  another  treaty  port  in 
the  same  country  it  shall  be  subject  to  the  same  dues  and  duties,  prohibitions 
and  regulations  as  obtain  in  the  case  of  the  subjects  of  the  most  favored  nation. 

Article  V. — Punishment  of  crimes. — 1.  A  Chinese  subject  who  com- 
mits any  offense  in  Korea  shall  be  tried  and  punished  by  the  Chinese  consular 
authorities  according  to  the  laws  of  China. 

A  Korean  subject  who  commits  any  offense  in  China  shall  be  tried  and 
punished  by  the  Korean  consular  ofificials  according  to  the  laws  of  Korea. 

A  Chinese  subject  who  commits  any  offense  against  the  life  or  property  of 
a  Korean  in  China  shall  be  tried  and  punished  by  the  Chinese  authorities  ac- 
cording to  the  laws  of  China. 

A  Korean  subject  who  commits  any  offense  against  the  life  or  property 
of  a  Chinese  in  Korea  shall  be  tried  and  punished  by  the  Korean  authorities 
according  to  the  laws  of  Korea. 

Mixed  cases. — When  controversies  arise  between  the  subjects  of  the  two 
countries  they  shall  be  decided  by  the  proper  official  of  nationality  of  tlie 
defendant  according  to  the  laws  of  that  country. 

The  properly  authorized  official  of  the  plaintiff's  nationality  shall  be  per- 
mitted to  attend  the  trial  and  watch  the  proceedings,  and  shall  be  treated  with 
the  courtesy  due  to  his  position.  If  he  so  desires,  he  shall  have  the  right  to  call 
and  examine  witnesses,  and  if  he  is  dissatisfied  with  the  proceedings  he  shall 
be  permitted  to  protest  against  them  in  detail. 

Refuge. — 2.  If  a  subject  of  one  of  the  High  Contracting  Parties  who  has 
committed  an  offense  against  the  laws  of  his  country  takes  refuge  on  the 
premises  or  on  board  a  ship  owned  by  a  subject  of  the  other  the  local  officials, 
after  having  notified  the  consular  authorities,  shall  send  police  to  assist  in 
having  the  offender  arrested  and  brought  to  justice.  The  authorities  of  the 
nationality  of  the  offender  shall  try  the  case.  No  protection  or  concealment  of 
any  such  person  shall  be  permitted. 

Extradition. — 3.  If  a  subject  of  one  of  the  High  Contracting  Parties  who 
has  committed  an  offense  against  the  laws  of  his  country  takes  refuge  in  the 
dominions  of  the  other  the  authorities  of  the  latter  country,  on  receiving  an 
application,  shall  discover  and  hand  over  such  person  to  his  country  for  trial. 
No  concealment  or  protection  of  any  such  person  shall  be  permitted. 

Extraterritoriality. — 4.  When  in  the  judgment  of  either  of  the  High  Con- 
tracting Parties  the  laws  and  legal  procedure  of  the  other  shall  have  been  so 


212  CHINA  TREATIES  AND  AGREEMENTS 

far  modified  and  reformed  as  to  remove  the  present  existing  objections,  the  right 
of  extraterritorial  jurisdiction  shall  be  relinquished. 

Article  VI. — Export  of  rice  and  grain. — In  China  the  export  of  rice 
and  grain  to  foreign  countries  has  always  been  prohibited.  There  is  no  prohi- 
tion  of  this  kind  in  Korea,  but  it  is  agreed  that  whenever  there  is  reason  to 
apprehend  a  scarcity  of  food  within  the  limits  of  the  Empire  a  prohibition 
against  the  export  of  rice  and  grain  may  be  enforced,  and  shall  be  binding  upon 
Chinese  subjects  when  it  shall  have  been  officially  communicated  by  the  Korean 
local  authorities  to  the  Chinese  authorities  concerned. 

Article  VII. — Fraudulent  sales,  debts. — If  the  subjects  of  either  of  the 
High  Contracting  Parties  in  their  commercial  dealings  with  each  other  are 
guilty  of  fraud  or  make  fictitious  sales,  or  do  not  pay  their  debts,  the  authori- 
ties of  both  Powers  shall  use  stringent  measures  to  arrest  the  offenders  and 
obtafn  payment  of  the  debts. 

The  Governments  of  the  High  Contracting  Powers  shall  not  be  responsible 
for  debts  of  this  nature. 

Article  VIII. — Passports. — Chinese  subjects  shall  have  the  right  to  travel 
under  passports  in  the  interior  of  Korea  for  purposes  of  pleasure  or  trade. 
They  are,  however,  forbidden  to  reside  or  to  open  establishments  for  trade 
there.  The  penalties  for  a  breach  of  this  stipulation  are  the  confiscation  of  the 
goods  and  a  fine  of  twice  their  original  value. 

Korean  subjects  shall  have  the  right  to  travel  under  passports  in  the  in- 
terior of  China  for  purposes  of  pleasure  or  trade,  and  shall  receive  most  favored 
nation  treatment  in  this  respect. 

Article  IX. — Arms,  munitions. — The  purchase  of  arms,  munitions,  and  im- 
plements of  war,  as  ordnance  or  cannon,  shot  and  shell,  firearms  of  all  kinds, 
cartridges,  sidearms,  spears  or  pikes,  saltpeter,  gunpowder,  gun  cotton,  dynamite, 
and  other  explosive  substances  is  permitted  only  to  the  officials  of  the  two  Con- 
tracting Powers,  and  they  may  be  imported  by  the  subjects  of  either  only  under 
a  written  permit  issued  by  the  officials  of  the  country  into  which  they  are 
imported. 

If  these  articles  are  clandestinely  imported  or  sold  they  shall  be  confiscated 
and  the  offending  party  fined  twice  their  original  value. 

Import  of  opium  into  Korea,  export  of  red  ginseng  from. — The  import 
of  opium  into  Korea  is  prohibited,  and  if  either  foreign  or  Chinese  grown  opium 
is  imported  by  Chinese  subjects  it  shall  be  confiscated  and  the  offending  party 
fined  twice  its  original  value. 

The  export  of  red  ginseng  from  Korea  has  always  been  prohibited.  If 
Chinese  subjects  clandestinely  buy  and  export  it  without  the  special  permission 
of  the  Korean  Government,  it  shall  be  seized  and  confiscated  and  the  offenders 
punished  as  circumstances  may  require. 

Article  X. — Ports  of  refuge. — Whenever  vessels  of  either  of  the  two 
Contracting  States  are  detained  on  the  coast  of  other  through  stress  of  weather 
or  want  of  fuel  or  provisions  they  may  enter  any  port  or  harbor  either  to  take 
refuge  therein  or  to  get  supplies,  or  to  make  repair;  the  expenses  incurred 
thereby  being  defrayed  by  the  ship's  master.     In  such  event  the  officers  and 


NUMBER  1899/6:  SEPTEMBER  11,  1899  213 

people  of  the  locality  shall  render  all  the  assistance  in  their  power  and  furnish 
the  necessaries  required. 

Clandestine  trade. — If  a  vessel  trades  clandestinely  at  a  port  not  open 
to  commerce,  or  at  any  place  where  she  is  forbidden  to  proceed,  the  vessel, 
with  her  cargo,  whether  any  trade  has  actually  taken  place  or  not,  shall  be 
seized  and  confiscated  by  the  local  authorities  and  the  nearest  customs  offi- 
cials, and  the  offenders  shall  incur  a  fine  of  twice  their  original  value. 

Wrecks,  their  cargoes  and  crews. — Should  a  vessel  of  either  Power  be 
wrecked  on  the  coast  of  the  other,  the  local  authorities,  on  being  informed  of  the 
occurrence,  shall  immediately  render  assistance  to  the  crew,  provide  for  their 
immediate  necessities,  and  take  requisite  measures  for  the  salvage  of  the  ship 
and  the  preservation  of  her  cargo.  They  shall  also  bring  the  matter  to  the 
knowledge  of  the  nearest  consular  representative,  in  order  that  steps  may  be  taken 
to  send  the  crew  home  and  to  save  the  ship  and  her  cargo.  The  necessary  ex- 
penses shall  be  defrayed  either  by  the  ship's  master  or  by  the  authorities  of  the 
nationality  of  the  vessel  concerned. 

Article  XI. — Employment  of  natives. — The  officers  and  people  of  either 
Power  residing  at  trading  places  in  the  dominions  of  the  other  shall  have  the 
right  to  employ  natives  in  any  lawful  capacity. 

Article  XII. — Tariff  and  frontier  trade  rules. — After  the  present  treaty 
has  been  concluded,  a  tariff  and  rules  shall  be  drawn  up  to  regulate  the  frontier 
trade  which  has  hitherto  been  carried  on  between  the  two  Empires.  All  persons 
who  have  already  crossed  the  frontier  and  reclaimed  ground  shall  be  allowed 
to  pursue  their  avocations  in  peace  and  enjoy  protection  for  their  lives  and 
property. 

Migration. — From  this  time  forward  migration  across  the  frontier  shall 
be  prohibited  on  both  sides  in  order  to  avoid  complications. 

Frontier  mart. — The  question  of  the  determination  of  the  site  of  a  trade 
mart  is  reserved  for  discussion  and  settlement  when  the  frontier  rules  come 
to  be  drawn  up. 

Article  XIII. — Ships  of  war. — The  ships  of  war  of  each  country  shall 
be  at  liberty  to  visit  all  the  ports  of  the  other  whether  open  to  foreign  trade 
or  not. 

They  shall  not  be  permitted  to  clandestinely  import  merchandise. 

Supplies  of  all  kinds  for  ships  of  war  of  either  country  shall  not  be  liable 
to  the  payment  of  duties. 

Officers  and  men  of  the  ships  of  war  of  either  country  may  land  anywhere 
in  the  territories  of  the  other,  but  shall  not  proceed  into  the  interior  unless  they 
are  provided  with  passports. 

If  articles  used  on  board  ship  are  for  any  reason  sold,  the  purchaser  shall 
pay  the  proper  duty. 

Article  XIV. — The  present  treaty  shall  be  ratified  by  His  Majesty  the 
Emperor  of  Korea  and  His  Majesty  the  Emperor  of  China  under  their  hands  and 
seals,  and  the  ratifications  shall  be  exchanged  at  Seoul  within  one  year  at  the 
latest  from  the  date  of  signature,  and  immediately  thereafter  this  treaty  shall 
be  in  all  its  provisions  publicly  proclaimed  and  made  known  by  both  Govern- 


214  CHINA  TREATIES  AND  AGREEMENTS 

ments  in  their  respective  countries,  in  order  that  it  may  be  obeyed  by  their  sub- 
jects, respectively,  t 

Article  XV. — The  Chinese  written  character  being  common  to  both  Korea 
and  China,  this  treaty  and  future  official  correspondence  shall  be  made  in  Chinese 
for  the  sake  of  clearness. 

Hsu  Shou  Peng, 
Envoy  Extraordinary  and  Minister  Plenipotentiary  2'"^  Rank. 
Director  of  the  Imperial  Stud.    For  His  Majesty  the  Em- 
peror of  China,  7th  day,  8th  moon,  25th  year  of  Kuang  Su. 

Pak  Chai  Sun, 

Envoy  Extraordinary  and  Minister  Plenipotentiary.  Minis- 
ter for  Foreign  Affairs  and  Councillor  of  State.  llth  Sep- 
tember, 1899.    3d  year  of  Kwang  Mu. 


NUMBER  1899/7. 

MEXICO  AND  CHINA. 

Treaty  of  amity  and  commerce.* — December  14,  1899. 

The  President  of  the  United  Mexican  States  and  His  Majesty  the  Em- 
peror of  China,  being  equally  animated  by  the  desire  to  establish  friendly  rela- 
tions between  the  two  countries  and  their  citizens  and  subjects,  have  resolved 
to  conclude  a  Treaty  of  friendship,  commerce  and  navigation,  and  for  that  pur- 
pose have  named  their  respective  Plenipotentiaries,  that  is  to  say : 

The  President  of  the  United  Mexican  States,  Manuel  de  Azpiroz.  Ambas- 
sador Extraordinary  and  Plenipotentiary  of  the  United  Mexican  States  in  Wash- 
ington, and 

His  Majesty  the  Emperor  of  China,  Wu  Ting-fang,  an  Official  of  the  Sec- 
ond Rank,  Minister  of  State  of  the  Fourth  Class  by  brevet,  and  Envoy  Extraor- 
dinary and  Minister  Plenipotentiary  to  the  United  States  of  America,  Spain 
and  Peru ; 

And  we,  the  said  Plenipotentiaries,  after  having  exhibited  our  respective 
full  powers,  and  finding  them  in  due  and  good  form,  have  agreed  upon  the 
following  articles : 

Article  I. — Friendship.  Free  intercourse.  Most  favored  nation  treat- 
ment.— There  shall  be  perpetual,  firm  and  sincere  friendship  between  the 
United  Mexican  States  and  the  Chinese  Empire,  as  also  between  their  re- 
spective citizens  and  subjects.  They  shall  be  at  liberty  to  freely  go  to  the 
respective  countries  of  the  High  Contracting  Parties  and  reside  therein.  They 
shall  there  have  complete  protection  in  their  persons,   families   and   property, 

*  Text  as  reprinted  in  Rockhill,  p.  468.  from  Diario  Oficial,  July  24,  1900.  Printed  also 
in  Customs.  Vol.  II,  p.  833 :  Hertslet.  p.  399. 

t  Ratifications  exchanged   December  14,   1899. 


NUMBER  1899/7:  DECEMBER  14,  1899  215 

and  they  shall  enjoy  all  the  rights  and  advantages  which  are  granted  to  the 
subjects  of  the  most  favored  nation. 

Article  II. — Diplomatic  agents.  Rights.  Immunities. — In  order  to 
facilitate  friendly  relations  between  the  two  countries,  the  President  of  the 
United  Mexican  States  may  appoint  a  Diplomatic  Agent  to  the  Court  of  Peking 
and  His  Majesty  the  Emperor  of  China  may,  likewise,  appoint  a  Diplomatic 
Agent  near  the  Mexican  Government. 

The  Diplomatic  Agents  of  each  of  the  High  Contracting  Parties  may  re- 
side permanently  or  temporarily  in  the  Capital  of  the  other,  with  their  families 
and  members  of  their  suite,  and  enjoy,  in  the  countries  of  their  respective  resi- 
dence, the  same  prerogatives,  exemptions,  immunities  and  privileges  granted  to 
the  Agents  of  the  same  rank  of  the  most  favored  nation. 

Article  III. — Consular  officers.  Rights.  Immunities. — Each  of  the 
High  Contracting  Parties  may  appoint,  at  the  ports  or  cities  of  the  other, 
open  to  foreign  commerce.  Consuls  General,  Consuls,  Vice-Consuls  and  Consular 
Agents.  These  shall  not  enter  in  the  discharge  of  their  duties  until  they  receive 
the  Exequatur  of  the  Government  of  the  Country  where  they  are  to  reside. 
The  Exequatur  shall  be  issued  free  of  charge.  At  the  ports  or  cities  where  no 
Consul  is  appointed,  his  functions  may  be  performed  by  a  Consul  of  a  friendly 
nation.  Where  there  is  no  Consul,  the  local  authorities  shall  see  that  the  citizens 
or  subjects  of  the  other  Contracting  Party  enjoy  the  benefits  of  the  present 
Treaty. 

The  Consular  Officers  of  the  High  Contracting  Parties  shall  perform  all 
the  functions  and  enjoy  all  the  immunities  and  privileges  which,  in  either  of 
the  two  countries,  are  granted  to  the  Consular  Officers  of  the  most  favored 
nation. 

The  Consular  Officers  shall  not  support  the  demands  of  their  citizens  or 
subjects  if  provocative  or  offensive  to  the  authorities  or  inhabitants  of  their  place 
of  residence. 

Should  a  Consular  Officer  adopt  ofifensive  conduct  towards  the  laws  of  the 
country  of  his  residence,  the  Exequatur  may  be  withdrawn  from  him. 

Article  IV. — Passports  for  Mexicans  in  China. — Mexican  citizens  shall 
be  permitted  to  go  into  the  interior  of  China  and  travel  therein,  provided  they 
are  furnished  with  a  passport  issued,  at  the  request  of  the  Mexican  Consul, 
by  the  Customs  Taotai.  This  passport,  written  in  the  two  languages,  Spanish  and 
Chinese,  must  be  shown  when  the  authorities  of  the  place  of  transit  ask  it,  and 
returned  at  the  end  of  the  journey.  No  obstacle  shall  be  placed  in  the  way 
of  travelers  engaging  men,  vehicles  or  vessels  for  the  transportation  of  their 


In  case  the  traveler  is  not  provided  with  the  proper  passport,  or  he  com- 
mits an  unlawful  act,  he  shall  be  delivered  for  trial  to  the  nearest  Consul  of 
Mexico  or  of  a  friendly  nation  previously  designated  by  the  Mexican  Govern- 
ment. In  this  case  the  local  authorities  can  only  arrest  the  traveler  without  in- 
sulting him  or  permitting  any  violence  to  him. 

Mexican  citizens  shall  be  at  liberty  to  make  excursions  without  the  necessity 
of  providing  themselves  with  a  passport,  in  the  neighborhood  of  the  open  ports, 


216  CHINA  TREATIES  AND  AGREEMENTS 

for  a  distance  not  exceeding  one  hundred  li,  and  for  a  time  not  exceeding  five 
days. 

These  stipulations  are  not  appHcable  to  the  crews  of  vessels,  who  shall  be 
subject,  during  their  stay  on  land,  to  the  regulations  established  by  the  Consuls 
and  the  authorities. 

Chinese  travelers  in  Mexico. — Chinese  subjects  shall  be  at  liberty  to  travel 
through  all  the  territory  of  Mexico,  as  long  as  they  conduct  themselves  peace- 
ably and  do  not  violate  the  laws  and  regulations  of  the  country. 

Article  V. — Free  emigration  only  allowed. — It  is  agreed  between  the 
two  High  Contracting  Parties  that  the  emigration  of  their  respective  subjects, 
whether  accompanied  by  their  families  or  not,  shall  be  in  future  free  and  volun- 
tary ;  consequently  they  disapprove  of  every  act  of  violence  or  trickery  which 
might  be  committed  in  the  ports  of  China  or  anywhere  else  for  the  purpose 
of.  expatriating  Chinese  subjects,  against  their  will. 

Prosecution  for  forcing  emigration. — The  two  Governments  engage 
themselves  to  prosecute  with  all  the  rigor  of  the  laws  any  contravention  of 
the  preceding  stipulation  and  to  impose  penalties  established  by  their  respective 
legislations  upon  the  persons  and  ships  who  may  violate  this  stipulation. 

Article  VI. — Trade. — Mexican  citizens  shall  be  at  liberty  to  travel  with  their 
merchandise  and  engage  in  commercial  pursuits  in  all  the  ports  of  China  where 
the  subjects  of  other  nations  are  permitted  to  engage  in  commerce. 

Chinese  subjects  shall,  likewise,  be  at  liberty  to  travel  and  engage  in  com- 
merce in  all  places  of  the  Mexican  Republic,  under  the  same  conditions  as  the 
subjects  of  all  other  nations. 

Limitation  of  most-favored-nation  provision. — It  is  to  be  understood 
that,  in  case  either  of  the  High  Contracting  Parties  should  hereafter 
grant,  of  its  own  accord,  to  any  other  nation,  advantages  subject  to  special  con- 
ditions, the  other  Contracting  Party  shall  enjoy  said  advantages,  only  provided 
it  complies  with  the  conditions  imposed  therein  or  their  equivalent,  to  be  mutually 
agreed  upon. 

Article  VII. — Citizens  and  merchant  vessels. — The  citizens  or  sub- 
jects and  merchant  vessels  of  each  of  the  High  Contracting  Parties  shall  be 
subject,  at  the  ports  of  the  other  open  to  foreign  commerce,  to  the  legal  pro- 
visions which  now  regulate  commerce  with  all  other  nations  or  which  may  be 
issued  hereafter. 

Article  VIII. — Import  and  export  duties. — The  import  duties  imposed 
in  the  United  Mexican  States  on  the  produce  of  the  soil  and  industry  of  China^ 
and  in  the  Empire  of  China  on  the  produce  of  the  soil  and  industry  of  Mexico, 
shall  be  no  other  nor  higher  than  those  to  which  the  same  produce  of  the  most 
favored  nation  are  or  may  be  subject. 

The  same  principle  shall  be  observed  in  regard  to  exportation. 

Prohibition  or  restriction  of  trade. — No  prohibition  nor  restriction  of 
importation  or  exportation  shall  take  place  in  the  reciprocal  commerce  of  both 
countries,  unless  it  be  likewise  applied  to  all  other  nations,  except  for  sanitary 
motives  or  for  the  purpose  of  preventing  the  propagation  of  epizootics  or  the 
loss  of  crops,  or  also  in  view  of  events  of  war. 


NUMBER  1899/7:  DECEMBER  14,  1899  217 

Article  IX. — Ships  of  war.  Their  privileges. — The  ships  of  war  of 
each  of  the  Contracting  Parties  shall  be  admitted  into  the  ports  of  the  other, 
where  those  vessels  of  all  other  nations  are  allowed  to  enter,  and  to  be  treated 
as  those  of  the  most  favored  nation. 

They  shall  have  entire  liberty  to  purchase  provisions,  coal  and  the  neces- 
sary articles  for  a  voyage,  as  also  to  get  water  and  have  all  necessary  repairs 
made. 

The  ships  of  war  shall  be  exempt  from  the  payment  of  all  duties,  both  on 
their  arrival  and  departure. 

The  Commanders  of  Mexican  ships  of  war  in  China  and  the  local  principal 
authorities  shall  mutually  treat  each  other  on  the  basis  of  equality. 

Article  X. — Exemption  from  military  service,  forced  loans,  etc. — The 
citizens  or  subjects  of  each  of  the  Contracting  Parties,  in  the  dominions  and 
possessions  of  the  other,  shall  be  exempt  from  all  compulsory  military  service 
whatever,  whether  in  the  army,  navy  or  national  guard,  or  militia.  They  shall 
likewise  be  exempt  from  all  contributions,  whether  pecuniary  or  in  kind,  im- 
posed as  a  compensation  for  personal  service,  and,  finally,  from  forced  loans  and 
from  charges,  requisitions,  and  war  contributions,  unless  imposed  on  real  property 
when  they  shall  pay  them  equally  with  nationals. 

The  vessels,  cargoes,  merchandise  or  effects  of  citizens  or  subjects  of  neither 
Contracting  Party  shall  be  detained  for  any  military  expeditions  or  for  any 
public  purpose  whatever  without  corresponding  compensation  first  being  agreed 
upon  and  settled. 

Article  XL — Merchant  vessels. — The  merchant  vessels  of  each  of  the 
Contracting  Parties  shall  be  at  liberty  to  frequent  the  ports  of  the  other  open 
to  foreign  commerce  or  that  may  hereafter  be  opened. 

It  is,  however,  agreed  that  this  concession  does  not  extend  to  the  coasting 
trade,  granted  only  to  the  national  vessels  in  the  territory  of  each  of  the 
Contracting  Parties.  But,  if  one  of  them  should  permit  it  wholly  or  in  part 
to  any  nation  or  nations,  the  other  Party  shall  have  the  right  to  claim  the  same 
concessions  or  favors  for  its  citizens  or  subjects,  provided  said  Contract- 
ing Party  is  willing,  on  its  part,  to  grant  reciprocity  in  all  its  claims  on  this 
point. 

Most-favored-nation  treatment  for  merchant  vessels. — The  vessels  of 
each  of  the  Contracting  Parties  shall  not  be  subject,  in  the  territory  or  ports 
of  the  other,  on  their  entrance,  departure  or  stay,  to  other  or  higher  duties, 
charges  or  fees  of  public  officials  on  account  of  tonnage,  lighthouse,  port,  pilot- 
age, quarantine,  salvage,  assistance  in  case  of  damage  or  shipwreck,  nor  to 
other  charges  or  duties,  local  or  federal  of  whatever  kind  or  denomina- 
tion, than  are  paid  or  which  may  hereafter  be  paid  by  vessels  of  any  other 
nation. 

For  the  application  of  this  and  other  articles  of  the  present  Treaty,  those 
are  to  be  understood  as  ports  of  each  of  the  Contracting  Parties,  which  are 
opened  or  that  may  hereafter  be  opened  to  the  import  and  export  trade  by 
the  respective  Governments. 

Limit   of   territorial   waters. — The   two   Contracting    Parties   agree   upon 


218  CHINA  TREATIES  AND  AGREEMENTS 

considering  a  distance  of  three  marine  leagues,  measured  from  the  line  of  low 
tide,  as  the  limit  of  their  territorial  waters,  for  everything  relating  to  the 
vigilance  and  enforcement  of  the  Custom-House  regulations  and  the  necessary 
measures  for  the  prevention  of  smuggling. 

Refuge. — The  vessels  of  each  of  the  High  Contracting  Parties  which 
may  have  been  disabled  near  the  coasts  of  the  other  and  may  have  to  seek 
shelter  in  a  port,  shall  receive  from  the  local  authorities  all  the  assistance  which 
they  can  render. 

The  merchandise  saved  shall  not  be  subject  to  the  payment  of  duties,  unless 
it  shall  be  landed  for  the  purpose  of  sale. 

Such  vessels  shall  be  treated  on  the  same  terms  as  are  granted  under 
similar  circumstances  to  those  of   other  countries. 

Article  XH. — Contract  laborers. — The  engagement  by  contract  of 
citizens  or  subjects  of  one  country  as  laborers,  servants  or  the  like  in  planta- 
tions, mills,  shops,  business  establishments  or  private  families  in  the  other  country, 
shall  be  subject  to  rules  to  be  established  by  mutual  agreement  between  both 
High  Contracting  Parties. 

Article  XHI. — Jurisdiction  over  Mexicans  in  China. — Mexicans  in 
China  who  may  have  occasion  of  complaint  against  Chinese,  shall  lay  their 
complaint  before  the  Mexican  Consul,  who  shall  investigate  the  facts  of  the  case 
and  exert  himself  to  bring  about  an  amicable  settlement. 

If  a  Chinese  should  likewise,  have  any  occasion  of  complaint  against  a 
Mexican  in  China,  the  Mexican  Consul  shall  listen  to  his  complaint,  and  try 
to  obtain  a  friendly  settlement.  Should  the  Consul  be  unable  to  reconcile  the 
parties,  the  case  is  then  to  be  submitted,  in  all  equity,  whether  the  plaintiff 
be  a  Mexican  or  a  Chinese,  only  to  the  Court  to  which  the  accused  is  sub- 
ject. 

Article  XIV. — Criminal  cases. — Mexican  citizens  in  China  who  may 
commit  any  crime  against  Chinese  subjects,  shall  be  arrested  by  the  Mexican 
Consular  authorities  and  punished  in  accordance  with  the  laws  of  Mexico. 

Chinese  subjects  guilty  of  criminal  acts  against  Mexican  citizens  in  China, 
shall  be  arrested  and  punished  by  the  Chinese  authorities  in  conformity  with  the 
laws  of  China. 

As  a  general  rule,  every  civil  or  criminal  suit  instituted  in  China,  between 
the  citizens  or  subjects  of  the  two  Contracting  Parties,  shall  be  tried  only  ac- 
cording to  the  laws  and  by  the  authorities  of  the  country  to  which  the  defendant 
or  accused  belongs. 

Fraud,  robbery. — The  High  Contracting  Parties  shall  not  be  bound  to 
reimburse  any  money  that  has  been  stolen  or  obtained  by  fraud,  or  owing 
by  a  citizen  or  subject  of  one  of  the  two  countries  to  a  subject  or  citizen 
of  the  other  country.  In  case  of  robbery  or  fraud  the  proceedings  to  be  instituted 
shall  be  in  accordance  with  the  laws  of  the  country  to  which  the  accused  be- 
longs, and  in  case  of  debt,  the  authorities  of  the  country  of  the  debtor  shall  do 
all  they  can  to  make  the  debtor  comply  with  his  obligation. 

Chinese  criminals  to  be  surrendered. — Should  Chinese  subjects  in 
China,  who  are  principal  actors  or  accomplices  of  a  crime,  take  refuge  in  the 


NUMBER  1899/7:  DECEMBER  14,  1899  219 

houses,  warehouses  or  on  board  the  merchant  vessels  of  Mexican  citizens,  the 
Chinese  authorities  shall  lay  the  facts  in  this  case  before  the  Mexican  Consular 
Officers,  and  they  shall  conjointly  appoint  agents  for  the  apprehension  of  the 
criminals,  who  shall  not  be  protected  nor  hidden. 

Article  XV. — Jurisdiction  over  Mexicans  in  China, — All  legal  ques- 
tions that  may  arise  in  China  between  Mexican  citizens  concerning  their  persons 
or  property  shall  be  subject  to  the  exclusive  jurisdiction  of  the  Mexican  au- 
thorities. Suits  instituted  in  China  between  Mexican  citizens  and  foreigners 
shall  be  decided  only  by  the  authorities  of  their  respective  countries. 

When  Chinese  shall  be  concerned  in  suits,  the  proceedings  shall  be  in  ac- 
cordance with  the  provisions  of  the  two  preceding  articles. 

Should  the  Chinese  Government  think  proper,  hereafter,  to  establish,  in 
accord  with  foreign  powers,  a  code  for  the  purpose  of  settling  the  matter  of 
jurisdiction  over  foreign  subjects  in  China,  Mexico  shall  have  an  equal  share  in 
said  agreement. 

Article  XVI. — Punishment  of  disturbers  of  peace. — Persons,  of  whatever 
condition  they  may  be,  who  may  land  from  vessels  of  one  of  the  High  Contract- 
ing Parties,  at  an  open  port  of  the  other,  and  cause  any  disturbance  on  shore, 
within  twenty  four  hours  of  their  landing,  shall  be  punished  by  the  proper  local 
authorities,  but  only  with  fine  or  imprisonment  in  accordance  with  the  usages 
established  at  said  port. 

Collisions  in  Chinese  waters. — The  questions  arising  from  collisions  in 
Chinese  waters  between  vessels  of  the  two  countries,  shall  be  decided  by  the 
authorities  of  the  accused  in  accordance  with  the  legal  regulations  in  force  in 
all  countries  respecting  collisions. 

Should  the  complainant  not  be  satisfied  with  the  decision,  the  agents  of 
the  country  to  which  he  belongs  shall  be  authorized  to  apply  officially  to  the 
authorities  that  have  tried  the  offender,  and  they  shall  retry  the  case  and  give  a 
final  and  equitable  decision  on  the  same. 

Article  XVII. — Legal  rights  of  Chinese  in  Mexico. — Chinese  subjects  in 
Mexico  shall  have  free  access  to  the  judicial  tribunals  of  the  country  for  the 
defense  of  their  legitimate  rights.  They  shall  enjoy,  in  this  respect,  the  same 
rights  and  concessions  enjoyed  by  Mexicans  or  by  subjects  of  the  most  favored 
nation. 

Article  XVIII. — English  text  authoritative. — This  Treaty  shall  be  en- 
grossed in  the  three  languages  Spanish,  Chinese  and  English ;  the  Spanish  text 
shall  be  observed  in  Mexico,  the  Chinese  text  in  China,  and,  in  case  of  dis- 
agreement, the  English  version  shall  be  decisive. 

Article  XIX. — Revision. — This  Treaty  shall  remain  in  force  for  ten 
years  reckoned  from  the  day  of  the  exchange  of  ratications.  The  High  Con- 
tracting Parties  can,  at  the  expiration  of  that  time,  propose  modifications  by 
means  of  a  notice  to  be  given  six  months  in  advance ;  and  if  neither  of  them 
should  do  so,  the  Treaty  shall  continue  to  remain  in  force  in  all  its  provisions 
until  the  expiration  of  one  year  after  one  of  the  Parties  has  expressed  to  the 
other  its  intention  of  terminating  it. 

Article  XX. — This  Treaty  shall  be  ratified  by  the  two  High  Contracting 


220  CHINA  TREATIES  AND  AGREEMENTS 

Parties  and  the   ratifications   shall  be  exchanged  at   Washington,   as   soon  as 
possible. t 

In  witness  whereof,  we,  the  respective  Plenipotentiaries,  have  signed  this 
Treaty  and  have  hereunto  affixed  our  respective  seals. 

Done  at  Washington,  in  two  originals  in  three  languages  Spanish,  Chinese 
and  English,  this  fourteenth  day  of  December  of  the  year  One  thousand  eight 
hundred  and  ninety  nine  of  the  Christian  era,  corresponding  to  the  twelfth 
day  of  the  eleventh  moon  of  the  twenty-fifth  year  of  Kwang-Hsu. 

[seal]     Manuel  de  Azpiroz. 
[seal]     Wu  Ting-fang. 


NUMBER  1900/1. 

FRANCE  AND  GREAT  BRITAIN. 

Exchange  of  notes  respecting  regulations  to  be  applied  in  any  future  extension  of 
the  British  or  French  concession  at  Hankow.* — January  15,  1900. 

(1). — Note  Verhale  communicated  to  M.  Canibon. 

It  is  understood  on  the  part  of  Her  Majesty's  Government  that,  in  the 
event  of  any  extension  of  the  French  Concession  at  Hankow  being  obtained 
subsequently  to  this  date,  the  following  conditions  as  regards  British  property 
therein  will  be  strictly  observed : — 

1.  All  deeds  applying  to  British  property  to  be  registered  in  the  British 
Consulate. 

2.  All  Municipal  Regulations  to  be  submitted  to  Her  Majesty's  Minister  at 
Peking  before  they  can  be  enforced  on  British  subjects. 

3.  All  titles  to  British  property  which  are  declared  in  order  by  the  British 
Consul-General  are  to  be  so  considered  by  the  French  authorities. 

With  respect  to  the  British  claims  to  land  situated  in  the  present  French 
Concession,  which  are  believed  to  be  four  in  number,  and  all  of  which  are 
represented  by  Mr.  Greaves,  of  Hankow,  as  it  is  understood  that  the  validity  of 
the  titles  is  questioned  by  the  French  authorities,  Her  Majesty's  Government 
consent  to  the  question  being  referred  to  the  British  and  French  Consuls-General 
at  Shanghai,  and  failing  an  agreement  being  arrived  at  by  them,  to  an  Arbitra- 
tor, by  whom  the  matter  would  be  decided  in  accordance  with  precedent  and  local 
usage. 

Foreign  Office,  London,  December  22,  1899. 

*  Text,  and  translation  from  the  French  text,  as  printed  in  Hertslet,  p.  589. 
t  Ratifications  exchanged  at  Washington,  July  19,  1900. 


NUMBER  1900/2:  MARCH  20,  1900  221" 

(2). — M.  Cambon  to  the  Marquess  of  Salisbury. f 

Embassy  of  France,  London,  January  15,  1900. 
M.  LE  Marquis, 

I  have  the  honor  to  acknowledge  the  receipt  from  Your  Lordship  of  the 
memorandum  that  you  were  so  good  as  to  send  me,  on  December  22  last,  on 
the  subject  of  the  Regulations  to  be  applied  in  the  French  Concession  at  Han- 
kow, in  the  event  of  its  being  extended. 

My  Government,  to  which  I  have  not  failed  to  refer  it,  instructs  me  to 
make  known  to  you  that  it  gives  its  adherence  to  the  four  points  embodied  in 
that  document.  It  is,  on  the  other  hand,  clearly  understood  between  the  two 
Governments  that,  in  case  the  British  Concession  should  hereafter  be  extended, 
the  conditions  hereinafter  set  forth  would  be  applied,  insofar  as  concerns  such 
lands  belonging  to  Frenchmen  as  might  be  found  situated  in  the  area  to  be  in- 
cluded in  the  British  Concession  : — 

1.  All  documents  relative  to  French  properties  must  be  registered  at  the 
French  Consulate. 

2.  All  Municipal  Regulations  must  be  submitted  to  the  Minister  of  France  at 
Peking,  before  they  may  be  applied  to  French  citizens. 

3.  All  the  title-deeds  of  properties  belonging  to  Frenchmen  which  are  recog- 
nized as  valid  by  the  French  Consul  are  to  be  accepted  as  such  by  the  British 
authorities. 

Accept,  etc.  Paul  Cambon. 


NUMBER  1900/2. 

UNITED  STATES  AND  FRANCE,  GERMANY,  GREAT  BRITAIN, 
ITALY,  JAPAN  AND  RUSSIA. 

Declarations  accepting  the  commercial  policy  of  the  "  Open  Door."  * — 

March  20,  1900'x 

(I.)— FRANCE. 

Mr.  Hay  to  Mr.  Vignaud. 

No.  664.]  Department  of  State, 

Washington,  September  6,  1899. 
Sir  :  I  have  to  enclose,  for  your  confidential  information,  copies  of  instruc- 
tions I  have  sent  under  this  date  to  the  United  States  Ambassadors  at  London., 

*Text  and  translations  as  printed  in  Rockhill,  p.  185.  Printed  also  in  For.  Rel,  1899; 
Malloy,  p.  244;  H.  Doc,  547,  56th  Congress,  1st  session.  In  further  reference  to  the  "open 
door "  agreement,  consult  Moore's  International  Law  Digest,  vol.  5,  pp.  534-549,  and 
China,  igoo,  No.  5. 

In  connection  with  this  agreement  see  also  Secretary  Hay's  Circular  to  the  Powers, 
July  3.  1900,  setting  forth  the  policy  of  seeking  a  solution  of  the  Boxer  disturbances 
"  which  may  bring  about  permanent  safety  and  peace  to  China,  preserve  Chinese  territorial 
and  administrative  entity,  protect  all  rights  guaranteed  to  friendly  Powers  by  Treaty  and 
international  law,  and  safeguard  for  the  world  the  principle  of  equal  and  impartial  trade 
with  all  parts  of  the  Chinese  Empire."     (For.  Rel.,  1900,  pp.  299  et  seq.) 

t  Translation. 

t  The  date  is  that  of  Secretary  Hay's  instruction  to  American  diplomatic  representatives, 


222  CHINA  TREATIES  AND  AGREEMENTS 

Berlin,  and  St.  Petersburg  in  reference  to  the  desire  of  this  Government  that 
the  Governments  of  Great  Britain,  Germany,  and  Russia  make  formal  declara- 
tion of  an  "  open-door  "  policy  in  the  territories  held  by  them  in  China. 

I  am,  etc.,  John  Hay. 

(Enclosures:  To  London,  No.  205,  September  6,  1899.    To  Berlin,  No.  927,  September 
6,  1899.     To  St.  Petersburg,  No.  82,  September  6,  1899.) 


Mr.  Hay  to  Mr.  Porter. 
[Telegram.] 

Department  of   State, 
Washington,  November  21,  1899. 
Porter,  Ambassador,  Paris. 

Informally  submit  to  French  Government  form  of  declaration  outlined  in 
enclosures  with  instruction  No.  664  of  September  6  and  ask  whether  France 
will  join. 

Hay. 

Mr.  Delcasse  to  Mr.  Porter. 

[Translation.] 

Foreign  Affairs. 
(Received  at  United  States  Embassy  at  Paris,  December  16,  1899.) 
My  Dear  Ambassador  :  I  find  your  note  awaiting  me  on  my  return.  The 
declarations  which  I  made  in  the  Chamber  on  the  24th  of  November  last,  and 
which  I  have  had  occasion  to  recall  to  you  since  then,  show  clearly  the  senti- 
ments of  the  Government  of  the  Republic.  It  desires  throughout  the  whole  of 
China  and,  with  the  quite  natural  reservation  that  all  the  Powers  interested  give 
an  assurance  of  their  willingness  to  act  likewise,  is  ready  to  apply  in  the  terri- 
tories which  are  leased  to  it,  equal  treatment  to  the  citizens  and  subjects  of  all 
nations,  especially  in  the  matter  of  customs  duties  and  navigation  dues,  as  well 
as  transportation  tarifiFs  on  railways. 

I  beg  you,  my  dear  Ambassador,  to  accept,  etc. 

Delcasse. 

embodying  the  notification  of  the  acceptance  of  the  American  proposal  by  all  the  Govern- 
ments concerned. 


NUMBER  1900/2 :  MARCH  20,  1900  223 

(II.)— GERMANY. 

Mr.  Hay  to  Mr.  White. 

No.  927.]  Department  of  State, 

Washington,  September  6,  1899. 

Sir:  At  the  time  when  the  Government  of  the  United  States  was  informed 
by  that  of  Germany  that  it  had  leased  from  His  Majesty  the  Emperor  of  China 
the  port  of  Kiao-chao  and  the  adjacent  territory  in  the  province  of  Shantung, 
assurances  were  given  to  the  Ambassador  of  the  United  States  at  BerHn  by 
the  Imperial  German  Minister  for  Foreign  Afifairs  that  the  rights  and  privileges 
insured  by  treaties  with  China  to  citizens  of  the  United  States  would  not 
thereby  suffer  or  be  in  anywise  impaired  within  the  area  over  which  Germany 
had  thus  obtained  control. 

More  recently,  however,  the  British  Government  recognized  by  a  formal 
agreement  with  Germany  the  exclusive  right  of  the  latter  country  to  enjoy 
in  said  leased  area  and  the  contiguous  "  sphere  of  influence  or  interest  "  certain 
privileges,  more  especially  those  relating  to  railroads  and  mining  enterprises ;  but, 
as  the  exact  nature  and  extent  of  the  rights  thus  recognized  have  not  been  clearly 
defined,  it  is  possible  that  serious  conflicts  of  interests  may  at  any  time  arise, 
not  only  between  British  and  German  subjects  within  said  area,  but  that  the 
interests  of  our  citizens  may  also  be  jeopardized  thereby. 

Earnestly  desirous  to  remove  any  cause  of  irritation  and  to  insure  at  the 
same  time  to  the  commerce  of  all  nations  in  China  the  undoubted  benefits  which 
should  accrue  from  a  formal  recognition  by  the  various  Powers  claiming 
"spheres  of  interest"  that  they  shall  enjoy  perfect  equality  of  treatment  for 
their  commerce  and  navigation  within  such  "  spheres,"  the  Government  of  the 
United  States  would  be  pleased  to  see  His  German  Majesty's  Government  give 
formal  assurances,  and  lend  its  cooperation  in  securing  like  assurances  from  the 
other  interested  Powers,  that  each  within  its  respective  sphere  of  whatever 
influence — 

First.  Will  in  no  way  interfere  with  any  treaty  port  or  any  vested  interest 
within  any  so-called  "  sphere  of  interest  "  or  leased  territory  it  may  have  in 
China. 

Second.  That  the  Chinese  treaty  tariff  of  the  time  being  shall  apply  to  all 
merchandise  landed  or  shipped  to  all  such  ports  as  are  within  said  "  sphere  of 
interest"  (unless  they  be  "free  ports"),  no  matter  to  what  nationality  it  may 
belong,  and  that  duties  so  leviable  shall  be  collected  by  the  Chinese  Govern- 
ment. 

Third.  That  it  will  levy  no  higher  harbor  dues  on  vessels  of  another  na- 
tionality frequenting  any  port  in  such  "  sphere  "  than  shall  be  levied  on  vessels 
of  its  own  nationality,  and  no  higher  railroad  charges  over  lines  built,  con- 
trolled, or  operated  within  its  "  sphere  "  on  merchandise  belonging  to  citizens  or 
subjects  of  other  nationalities  transported  through  such  "  sphere  "  than  shall 
be  levied  on  similar  merchandise  belonging  to  its  own  nationals  transported  over 
equal  distances. 


224  CHINA  TREATIES  AND  AGREEMENTS 

The  liberal  policy  pursued  by  His  Imperial  German  Majesty  in  declaring 
Kiao-chao  a  free  port  and  in  aiding  the  Chinese  Government  in  the  establish- 
ment there  of  a  custom-house  are  so  clearly  in  line  with  the  proposition  which 
this  Government  is  anxious  to  see  recognized  that  it  entertains  the  strongest 
hope  that  Germany  will  give  its  acceptance  and  hearty  support. 

The  recent  Ukase  of  His  Majesty  the  Emperor  of  Russia  declaring  the 
port  of  Ta-lien-wan  open  during  the  whole  of  the  lease  under  which  it  is 
held  from  China  to  the  merchant  ships  of  all  nations,  coupled  with  the  categorical 
assurances  made  to  this  Government  by  His  Imperial  Majesty's  representative 
at  this  capital  at  the  time,  and  since  repeated  to  me  by  the  present  Russian 
Ambassador,  seem  to  insure  the  support  of  the  Emperor  to  the  proposed  measure. 
Our  Ambassador  at  the  Court  of  St.  Petersburg  has  in  consequence  been  in- 
structed to  submit  it  to  the  Russian  Government  and  to  request  their  early  con- 
sideration of  it.  A  copy  of  my  instruction  on  the  subject  to  Mr.  Tower  is 
herewith  enclosed  for  your  confidential   information. 

The  commercial  interests  of  Great  Britain  and  Japan  will  be  so  clearly 
served  by  the  desired  declaration  of  intentions,  and  the  views  of  the  Governments 
of  these  countries  as  to  the  desirability  of  the  adoption  of  measures  insuring  the 
benefits  of  equality  of  treatment  of  all  foreign  trade  throughout  China  are  so 
similar  to  those  entertained  by  the  United  States,  that  their  acceptance  of  the 
propositions  herein  outlined  and  their  cooperation  in  advocating  their  adoption 
by  the  other  Powers  can  be  confidently  expected.  I  enclose  herewith  copy  of 
the  instruction  which  I  have  sent  to  Mr.  Choate  on  the  subject. 

In  view  of  the  present  favorable  conditions,  you  are  instructed  to  submit 
the  above  considerations  to  His  Imperial  German  Majesty's  Minister  for  Foreign 
Affairs,  and  to  request  his  early  consideration  of  the  subject. 

Copy  of  this  instruction  is  sent  to  our  Ambassadors  at  London  and  at 
St.  Petersburg  for  their  information, 

I  have,  etc.,  John  Hay. 

(Enclosures:  To  London,  September  6,  1899,  No.  205.     To  St.  Petersburg,  September 
6,  1899,  No.  82.) 

Count  von  Bulow  to  Mr.  White. 

[Translation.] 

Foreign  Office, 
Berlin,  February  19,  1900. 

Mr.  Ambassador  :  Your  Excellency  informed  me,  in  a  memorandum  pres- 
ented on  the  24th  of  last  month,  that  the  Government  of  the  United  States 
of  America  had  received  satisfactory  written  replies  from  all  the  Powers  to 
which  an  inquiry  had  been  addressed  similar  to  that  contained  in  Your  Ex- 
cellency's note  of  September  26  last,  in  regard  to  the  policy  of  the  open  door 
in  China.  While  referring  to  this,  Your  Excellency  thereupon  expressed  the 
wish  that  the  Imperial  Government  would  now  also  give  its  answer  in  writing. 

Gladly  complying  with  this  wish,  I  have  the  honor  to  inform  Your  Excel- 
lency, repeating  the  statements  already  made  verbally,  as  follows:     As  recog- 


NUMBER  1900/2 :  MARCH  20,  1900  225 

nized  by  the  Government  of  the  United  States  of  America,  according  to  Your 
Excellency's  note  referred  to  above,  the  Imperial  Government  has,  from  the 
beginning,  not  only  asserted,  but  also  practically  carried  out  to  the  fullest  extent, 
in  its  Chinese  possessions  absolute  equality  of  treatment  of  all  nations  with  re- 
gard to  trade,  navigation,  and  commerce.  The  Imperial  Government  enter- 
tains no  thought  of  departing  in  the  future  from  this  principle,  which  at  once 
excludes  any  prejudicial  or  disadvantageous  commercial  treatment  of  the  citizens 
of  the  United  States  of  America,  so  long  as  it  is  not  forced  to  do  so,  on  ac- 
count of  considerations  of  reciprocity,  by  a  divergence  from  it  by  other  govern- 
ments. If,  therefore,  the  other  Powers  interested  in  the  industrial  development 
of  the  Chinese  Empire  are  willing  to  recognize  the  same  principles,  this  can 
only  be  desired  by  the  Imperial  Government,  which  in  this  case  upon  being 
requested  will  gladly  be  ready  to  participate  with  the  United  States  of  America 
and  the  other  Powers  in  an  agreement  made  upon  these  lines,  by  which  the 
same  rights  are  reciprocally  secured. 

I  avail  myself,  etc.  Bulow. 


(III.)— GREx\T  BRITAIN. 

Mr.  Choate  to  Lord  Salisbury. 

Embassy  of  the  United  States, 

London,  September  22,  1899. 

My  Lord  :  I  am  instructed  by  the  Secretary  of  State  to  present  to  Your 
Lordship  a  matter  which  the  President  regards  as  of  great  and  equal  importance 
to  Great  Britain  and  the  United  States — in  the  maintenance  of  trade  and  com- 
merce in  the  East,  in  which  the  interest  of  the  two  nations  differs,  not  in 
character,  but  in  degree  only — and  to  ask  for  action  on  the  part  of  Her  Majesty's 
Government  which  the  President  conceives  to  be  in  exact  accord  with  its  uni- 
formly declared  policy  and  traditions,  and  which  will  greatly  promote  the  wel- 
fare of  commerce. 

He  understands  it  to  be  the  settled  policy  and  purpose  of  Great  Britain 
not  to  use  any  privileges  which  may  be  granted  to  it  in  China  as  a  means  of  ex- 
cluding any  commercial  rivals,  and  that  freedom  of  trade  for  it  in  that  Empire 
means  freedom  of  trade  for  all  the  world  alike.  Her  Majesty's  Government, 
while  conceding  by  formal  agreements  with  Germany  and  Russia  the  possession 
of  "  spheres  of  influence  or  interest "  in  China,  in  which  they  are  to  enjoy 
especial  rights  and  privileges,  particularly  in  respect  to  railroads  and  mining 
enterprises,  has  at  the  same  time  sought  to  maintain  what  is  commonly  called 
the  "  open-door  "  policy,  to  secure  to  the  commerce  and  navigation  of  all  na- 
tions equality  of  treatment  within  such  "  spheres."  The  maintenance  of  this 
policy  is  alike  urgently  demanded  by  the  commercial  communities  of  our  two 
nations,  as  it  is  justly  held  by  them  to  be  the  only  one  which  will  improve 


226  CHINA  TREATIES  AND  AGREEMENTS 

existing  conditions,  enable  them  to  maintain  their  positions  in  the  markets  of 
China,  and  extend  their  future  operations. 

While  the  Government  of  the  United  States  will  in  no  way  commit  itself 
to  any  recognition  of  the  exclusive  rights  of  any  power  within  or  control  over 
any  portion  of  the  Chinese  Empire,  under  such  agreements  as  have  been  recently 
made,  it  can  not  conceal  its  apprehensions  that  there  is  danger  of  complications 
arising  between  the  treaty  powers  which  may  imperil  the  rights  insured  to  the 
United  States  by  its  treaties  with  China. 

It  is  the  sincere  desire  of  my  Government  that  the  interests  of  its  citizens 
may  not  be  prejudiced  through  exclusive  treatment  by  any  of  the  controlling 
powers  within  their  respective  "  spheres  of  interests  "  in  China,  and  it  hopes  to 
retain  there  an  open  market  for  all  the  world's  commerce,  remove  dangerous 
sources  of  international  irritation,  and  thereby  hasten  united  action  of  the 
powers  at  Pekin  to  promote  administrative  reforms  so  greatly  needed  for 
strengthening  the  Imperial  Government  and  maintaining  the  integrity  of  China, 
in  which  it  believes  the  whole  western  world  is  alike  concerned.  It  believes  that 
such  a  result  may  be  greatly  aided  and  advanced  by  declarations  by  the  various 
Powers  claiming  "  spheres  of  interest  "  in  China  as  to  their  intentions  in  regard 
to  the  treatment  of  foreign  trade  and  commerce  therein,  and  that  the  present  is  a 
very  favorable  moment  for  informing  Her  Majesty's  Government  of  the  desire 
of  the  United  States  to  have  it  make  on  its  own  part  and  to  lend  its  powerful 
support  in  the  effort  to  obtain  from  each  of  the  various  Powers  claiming 
"  spheres  of  interest "  in  China  a  declaration  substantially  to  the  following 
effect : 

(1)  That  it  will  in  no  wise  interfere  with  any  treaty  port  or  any  vested 
interest  within  any  so-called  "  sphere  of  interest "  or  leased  territory  it  may 
have  in  China. 

(2)  That  the  Chinese  treaty  tariff  of  the  time  being  shall  apply  to  all 
merchandise  landed  or  shipped  to  all  such  ports  as  are  within  such  "  spheres  of 
interest"  (unless  they  be  "free  ports"),  no  matter  to  what  nationality  it  may 
belong,  and  that  duties  so  leviable  shall  be  collected  by  the  Chinese  Govern- 
ment. 

(3)  That  it  will  levy  no  higher  harbor  dues  on  vessels  of  another  nationality 
frequenting  any  port  in  such  "  sphere  "  than  shall  be  levied  on  vessels  of  its  own 
nationality,  and  no  higher  railroad  charges  over  lines  built,  controlled,  or  operated 
within  its  "  sphere  "  on  merchandise  belonging  to  citizens  or  subjects  of  other 
nationalities  transported  through  such  "  sphere  "  than  shall  be  levied  on  similar 
merchandise  belonging  to  its  own  nationals  transported  over  equal  distances. 

The  President  has  strong  reason  to  believe  that  the  Governments  of  both 
Russia  and  Germany  will  cooperate  in  such  an  understanding  as  is  here  pro- 
posed. The  recent  Ukase  of  His  Majesty  the  Emperor  of  Russia  declaring  the 
port  of  Ta-lien-wan  open  to  the  merchant  ships  of  all  nations  during  the  whole 
term  of  the  lease  under  which  it  is  to  be  held  by  Russia  removes  all  uncer- 
tainty as  to  the  liberal  and  conciliatory  policy  of  that  Power,  and  justifies  the 
expectation  that  His  Majesty  would  accede  to  the  similar  request  of  the  United 
States  now  being  presented  to  him  and  make  the  desired  declaration. 


NUMBER  1900/2:  MARCH  20,  1900  227 

The  recent  action  of  Germany  in  declaring  the  port  of  Kiao-chao  a  "  free 
port  "  and  the  aid  which  its  Government  has  given  China  in  establishing  there 
a  Chinese  custom-house,  coupled  with  oral  assurances  given  the  United  States 
by  Germany  that  the  interests  of  the  United  States  and  its  citizens  within  its 
"  sphere  "  would  in  no  wise  be  affected  by  its  occupation  of  this  portion  of  the 
province  of  Shantung,  encourage  the  belief  that  little  opposition  is  to  be  antici- 
pated to  the  President's  request  for  a  similar  declaration  from  that  Power. 

It  is  needless  also  to  add  that  Japan,  the  Power  next  most  largely  interested 
in  the  trade  of  China,  must  be  in  entire  sympathy  with  the  views  here  ex- 
pressed, and  that  its  interests  will  be  largely  served  by  the  proposed  arrange- 
ment ;  and  the  declarations  of  its  statesmen  within  the  last  year  are  so  entirely 
in  line  with  it  that  the  cooperation  of  that  Power  is  confidently  relied  upon. 

It  is  therefore  with  the  greatest  pleasure  that  I  present  this  matter  to  Your 
Lordship's  attention  and  urge  its  prompt  consideration  by  Her  Majesty's  Govern- 
ment, believing  that  the  action  is  in  entire  harmony  with  its  consistent  theory 
and  purpose,  and  that  it  will  greatly  redound  to  the  benefit  and  advantage  of  all 
commercial  nations  alike.  The  prompt  and  sympathetic  cooperation  of  Her 
Majesty's  Government  with  the  United  States  in  this  important  matter  will  be 
very  potent  in  promoting  its  adoption  by  all  the  Powers  concerned. 

I  have,  etc., 

Joseph  H.  Choate. 

Lord  Salisbury  to  Mr.  Choate, 

.  Foreign  Office, 

London,  September  29,  1899. 

Your  Excellency:  I  have  read  with  great  interest  the  communication 
which  you  handed  to  me  on  the  23d  instant,  in  which  you  inform  me  of  the 
desire  of  the  United  States  Government  to  obtain  from  the  various  Powers 
claiming  spheres  of  interest  in  China  declarations  as  to  their  intentions  in  regard 
to  the  treatment  of  foreign  trade  and  commerce  therein. 

I  have  the  honor  to  inform  Your  Excellency  that  I  will  lose  no  time  in 
consulting  my  colleagues  in  regard  to  a  declaration  by  Her  Majesty's  Govern- 
ment and  on  the  proposal  that  they  should  cooperate  with  the  Government  of  the 
United  States  in  obtaining  similar  declarations  by  the  other  Powers  concerned. 

In  the  meantime,  I  may  assure  Your  Excellency  that  the  policy  consistently 
advocated  by  this  country  is  one  of  securing  equal  opportunity  for  the  subjects 
and  citizens  of  all  nations  in  regard  to  commercial  enterprise  in  China,  and  from 
this  policy  Her  Majesty's  Government  have  no  intention  or  desire  to  depart. 

I  have,  etc., 

Salisbury. 


228  CHINA  TREATIES  AND  AGREEMENTS 

Lord  Salisbury  to  Mr.  Choate. 

Foreign  Office, 
London,  November  30,  1899. 

Your  Excellency:  With  reference  to  my  note  of  September  29  last,  I 
have  the  honor  to  state  that  I  have  carefully  considered,  in  communication  with 
my  colleagues,  the  proposal  contained  in  Your  Excellency's  note  of  September 
22  that  a  declaration  should  be  made  by  foreign  Powers  claiming  "  spheres  of 
interest "  in  China  as  to  their  intentions  in  regard  to  the  treatment  of  foreign 
trade  and  interest  therein. 

I  have  much  pleasure  in  informing  Your  Excellency  that  Her  Majesty's 
Government  will  be  prepared  to  make  a  declaration  in  the  sense  desired  by  your 
Government  in  regard  to  the  leased  territory  of  Wei-hai  Wei  and  all  territory  in 
China  which  may  hereafter  be  acquired  by  Great  Britain  by  lease  or  otherwise, 
and  all  spheres  of  interest  now  held  or  that  may  hereafter  be  held  by  her  in 
China,  provided  that  a  similar  declaration  is  made  by  other  Powers  concerned. 

I  have,  etc., 

Salisbury. 

Mr.  Choate  to  Lord  Salisbury. 

Embassy  of  the  United  States, 

London,  December  6,  1899. 

My  Lord:  I  have  the  honor  to  acknowledge  the  receipt  of  Your  Lordship's 
note  of  November  30,  in  which  you  inform  me  that,  after  having  carefully  con- 
sidered, in  connection  with  your  colleagues,  the  proposals  contained  in  my  note 
of  September  22  last,  Her  Majesty's  Government  is  prepared  to  make  a  de- 
claration in  the  sense  desired  by  my  Government  in  regard  to  the  leased  territory 
of  Wei-hai  Wei  and^all  territory  in  China  which  may  hereafter  be  acquired  by 
Great  Britain  by  lease  or  otherwise,  and  all  "  spheres  of  interest  "  now  held,  or 
which  may  hereafter  be  held,  by  her  in  China,  provided  that  a  similar  declara- 
tion is  made  by  other  Powers. 

In  acknowledging  Your  Lordship's  note,  I  have  also,  under  instructions 
from  the  Secretary  of  State,  to  express  to  Your  Lordship  the  gratification  he 
feels  at  the  cordial  acceptance  by  Her  Britannic  Majesty's  Government  of  the 
proposals  of  the  United  States. 

I  have,  etc.,  Joseph  H.  Choate. 


NUMBER  1900/2 :  MARCH  20,  1900  229 

(IV.)— ITALY. 

Mr.  Hay  to  Mr.  Draper. 

No.  434.]  Department  of  State, 

Washington,  November  17,  1899. 

Sir:  This  Government,  animated  with  a  sincere  desire  to  insure  to  the 
commerce  and  industry  of  the  United  States  and  of  all  other  nations  perfect 
equality  of  treatment  within  the  limits  of  the  Chinese  Empire  for  their  trade 
and  navigation,  especially  within  the  so-called  "  spheres  of  influence  or  interest  " 
claimed  by  certain  European  Powers  in  China,  has  deemed  the  present  an  op- 
portune moment  to  make  representations  in  this  direction  to  Germany,  Great 
Britain,  Japan,  and  Russia. 

To  attain  the  object  it  has  in  view  and  to  remove  possible  causes  of  inter- 
national irritation  and  reestablish  confidence  so  essential  to  commerce,  it  has 
seemed  to  this  Government  highly  desirable  that  the  various  Powers  claiming 
"  spheres  of  interest  or  influence  "  in  China  should  give  formal  assurances  that — 

First.  They  will  in  no  way  interfere  with  any  treaty  port  or  any  vested 
interest  within  any  so-called  "  sphere  of  interest "  or  leased  territory  they  may 
have  in  China. 

Second.  The  Chinese  treaty  tariff  of  the  time  being  shall  apply  to  all  mer- 
chandise landed  or  shipped  to  all  such  ports  as  are  within  said  "  sphere  of  inter- 
est "  (unless  they  be  "  free  ports  "),  no  matter  to  what  nationality  it  may  belong, 
and  that  duties  so  leviable  shall  be  collected  by  the  Chinese  Government. 

Third.  They  will  levy  no  higher  harbor  dues  on  vessels  of  another  na- 
tionality frequenting  any  port  in  such  "  sphere  "  than  shall  be  levied  on  vessels 
of  their  own  nationality,  and  no  higher  railroad  charges  over  lines  built,  con- 
trolled, or  operated  within  its  "  sphere  "  on  merchandise  belonging  to  citizens  or 
subjects  of  other  nationalities  transported  through  such  "  sphere  "  than  shall  be 
levied  on  similar  merchandise  belonging  to  their  own  nationals  transported  over 
equal  distances. 

The  policy  pursued  by  His  Imperial  German  Majesty  in  declaring  Tsing-tao 
(Kiao-chao)  a  free  port  and  in  aiding  the  Chinese  Government  in  establishing 
there  a  custom-house  and  the  Ukase  of  His  Imperial  Russian  Majesty  of  August 
11  last  erecting  a  free  port  at  Dalny  (Ta-lien-wan)  are  thought  to  be  proof  that 
these  Powers  are  not  disposed  to  view  unfavorably  the  proposition  to  recognize 
that  they  contemplate  nothing  which  will  interfere  in  any  way  with  the  enjoyment 
by  the  commerce  of  all  nations  of  the  rights  and  privileges  guaranteed  to  them 
by  existing  treaties  with  China. 

Repeated  assurances  from  the  British  Government  of  its  fixed  policy  to 
maintain  throughout  China  freedom  of  trade  for  the  whole  world  insure,  it  is 
believed,  the  ready  assent  of  that  Power  to  our  proposals.  The  commercial  inter- 
ests of  Japan  will  also  be  greatly  served  by  the  above-mentioned  declaration, 
which  harmonizes  with  the  assurances  conveyed  to  this  Government  at  various 
times  by  His  Imperial  Japanese  Majesty's  diplomatic  representative  at  this 
capital. 


230  CHINA  TREATIES  AND  AGREEMENTS 

In  view  of  the  important  and  growing  commercial  interests  of  Italy  in 
eastern  Asia,  it  would  seem  desirable  that  His  Majesty's  Government  should  also 
be  informed  of  the  steps  taken  by  the  United  States  to  insure  freedom  of  trade 
in  China,  in  which  it  would  find  equal  advantages  to  those  which  the  other 
nations  of  Europe  expect. 

You  are  therefore  instructed  to  submit  to  His  Majesty's  Minister  for  Foreign 
Affairs  the  above  considerations  and  to  invite  his  early  attention  to  them,  ex- 
pressing, in  the  name  of  your  Government,  the  hope  that  they  will  prove  accept- 
able, and  that  His  Majesty's  Government  will  lend  its  aid  and  valuable  assistance 
in  securing  their  acceptance  by  the  other  interested  Powers. 

I  enclose,  for  your  personal  and  confidential  information,  copies  of  the  in- 
structions sent  to  our  Ambassadors  at  Berlin,  London,  St.  Petersburg,  and  to  our 
Minister  at  Tokyo. 

I  am,  etc.,  John  Hay. 

(Enclosures:  To  Great  Britain,  to  Russia,  to  Germany,  September  6,  1899.  To  Japan, 
November  13,  1899.) 

The  Marquis  Visconti  Venosta  to  Mr.  Draper. 

[Translation.] 

Rome,  January  7,  1900. 

Mr.  Ambassador  :  Supplementary  to  what  you  had  already  done  me  the 
honor  of  communicating  to  me  in  your  note  of  December  9,  1899,  Your  Excel- 
lency informed  me  yesterday  of  the  telegraphic  note  received  from  your  Govern- 
ment that  all  the  Powers  consulted  by  the  Cabinet  of  Washington  concerning 
the  suitability  of  adopting  a  line  of  policy  which  would  insure  to  the  trade  of  the 
whole  world  equality  of  treatment  in  China  have  given  a  favorable  reply. 

Referring  to  your  communications  and  to  the  statements  in  my  note  of 
December  23  last,  I  take  pleasure  in  saying  that  the  Government  of  the  King 
adheres  willingly  to  the  proposals  set  forth  in  said  note  of  December  9. 

I  beg  Your  Excellency  to  kindly  convey  the  notice  of  our  adhesion  to  the 
Cabinet  of  Washington,  and  I  avail  niyself  of  the  occasion  to  renew  to  you,  etc. 

Visconti  Venosta. 


(V.)— JAPAN. 

Mr.  Hay  to  Mr.  Buck. 

No.  263.]  Department  of  State, 

Washington,  November  13,  1899. 
Sir:   This  Government,  animated  with  a  sincere  desire  to   insure  to   the 
commerce  and  industry  of  the  United  States  and  of  all  other  nations  perfect 
equality  of  treatment  within  the  limits  of  the  Chinese  Empire  for  their  trade 


NUMBER  1900/2:  MARCH  20,  1900  231 

and  navigation,  especially  within  the  so-called  "  spheres  of  influence  or  interest " 
claimed  by  certain  European  Powers  in  China,  has  deemed  the  present  an  oppor- 
tune moment  to  make  representations  in  this  direction  to  Germany,  Great  Britain, 
and  Russia. 

To  obtain  the  object  it  has  m  view  and  to  remove  possible  causes  of  interna- 
tional irritation  and  reestablish  confidence  so  essential  to  commerce,  it  has  seemed 
to  this  Government  highly  desirable  that  the  various  Powers  claiming  "  spheres  of 
interest  or  influence  "  in  China  should  give  formal  assurances  that — 

First.  They  will  in  no  way  interfere  with  any  treaty  port  or  any  vested 
interest  within  any  so-called  "  sphere  of  interest  "  or  leased  territory  they  may 
have  in  China. 

Second.  The  Chinese  treaty  tariff  of  the  time  being  shall  apply  to  all  mer- 
chandise landed  or  shipped  to  all  such  ports  as  are  within  said  "  sphere  of 
interest"  (unless  they  be  "  free  ports"),  no  matter  to  what  nationality  it  may 
belong,  and  that  duties  so  leviable  shall  be  collected  by  the  Chinese  Government, 

Third.  They  will  levy  no  higher  harbor  dues  on  vessels  of  another  na- 
tionality frequenting  any  port  in  such  "  sphere  "  than  shall  be  levied  on  vessels 
of  their  own  nationality,  and  no  higher  railroad  charges  over  lines  built,  con- 
trolled, or  operated  within  such  "  sphere "  on  merchandise  belonging  to  citi- 
zens or  subjects  of  other  nationalities  transported  through  such  "  sphere  "  than 
shall  be  levied  on  similar  merchandise  belonging  to  their  own  nationals  trans- 
ported over  equal  distances. 

The  policy  pursued  by  His  Imperial  German  Majesty  in  declaring  Tsing- 
tao  (Kiao-chao)  a  free  port  and  in  aiding  the  Chinese  Government  in  establishing 
there  a  custom-house,  and  the  Ukase  of  His  Imperial  Russian  Majesty  of  August 
11  last  erecting  a  free  port  at  Dalny  (Ta-lien-wan)  are  thought  to  be  proof  that 
these  Powers  are  not  disposed  to  view  unfavorably  the  proposition  to  recognize 
that  they  contemplate  nothing  which  will  interfere  in  any  way  with  the  enjoyment 
by  the  commerce  of  all  nations  of  the  rights  and  privileges  guaranteed  to  them 
by  existing  treaties  with  China. 

Repeated  assurances  from  the  Brititsh  Government  of  its  fixed  policy  to 
maintain  throughout  China  freedom  of  trade  for  the  whole  world  insure,  it  is 
believed,  the  ready  assent  of  that  Power  to  our  proposals.  It  is  no  less  con- 
fidently believed  that  the  commercial  interests  of  Japan  would  be  greatly  served 
by  the  above-mentioned  declaration,  which  harmonizes  with  the  assurances  con- 
veyed to  this  Government  at  various  times  by  His  Imperial  Japanese  Majesty's 
diplomatic  representative  at  this  capital. 

You  are  therefore  instructed  to  submit  to  His  Imperial  Japanese  Majesty's 
Government  the  above  considerations,  and  to  invite  their  early  attention  to  them, 
and  express  the  earnest  hope  of  your  Government  that  they  will  accept  them  and 
aid  in  securing  their  acceptance  by  the  other  interested  Powers. 
I  am,  etc., 

John  Hay. 


232  CHINA  TREATIES  AND  AGREEMENTS 

Viscount  Aoki  to  Mr.  Buck. 

[Translation.] 

Department  of  Foreign  Affairs, 
Tokyo,  the  26th  day,  the  12th  month  of  the  32d  year  of  Meiji. 

(December  26,  1899.) 
Mr.  Minister  :  I  have  the  honor  to  acknowledge  the  receipt  of  the  note  No. 
176  of  the  20th  instant,  in  which,  pursuing  the  instructions  of  the  United  States 
Government,  Your  Excellency  was  so  good  as  to  communicate  to  the  Imperial 
Government  the  representations  of  the  United  States  as  presented  in  notes  to 
Russia,  Germany,  and  Great  Britain  on  the  subject  of  commercial  interests  of 
the  United  States  in  China. 

I  have  the  happy  duty  of  assuring  Your  Excellency  that  the  Imperial  Gov- 
ernment will  have  no  hesitation  to  give  their  assent  to  so  just  and  fair  a  pro- 
posal of  the  United  States,  provided  that  all  the  other  Powers  concerned  shall 
accept  the  same. 

I  avail  myself,  etc., 

Viscount  Aoki  Siuzo, 

Minister  for  Foreign  Affairs. 


(VI.)— RUSSIA. 

Mr.  Hay  to  Mr.  Tower. 

No.  82.]  Department  of  State, 

Washington,  September  6,  1899. 

Sir:  In  1898,  when  his  Imperial  Majesty  had,  through  his  diplomatic  repre- 
sentative at  this  capital,  notified  this  Government  that  Russia  had  leased  from 
His  Imperial  Chinese  Majesty  the  ports  of  Port  Arthur,  Ta-lien-wan,  and  the 
adjacent  territory  in  the  Liao-tung  Peninsula  in  northeastern  China  for  a  period 
of  twenty-five  years,  your  predecessor  received  categorical  assurances  from  the 
Imperial  Minister  for  Foreign  Affairs  that  American  interests  in  that  part  of  the 
Chinese  Empire  would  in  no  way  be  afifected  thereby,  neither  was  it  the  desire 
of  Russia  to  interfere  with  the  trade  of  other  nations,  and  that  our  citizens  would 
continue  to  enjoy  within  said  leased  territory  all  the  rights  and  privileges  guar- 
anteed them  under  existing  treaties  with  China.  Assurances  of  a  similar  pur- 
port were  conveyed  to  me  by  the  Emperor's  Ambassador  at  this  capital ;  while 
fresh  proof  of  this  is  ailforded  by  the  Imperial  Ukase  of  July  30/August  11  last, 
creating  the  free  port  of  Dalny,  near  Ta-lien-wan,  and  establishing  free  trade  for 
the  adjacent  territory. 

However  gratifying  and  reassuring  such  assurances  may  be  in  regard  to  the 
territory  actually  occupied  and  administered,  it  can  not  but  be  admitted  that  a 
further,  clearer,  and  more  formal  definition  of  the  conditions  which  are  hence- 


NUMBER  1900/2:  MARCH  20,  1900  233 

forth  to  hold  within  the  so-called  Russian  "  sphere  of  interest  "  in  China  as 
regards  the  commercial  rights  therein  of  our  citizens  is  much  desired  by  the 
business  world  of  the  United  States,  inasmuch  as  such  a  declaration  would 
relieve  it  from  the  apprehensions  which  have  exercised  a  disturbing  influence  dur- 
ing the  last  four  years  on  its  operations  in  China. 

The  present  moment  seems  particularly  opportune  for  ascertaining  whether 
His  Imperial  Russian  Majesty  would  not  be  disposed  to  give  permanent  form  to 
the  assurances  heretofore  given  to  this  Government  on  this  subject. 

The  Ukase  of  the  Emperor  of  August  11  of  this  year,  declaring  the  port 
of  Ta-lien-wan  open  to  the  merchant  ships  of  all  nations  during  the  remainder  of 
the  lease  under  which  it  is  held  by  Russia,  removes  the  slightest  uncertainty 
as  to  the  liberal  and  conciliatory  commercial  policy  His  Majesty  proposes  carry- 
ing out  in  northeastern  China,  and  would  seem  to  insure  us  the  sympathetic 
and,  it  is  hoped,  favorable  consideration  of  the  propositions  hereinafter  specified. 

The  principles  which  this  Government  is  particularly  desirous  of  seeing 
formally  declared  by  His  Imperial  Majesty  and  by  all  the  great  Powers  interested 
in  China,  and  which  will  be  eminently  beneficial  to  the  commercial  interests  of 
the  whole  world,  are : 

First.  The  recognition  that  no  Power  will  in  any  way  interfere  with  any 
treaty  port  or  any  vested  interest  within  any  leased  territory  or  within  any  so- 
called  "  sphere  of  interest  "  it  may  have  in  China. 

Second.  That  the  Chinese  treaty  tariff  of  the  time  being  shall  apply  to  all 
merchandise  landed  or  shipped  to  all  such  ports  as  are  within  said  "  sphere  of 
interest"  (unless  they  be  "free  ports"),  no  matter  to  what  nationality  it  may 
belong,  and  that  duties  so  leviable  shall  be  collected  by  the  Chinese  Government. 

Third.  That  it  will  levy  no  higher  harbor  dues  on  vessels  of  another  na- 
tionality frequenting  any  port  in  such  "  sphere  "  than  shall  be  levied  on  vessels 
of  its  own  nationality,  and  no  higher  railroad  charges  over  lines  built,  controlled, 
or  operated  within  its  "  sphere  "  on  merchandise  belonging  to  citizens  or  sub- 
jects of  other  nationalities  transported  through  such  "  sphere  "  than  shall  be 
levied  on  similar  merchandise  belonging  to  its  own  nationals  transported  over 
equal  distances. 

The  declaration  of  such  principles  by  His  Imperial  Majesty  would  not 
only  be  of  great  benefit  to  foreign  commerce  in  China,  but  would  powerfully 
tend  to  remove  dangerous  sources  of  irritation  and  possible  conflict  between  the 
various  Powers ;  it  would  reestablish  confidence  and  security ;  and  would  give 
great  additional  weight  to  the  concerted  representations  which  the  treaty  Powers 
may  hereafter  make  to  His  Imperial  Chinese  Majesty  in  the  interest  of  reform 
in  Chinese  administration  so  essential  to  the  consolidation  and  integrity  of  that 
Empire,  and  which,  it  is  believed,  is  a  fundamental  principle  of  the  policy  of  His 
Majesty  in  Asia. 

Germany  has  declared  the  port  of  Kiao-chao.  which  she  holds  in  Shantung 
under  a  lease  from  China,  a  free  port  and  has  aided  in  the  establishment  there 
of  a  branch  of  the  Imperial  Chinese  Maritime  Customs.  The  Imperial  German 
Minister  for  Foreign  Affairs  has  also  given  assurances  that  American  trade 
would  not  in  any  way  be  discriminated  against  or  interfered  with,  as  there  is 


234  CHINA  TREATIES  AND  AGREEMENTS 

no  intention  to  close  the  leased  territory  to  foreign  commerce  within  the  area 
which  Germany  claims.  These  facts  lead  this  Government  to  believe  that  the 
Imperial  German  Government  will  lend  its  cooperation  and  give  its  acceptance 
to  the  proposition  above  outlined,  and  which  our  Ambassador  at  Berlin  is  now 
instructed  to  submit  to  it. 

That  such  a  declaration  will  be  favorably  considered  by  Great  Britain  and 
Japan,  the  two  other  Powers  most  interested  in  the  subject,  there  can  be  no 
doubt ;  the  formal  and  oft-repeated  declarations  of  the  British  and  Japanese 
Governments  in  favor  of  the  maintenance  throughout  China  of  freedom  of 
trade  for  the  whole  world  insure  us,  it  is  believed,  the  ready  assent  of  these 
Powers  to  the  declaration  desired. 

The  acceptance  by  His  Imperial  Majesty  of  these  principles  must  therefore 
inevitably  lead  to  their  recognition  by  all  the  other  Powers  interested,  and  you 
are  instructed  to  submit  them  to  the  Emperor's  Minister  for  Foreign  Affairs  and 
urge  their  immediate  consideration. 

A  copy  of  this  instruction  is  sent  to  our  Ambassadors  at  London  and  Berlin 
for  their  confidential  information,  and  copies  of  the  instructions  sent  to  them 
on  this  subject  are  enclosed  herewith. 

I  have,  etc.,  John  Hay. 

(Enclosures:  To  London,  September  6,  1899,  No.  205.  To  Berlin,  September  6,  1899, 
No.  927.) 


Count  Mouravieff  to  Mr.  Tower. 
[Translation.] 

Ministry  of  Foreign  Affairs, 

December  18-30,  1899. 

Mr.  Ambassador:  I  had  the  honor  to  receive  Your  Excellency's  note  dated 
the  8th-20th  of  September  last,  relating  to  the  principles  which  the  Government 
of  the  United  States  would  like  to  see  adopted  in  commercial  matters  by  the 
Powers  which  have  interests  in  China. 

In  so  far  as  the  territory  leased  by  China  to  Russia  is  concerned,  the  Imperial 
Government  has  already  demonstrated  its  firm  intention  to  follow  the  policy  of 
"the  open  door"  by  creating  Dalny  (Ta-lien-wan)  a  free  port;  and  if  at  some 
future  time  that  port,  although  remaining  free  itself,  should  be  separated  by  a 
customs  limit  from  other  portions  of  the  territory  in  question,  the  customs  duties 
would  be  levied,  in  the  zone  subject  to  the  tariff,  upon  all  foreign  merchandise 
without  distinction  as  to  nationality. 

As  to  the  ports  now  opened  or  hereafter  to  be  opened  to  foreign  commerce 
by  the  Chinese  Government,  and  which  lie  beyond  the  territory  leased  to  Russia, 
the  settlement  of  the  question  of  customs  duties  belongs  to  China  herself,  and 
the  Imperial  Government  has  no  intention  whatever  of  claiming  any  privileges  for 
its  own  subjects  to  the  exclusion  of  other  foreigners.  It  is  to  be  understood, 
however,  that  this  assurance  of  the  Imperial  Government  is  given  upon  condition 


NUMBER  1900/2:  MARCH  20,  1900  235 

that  a  similar  declaration  shall  be  made  by  other  Powers  having  interests  in 
China. 

With  the  conviction  that  this  reply  is  such  as  to  satisfy  the  inquiry  made 
in  the  aforementioned  note,  the  Imperial  Government  is  happy  to  have  com- 
plied with  the  wishes  of  the  American  Government,  especially  as  it  attaches  the 
highest  value  to  anything  that  may  strengthen  and  consolidate  the  traditional 
relations  of  friendship  existing  between  the  two  countries. 
I  beg  you  to  accept,  etc., 

Count  Mouravieff. 


INSTRUCTIONS  SENT  MUTATIS  MUTANDIS  TO  THE  UNITED 
STATES  AMBASSADORS  AT  LONDON,  PARIS,  BERLIN,  ST. 
PETERSBURG,  AND  ROME,  AND  TO  THE  UNITED  STATES 
MINISTER  AT  TOKYO. 

Department  of  State, 

Washington,  March  20,  1900. 

Sir  :   The  Government  having  accepted  the  declaration   suggested 

by  the  United  States  concerning  foreign  trade  in  China,  the  terms  of  which  I 

transmitted  to  you  in  my  instruction  No.  —  of  ,  and  like  action  having 

been  taken  by  all  the  various  Powers  having  leased  territory  or  so-called  "  spheres 
of  interest "  in  the  Chinese  Empire,  as  shown  by  the  notes  which  I  herewith 
transmit  to  you,:j:  you  will  please  inform  the  Government  to  which  you  are  ac- 
credited that  the  condition  originally  attached  to  its  acceptance — that  all  other 
Powers  concerned  should  likewise  accept  the  proposals  of  the  United  States — 
having  been  complied  with,  this  Government  will  therefore  consider  the  assent 
given  to  it  by  as  final  and  definitive. 

You  will  also  transmit  to  the  Minister  for  Foreign  Afifairs  copies  of  the 
present  enclosures,  and  by  the  same  occasion  convey  to  him  the  expression  of  the 
sincere  gratification  which  the  President  feels  at  the  successful  termination  of 
these  negotiations,  in  which  he  sees  proof  of  the  friendly  spirit  which  animates 
the  various  Powers  interested  in  the  untrammeled  development  of  commerce  and 
industry  in  the  Chinese  Empire,  and  a  source  of  vast  benefit  to  the  whole  com- 
mercial world. 

I  am,  etc.,  John  Hay. 

t  All  printed  ante. 


236  CHINA  TREATIES  AND  AGREEMENTS 

NUMBER  1900/3. 

GERMANY  (Schantung  Eisenbahn  Gesellschaft)  AND  CHINA. 
Regulations  for  the  Kiaochozu-Tsmanfu  Railway* — March  21,  1900. 

His  Excellency  the  Governor  of  the  Province  of  Shantung  Yuan  Shih  Kai, 
and  His  Excellency  the  Lieutenant  General  Yin  Chang,  upon  petition  of  the 
Governor  of  Shantung  especially  delegated  by  Imperial  decree  to  these  negotia- 
tions, on  the  one  side,  and  the  Managing  Board  of  the  Shantung  Railway  Com- 
pany at  Tsingtau,  represented  by  Mr.  H.  Hildebrand,  a  Royal  Inspector  of  Prus- 
sian Railways,  on  the  other  side,  have  in  order  to  prevent  excitements  and 
disturbances  of  any  kind  in  Shantung  during  the  period  of  building  the  railway 
and  to  maintain  friendly  relations  between  the  population  of  this  province  and 
the  Company  agreed  upon  the  following  Railway  Regulations  with  regard  to  the 
line  of  railway  between  the  boundaries  of  the  German  Leased  Territory  and 
Tsinanfu,  subject  to  the  approval  of  the  Board  of  Directors  of  the  Shantung 
Railway  Company  in  Berlin  and  reduced  to  writing  in  Chinese  and  German 
texts  of  like  tenour. 

Art.  L — In  accordance  with  Art.  4,  section  2,  of  the  aforesaid  Kiauchou 
Convention  a  German-Chinese  Railway  Company  shall  be  formed,  issuing  shares 
to  German  and  Chinese  subjects.  This  Company  shall  for  the  present  be  ex- 
clusively under  German  management.  It  shall  half-yearly  notify  the  Chiao  Se 
Chue  at  Tsinanfu  of  the  number  of  shares  purchased  by  Chinese.  As  soon  as 
the  amount  of  such  shares  has  reached  Taels  100,000,  the  Governor  of  the 
Province  of  Shantung  shall  delegate  a  Chinese  official  for  co-operation  at  the 
Company's  siege. 

Art.  2. — Should  in  future  branches  of  the  Administration  of  the  Company 
be  established  in  Shantung,  one  Chinese  official  shall  be  delegated  to  each  one 
of  them. 

Art.  3. — Officials  or  respectable  citizens  shall  be  consulted  upon  the  location 
of  the  railway,  in  order  to  take  as  far  as  possible  into  consideration  the  interests 
of  the  population.  To  avoid  difficulties  in  negotiations,  these  shall  be  conducted 
on  the  Chinese  side  by  Chinese  officials  delegated  by  the  Governor  of  Shantung. 
The  technical  determinations  of  the  location  of  line  shall  be  left  to  the  Com- 
pany's engineers.  A  sketch  plan  of  the  line's  location,  done  in  a  scale  of  1  :  25000 
shall  be  submitted  to  the  Governor  of  Shantung  for  information  and  only  there- 
after land  may  be  purchased.  The  construction  of  the  railway  cannot  be  begun 
before  the  land  has  actually  been  purchased. 

The  purchase  of  land  shall  be  done  peacefully  and  quickly  as  hitherto,  so 
that  the  construction  of  the  railway  be  not  delayed  by  purchasing  land  or  by 
difficulties  arising  from  disputes  with  individual  owners.  To  avoid  all  such 
difficulties  the  above  mentioned  Chinese  official  shall  act  as  mediator  when  land 

*  Translation  from  the  German  text.     See  Note  to  this  document,  post,  p.  240. 


NLMBER  1900/3:  MARCH  21,  1900  237 

is  purchased  and  shall  settle  all  disputes  eventually  arising.  The  land  shall 
be  purchased  in  an  honest  way  according  to  the  locally  customary  ruling  price. 

The  Company  shall  not  be  allowed  to  buy  more  land  than  necessary  for  the 
railway  enterprise,  and  future  extensions  thereof. 

Meanwhile  the  following  minima  may  be  purchased : 

for  stopping  points  a  plot  of  land  630  m.  long  &     70  m.  wide 

"    country  stations  "      "      "       "     730  m.      "     &  100  m.       " 

"    small  town  stations  "      "      "       "     850  m.      "     &  130  m.       " 

"  stations  of  larger  towns  the  plots  of  land  have  to  be  larger,  corre- 
sponding to  the  actual  importance  of  the 
place  in  question. 

The  land  necessary  for  the  supply  of  earth  to  construct  embankments  is  not 
included  in  the  foregoing  areas.  1  m.  is  equal  to  2  feet  9.6  inches,  1  foot  is 
equal  to  0.338  m. 

Art.  4. — Wherever  water-courses  are  met,  sufficient  flow  has  to  be  provided 
for  by  building  bridges  and  culverts  so  that  agriculture  may  suffer  no  damage. 

Art.  5. — The  railroad  is  to  be  located  in  such  a  way  as  not  to  damage  or 
cut  through  city  walls,  fortifications,  public  edifices  and  important  inhabited 
places. 

Art.  6. — Houses,  farmsteads  and  villages,  temples,  graves  and  above  all  high 
class  graveyards  belonging  to  the  gentry  which  are  fenced  in  and  planted  with 
trees  shall  be  avoided  by  the  railway  as  far  as  possible.  So  far  as  this  is  impos- 
sible the  local  authorities  shall  give  notice  to  the  owners  two  months  beforehand 
and  settle  with  them  a  compensation  of  an  amount  enabling  to  erect  graveyards, 
etc.,  of  the  same  condition  at  another  place  without  sustaining  any  loss  of 
money. 

Art.  7. — In  surveying  the  land  to  be  purchased  the  ""  kiing  "  shall  be  used  as 
unit.  One  kimg  is  equal  to  5  official  feet,  one  foot  is  equal  to  0.338  m.  One 
Mu  is  counted  to  be  360  kiing  or  equal  to  9000  square  feet. 

As  to  the  land  tax  to  be  paid  by  the  Shantung  Railway  Company  the  same 
regulations  shall  be  applied  as  in  force  for  the  most  favoured  Railway  Company  in 
any  other  place  of  China, 

Art.  8. — Injuries  done  to  crops  during  preparatory  or  construction  work  are 
to  be  made  good  by  the  Company  according  to  prices  to  be  settled  with  the  local 
authorities. 

Art.  9. — The  salaries  of  the  assistants  placed  by  the  local  authorities  at  the 
disposition  of  the  Railway  at  its  wish  shall  be  paid  by  the  latter.  These  salaries 
shall  not  be  included  in  the  price  of  land  purchased. 

The  money  for  the  land  is  to  be  paid  into  the  hands  of  the  District  Magistrate, 
who  is  responsible  for  the  proper  payment  to  the  different  owners  entitled  to 
receive  the  money. 

The  District  Magistrate  also  has  to  hand  over  the  title  deeds  to  the  Railway 
Company. 

Art.  10. — The  Railway  Administration  intending  to  rent  houses  for  offices 
and  residences  near  the  work-places  shall  apply  to  the  District  Magistrate  who 


238  CHINA  TREATIES  AND  AGREEMENTS 

will  make  the  necessary  arrangements  with  the  owners  and  will  on  its  behalf 
conclude  the  contracts. 

Art.  11. — The  purchase  of  material  necessary  for  the  construction  of  the 
railway  shall  be  transacted  in  a  fair  manner  and  the  usual  market  price  shall 
be  paid  for  same.  If  necessary  the  intervention  of  the  District  Magistrate  shall 
be  applied  for. 

Art.  12. — The  exchange  of  different  kinds  of  money  shall  always  be  done 
at  the  rate  ruling  on  the  day. 

Art.  13. — The  Railway  Company  is  not  permitted  to  construct  without 
special  permission  of  the  Governor  of  Shantung  other  railroads  than  those  men- 
tioned in  the  Kiauchou  Convention,  including  the  Dranch  line  to  Poshanhsien. 

Branch  lines  connecting  coal  and  other  mines  and  places  where  building  or 
ballasting  materials  are  to  be  taken,  connecting  with  the  main  line,  may  be  built 
without  special  authorization.  It  is,  however,  understood  that  previous  notice 
of  the  construction  of  such  lines  has  to  be  given  to  the  Governor  of  Shan- 
tung. 

Art.  14. — Foreigners,  travelling  or  doing  business  in  the  interior  of  the 
Province  of  Shantung,  in  order  to  enjoy  better  protection,  must  be  provided 
with  passports  duly  sealed  by  the  proper  Chinese  and  German  authorities.  Chi- 
nese local  authorities  cannot  assume  responsibility  if  such  a  passport  is  not 
produced. 

Art.  15. — German  and  Chinese  employees  of  the  Railway  Company  are  to 
be  provided  with  certificates  attested  by  the  seals  of  the  Railway  Administration 
and  of  the  Local  Authorities,  in  order,  when  necessary,  to  prove  their  official 
capacity. 

The  engineers,  when  surveying,  shall  be  accompanied  by  an  official,  delegated 
by  the  District  Magistrate.  This  official  shall,  if  necessary  by  police  force,  render 
assistance  in  protecting  the  property  of  the  Railway  Company  and  the  survey 
poles. 

Persons  fraudulently  pretending  to  be  employees  of  the  Railway  Company 
shall  be  arrested  and  punished  by  the  Local  Authorities. 

Art.  16. — Troops,  eventually  necessary  for  the  protection  of  the  railway 
will  be  stationed  by  the  Governor  of  the  Province  of  Shantung.  Therefore 
outside  the  \0O-li  zone  no  foreign  troops  shall  be  employed  for  this  purpose. 

The  Governor  of  the  Province  of  Shantung  binds  himself  to  take  effective 
measures  during  the  period  of  surveying  as  well  as  when  the  railway  is  under 
construction  or  opened  for  traffic  to  prevent  any  damage  being  done  to  it  by 
the  mob  or  by  rebels. 

Art.  17. — Development  of  trade  and  communications  being  the  only  purpose 
of  the  railway,  no  transport  of  foreign  troops  and  their  war  materials  shall  be 
allowed  on  it. 

The  Railway  Administration  however  is  not  to  be  held  responsible  for  such 
transport  when  brought  into  a  position  of  constraint  by  war  or  similar  circum- 
stances. On  the  other  hand  the  Governor  of  the  Province  of  Shantung  will 
not  be  responsible  for  the  protection  of  sections  of  the  railway  being  in  the  hands 
of  the  enemy. 


NUMBER  1900/3 :  MARCH  21,  1900  239 

The  conditions  of  this  article  are  not  be  applied  to  the  section  of  the  railway 
within  the  100-//  zone. 

Art.  18. — Freightage  for  foodstuffs  and  clothing  to  be  distributed  amongst 
the  distressed  during  famines  and  floods,  shall  be  reduced  according  to  the 
rules  adopted  by  the  railways  of  Germany  and  when  troops  are  dispatched  to 
suppress  rebellions  the  same  is  to  be  applied  to  the  fares  for  soldiers  and  to  the 
freightages  for  their  war  materials. 

Art.  19. — At  railway  stations,  where  custom-houses  are  established  the 
Railway  Administration  shall  make  such  arrangements  as  to  assist  the  Imperial 
Chinese  Customs  in  collecting  the  legal  dues. 

The  expenses  for  the  necessary  buildings,  to  be  erected  upon  application  of  the 
Customs  Administration  are  to  be  refunded  by  the  latter  to  the  Railway  Admin- 
istration according  to  agreements  always  to  be  made  beforehand. 

Art.  20. — The  natives  of  towns  and  villages  near  the  railway  shall  be 
as  far  as  possible  engaged  as  workmen  and  as  contractors  for  the  supply  of 
materials. 

Art.  21. — Chinese  subjects  employed  outside  the  leased  territory  by  the 
Railway  Company  in  case  of  contravention  of  Chinese  law  are  subject  to  the 
jurisdiction  of  the  competent  District  Magistrate. 

The  competent  District  Magistrate  having  officially  notified  the  necessity 
of  legal  steps  against  such  employees,  the  Railway  Company  shall  not  do  anything 
by  which  he  may  evade  justice. 

Complaints  against  foreigners  are  to  be  dealt  with  according  to  the  proper 
laws.  In  such  cases,  the  Railway  Company  on  its  part  shall  make  an  investiga- 
tion and  take  disciplinary  proceedings  against  the  offender. 

Art  22. — The  natives  of  districts,  where  the  railway  passes  through  shall 
as  far  as  possible  be  employed  at  the  work  and  shall  be  paid  for  as  customary 
there. 

If  fights  should  occur  between  railway  men  and  natives  the  local  official  will 
have  the  right  to  arrest  and  punish  the  guilty. 

The  workmen  of  the  railway  are  absolutely  prohibited  unwarrantably  to 
enter  houses  of  natives.    In  case  of  contravention  they  will  be  severely  punished. 

Art.  23. — The  construction  of  the  railway  being  completed,  foremen  and 
workmen  necessary  for  maintenance  and  safekeeping  of  the  line  are  as  far  as 
practicable  to  be  engaged  from  amongst  the  inhabitants  of  villages  and  towns 
near  the  line  in  conformity  with  suggestions  made  by  the  elders  of  these  places. 
These  elders  will  be  responsible  for  the  good  behaviour  of  those  engaged  and 
will  furnish  them  with  certificates  issued  by  the  District  Magistrate. 

Art.  24. — The  railway  being  opened  to  public  traffic,  its  administration 
assumes  the  responsibility  for  any  loss  of  life  or  goods  caused  by  accidents  and 
is  liable  to  pay  compensation  to  wounded  or  killed  persons  according  to  the  local 
custom,  and  to  cover  any  loss  of  goods  according  to  detailed  regulations  to  be 
drawn  up  by  and  published  by  the  Company. 

Likewise  the  Railway  will  be  held  responsible  for  damage  to  persons  and 
property  by  construction  trains  through  its  neglect. 

Art.  25. — The  safety  on  the  line  being  endangered  by  floods,  slips  of  em- 


240  CHINA  TREATIES  AND  AGREEMENTS 

bankments  or  breakages  of  bridges,  etc.,  public  traffic  shall  not  be  reopened  before 
all  these  difficulties  have  been  removed. 

Art.  26. — Should  the  Railway  Company  apply  for  soldiers  to  protect  the  pre- 
paratory work,  the  construction  or  the  traffic  of  the  railway,  the  Governor  of 
the  Province  of  Shantung  shall  at  once  and  effectually  comply  with  such  applica- 
tion. The  amount  to  be  contributed  by  the  Company  for  the  troops  dispatched 
shall  be  the  subject  of  a  further  understanding. 

Art.  27. — In  the  German  leased  territory  the  rights  of  sovereignty  are  safe- 
guarded by  the  Governor  of  Tsingtau.  In  the  districts  of  the  remaining  part  of 
the  Province  of  Shantung  through  which  the  railway  is  running,  the  rights 
of  sovereignty  are  safeguarded  by  the  Governor  of  the  Province  of  Shantung. 

Art.  28. — It  shall  be  the  subject  of  further  agreements  when  and  under 
what  conditions  the  Chinese  Government  may  in  future  take  over  the  railway. 

The  foregoing  regulations  after  being  approved  shall  be  notified  to  the 
Authorities  of  the  Shantung  Province  and  to  the  officials  of  the  railway.  There- 
upon they  shall  be  duly  observed. 

Should  it  in  future  be  deemed  necessary  to  have  alterations  made  of  some 
of  the  above  regulations  or  to  have  drawn  up  supplementary  rules,  this  can  only 
be  done  by  mutual  agreement  between  the  then  Governor  of  the  Province  of 
Shantung  and  the  Shantung  Railway  Company. 

This  agreement  is  executed  in  two  exemplars  each  of  which  contains  a 
Chinese  as  well  as  a  German  version  of  like  tenour.  Each  of  the  contracting 
parties  has  received  one  exemplar. 

TSINANFU,  the  21st  of  March  1900. 

The  Governor  of  the  Province  of  Shantung 
[Seal  and  signature  of  Governor  Yuan  Shih  Kai] 
H.  I.  M.'s  Special  Delegate,  Lieut.  General, 
[sig.]     Yin  Chang. 
Die  Betriebsdirection  der  Schantung-Eisenbahn-Gesellschaft, 

[sig.]       H.    HiLDEBRAND. 


Note. 

In  connection  with  these  regulations,  see  the  Convention  for  the  lease  of  Kiaochow, 
March  6,  1898  (No.  1898/4,  ante)  :  and  the  Exchange  of  notes  between  Germany  and  China 
in  regard  to  the  extension  of  the  Shantung  Railway,  December  31,  1913  (No.  1913/16,  post). 

The  Schantung  Eisenbahn  Gesellschaft  was  a  joint  German  and  Chinese  enterprise 
operating  under  a  German  charter  or  "  concession  "  dated  June  1,  1899,  of  which  the  fol- 
lowing translation  is  given  in  Rockhill,  p.  363 : — 

Charter  of  Schantung  Eisenbahn  Gesellschaft. — June  i,  1899. 

"In  response  to  a  request  made  by  the  Deutsch-Asiatische  Bank  (German- Asiatic 
Bank),  representing  the  Syndicate,  formed  for  the  establishment  of  a  German-Chinese 
Company  with  the  title  of  '  Schantung-Eisenbahn-Gessellschaft '  (Shantung  Railway  Com- 
pany), the  Imperial  Government  agrees  to  grant  to  said  company  a  concession  for  the 
construction  and  operation  of  a  railway  in  the  Chinese  Province  of  Shantung,  from  Tsin-tao 
via  Weihsien  to  Tsinan  Fu  with  a  branch  line,  starting  from  a  point  on  the  main  line,  to 
Poshan,  according  to  the  provisions  of  the  German-Chinese  Treaty  of  March  6,  1898,  and 
under  the  following  conditions : 


NUMBER  1900/3:  MARCH  21,  1900:  NOTE  241 

"  §  1. — The  construction  and  maintenance  of  the  railway  shall  be  proceeded  with  by  a 
German-Chinese  Company,  to  be  organized  by  the  Syndicate  upon  the  basis  of  the  contract 
hereto  attached. 

"  This  company  will  have  its  domicile  at  first  in  Berlin  but  will  nevertheless  remove 
the  same  to  Tsin-tao  within  six  months   from  the  date  of  the  granting  of  the  concession. 

"§2. — The  capital  for  the  construction  and  operation  of  the  railway  is  fixed  at  54  Mil- 
lion Marks. 

"  Care  is  to  be  taken  that  Germans  as  well  as  Chinese  may  participate  in  the  public 
subscription  to  the  stock  of  the  Company.  More  especially,  shall  subscriptions  be  opened  in 
the  suitable  commercial  centers  of  East  Asia,  and  the  amounts  there  subscribed  shall  receive 
proper  consideration. 

"  §  3. — The  management  of  the  railway  shall  be  domiciled  at  Tsin-tao.  The  election 
of  the  President  of  the  Board  of  Directors  as  well  as  the  Chief  Operating  Official  must 
be  approved  by  the  Imperial   Government. 

"  §  4. — The  following  regulations  govern  the  construction  of  the  railway: 

"  I. — In  the  building  of  the  railway  lines  the  special  preparatory  work  shall  determine 
the  best  possible  connection  with  the  most  important  coal  fields,  more  especially  with  those 
of  Weihsien  and  Tzechuan  as  well  as  the  chief  cities  and  towns  between  Tsin-tao  and 
Tsinan  Fu,  which,  on  account  of  their  population  or  other  significance,  must  be  considered  in 
their  relation  to  railway  traffic. 

"  In  the  construction  of  the  railway  station  at  Tsinan  Fu  consideration  is  to  be  given 
to  the  connection  with  the  Hoang  ho  and  the  continuation  of  the  railway  on  the  one  side 
to  the  southern  boundary  of  the  Province  of  Shantung  in  the  direction  of  Kua-chou 
(Chinkiang),  on  the  other  side  following  the  North  Boundary  of  the  same  Province  in  the 
direction  of  Tientsin  and  Cheng-ting. 

"  The  Company  must  obtain  from  the  Imperial  Government  permission  to  carry  out 
the  raihvay  line,  in  accordance  herewith,  in  the  territory  of  Kiau-chou,  outside  this  territory 
the  permission  of  the  Imperial  Minister  in  Peking  is  to  be  obtained. 

"  The  lines  may  be  built  for  single  track ;  however  sufficient  land  for  the  construction 
of  a  double  track  must  be  provided. 

"  The  gauge  shall  measure  1.435  meter. 

"  II. — German  material  shall  be  used,  as  far  as  possible,  in  the  construction  of  the 
railways. 

"III. — The  completion  and  opening  of  the  main  line  from  Tsin-tao  to  Tsinan  Fu, 
and  of  the  branch  line  to  Poshan  must  follow  within  a  period  of  5  years,  dating  from 
the  grant  of  the  concession,  and  that  of  the  railway  section  from  Tsin-tao  to  Wei-hsien 
within  a  period  of  3  years.  Should  the  Company  be  prevented  from  the  fulfilment  of 
these  obligations  by  force  major,  the  fixed  periods  shall  be  respectively  extended. 

"  §  5.    The  following  stipulations  shall  obtain  for  the  operation  of  the  railways: 

"  I. — The  Governor  of  Kiau-chou  is  to  be  notified  of  the  proposed  opening  of  the 
railway  on  any  one  section  at  least  three  days  in  advance  of  the  time  set. 

"  II. — The  railway  is  to  be  equipped  in  due  time  with  rolling  stock  according  to  the 
requirements  of  traffic.     The  material  used  shall  be,  as  far  as  possible,  of  German  origin. 

"  The  Company  binds  itself  to  permanently  maintain  the  railways,  buildings,  workshops 
and  rolling  stock,  including  the  telegraph  plants,  in  good  order  and  condition,  in  order 
that  transportation  may  be  made  with  security  and  according  to  the  stipulations  of  the 
present  contract.  The  company  shall  be  held  responsible  therefor  by  the  Imperial  Govern- 
ment, but  no  stricter  regulations  shall  be  issued  for  railways  outside  of  the  Protectorate 
than  those  in  force  on  the  majority  of  the  railways  in  China,  built  and  operated  under 
similar  circumstances.  The  railway  police  regulations  applicable  within  the  Protectorate 
shall  be  in  force  along  the  line  of  railroad  operation. 

"  III. — The  number  of  trains  to  be  despatched  is  left  to  the  discretion  of  the  company, 
but  it  must  meet  the  necessities  of  traffic  as  far  as  possible.  The  establishment  of  a 
schedule  and  changes  therein  are  subject  to  the  approval  of  the  Governor  of  Kiau-chou, 
with  the  understanding  that  no  greater  obligations  shall  be  required  of  the  company  than 
in  the  case  of  the  majority  of  other  railways  built  and  operated  under  similar  circumstances 
in  China. 

"  The  time  table  is  to  be  made  public  in  due  time. 

"  IV. — The  fixing  of  the  tariff  for  transporting  passengers  and  freight  on  every  railway 
section  is  left  to  the  discretion  of  the  company  for  the  first  ten  years,  beginning  on 
January  1st  following  the  opening  of  the  railway,  but  the  maximum  rates  for  the  transporta- 
tion of  coal,  to  be  fixed  by  the  Imperial  Government  after  consultation  with  the  com- 
pany, may  not  be  exceeded.  Subsequent  to  this  time,  that  is  after  the  expiration  of  the 
ten  years  specified  above,  it  is  optional  with  the  Imperial  Government  to  fix  the  maximum 
rates  for  the  various  classes  of  passengers  and  goods  every  five  years ;  within  these 
limits  the  company  shall  be  at  liberty  to  fix  the  charges  of  transportation.  All  maximum 
rates  to  be  fixed  by  the  Imperial  Government  shall,  however,  not  be  lower  than  the 
maximum  rates  of  the  majority  of  railways  built  and  operated  under  similar  circumstances 
in  China. 


242  CHINA  TREATIES  AND  AGREEMENTS 

■'  Rates  for  transportation  as  well  as  changes  therein  must  be  made  known  to  the 
Governor  before  adoption,  and  shall  be  published  in  due  course.  Increased  rates,  should 
they  not  be  approved  by  the  Governor,  shall  come  into  force  three  months  after  publication 
only. 

"  V. — Use  of  the  railway  is  to  be  granted  to  everybody  under  similar  conditions. 
Especially  the  rates  fixed  for  transportation  are  to  apply  equally  to  all  persons  or  goods  of 
the  same  class.  Facilities  of  transportation  which  under  fulfillment  of  the  same  conditions 
do  not  benefit  everybody  are  inadmissible.  Exceptional  tariffs  require  the  approval  of  the 
Governor  of  Kiau-chou. 

"  Upon  demand  of  the  Imperial  Government  the  Company  is  obliged  to  allow  other 
contractors  to  connect  with  the  railway  by  means  of  private  connecting  tracks  or  junction 
railways,  upon  refunding  to  the  Company  the  expenses  incurred  thereby,  should  the  Com- 
pany itself  not  build  connecting  tracks  or  junction  railways  within  a  reasonable  time.  The 
Company  is  further  obliged  to  undertake  the  operation  of  the  private  connecting  tracks 
and  furnish  the  necessary  means  of  transportation,  for  which  it  is  to  receive  suitable  com- 
pensation, and  further,  for  a  likewise  reasonable  compensation,  to  allow  the  passage  of 
the  necessary   transportation  material   of   the   junction    railways. 

"  §  6. — Should  the  Company  culpably  offend  against  one  of  the  obligations  imposed 
upon  it  by  this  document  and  not  comply  m  due  time  with  the  injunction  given  by  the 
Imperial  Government  to  make  good  the  offense,  the  Imperial  Government  may  hold  the 
company  responsible  for  the  losses  accruing  to  the  traffic  through  its  fault,  in  an  adequate 
sum  of  money. 

"  Whether  there  has  been  a  culpable  offense  on  the  part  of  the  company,  and  whether 
in  consequence  of  such  offense  the  order  of  the  Imperial  Government  has  not  been  properly 
complied  with,  and  what  amount  shall  be  paid  for  accrued  damages,  shall  be  finally 
determined  by  a  Court  of  Arbitration  to  be  formed  as  provided  for  in  Section  7. 

"All  moneys  hereafter  to  be  paid  by  the  Company  shall  be  paid  into  the  Treasury 
of  the  Imperial  Government  of  Kiau-chou. 

"Should  a  culpable  action  of  the  Company  relative  to  one  of  the  imposed  obligations 
contained  in  this  document  result  in  the  railway  section  not  being  constructed  or  operated 
in  due  course,  the  Imperial  Government  is  authorized  to  take  over  itself,  or  to  cause  to 
be  taken  over  by  a  third  party,  the  construction  or  extension  of  the  railway  and  the  organiza- 
tion or  continuation  of  the  traffic,  all  at  the  expense  of  the  Company.  The  question  as  to 
whether  such  a  culpable  action  on  the  part  of  the  Company  exists  is  also  to  be  finally 
decided  by  the  Court  of  Arbitration  to  be  formed  according  to  paragraph  7  of  this 
document. 

"  §  7. — The  Court  of  Arbitration,  provided  for  in  Article  6,  shall  be  formed  in 
such  manner  that  each  party  appoints  two  arbitrators  and  these  shall  elect  an  umpire. 
The  Imperial  Government  will  name  its  arbitrators  to  the  Company  and,  at  the  same  time, 
request  the  Company  to  appoint  their  arbitrators  within  four  weeks,  counting  from  the 
day  of  the  handing  in  of  the  summons,  and  to  name  them  to  the  Imperial  Government. 
If  the  Company  does  not  comply  with  this  summons  in  due  time,  the  Imperial  Government 
will  also  elect  the  necessary  arbitrators.  The  umpire  is  elected  by  a  majority  vote.  In  the 
case  of  a  tie  the  umpire  will  be  appointed  by  the  President  of  the  Hanseatic  Upper  District 
Court.  The  regulations  of  the  Tenth  Book  of  the  Civil  Process,  unless  otherwise  stated  in 
this   document,   shall  hold   good    for   the   arbitration   proceedings. 

"  §  8. — During  the  life  of  the  concession,  conveyed  in  this  document,  the  Imperial 
Government  will  not  grant  to  any  other  contractor  the  right  to  construct  a  railway  section, 
running  parallel  in  the  same  direction  with  the  concessionary  lines  to  the  same  points, 
or  touching  at  several  of  their  principal  places. 

"  §  9. — The  Imperial  Government  of  Kiau-chou  shall  cede  to  the  Company  such  land 
in  the  Protectorate  necessary  for  the  construction  of  the  railway,  provided  it  is  property 
of  the  Government  and,  according  to  the  declaration  of  the  Governor,  not  indispensable 
for  Government  purposes,  upon  payment  of  the  price  prevailing  in  the  locality,  but  which 
shall  not  exceed  125,000  marks.  The  Imperial  Authorities  will,  as  far  as  possible,  assist 
the  Company  at  their  request  to  acquire  more  land  if  necessary,  should  it  lie  in  the  Pro- 
tectorate or  in  the  Province  of  Shantung. 

"  §  10. — The  Imperial  Government  will  grant  to  the  Company,  upon  their  request,  the 
concession  for  the  construction  and  operation  of  the  railways  from  Tsinan  Fu  to  I-chou  Fu 
and  from  Tsin-tao  to  I-chou  Fu,  under  conditions  corresponding  to  those  contained  in  this 
document. 

"  As  regards  these  railways,  the  company  is  free  to  await  the  end  of  the  year  1908 
before  presenting  this  request.  The  concessions  not  solicited  in  due  time  can  be  other- 
wise granted  by  the   Imperial   Government. 

"  §  11. — The  Company  shall  pay  a  contribution  from  the  yearly  net  profits  of  the  railway 
to  be  applied  to  the  expenditures  of  the  Government  for  the  harbor  works  in  the  Bay  of 
Kiau-chou  and  also  to  the  general  running  expenses  of  the  Protectorate,  which  con- 
tribution is  to  be  estimated  as  follows: 

"If  after  the  opening  of  the  traffic  of  the  railway   from  Tsin-tao  to   Tsinanfu,  the 


NUMBER  1900/3:  MARCH  21,  1900:  NOTE  243 

net  earnings  of  the  railway  would  permit  the  payment  of  a  yearly  dividend  of  more 
than  5  per  cent  of  the  paid  up  capital  which  is  used  in  operating  the  railway,  there  shall 
be  paid  into  the  Government  funds  of  Kiau-chou  the  twentieth  part  of  any  surplus  over  5 
to  7  per  cent,  the  tenth  part  of  any  surplus  over  7  to  8  per  cent,  the  fifth  part  of  any 
surplus  over  8  to  10  per  cent,  the  third  part  of  any  surplus  over  10  to  12  per  cent,  and 
the  half  of  any  surplus  over  12  per  cent. 

"  §  12. — The  Imperial  Government  reserves  the  right  to  purchase  the  railways  to  be 
constructed  by  the  Company  in  accordance  with  this  concession,  after  the  end  of  sixty  years, 
calculated  from  the  date  of  the  grant  of  the  concession.  The  Imperial  Government 
further  reserves  the  right  to  buy  at  the  end  of  every  five  years,  including  a  one  year's 
previous  notice,  all  establishments,  rolling  stock,  appurtenances,  inclusive  of  the  reserve 
and  renewal  funds  earned  by  the  railway  enterprise,  upon  payment  of  twenty-five  times  the 
amount  of  the  average  dividends  paid  during  the  last  five  years  from  its  earnings,  or,  at 
least,  however,  the  commercial  value  of  the  actual  existing  railway  plants,  workshops  and 
rolling  stock.  In  case  there  should  be  any  doubt  in  ascertaining  the  value,  a  Court  of 
Arbitration,  formed  according  to  Article  7,  shall  decide.  Should  no  sum  obtain  the 
majority  of  the  votes  cast  the  one  nearest  the  average  of  sums  named  by  the  individual 
arbitrators  shall  be  accepted.     The  decision  of  the  Court  is  final. 

"  §  13. — The  transfer,  in  whole  or  in  part  of  the  concession  granted  to  the  Company, 
according  to  this  document,  the  rights  and  obligations  appertaining  to  it  in  exercise  of 
the  same,  under  maintenance  of  its  concessionary  character,  as  well  as  any  alteration  in 
the  contract,  must,  to  become  valid,  have  the  approval  of  the  Imperial  Government. 

"  The  transfer  of  the  concession  itself  or  parts  thereof  to  another  Company,  not  Ger- 
man or  German-Chinese,  is  prohibited. 

"  §  14. — The  Imperial  Government  reserves  the  right  of  appointing  a  commissioner  ac- 
cording to  Article  II  of  the  second  part  of  the  German-Chinese  Treaty  of  March  6,  1898. 

"  §  15. — A  copy  of  this  concession  document  will  be  delivered  to  the  Company  as 
soon  as  the  Company  is  regularly  formed  by  the  Syndicate. 

"  §  16. — The  charges  for  all  expenses  incurred  in  this  document,  especially  the  stamp 
duties,  shall  be  borne  by  the  Company. 

"Baden-Baden  June   1,   1899. 

"  (Signed)     Imperial  Chancellor." 
"  Prince  zu   nohenlohe-Schillingsfilrst." 

By  a  Decree  of  the  German  Imperial  Chancellor,  dated  March  13,  1913,  the  scope  of 
the  railway  enterprise  was  extended  to  include  the  exploitation  of  the  mines  of  the 
Schantung  Bergbau  Gesellschaft  (No.  1900/4,  post)  ;  the  increase  of  the  share  capital  to 
60,000,000  Marks  was  approved;  and  the  adoption  of  the  following  Rules  (dated  February 
12,  1913)   was  sanctioned: — 

Rules  of  the  Shantung  Railway  Company, 

"  I.    General  Stipulations. 

"  Par.  1. — By  virtue  of  the  preceding  Concession  of  the  1st  June,  1899,  granted  by  the 
Imperial  German  Government  an  '  Actiengesellschaft '  has  been  formed  under  the  style 
of  '  Schantung  Eisenbahn  Gesellschaft '  which  has  its  siege  in  Tsingtau ;  the  Company  shall 
be  under  the  laws  and  jurisdiction  of  the  Court  of  Tsingtau  for  all  affairs  except  those 
between  the  Company  and  its  shareholders  and/or  the  Company  and  its  executive  bodies 
arising  from  their  Company-relations.  For  such  cases  the  Company  shall  be  subject  to  the 
jurisdiction  of  the  competent  Courts  in  Berlin. 

"  The  duration  of  the  Company  is  not  limited  to  a  fixed  time. 

"  Par.  2. — The  object  of  the  enterprise  is  the  exploitation  of  the  concession  mentioned 
in  Par.  1  by  constructing  and  operating  a  railway  from  Tsingtau  to  Tsinanfu  including  a 
branch  line  from  Changtien  to  Poshanhsien  as  well  as  the  exploitation  of  the  concession 
dated  1st  June,  1899,  for  mining  in  the  Chinese  Province  of  Shantung  granted  to  the 
Schantung  Bergbau  Gesellschaft  and  transferred  to  the  Shantung  Eisenbahn   Gesellschaft. 

"  Par.  3. — With  sanction  of  the  Imperial  German  Government  this  Company  shall  be 
authorised : 

1)  to  build  equip  and  run  other  railways  in  China, 

2)  to  undertake  the  running  of  other  railways  established  in  East  Asia  and  to  acquire 
such  as  property. 

3)  to  intrust  a  third  party  with  the  running  of  its  own  railways. 

4)  to  enter  into  agreements  with  the  administrations  of  other  connecting  lines  of  rail- 
roads operating  or  in  course  of  construction,  about  mutual  utilization  of  their  lines 
or  to  participate  in  any  other  way  in  other  railway  enterprises  of  East  Asia. 

5)  to  erect  on  its  stations  or  in  connection  therewith  the  necessary  warehouses  for 
storage  of  goods  and  to  issue  warrants  for  the  goods  taken  in  charge  as  well  as  to 
provide  for  the  forwarding  of  persons  and  of  goods  to  and  from  the  stations, 

6)  to  produce  and  turn  to  profit  also  outside  the  district  covered  by  the  concession  of 


244  CHINA  TREATIES  AND  AGREEMENTS 

the  Schantung  Bergbau  Gesellschaft,  both  within  and  without  the  Province  of  Shan- 
tung, products  of  the  country  and  minerals,  to  establish  and  to  acquire  whatever 
plants  may  be  necessary  for  this  purpose  and  to  operate  these  and  other  establish- 
ments which  may  promote  the  interests  of  the  Company,  or  to  participate  therein, 

7)  to  set  up  branch  establishments. 

"  Par.  4. — The  notices  of  the  Company  appear  with  legal  validity  by  publishing  them  in 
the  'Deutscher  Reichsanzeiger.' 

"  II.   Original  Capital,  Shares,  Debentures. 

"  Par.  5. — The  original  capital  of  the  Company  amounts  to  60  million  Marks  divided  into 
60,000  bearer  shares  of  a  nominal  value  of  AI.  1000  each.  [Note:  (not  in  translated  text) 
Amended  to  read :  70  million  and  70,000,  respectively,  by  resolution  of  5th  June,  1914.] 

"  Annexed  to  each  of  these  shares  are  dividend-coupons  covering  ten  years  and  renewal 
slips.  The  renewal  slips  empower  a  new  issue  of  dividend-coupons  for  ten  years  and  a  new 
renewal  slip  to  the  same  effect. 

"  Shares  or  interim  certificates,  if  any,  shall  be  executed  by  signatures,  or  facsimiles,  of 
the  Board  of  Directors  and  of  the  president  of  the  Supervisory  Committee  or  his  substitute 
(vice-president).  For  the  rest  the  forms  of  shares,  interim  certificates,  dividend-coupons 
and  renewal  slips  are  to  be  decided  on  by  the  Supervisory  Committee. 

"  The  original  subscribers  who  have  floated  the  railway  enterprise  with  a  foundation 
capital  of  54  millions  of  Marks  have  received  a  bonus  share  on  each  share  subscribed  by 
them,  the  privileges  of  these  bonus  shares  are  laid  down  in  Par.  20,  26  &  30. 

"  The  General  Meeting  may  with  the  consent  of  the  Imperial  German  Government 
resolve  on  an  increase  of  the  share  capital  and  on  issuing  the  new  shares  at  an  agio  above 
their  nominal  value.  New  shares  shall  be  issued  to  bearer  provided  not  otherwise  resolved. 
The  nominal  value  of  shares  and  the  minimum  value  below  which  the  issue  of  shares  shall 
not  take  place  are  to  be  stipulated  by  the  General  Meeting. 

"  Par.  6. — In  case  shares,  interim  certificates,  dividend-coupons  and  renewal  slips  have  by 
damage  or  defacement  become  unsuitable  for  circulation  but  their  essential  content  and  dis- 
tinctive marks  are  still  recognisable  with  certainty,  the  entitled  holder  may  demand  of  the 
Company  to  execute  and  deliver  to  him  in  exchange  for  the  damaged  or  defaced  document 
a  new  one.     He  has  to  pay  in  advance  all  expenses  incurred  thereby. 

"  In  case  shares,  debentures,  bonus  shares  or  interim  certificates  are  lost  or  have  been 
destroyed  they  may  be  declared  invalid  by  the  legal  proceeding  of  public  notice.  The  costs 
of  such  proceedings  as  well  as  the  cost  of  executing  new  documents  and  all  expenses  in- 
curred thereby  are  not  to  be  borne  by  the  Company  but  by  the  concerned,  who  has  to 
advance  the  costs. 

"  Dividend-coupons  and  renewal  slips  need  not  be  declared  invalid.  Dividend-coupons 
belonging  to  shares  or  interim  certificates  declared  invalid,  and  not  yet  due  at  the  time  of 
such  declaration,  are  also  invalid. 

"  Matured  dividend-coupons  become  invalid  in  favor  of  the  Company's  accounts  unless 
collected  within  4  years,  counted  from  the  31st  December  following  the  date  on  which 
they  have   become    due. 

"  To  anyone,  however,  who  gives  notice  to  the  Board  of  Directors  of  the  loss  of  coupons 
before  expiry  of  said  term,  proving  their  former  possession  by  production  of  the  shares  or 
interim  certificates  or  otherwise  in  a  reliable  manner  the  amounts  due  on  such  coupons, 
given  notice  of  and  not  yet  presented  up  to  the  expiration  of  the  said  term,  shall  be  paid 
against  receipt. 

"When  the  owner  of  a  share  or  interim  certificate,  before  issue  of  new  coupons  has 
taken  place  has  filed  a  protest  against  their  delivery  to  the  owner  of  the  renewal  slip  such 
coupons  shall  not  be  handed  to  the  renewal  slipholder  but  to  the  owner  of  the  principal 
document  on  production  of  such  document  by  him. 

"  Par.  7. — By  subscription  for  or  purchase  of  shares,  bonus  shares  or  interim  certificates 
the  shareholder  subjects  himself  to  the  competent  Courts  of  Berlin  in  respect  of  all  con- 
troversies with  the  Company  arising  out  of  Company  relations. 

"  Par.  8. — With  the  consent  of  the  Imperial  German  Government  the  Company  shall  be 
authorised   to  issue  debentures. 

"  III.    Administration. 
"  a)   Board  of  Directors. 

"  Par.  9. — The  Board  consists  of  two  or  more  Directors  appointed  by  the  Supervisory 
Committee,  this  Committee  is  also  authorised  to  appoint  Acting-Directors  (substitutes  for 
the  Directors').  These  appointments  shall  be  recorded  notarially  or  judicially  and  must  be 
published.  The  Chairman  of  the  Board  must  be  approved  by  the  Imperial  German  Govern- 
ment. 

"  The  Board  may  appoint  procurists  only  with  the  approval  of  the  Supervisory  Commit- 
tee.   The  Supervisory  Committee  divides  the  business  among  the  members  of  the  Board,  and 


NUMBER  1900/3:  MARCH  21,  1900:  NOTE  245 

fixes  their  mutual  relations  as   welt  as  the   rules   for  their   consultations   in   common  and 
their  resolutions. 

"  Par.  10. — All  documents  and  declarations  of  the  Board  are  binding  on  the  Company 
if  they  are  signed  with  the  written,  stamped  or  printed  name  of  the  Company  and  counter- 
signed by  at  least  two  members  of  the  Board  or  by  one  member  of  the  Board  and  one  pro- 
curist  with  an  addition  showing  that  he  signs  as  such. 

"b)   Supervisory  Committee. 

"  Par.  11. — The  Supervisory  Committee  consists  of  at  least  12,  at  most  30  members  to  be 
elected  by  the  General  Meeting.  At  least  5  members  shall  reside  in  Berlin  and  including  these 
at  least  three  quarters  of  all  the  members  at  the  time  shall  be  German  subjects,  residing 
in  the  German   Empire. 

"  The  election  holds  good  up  to  the  end  of  that  General  Meeting  which  passes  upon  the 
Balance  Sheet  of  the  fourth  business  year  after  the  election,  not  counting  the  business  year 
during  which  the  election  takes  place. 

"  At  each  ordinary  General  Meeting  at  least  5  and  besides  so  many  members  of  the 
Supervisory  Committee  shall  retire  as  that  the  term  of  office  for  each  individual  member 
will  be  finished  at  latest  by  the  end  of  the  fifth  ordinary  Meeting  after  his  election.  The 
succession  of  resignations  is  decided  by  the  seniority  of  the  members  and  in  case  of  doubt 
by  lots. 

"  As  long  as  the  number  of  the  members  of  the  Supervisory  Committee  still  remains  12 
or  more,  a  new  election  or  by-election  may  be  omitted. 

"All  declarations  of  the  Supervisory  Committee  are  legally  executed  if  they  are  done 
under  the  style  '  Der  Aufsichtsrat  der  Schantung  Eisenbahn  Gesellschaft '  with  the  signa- 
ture of  the  president  or  his  substitute  (vice-president)   and  of  a  member  of  the  Committee. 

"  Par.  12. — The  members  of  the  Committee  draw  no  salaries  but  they  receive  reimburse- 
ment of  the  outlays  arising  out  of  the  execution  of  their  duties  and  a  compensation  accord- 
ing to  Par.  26  of  these  rules.  The  distribution  thereof  shall  follow  the  detailed  regulations 
of  a  standing-order  to  be  established  by  the  Supervisory  Committee. 

"  Par.  13. — ^The  Supervisory  Committee  elects  a  president  and  a  vice-president  (sub- 
stitute) immediately  after  each  ordinary  General  Meeting  in  a  session  at  which  the  members 
present  meet  without  being  specially  called.  The  president  shall  be  a  German  subject  residing 
in  Berlin. 

"Par.  14. — The  president  or  his  substitute  (vice-president)  shall  convene  the  Committee 
as  often  as  business  requires  or  when  moved  by  at  least  three  of  its  members  or  by  the 
Board  of  Directors.  In  convening  the  meeting  the  agenda  are  as  far  as  possible  to  be 
stated.  Five  members  form  a  quorum.  On  matters  not  enumerated  in  the  agenda  the 
Committee  can  only  give  a  valid  decision  if  at  least  half  of  its  members  are  present  and  none 
of  them  objects.  In  urgent  cases  valid  resolutions  may  be  passed  by  the  medium  of  writing, 
telegraph  or  telephone. 

"  All  members  of  the  Supervisory  Committee  have  equal  votes.  Resolutions  shall  be 
passed  by  majority  of  votes,  votes  being  equal  the  president  to  have  a  casting  vote. 

"If  at  an  election  by  the  Supervisory  Committee  no  majority  of  votes  is  obtained  in 
the  first  ballot,  a  second  ballot  shall  take  place  for  those  two  persons  who  have  received  the 
highest  number  of  votes.  If  each  then  obtains  an  even  number  of  votes,  lots  will  be  drawn 
for  decision. 

"  Par.  15. — The  Supervisory  Committee  resolves  its  own  standing  orders  regulating 
therein  as  well,  whether  and  how  votes  have  to  be  taken  of  Committee  members  residing 
outside  Germany. 

"  Par.  16. — Beyond  the  powers  given  to  the  Supervisory  Committee  by  law  and  else- 
where in  these  rules  the  Committee  shall  especially  be  authorised : 

1)  to  engage  and  dismiss  Directors, 

2)  to  approve  of  the  annual  budget  of  salaries  to  be  submitted  by  the  Board  of  Directors 
and  to  confirm  the  selection  of  officials  receiving  annual  salaries  of  M  10,000  and 
more  or  to  be  engaged  for  a  longer  term  than  three  years,  as  well  as  to  grant  ex- 
traordinary remunerations,  bonuses  and  pensions  to  the  members  of  the  Board  of 
Directors  and  the   Company's  officials, 

3)  to  determine  the  instructions   for  the  management, 

4)  to  appoint  attorneys  for  a  special  business  or  for  a  class  of  business  affairs  (man- 
agers, &c.)  as  well  as  to  appoint  either  members  from  their  midst  or  third  persons 
to  substitute  Directors, 

5)  to  resolve  on  the  acquisition  and  the  sale  of  land  properties  destined  for  the  Com- 
pany's own  business  use, 

6)  to  decide  on  the  annual  general  condition  of  income  and  expenditure  to  be  sub- 
mitted by  the  Board  of  Directors  and  to  fix  the  principles  according  to  which  the 
money  of  the  Company  is  to  be  handled, 

7)  to  approve  contracts,  if  their  object  exceeds  M  30,000  or  if  the  Company  is  bound 
thereby  for  a  longer  term  than  three  years, 


246  CHINA  TREATIES  AND  AGREEMENTS 

8)  to  deliberate  on  matters  provided  for  in  Par.  2,  sections  1 — 7,  and  to  decide  thereon 
in  so  far  as  an  increase  of  original  capital  or  the  taking  up  of  loans  is  not  required, 

9)  to  establish  the  Balance  Sheet  and  the  Profit  and  Loss  Account  for  the  purpose  of 
being  submitted  to  the  General  Meeting, 

10)  to  submit  to  the  General  Meeting  the  iinancial  statements  in  order  to  be  discharged 
and  to  propose  the  amounts  to  go  out  of  the  profits  to  Special  Reserve  Fund  as  well 
as  those  for  division  of  profits, 

11)  to  resolve  upon  payments  to  be  called  for  on  shares, 

12)  to  dispose  of  the  Special  Reserve  Fund  according  to  Par.  28, 

13)  to  appoint  one  or  more  special  committees  from  among  the  members  of  the  Com- 
mittee and  to  transfer  special  business  affairs  or  classes  of  such  to  these  special 
committees. 

"  The  election  of  the  Chief  Technical  Managers  as  w^ell  for  the  Railway  as  for  the  Mines 
requires  the  confirmation  of  the  Imperial  German  Government. 

"c)  General  Meeting. 

"  Par,  17. — Every  shareholder  may  take  part  in  the  General  Meetings.  In  order  to  be 
authorised  to  vote  at  these  Meetings  the  shareholders  must  at  least  three  days  before  the 
General  Meeting  and,  should  that  day  be  a  Sunday  or  a  public  holiday  on  the  preceding 
working  day,  at  the  office  of  the  Company's  cashier  or  at  such  other  places  as  may  be  indi- 
cated and  advertised  publicly : 

a)  hand  in  a  list  in  duplicate,  showing  the  numbers  arithmetically  arranged  of  the 
shares  intended  for  participation. 

b)  deposit  such  shares  or  warrants  therefor  issued  by  the  '  Reichsbank '  or  by  the  '  Bank 
des  Berliner  Kassenvereins '  and  leave  them  there  up  to  the  end  of  the  General 
Meeting. 

"  The  obligation  b)  can  as  well  be  complied  with  by  a  deposit  with  a  German  notary. 

"  Each  share  entitles  to  one  vote.  Saving  legal  representation,  a  proxy  in  writing  is 
necessary  and  to  be  handed  in  to  represent  shareholders  at  a  General  Meeting.  Partner- 
ships, commandite  companies  and  companies  limited  by  shares,  syndicates  and  companies 
limited  by  subscription  as  well  as  associations  and  juristic  persons  by  public  law  may  be 
represented  by  a  member  of  their  legal  representative  bodies  or  by  an  agent  authorised  to 
sign  per  procuration,  even  if  otherwise  for  the  binding  of  the  represented  body  the  joint 
action  of  several  is  required. 

"  Par.  18. — General  Meetings  shall  be  held  in  Berlin  and  be  convened  without  prejudice 
to  the  regulations  contained  in  Par.  254  of  the  Commercial  Code  by  the  Board  of  Directors 
or  the  Supervisory  Committee  through  a  notice  given  so  that  there  are  at  least  thirty  days 
between  the  date  of  issue  of  the  '  Reichsanzeiger '  containing  the  publication  and  the  date 
the  meeting  is  to  be  convened,  both  dates  not  included. 

"  Within  the  first  six  months  of  every  business  year  an  ordinary  General  Meeting  shall  be 
held,  an  extraordinary  Meeting  is  to  be  convened  whenever  there  is  a  special  cause  therefor. 

"  The  agenda  to  be  before  the  Meeting  shall  be  published  at  the  time  the  notice  appears 
convening  the  Meeting.  The  General  Meeting  may  however  pass  valid  resolutions  if  the 
motion  thereto  has  been  published  at  least  one  week  before  the  end  of  the  term  set  for  the 
deposit  of  shares.  Should  however  the  resolution  require  a  larger  than  a  simple  majority  of 
votes,  publication  of  such  motion  must  have  taken  place  at  least  two  weeks  before  the 
expiration  of  the  date  set  for  deposit  of  shares. 

"  Par.  19. — Except  in  cases,  in  which  the  Company  must  liquidate  by  order  of  law,  the 
liquidation  or  dissolution  of  the  Company,  furthermore  the  reorganisation  of  the  Com- 
pany by  expansion  or  alteration  of  the  object  of  its  enterprise  or  its  amalgamation  with 
another  '  Aktiengesellschaft '  can  only  be  decided  on  in  an  extraordinary  General  Meeting 
convened  solely  for  the  purpose  of  passing  such  resolutions. 

"  To  make  such  resolutions  legally  valid,  it  is  necessary  that  at  least  three  quarters  of 
the  original  share  capital  is  represented  in  the  Meeting.  If  this  is  not  the  case,  another 
extraordinary  General  Meeting  can  be  called  for  the  same  purpose  within  the  next  six  weeks, 
in  which  the  resolution  can  be  passed  with  legal  validity  even  if  less  than  three  quarters  of 
original  share  capital  are  represented. 

"  In  both  cases  it  is  further  necessary  for  the  validity  of  the  resolution  that  such  is  passed 
by  a  majority  of  at  least  three  quarters  of  the  votes  represented  in  the  Meeting  and  that 
it  is  approved  of  by  the  Imperial  German   Government. 

"  Par.  20.— Alterations  and  additions  to  the  rules,  excepting  the  cases  mentioned  in  Par. 
19  and  those  cases  in  which  a  three  quarters  majority  is  prescribed  by  law  can  only  be  passed 
by  a  majority  of  at  least  two  thirds  of  the  votes  represented  in  the  voting  and  with  the 
consent  of  the   Imperial   German   Government. 

"  The  redeeming  of  bonus  shares  (Par.  5)  requires  an  alteration  of  the  rules.  All  holders 
of  bonus  shares  are  subject  to  an  agreement  as  to  their  redemption,  if  such  agreement  is 
approved  by  at  least  two  thirds  of  the  votes  represented  in  the  voting  at  a  meeting  of  bonus- 
share-holders,  to  be  convened  by  a  notice  (Par.  4)  stating  the  business  before  the  meeting. 


NUMBER  1900/3:  MARCH  21,  1900:  NOTE  247 

In  this  meeting  each  bonus  share  shall  entitle  to  one  vote,  the  further  proceedings  at  the 
meeting  are  to  be  decided  on  by  the  Supervisory  Committee. 

'■  Par.  21. — At  the  General  Meeting  the  president  of  the  Supervisory  Committee  or  his 
substitute  (vice-president)  or  in  their  absence  a  member  of  the  Supervisory  Committee 
appointed  thereto  by  the  Committee  shall  take  the  chair.  In  case  of  none  of  the  Committee 
members  being  appointed  the  Chairman  shall  be  elected  by  the  General  Meeting  under  the 
presidency  of  the  shareholder  having  registered  the  largest  number  of  shares.  The 
Chairman  conducts  the  discussion,  fixes  the  succession  of  the  items  on  the  agenda  as  well  as 
the  modus  of  taking  votes  and  appoints  the  scrutineers  when  necessary. 

"  The  minutes  of  the  General  Meeting  shall  be  written  by  a  notary  and  shall  be  signed 
by  the  Chairman.  A  statement  of  the  individual  shareholders  present  in  the  meeting  shall 
not  be  embodied  into  the  text  of  the  minutes,  but  a  separate  list,  signed  by  the  Chairman, 
giving  names  of  shareholders  present  and/or  represented  shall  be  attached  to  the  minutes, 
this  list  to  be  present  for  general  inspection  before  the  first  voting  of  the  Meeting  takes 
place.    Proxies  handed  in  need  not  be  attached  to  the  minutes. 

"  Par.  22. — Resolutions  of  the  General  Meeting  shall  be  passed,  provided  the  law  or 
these  rules  (Par.  19  &  20)  do  not  compulsorily  order  otherwise,  by  simple  majority  of  votes 
taken  at  the  voting,  in  case  of  votes  being  even  the  resolution  shall  be  considered  lost. 

"  If  at  elections  objection  is  raised  against  any  other  modus  proposed,  the  voting  has  to 
be  effected  by  handing  in  ballot-papers  and  by  simple  majority.  Such  majority  not  being 
attained  at  the  first  voting,  a  ballot  limited  to  those  who  have  received  the  two  highest 
numbers  of  votes  shall  take  place.  When  votes  are  even  at  the  limited  ballot,  decision  shall 
be  by  lot. 

"  Par.  23. — As  a  rule  the  General  Meeting  only  votes  on  such  proposals  as  are  laid 
before  it  by  the  Board  of  Directors  or  by  the  Supervisory  Committee. 

"  Motions  brought  forward  by  individual  shareholders  shall  be  dealt  with  according  to 
the  regulations  fixed  by  law. 

"  IV.   Balance  Sheet,  Ascertaining  Profits. 
"  Reserve  Fund. 

"  Par.  24. — The  business  year  begins  with  the  1st  of  January  and  ends  with  the  31st 
December  of  every  year. 

"  Par.  25. — The  annual  financial  statement  shall  be  drawn  as  for  the  31st  December  in 
accordance  with  legal  regulations  and  sound  commercial  principles,  it  shall  be  presented  to 
the  General  Meeting  within  the  first  six  months  of  the  following  year. 

"  Net  profits  shall  be  understood  as  profits  in  hand  after  deducting  such  amounts  as  the 
Supervisory  Committee  annually  resolves  on  as  contribution  towards  the  Renovation  Fund. 
This  Fund  is  to  bear  mainly  the  costs  incurred  in  renewing  locomotives,  tenders  and  roUing 
stock  respectively  single  parts  thereof  as  fireboxes,  boilers,  cylinders,  boilertubes,  springs, 
axles,  wheels,  steel  tyres,  brakes,  watertanks,  bodies  of  carriages  and  compartments  as  well 
as  in  renewing  rails,  sleepers,  siding,  crossings  and  small  iron  parts  of  the  permanent  way. 
On  the  other  hand  this  Fund  is  to  be  credited,  in  addition  to  the  annual  contribution,  with 
the  proceeds  of  sale  of  the  corresponding  old  material  as  well  as  the  interest  of  the  Fund 
itself. 

"  Par.  26. — Out  of  the  net  profit  thus  resulting  is : 

1)  5%  to  be  transferred  to  the  Reserve  Fund   (Par.  27)   required  by  law,  so  long  as 
this  Fund  does  not  exceed  the  tenth  part  of  the  original  capital, 

2)  an  amount  not  exceeding  5%  according  to  the  proposal  of  the  Supervisory  Commit- 
tee to  be  transferred  to  the  Special  Reserve  Fund  to  be  formed, 

3)  a  dividend  up  to  5%  on  the  share  capital  paid  up  to  be  granted. 
Of  the  balance  remaining: 

33y3%  shall  go  to  bonus-share-holders, 

66%9c  shall  go  as  superdividend  on  the  share  capital  paid  up,  after  however  having  first 
deducted : 

5%  for  the  Supervisory  Committee  and 

the  contribution  to  the  Government  as  provided  for  in  Par.  11  of  the  instrument  of 
concession,   dated    1st  June,    1899. 

"  The  compensation  due  to  the  Supervisory  Committee  is  guaranteed  at  M  2000  annually 
for  each  member  and  with  any  possible  deficit  shall  be  reckoned  in  the  costs  of  administra- 
tion. 

"  All  dividends  as  well  as  the  contribution  to  the  Government  are  to  be  paid  at  latest 
in  the  course  of  July  of  the  year  following  the  business  year  accounted  for. 

"  Par,  27. — Agio  profits,  i.  e.  what  shareholders  in  case  of  increase  of  share  capital  will 
have  to  pay  for  shares  above  the  nominal  value  of  such  new  shares,  after  having  deducted 
thereof  all  costs  of  issue  shall  be  placed  to  the  Reserve  Fund.  (Cf.  Par.  26,  section  1). 
This  Reserve  Fund  is  solely  intended  for  the  purpose  of  covering  a  saldo  of  loss  shown  by 
the  balance  sheet. 

"  Par.  28. — From   the   Special   Reserve   Fund   formed  according  to   Par.  26,   section  2, 


248  CHINA  TREATIES  AND  AGREEMENTS 

extraordinary  losses  and  expenses,  especially  for  renovations  may  be  met  by  resolution  of 
the  Supervisory  Committee. 

"V.   Nomination  of  Chancellor's  Commissioners. 

"  Par.  29. — The  Imperial  Chancellor  may  nominate  one  or  more  Commissioners  entitled 
to  take  part  in  the  meetings  of  the  Supervisory  Committee  and  in  the  General  Meetings 
and  to  demand  at  any  time  a  report  from  the  Supervisory  Committee  on  the  affairs  of  the 
Company  also  to  inspect  the  books  and  documents  of  the  Company. 

"  VI.   Liquidation. 

"  Par.  30. — The  regulations  provided  by  law  in  case  of  liquidation  shall  only  apply  in 
so  far  as  the  General  Meeting  deciding  on  the  liquidation  does  not  resolve  otherwise.  This 
Meeting  shall  particularly  be  authorised  to  alter  for  the  time  of  liquidation  the  powers  of 
the  Supervisory  Committee,  to  resolve  that  during  liquidation  no  regular  retiring  of  members 
of  the  Committee  shall  take  place  and  to  stipulate  the  bonus  to  be  paid  to  the  Supervisory 
Committee  as  well  as  the  authority  to  be  given  to  the  liquidators.  The  holders  of  bonus 
shares  shall  be  entitled  to  33y3%  of  the  surplus  remaining  after  paying  off  all  liabilities 
including  the  original  capital." 


NUMBER  1900/4. 

GERMANY  (Schantung  Bergbau  Gesellschaft)  AND  CHINA. 
Regulations  for  Mining  in  Shantung* — March  21,  1900. 

His  Excellency  the  Governor  of  the  Province  of  Shantung  Yuan  Shih-kai 
and  His  Excellency  the  Lieutenant  General  Yin  Chang,  upon  petition  of  the 
Governor  of  Shantung  especially  delegated  by  Imperial  decree  to  these  negotia- 
tions, on  the  one  side,  and  the  managing  Board  of  the  Shantung  Mining  Company 
at  Tsingtau,  represented  by  Messrs.  H.  Michaelis  and  K.  Schmidt,  on  the  other 
side,  have,  in  order  to  prevent  excitements  and  disturbances  of  any  kind,  which 
may  arise  through  the  commencement  of  mining  operations  by  the  Schantung 
Bergbau  Gesellschaft  in  the  Province  of  Shantung  and  in  order  to  maintain 
friendly  relations  between  its  population  and  the  Company,  agreed  upon  the 
following  Mining  Regulations  with  regard  to  the  mining  concession  reserved 
and  granted  to  German  subjects  by  the  Imperial  Chinese  Government  within  a 
zone  of  30  li  on  both  sides  of  the  railway  lines  to  be  built  in  conformity  with 
Article  4  of  the  Kiauchow  Convention,  subject  to  the  approval  of  the  Supervisory 

*  Translation  from  German  text. 

A  Japanese  version  of  the  Regulations  is  printed  in  Shina  Kankei  Tokiishii  Joyaku 
Isan,  p.  423. 

In  connection  with  these  Regulations,  see  the  Convention  for  the  Lease  of  Kiaochow, 
March  6th,  1898  (No.  1898/4,  ante),  particularly  Section  II,  Art.  IV;  also  Regulations 
for  the  Kiaochow-Tsinan  Railway,  Alarch  21st,  1900  (No.  1900/3,  ante),  and  particularly 
the  Rules  of  February  12th,  1913,  annexed  thereto  at  p.  243. 

Another  translation  of  this  agreement  is  printed  (at  p.  37)  in  the  Claim  of  China  for 
direct  Rcstiiution  to  herself  of  the  Leased  Territory  of  Kiaochow,  the  Tsingtao-Chinan 
Raihvay  and  other  German  Rights  in  respect  of  Shantung  Province,  as  presented  by  the 
Chinese  Delegation  to  the  Preliminary  Peace  Conference  at  Paris  in  February,  1919. 

See  Note  to  this  document,  post,  p.  252. 


NUMBER  1900/4:  MARCH  21,  1900  249 

Committeee  of  the  Schantung  Bergbau  Gesellschaft,  and  reduced  to  writing  in 
Chinese  and  German  texts  of  like  tenour. 

Art.  1. — By  virtue  of  Article  4,  section  2,  of  the  aforesaid  Kiauchow  Con- 
vention a  German-Chinese  Company  shall  be  formed,  according  to  the  rules  of 
this  Company  shares  shall  be  issued  which  may  be  purchased  by  German  as  well 
as  by  Chinese  subjects.  This  Company  shall  for  the  present  be  exclusively  under 
German  management,  it  shall  half-yearly  notify  the  Chiao  Se  Chue  at  Tsinanfu 
how  many  shares  have  been  purchased  by  Chinese.  As  soon  as  the  amount  of 
such  shares  has  reached  Taels  100.000  the  Governor  of  the  Province  of  Shantung 
shall  to  look  after  the  interest  of  the  Chinese  shareholders,  appoint  a  Chinese 
official  to  co-operate  at  the  Company's  siege. 

Art.  2. — Should  in  future  branches  of  the  Administration  of  the  Company 
be  established  in  Shantung  one  Chinese  official  shall  be  delegated  to  each  of 
them. 

Art.  3. — Land  used  for  preliminary  examinations  with  regard  to  the  mining 
enterprises,  for  boreholes  and  prospecting  shafts,  etc.,  shall  be  rented  by  the 
Company  at  an  adequate  compensation  provided  the  Company  should  not  prefer 
to  buy  such  land.  Spoiled  crops  or  other  damages  shall  be  fully  paid  for  accord- 
ing to  local  market  prices.  The  beginning  of  such  operations  has  to  be  notified 
to  the  local  authorities  fifteen  days  in  advance  in  order  to  enable  them  to  issue 
instructions  to  the  population. 

Art.  4. — Officials  or  respectable  citizens  shall  be  consulted  upon  the  lots 
of  lands  to  be  selected  for  digging  shafts,  or  erecting  workshops,  depots,  houses 
for  workmen,  etc.,  in  order  to  prevent,  as  far  as  possible,  injury  being  done 
to  the  interest  of  the  people.  To  avoid  difficulties  in  negotiations,  these  shall 
be  conducted  on  the  Chinese  side  by  Chinese  officials,  delegated  by  the  Governor 
of  Shantung. 

The  technical  determination  and  selection  of  the  mining  fields  and  of  the 
surface  plots  needed  to  erect  the  buildings  of  the  mining  establishments  shall  be 
left  to  the  engineers  of  the  Mining  Company. 

A  ground-plan  of  these  establishments  done  on  a  scale  of  1 :  25,000  has  to 
be  submitted  to  the  Governor  of  Shantung  for  information  and  only  thereafter 
land  may  be  purchased.  The  construction  itself  shall  not  begin  before  the  title 
deed  to  such  land  is  duly  made  out. 

Landowners  shall  not  be  permitted  to  protest  against  subterranean  mining 
works  necessary  for  production  of  coal  or  other  minerals  except  at  places  men- 
tioned in  Art.  7. 

The  purchase  of  land  has  to  be  proceeded  with  peacefully  and  quickly,  there 
shall  be  no  detention  of  mining  work  through  land  purchase  or  through  difficulties 
raised  by  individual  owners.  In  order  to  prevent  all  such  difficulties  the  above- 
mentioned  Chinese  official  shall  act  as  mediator  when  land  is  to  be  purchased 
and  he  shall  settle  all  disputes  arising.  The  land  shall  be  purchased  in  an  honest 
way  according  to  the  locally  customary  ruling  price.  The  Company  shall  not  be 
allowed  to  buy  more  land  than  necessary  for  erection  of  the  surface  plants 
including  depots,  railroads  and  roads  leading  to  the  mines  and  possible  future 
extensions. 


250  CHINA  TREATIES  AND  AGREEMENTS 

The  surface  land  above  subterranean  works  need  not  be  purchased  by  the 
Company. 

No  compensation  shall  be  paid  to  the  landowner  for  coal  and  other  minerals 
raised  by  the  Mining  Company. 

Art.  5. — Houses,  farmsteads  and  villages,  temples,  graves  and  above  all  high 
class  graveyards  belonging  to  the  gentry,  which  are  fenced  in  and  planted  with 
trees  shall  as  far  as  possible  not  be  used  for  the  erection  of  buildings  on  the 
surface  for  mining  purposes. 

If  it  should  be  impossible  to  prevent  the  above-mentioned  properties  from 
being  used  the  local  official  shall  two  months  in  advance  notify  the  owners  and 
settle  with  them  a  compensation  of  an  amount  enabling  owners  to  erect  grave- 
yards, etc.,  of  the  same  condition  at  another  place  without  sustaining  any  loss  of 
money. 

Art.  6. — Houses,  sheds,  shafthouses  and  depots  belonging  to  the  mines  shall 
be  so  placed  as  not  to  disturb  city  walls,  fortifications,  public  edifices  and  im- 
portant inhabited  places  on  the  surface. 

Art.  7. — The  Company  is  not  permitted  to  mine  underneath  graveyards, 
temples,  parks  and  palaces  belonging  to  the  Imperial  Family. 

Art.  8. — In  surveying  the  land  to  be  purchased  the  "  kung  "  shall  be  used  as 
unit.  1  kung  is  equal  to  5  official  feet,  1  foot  is  equal  to  0.338  m.  1  Mu  is 
counted  to  be  360  kung  or  equal  to  9,000  square  feet.  As  to  the  land  tax  to  be 
paid  by  the  Mining  Company  the  same  regulations  shall  be  applied  as  in  force 
for  the  most-favoured  Mining  Company  in  any  other  place  of  China. 

Art.  9. — The  salaries  of  the  assistants  placed  by  the  local  authorities  at  the 
disposition  of  the  Mining  Company  at  its  wish  shall  be  paid  by  the  latter.  They 
shall  not  be  included  in  the  price  of  land  purchased.  The  money  for  the  land 
is  to  be  paid  into  the  hands  of  the  District  Magistrate,  who  is  responsible  for 
the  proper  payment  to  the  different  owners  entitled  to  receive  the  money.  The 
District  Magistrate  also  has  to  hand  over  the  title  deeds  to  the  Mining  Ad- 
ministration. 

Art.  10. — Should  the  Mining  Administration  apply  for  soldiers  to  protect 
the  preparatory  works  and  the  property  of  the  Company  when  the  mines  are  in 
operation,  the  Governor  of  the  Province  of  Shantung  shall  at  once  and  effectually 
comply  with  such  application.  Therefore  no  foreign  troops  shall  be  employed 
for  the  protection  of  mines  outside  the  100-//  zone.  The  amount  to  be  contributed 
by  the  Mining  Company  for  troops  dispatched  for  the  protection  of  its  property 
shall  be  the  subject  of  a  further  understanding. 

Art.  11. — The  purchase  of  material  necessary  for  mining  purposes  shall 
be  transacted  in  a  fair  manner  and  the  usual  market  price  shall  be  paid  for 
game.  If  necessary  the  assistance  of  the  District  Magistrate  shall  be  applied 
for. 

Art.  12. — The  Mining  Administration  intending  to  rent  houses  for  offices 
and  residences  near  the  workplaces,  shall  apply  to  the  District  Magistrate  who 
will  make  the  necessary  arrangements  with  the  owners  and  will  on  its  behalf 
conclude  the  contracts. 

Art.  13. — The  natives  of  districts  where  mines  are  established  shall  as  far 


NUMBER  1900/4:  MARCH  21,  1900  251 

as  possible  be  engaged  as  workmen  and  as  contractors  for  the  supply  of  mate- 
rials, they  shall  be  paid  as  customary  in  these  districts. 

If  fights  should  occur  between  miners  and  natives  the  local  official  will 
have  the  right  to  arrest  and  punish  the  guilty.  Miners  are  absolutely  forbidden 
unwarrantably  to  enter  the  houses  of  natives.  In  case  of  contravention  they  will 
be  severely  punished. 

Art.  14. — The  Mining  Company  assumes  the  responsibility  for  any  loss  of 
life  or  goods  caused  by  accidents  in  the  mines  and  has  to  pay  compensation  to 
wounded  or  killed  persons  according  to  the  local  custom  and  to  cover  any  loss 
of  goods  according  to  detailed  regulations  to  be  made  and  published  by  the 
Company. 

Likewise  the  Company,  when  prospecting,  will  be  held  responsible  for  all 
damages  done  by  neglect  of  the  Company  to  persons  and  property. 

Art.  15. — The  Mining  Company  assumes  the  full  responsibility  for  damage 
done  to  wells,  fields,  houses  and  other  buildings  by  operating  mines.  It  has  to 
pay  for  such  damages,  if  caused  by  the  Company's  neglect  compensation  accord- 
ing to  local  prices. 

Draining  off  water  pumped  out  from  mines  is  to  be  done  under  such  pre- 
cautions, that  neighbours  and  their  fields  will  not  suffer  any  loss.  Any  such  loss 
has  to  be  made  good  by  the  Company. 

Art.  16. — Foreigners  who  wish  to  travel  in  the  interior  of  the  Province  of 
Shantung,  in  order  to  enjoy  better  protection  must  be  provided  with  passports 
duly  sealed  by  the  proper  Chinese  and  German  Authorities.  The  Chinese  local 
authorities  cannot  assume  any  responsibility  if  such  a  passport  is  not  produced. 

German  and  Chinese  employees  of  the  Mining  Company  are  to  be  provided 
with  certificates  attested  by  the  seals  of  the  Mining  Administration  and  of  the 
Local  Authorities,  in  order,  when  necessary  to  prove  their  official  capacity. 

When  prospecting  the  engineers  shall  be  accompanied  by  an  official  dele- 
gated by  the  District  Magistrate.  This  official  shall,  if  necessary  by  police-forces, 
render  assistance  in  protecting  the  progress  of  the  work.  His  salary  is  to  be 
paid  by  the  Mining  Company. 

Persons  fraudulently  pretending  to  be  employees  of  the  Mining  Company 
shall  be  arrested  and  punished  by  the  Local  Authorities. 

Art.  17. — Outside  of  the  30-li  zone  mines  cannot  be  operated  without  special 
permission  of  the  Governor  of  Shantung.  Inside  of  the  30-/i  zone,  excepting 
the  existing  Chinese  mines,  the  Shantung  Mining  Company  has  the  right  to  work 
mines  and  raise  coal  and  other  minerals.  The  Chinese  mines  now  in  operation 
are  entitled  to  continue  work  under  the  hitherto  existing  conditions,  but  they 
must  so  proceed  that  the  works  of  the  Shantung  Mining  Company  are  not  injured 
thereby. 

In  order  to  prevent  the  mines  of  the  Shantung  Mining  Company  lying 
below  these  Chinese  mines  from  being  kept  in  constant  danger,  the  Company 
shall  be  at  liberty  to  conclude  an  agreement  for  the  purchase  of  these  mines  with 
the  owners.  If  necessary  the  Company  shall  appeal  to  the  District  Magistrate 
for  intervention. 

Regarding  the  purchase  of  larger  Chinese  mines  already  existing  within 


252  CHINA  TREATIES  AND  AGREEMENTS 

the  30-//  zone,  their  owners,  instead  of  receiving  payment  in  cash,  shall  be  at 
liberty  to  ask  for  shares  of  the  Shantung  Mining  Company  amounting  to  the 
sum  agreed  upon  as  price  of  the  mine  sold.  Should  owners  of  such  mines  be 
unwilling  to  sell  them,  the  working  of  such  mines  is  not  to  be  interfered  with. 
Art.  18. — Inhabitants  of  places  near  the  mines  shall  get  coal  to  be  used  for 
their  households  at  reduced  prices  as  soon  as  the  working  of  the  mines  is  estab- 
lished favorably  and  successfully. 

Art.  19. — In  the  Province  of  Shantung  outside  the  leased  territory  of 
Kiauchow  the  Governor  in  Tsinanfu  safeguards  all  the  rights  of  sovereignty. 
Therefore  Chinese  officials  and  workmen  employed  by  the  Shantung  Mining 
Company  within  this  province  shall  in  case  of  contravention  of  Chinese  law 
be  under  the  jurisdiction  of  the  competent  Chinese  Local  Authorities. 

In  case  of  complaints  against  foreigners  employed  by  the  Company  proceed- 
ings shall  be  taken  according  to  the  proper  laws. 

Art  20. — It  shall  be  the  subject  of  further  agreements,  when  and  under 
what  conditions  the  Chinese  Government  may  in  future  take  over  the  mines. 

The  foregoing  regulations,  after  being  approved,  shall  be  notified  to  the 
Authorities  of  the  Province  of  Shantung  and  to  the  officials  of  the  mines.  There- 
upon they  shall  be  duly  observed. 

Should  it  be  necessary  in  future  to  have  alterations  made  of  some  of  the 
above  regulations  or  to  have  drawn  up  supplementary  rules,  this  can  only  be  done 
by  mutual  agreement  between  the  Governor  of  the  Province  of  Shantung  and 
the  Shantung  Mining  Company. 

Tsinanfu,  21st  March  1900. 

The  Governor  of  the  Province  of  Shantung: 

[signed  and  sealed] 

H.  M's.  Delegate: 

\sig.]  Yin  Chang,  Lieut. -General. 

Die  Direction  der  Schantung  Bergbau  Gesellschaft. 


Note. 

The  Schantung  Bergbau  Gesellschaft  was  a  joint  German  and  Qiinese  enterprise  operat- 
ing under  a  German  charter  or  "  concession  "  dated  June  1,  1899,  of  which  the  following 
is  a  translation  from  the  German  text : — 

Charter  of  Schantung  Bergbau  Gesellschaft. — June  i,  1899. 

"  The  Deutsch-Asiatische  Bank — representing  the  Syndicate  formed  for  the  establish- 
ment of  '  German  Chinese-Mining  Companies  ' — having  applied  for  a  mining  concession 
within  the  Chinese  Province  of  Shantung  in  favour  of  said  Syndicate,  the  Imperial  Gov- 
ernment is  ready  to  grant  same  in  accordance  with  the  agreement  contained  in  the  German- 
Chinese  Treaty  of  6  March  1898  under  conditions  as  follows : 

"  Par.  1. — Beginning  with  the  day  of  granting  the  concession  the  concessionary  shall 
for  a  period  of  five  years  have  the  exclusive  right  to  prospect  for  coal  and  other  minerals 
as  well  as  Petroleum  and  to  claim  mining  fields  by  reason  of  finds  made  within  an  area 
extending  30  li  to  either  side  of  the  railway  lines  to  be  constructed 

a)  from  Tsingtau  via  Weihsien  to  Tsinanfu  including  a  branch  to  Poshan.  _ 

b)  from  Tsinanfu  through  the  Province  of  Shantung  as  a  part  line  of  projected  rail- 
way from  Tientsin  to  Kuachou  (Chingkiang). 

c)  from  Tsingtau  via  Ichoufu  towards  the  railway  mentioned  under  b. 


NUMBER  1900/4:  MARCH  21,  1900:  NOTE  253 

"  The  concessionary  is  to  hand  over  to  the  Imperial  Government  as  soon  as  possible  a 
trace  of  the  probable  line  of  Railways  to  be  built. 

"  Par.  2. — For  every  find  which  is  made  within  the  districts  covered  by  Par.  1  and 
which  must  be  proved  in  its  natural  deposit,  the  concessionary  shall  be  granted  a  field 
limited  by  perpendicular  planes  the  demarcations  for  which  are  to  be  indicated  on  the 
one  hand  by  the  railway-line  and  a  line  parallel  to  it  at  a  distance  of  30  /('  and  on  the 
other  hand  by  two  lines  six  kilometers  apart  from  each  other  running  rectangularly  to  the 
railway  line. 

"  After  expiration  of  the  time  provided  for  by  Par.  1  the  monopoly  of  the  conces- 
sionary to  prospect  and  locate  shall  cease  and  the  Imperial  Government  may  grant  such 
rights  to  other  persons  or  corporations  as  well. 

"  Par.  3. — Within  ten  years  after  expiration  of  the  time  provided  for  in  Par.  1 
methodical  working  of  mines  must  have  been  started  and  shall  thenceforth  be  continued 
by  the  concessionary  his  successors  or  assigns  upon  the  field  granted  to  them  or  if  three 
or  more  fields  should  have  been  granted  at  least  upon  one  field  in  every  three. 

"Should  they  fail  to  comply  with  this  obligation  and  should  the  omission  of  or  inter- 
ruption to  such  work  be  contrary  to  prevailuig  reasons  of  public  mterest  the  Imperial 
Government  may  withdraw  the  grant  of  mining  rights  for  such  fields.  No  claim  for 
compensation  of  any  kind  shall  be  admitted  in  such  case. 

"The  grant  of  mining  rights  can  however  not  be  withdrawn  on  account  of  not  having 
maintained  proper  operating  of  mines  unless  notice  to  maintain  such  operating  has  been 
ineffectively  given  twice  whereof  the  second  notice  cannot  be  handed  in  before  at  least 
half  a  year  has  elapsed  after  the  first  notice  having  been  given. 

"  Should  the  concessionary  his  successors  or  assigns  with  reference  to  a  mining  field 
show  special  cause  which  made  it  impossibI«e  to  begin  the  proper  operating  of  mines 
within  the  stipulated  time  then  the  limit  of  time  may  be  extended  once  for  a  reasonable 
period.  If  the  concessionary  his  successors  or  assigns  prove  to  the  satisfaction  of  the 
Imperial  Government  that  the  observance  of  this  limit  of  time  or  the  continuation  of 
proper  operating  of  the  mines  has  been  rendered  impossible  by  force  majeure  then  in 
the  first  case  the  limit  of  time  shall  be  extended  for  a  reasonable  period  and  in  the  second 
case  the  grant  of  mining  rights  shall  not  be  withdrawn  provided  the  concessionary  his 
successors  or  assigns  resume,  after  removal  of  the  hindrance  caused  by  force  majeure, 
the  proper  operating  of  mines  within  such  reasonable  time  as  may  be  fixed  by  the  Imperial 
Government. 

'■  Par.  4. — If  at  the  expiration  of  twenty  years  counted  from  the  day  of  granting  the 
concession  the  extent  of  the  mining  fields  granted  to  the  concessionary  should  prove  to 
exceed  half  of  the  total  area  of  the  'Thirty-/;  Zone'  the  Imperial  Government  is  entitled 
to  revoke  the  mining  rights  in  as  much  as  they  are  granted  in  excess  of  the  area  men- 
tioned. No  claim  for  compensation  of  any  kind  shall  be  admitted  based  on  such  revoca- 
tion. It  is  however  left  to  the  concessionary  to  point  out  the  fields  for  which  his  mining 
rights  or  the  mining  rights  of  the  Companies  (Par.  5)  formed  by  him  shall  cease.  If 
the  concessionary  does  not  comply  with  the  request  transmitted  to  him  by  the  Imperial 
Government  to  point  out  such  fields,  within  six  months  after  the  day  the  request  has  been 
delivered  to  him,  the  Imperial  Government  shall  decide  upon  such  fields. 

"  Par.  5. — The  concessionary  shall  form  one  or  more  German-Chinese  Companies  (one 
at  least  within  three  months  after  the  earliest  date  law  will  permit)  having  the  status  of 
a  'Colonial  Company'  (Kolonial  Gesellschaft)  in  the  meaning  of  the  law  with  reference 
to  the  legal  affairs  of  Protectorates  dated  15  March  1888  and  he  shall  transfer  to  such 
Companies  the  rights  and  obligations  granted  to  him  by  the  concession.  The  rules  of 
these  Companies  shall  be  submitted  to  the  Imperial  Government  for  approval. 

"  Every  Company  formed  in  accordance  herewith  shall  establish  its  siege  in  Tsingtau 
within  six  months  after  the  resolution  of  the  Federal  Council  concerning  the  juristic  quality 
to  be  granted  thereto.  In  case  the  dates  set  as  above  are  not  adhered  to,  the  Imperial 
Government  may  if  unwilling  to  extend  the  terms  declare  that  the  rights  and  obligations 
granted  to  the  concessionary  or  to  the  Company  by  virtue  of  the  concession  shall  be  null 
and  void,  and  no  claim  for  compensation  based  on  such  an  action  shall  be  admitted. 

"  Par.  6. — Proper  steps  have  to  be  taken  that  both  Germans  and  Chinese  may  be  able 
to  participate  in  the  public  subscription  of  shares  for  each  of  the  Companies  formed. 
Especially  for  this  purpose  subscription  of  shares  shall  also  be  opened  at  suitable  trading 
places  of  Eastern  Asia  and  the  amount  subscribed  there  shall  receive  adequate  consideration. 

"  Par.  7. — The  concessionary  his  successors  or  assigns  are  bound  when  called  iipon  by 
the  Imperial  Government,  to  satisfy  out  of  the  coal  produced  by  them  in  the  first  instance 
the  requirements  of  the  Imperial  Navy  and  to  allow  for  all  coal  thus  purchased  a  preference 
price  being  5%  below  market  price  ruling  at  Tsingtau  for  coals  of  same  quality. 

"  Par.  8. — As  a  contribution  to  the  expenses  of  the  Imperial  Government  for  harbour 
works  in  Kiauchou  Bay  and  to  the  General  Administration  of  the  Protectorate  the  con- 
cessionary his  successors  or  assigns  shall  pay  a  tax  on  the  annual  net  income  of  the 
mining  enterprises  to  be  calculated  as  follows  : 

"If  the  net  income  available  for  distribution  resulting  out  of  the  proceeds  of  a  mining 


254  CHINA  TREATIES  AND  AGREEMENTS 

enterprise  would  allow  for  a  yearly  dividend  of  more  than  5%  figured  on  the  share  capital 
paid  up  and  expended  for  such  enterprise  the  tax  to  be  paid  for  that  year  to  the  treasury 
of  the  Government  of  Kiauchou  shall  be: 

from  the  amount  exceeding     5%  up  to    7%  the  twentieth  part 
from  the  amount  exceeding    7%  up  to    8%  the  tenth  part 
from  the  amount  exceeding    8%  up  to  10%  the  fifth  part 
from  the  amount  exceeding  10%  up  to  12%  the  third  part  and 
from  the  amount  exceeding  12%  one  half. 

"  Par.  9. — The  total  or  partial  transfer  of  the  concession  to  be  granted  by  this  instru- 
ment, and  also  every  alteration  of  the  Rules  of  Companies  established  in  accordance  with 
Par.  5  require  the  approval  of  the  Imperial  Government  to  be  valid.  A  transfer  of  the 
concession  itself  or  any  part  of  it  to  a  Company  other  than  a  German  or  German-Chinese 
shall  not  be  allowed. 

"  Par.  10. — One  copy  of  this  instrument  of  concession  will  be  handed  to  the  conces- 
sionary as  soon  as  the  Shantung  Railway  Company  has  been  properly  formed. 

"  Par.  11. — All  costs  of  this  instrument  if  any,  especially  any  stamp  duty,  shall  be  borne 
by  the  concessionary. 

'•  Baden-Baden,  1st  June  1899. 

"  The  hnperial  Chancellor, 
"  [sig.]  FuRST  zu  Hohenlohe-Schillingsfurst." 

The  following  is  a  translation  (from  the  German  text)  of  the  Rules,  dated  October 
10th,  1899,  applicable  to  the  Company: — 

Rules  of  Schantung  Bergbau  Gesellschaft. — October  lo,  1899. 

"  I. — ^General  Stipulations. 

"  Art.  1. — Under  the  style  of  Schantung  Bergbau  Gesellschaft  a  Kolonial  Gesellschaft 
(Colonial  Company),  having  established  its  siege  in  Tsingtau,  has  been  formed  by  virtue  of 
the  law  of  the  German  Empire,  dated  15th  March  1888  and  2nd  July  1899.  This  Company, 
though  working  under  the  laws  and  under  the  jurisdiction  of  its  siege  shall  be  subject 
to  the  jurisdiction  of  Courts  competent  for  such  matters  in  Berlin  for  all  actions  between 
the  Company  and  its  individual  members  and/or  the  Company  and  its  executive  bodies 
arising  from  their  company  relations. 

"  Art.  2. — The  object  of  the  enterprise  is  the  acquisition  and  the  exploitation  of  the  con- 
cession of  1st  June  1899,  preceding  these  rules,  and  in  pursuance  thereof  the  establish- 
ment of  mining  enterprises  of  every  kind  in  the  assigned  area  of  the  Province  of  Shantung 
particularly : 

1 )  the  prospecting  for  Coal  and  other  Minerals,  also  for  Petroleum, 

2)  the  acquisition  of  mine  properties  by  reason  of  the  finds  made, 

3)  the  establishment  and  the  operation  of  mines,  foundries  and  smelting  works,  dress- 
ing works  and  all  installations  appurtenant  thereto,  also  the  purchase  of  raw  mate- 
rial for  the  business  within  and  without  the  area  of  concession, 

4)  the  purchase  and  rent  as  well  as  sale  and  lease  of  rights  to  prospect  and  to  locate 
as  well  as  of  mines  and  of  metal  works, 

5)  the  acquisition  and  rent  of  land,  rights  to  land  and  to  water,  as  well  as  sale  and 
lease  of  the  above  things  and  rights, 

6)  the  building  of  branch  railway  lines  for  the  purpose  of  forwarding  the  products 
of  mines  and  metal  works, 

7)  the  sale  of  the  products  gained  from  the  mines  and  metal  works  and  also  of  other 
products  of  the  country,  also  the  establishment  of  sales  offices  within  or  without 
the  Province  of  Shantung,  for  the  purpose  of  such  sale, 

8)  the  participation  in  mines  and  metal  works  existing  or  to  be  established  in  the 
area  of  concession, 

9)  the  establishment  of  other  mining  companies,  to  which  part  of  the  privileges  granted 
by  the  concession  of  1st  June  1899  are  to  be  transferred  in  accordance  with  Par. 
5  of  the  conditions  of  the  concession. 

With  the  approval  of  the  Imperial  German  Government  the  Company  is  entitled : 

1)  to  extend  its  mining  enterprises  and  operations  connected  therewith  or  its  participa- 
tion in  such  enterprises  and  works  outside  the  area  of  concession  in  the  Province 
of  Shantung  or  outside  of  this  Province, 

2)  to  found  branch  establishments. 

"  Art.  3. — The  duration  of  the  Company  is  not  limited  to  a  fixed  time. 
"  Art.  4. — The  executive  bodies  of  the  Company  are : 

The  Board  of  Directors   (Direction) 

The  Supervisory    Committee    (Verwaltungsrat) 

The  General  Meeting    (Generalversammlung). 


NUMBER  1900/4:  MARCH  21,  1900:  NOTE  255 

"  Art.  5. — The  notices  of  the  Company  appear  with  legal  validity  by  publishing  them 
once  in  the  '  Deutscher  Reichs-Anzeiger,'  unless  other  forms  or  more  frequent  publica- 
tion are  stipulated  by  these  rules.  The  Company,  however,  reserves  to  itself  the  right 
to  publish  them  in  addition  in  other  papers  at  the  decision  of  the  Supervisory  Committee, 
the  validity  however  of  the  notices  not  being  dependent  on  this  publication.  When  time 
limits  are  published  the  day  of  the  issue  of  the  paper  is  not  included. 

"  II. — Capital. 

"  Art.  6. — The  capital  of  the  Company  amounts  to  Marks  12,000,000. — equal  to  Francs 
15,000,000.— equal  to  Pounds  Sterling  600,000.— divided  into  60,000  shares  of  the  value  of 
Marks  200.  each — equal  to  Francs  250. — equal  to  Pounds  Sterling  10.  On  each  share  25% 
are  paid  up  in  Marks. 

"Further  payments  or  full  payment  of  the  shares  in  Marks  shall,  with  approval  of  the 
Supervisory  Committee,  be  called  in  by  the  Board  of  Directors  giving  four  weeks  notice 
of  such  calls.  The  Supervisory  Committee  is  authorised  to  lay  down  the  conditions,  under 
which  the  full  payment  of  shares  before  due  date  wil'i  be  allowed. 

"  An  increase  of  the  capital  can  only  be  decided  upon  by  a  General  Meeting.  The  reso- 
lution shall  also  contain  the  conditions,  under  which  the  new  shares  will  be  issued. 

"  Art.  7. — The  original  subscribers  of  the  shares  to  be  issued  and  thereafter  their  suc- 
cessors or  assigns  form  the  Company.  The  shares  are  indivisible ;  they  possess  the  quaHty 
of  movable  property.     Individual  members  may  not  sue  for  divisions  of  property. 

"  Art.  8. — For  the  obligations  of  the  Company,  the  Company's  assets  will  only  be  liable 
to  the  creditors. 

"  Art.  9. — The  original  subscriber  of  a  share  is  responsible  for  the  payment  of  the  full 
face  value  thereof. 

"  Beyond  the  full  payment  no  further  responsibility  rests  on  the  members  of  the 
Company. 

"Art.  10. — The  share  certificates  are  made  out  to  bearer;  they  will  be  issued  in 
denominations  of  one,  five  or  ten  shares,  according  to  the  decision  of  the  Supervisory 
Committee. 

"  The  share  certificates  will  be  issued  only  after  payment  of  the  full  face  value.  For 
the  instalment-payments  receipts  will  be  given  on  an  interim  certificate  bearing  the  name  of 
the  holder. 

"  The  interim  certificates  are  transferable  by  endorsement,  without  prejudice  to  the 
responsibility  laid  on  the  subscriber  of  the  share  by  virtue  of  Art.  9;  by  a  resolution  of 
the  Supervisory  Committee  however  interim  certificates  for  the  first  instalment  of  25% 
may  be  transfered  in  such  a  way  that  the  new  owners  take  the  place  of  the  original  sub- 
scribers. Wherever  in  these  rules  shares  of  the  Company  are  mentioned,  interim  certifi- 
cates take  their  place  until  the  share  certificates  have  been  issued. 

"Art.  11. — Dividend  coupons  for  ten  years  with  renewal  slips  shall  be  attached  to  the 
shares. 

"  At  the  end  of  the  last  year  new  dividend  coupons  for  ten  years  will  be  issued  against 
delivery  of  the  renewal  slips.  If  a  profit  is  divided  before  issue  of  the  shares,  the  interim 
certificates  will  be  stamped  accordingly  upon  payment  of   such   dividends. 

"  Art.  12. — Those  liable,  but  failing  to  render  part  payments  due,  shall  be  requested  by 
the  Board  of  Directors  by  notice  stating  the  numbers  of  the  shares  on  which  payment  is 
overdue,  to  pay  same  together  with  interest  at  5%  within  a  time  to  be  fixed  at  not  less 
than   four  weeks. 

"  Whoever  allows  this  time  to  elapse  without  making  payment  as  aforesaid,  forfeits  a 
fine  of  10%  of  the  amount  due  besides  the  interest,  and  the  Board  of  Directors  may  force 
him  by  legal  proceedings  to  pay  the  instalment  due  together  with  interest,  fine  and  costs. 

"  Instead  of  this  procedure  the  Board  of  Directors,  after  having  given  once  more  a 
notice  to  the  defaulting  subscribers  to  complete  the  overdue  payments  within  a  further 
delay  of  four  weeks  and  after  having  warned  them  at  the  same  time  that  they  will  be 
excluded,  if  they  do  not  comply  with  the  request,  may  pass,  after  this  period  has  ineffectually 
elapsed,  a  resolution  that  the  subscribers  shall  lose  in  favour  of  the  Company  the  privileges 
arising  from  the  subscription  as  well  as  all  payments  made.  Such  declaration  shall  be 
advertised  publicly,  and  new  scripts  will  be  issued  in  place  of  that  which  is  declared  to 
be  cancelled,  such  scripts  to  include  the  part  payments  made  already  and  the  instalment 
last  asked  for.  The  defaulter  shall  remain  responsible  for  any  loss  suffered  by  the  Com- 
pany in  the  sale  of  such  shares. 

"  Art.  13. — The  original  subscribers  of  the  share  capital  described  in  Art.  6,  Section  1, 
who  have  floated  the  enterprise,  shall  receive  one  bonus  share  on  every  one  share  sub- 
scribed, i.  e.,  60.000  bonus  shares  in  all.  They  shall  be  issued  in  the  name  of  the  owner 
in  denominations  of  one,  five  or  ten  bonus  shares.  The  privileges  of  the  bonus  shares  are 
laid  down  in  Art.  18.  Art.  39  and  Art.  40. 

"  At  the  formation  of  other  mining  companies  in  accordance  with  Par.  5  of  the  Con- 
cession dated  1st  June  1899  and  Article  2,  ad.  9  of  these  Rules,  the  aforesaid  original  sub- 


256  CHINA  TREATIES  AND  AGREEMENTS 

scribers  are  entitled  to  participate,  proportionately  to  their  share  of  capital  in  the  Schantung 
Bergbau  Gesellschaft,  as  original  subscribers  in  raising  of  the  share  capital  of  each  of 
those  companies  up  to  one  half,  by  taking  over  the  shares  at  par,  plus  the  proportionate 
foundation  costs.  The  original  subscribers  of  the  share  capital  of  those  companies  shall 
receive  one  bonus  share  on  every  one  share  subscribed.  On  these  bonus  shares  a  share  of 
the  profits  shall  be  distributed  in  the  same  ratio  in  vv^hich  the  proprietors  of  the  bonus 
shares  of  the  Schantung  Bergbau  Gesellschaft  participate  according  to  Art.   18. 

"  Art.  14. — By  resolution  of  the  General  Meeting  and  with  approval  of  the  controlling 
authorities,  the  Company  is  authorised  to  issue  debentures  payable  to  bearer. 

"  The  nominal  value  of  the  debentures,  the  rate  of  interest,  the  conditions  of  recall  and 
repayment  shall  be  fixed  and  made  public  in  every  instance  by  the  Supervisory  Committee 
with  approval  of  the  controlling  authorities.  The  recall  of  the  debenture  requires  the 
approval  of  the  Supervisory  Committee. 

"Art.  15. — ^^'hen  shares  or  other  documents  issued  in  accordance  with  the  regulations 
of  Art.  10,  11,  13  and  14  have  become  damaged  or  otherwise  unserviceable,  but  preserved 
in  their  essential  parts  to  such  an  extent  as  to  admit  no  doubts  as  to  their  genuineness, 
then  the  Board  of  Directors  is  authorised  to  draw  up  and  hand  out  new  equivalent  docu- 
ments in  exchange  for  the  damaged  documents,  costs  to  be  borne  by  the  owner. 

■'  Excepting  this  contingency,  new  documents  may  be  prepared  and  delivered  in  place 
of  those  damaged  or  lost  only  after  judicial  invalidation  of  the  latter. 

"Dividend  coupons  are  not  cancelled  judicially:  they  become  invalid,  unless  collected 
within  four  years,  counted  from  the  31st  ^larch  of  that  year  in  which  they  have  become 
due,  the  respective  dividends  revert  to  the  Company.  To  such  one,  however,  who  gives 
notice  to  the  Board  of  Directors  of  the  loss  of  dividend  coupons  before  expiry  of  the 
said  term  of  four  years,  and  who  proves  their  former  possession  by  production  of  the 
share  certificates  or  otherwise  in  a  reliable  way,  the  amount  due  on  such  coupons  (given 
notice  of  and  not  yet  presented)   shall  be  paid  against  receipt  after  lapse  of  the  said  term. 

"  No  judicial  declaration  of  invalidity  shall  take  place  as  well  for  damaged  or  lost 
renewal  slips. 

"  When  the  owner  of  a  share  before  the  issue  of  new  dividend  coupons  protests  against 
the  delivery  thereof  to  the  presenter  of  the  renewal  slips  and  this  presenter  however  insists 
upon  delivery  the  dispute  shall  be  carried  to  Court  for  a  decision,  the  new  series  of  divi- 
dend coupons  shall  be  withheld  until  the  case  has  been  decided. 

"  When  a  renewal  slip  has  been  lost,  the  dividend  coupons  shall  be  delivered  against 
receipt  to  the  owner  of  the  respective  share  after  expiry  of  the  date  set  for  payment  of 
the  third  of  those  dividend  coupons  which  should  have  been  received  against  delivery  of 
the  renewal  slip.  The  possession  of  the  respective  renewal  slip  does  in  this  case  not  entitle 
to  the  receipt  of  the  dividend  coupons. 

"  Art.  16. — By  subscription  or  purchase  of  shares,  interim  certificates  and  bonus  shares. 
the  members  submit  to  the  jurisdiction  of  the  competent  lower  Court  for  commercial  mat- 
ters in  Berlin  for  all  disputes  arising  betw^een  the  Company  and  themselves  in  consequence 
of  their  business  relation.     (Par.  1). 

"III. — FiN.'\NciAL  St.atemext,  Ascert.\ining  and  Disposal  of  the  Proceeds,  Reserve  Fund. 

"Art.  17. — The  business  year  begins  on  1st  April  and  ends  on  31st  IMarch  of  the  fol- 
lowing year.  The  first  business  vear  in  accordance  with  these  rules  ends  on  31st  March 
1900. 

"The  financial  statement  shall  be  drawn  up  by  the  Board  of  Directors  as  for  31st  March 
for  the  business  year  last  passed.  It  shall  be  presented  to  the  General  Meeting  annually 
not  later  than  36th  September  together  with  the  Profit  and  Loss  Account  and  with  a 
report  of  the  Board  of  Directors  showing  the  property  and  the  situation  of  the  Company, 
and  also  with  the  audit  to  be  brought  in  by  the  Supervisory  Committee. 

"  It  is  understood  that  net  profits  mean,  profits  in  hand  after  the  writing  ofif  on  the 
property  has  taken  place  to  such  an  extent  as  the  case  may  require. 

"  Five  per  centum  per  annum  interest  may  be  debited  to  Development  Account  during 
the  development  period,  but  not  beyond  the  business  year  1903/4;  possible  working  profits 
during  the  development  period  shall  however  in  this  case  be  credited  to  Development 
Account.  The  Development  Account  shall  also  be  debited  by  the  remuneration  due  to  the 
Supervisory  Committee  in  accordance  with  the  conditions  of  Art.  46. 

"  The  approval  of  the  financial  statement  is  reserved  to  the  General  Meeting.  By 
giving  the  approval,  the  executive  bodies  of  the  Company  are  discharged  regarding  their 
management  during  the  respective  }-ear. 

"  Art.  18. — On  proposal  of  the  Supervisory  Committee  the  General  Meeting  decides  on 
the  amount  of  net  profit  resulting  from  the  financial  statement. 

"  Of  the  sum  to  be  calculcated  on  not  less  than  5%  and  no  more  than  15%  have  to  go 
to  the  Reserve  Fund. 

"  Of  the  remaining  sum  a  dividend  of  5%  on  the  paid-up  share  capital  shall  be  allowed 
to  the  members  of  the  Company. 


NUMBER  1900/4:  MARCH  21,  1900:  NOTE  .  257 

"  The  balance  shall  be  distributed  as  follows : 
SiVs  per  centum  to  the  bonus  shares 

66%  per  centum  on  the  paid-up  share  capital  as  super-dividend, 
after  having  deducted  as  well   109o    for  the   Supervisory   Committee  and  the  contribution 
to  the  Government  provided  for  in  Par.  8  of  the  instrument  of  Concession  of  1st  June  1899. 

"  The  General  Meeting  may  not  pass  a  higher  amount  as  net  profit  to  the  members  of 
the  Company  nor  a  lower  contribution  to  the  Reserve  Fund  than  proposed  by  the  Super- 
visory Committee.  Within  four  weeks  after  the  resolution  of  the  General  Meeting  the 
members  of  the  Company  will  receive  the  dividend  due  to  them,  and  the  owners  of  the 
bonus  shares  their  share  of  profit,  and  also  the  contribution  to  the  Government  provided 
for  in  Par.  8  of  the  instrument  of  Concession  of   1st  June  1899  has  to  be  paid. 

■'  In  the  event  of  the  dividend  to  the  members  and  the  share  of  profit  to  the  owners  of  the 
bonus  shares  being  paid  in  Francs  or  Pounds  Sterling,  the  amount  of  the  dividend  or  of 
the  share  of  profit  due  in  IMarks  shall  be  calculated  at  the  rate  of  81. —  Marks  =  100 
Francs  and  20.40  Marks  =  1  Pound  Sterling. 

"  Art.  19. — The  Reserve  Fund  serves  to  cover  extraordinary  expenses  or  losses.  Its  dis- 
position is  decided  on  by  the  Supervisory  Committee. 

"  After  the  Reserve  Fund  will  have  reached  15%  of  the  share  capital,  further  contribu- 
tions thereto  shall  cease.  Upon  proposal  of  the  Supervisory  Committee,  however,  the 
General  Meeting  may  resolve  a  further  increase  of  the  Reserve  Fund,  if  extraordinary  cir- 
cumstances occur.  In  the  event  of  payments  out  of  the  Reserve  Fund,  further  contributions 
have  to  be  made  thereto  until  it  reaches  again  the  amount  fixed. 

"  IV. — Administration. 
"a)  Board  of  Directors. 

"  Art.  20. — The  Board  represents  the  Company  and  acts  on  its  behalf  in  all  legal  and 
other  aftairs  including  those  requiring  a  special  power  of  attorney  by  law.  The  Board  is 
independent  in  question  of  administration,  save  in  those  for  which  by  these  rules  cooperation 
of  the  General  Meeting  or  Supervisory  Committee  is  required.  In  transacting  affairs  the 
Board  is  bound  to  follow  the  instruction  given  by  the  Supervisory  Committee  or  such  of  its 
members  as  have  been  delegated  by  it.  This  restriction,  however,  has  no  legal  effect  toward 
third  parties. 

"  Art.  21. — The  Board  of  Directors  consists  of  two  or  more  Directors,  appointed  upon 
conditions  settled  by  the  Supervisory  Committee. 

"  The  Supervisory  Committee  regulates  the  distribution  of  business  amongst  the  Di- 
rectors, their  relations  to  each  other,  as  well  as  the  rules  for  their  joint  deliberations  and 
resolutions.  It  nominates  substitutes  if  required  and  may  appoint  from  its  midst  a  member 
as  substitute.  Such  substitute  shall  not  act  on  the  Supervisory  Committee  while  cooperating 
with  the  Board  of  Directors. 

"  Art.  22. — By  resolution  of  the  Supervisory  Committee  Directors  may  temporarily  be 
ordered  to  China   for  inspection  of  the  administration  there  and  other  purposes. 

"  Art.  23. — Documents  and  declarations  of  the  Board  are  binding  on  the  Company,  if 
they  are  signed  under  the  name  of  '  Schantung  Bergbau  Gesellschaft '  by  two  Directors 
or  by  one  Director  and  one  Acting  Director  (substitute)  or  by  two  Acting  Directors  (sub- 
stitutes) or  by  one  Director  or  Acting  Director  (substitute)  and  by  one  officer  of  the 
Company  authorised  by  the   Supervisory   Committee  to  sign   conjointly. 

"  Art.  24. — The  nomination  of  Directors,  of  their  substitutes  (Acting  Directors)  and  the 
officers  of  the  Company  authorised  to  sign  documents  conjointly,  shall  be  recorded  notarially 
and  made  public.     The  record  serves  as  legitimation. 

"  b)  Supervisory  Committee. 

"  Art.  25. — The  Supervisory  Committee  consists  of  not  less  than  12  but  not  more  than 
25  members  to  be  elected  by  the  General  Meeting  from  the  number  of  the  shareholders. 
At  least  five  members  of  this  Committee  shall  reside  in  Berlin  and  including  those  at  least 
three  quarters  of  all  members  at  the  time  shall  be  German  subjects  residing  in  the  Ger- 
man Empire. 

"  As  a  rule  the  election  shall  take  place  at  the  ordinary  General  Meeting  for  a  term  up 
to  the  fourth  ordinary  meeting  following. 

"  Every  year  at  least  three  members  resign  in  as  regular  succession  as  possible  and 
are  replaced  by  new  elections.  Until  a  rotation  has  been  formed  for  the  resignations,  they 
shall  be  decided  by  lots.  The  resigning  members  are  re-eligible.  If  a  member  retires  in 
the  meantime,  the  remaining  members  are  authorised  to  elect  a  substitute  with  validity  till 
the  next  ordinary  General  Meeting.  The  final  election  of  a  substitute  will  be  done  by  the 
General  Meeting  holding  good  for  the  unexpired  term  of  the  resigning  members. 

"If  an  election  of  members  to  the  Committee  should  have  taken  place  in  an  extraor- 
dinary General  Meeting,  the  time  from  the  date  of  the  latter  to  the  next  ordinary  General 
Meeting  shall  count  as  a  full  year,  as  far  as  the  term  of  office  of  those  elected  is  concerned. 


258  CHINA  TREATIES  AND  AGREEMENTS 

"As  long  as  the  number  of  the  members  of  the  Supervisory  Committee  remains  twelve 
or  more  both  a  new  election  and  a  replacement  may  be  dispensed  with. 

"  The  elections  for  the  Supervisory  Committee  shall  be  recorded  before  a  notary. 

"  Art.  26. — The  Supervisory  Committee  elects  a  president  and  a  vice-president  immedi- 
ately after  every  General  Meeting  in  a  session,  at  which  the  members  present  meet  without 
being  specially  called.     The  president  shall  be  a  German  subject  residing  in  Berlin. 

"  The  president  shall  convene  the  Committee  as  often  as  business  requires,  stating  at 
the  same  time  the  agenda  for  the  meeting.  A  meeting  has  to  be  called  in  within  a  fort- 
night if  applied  for  in  writing  by  at  least  three  members  of  the  Committee  or  by  the 
Board  of  Directors. 

■'  The  Supervisory  Committee  forms  a  quorum  when  not  less  than  half  of  its  members 
are  present.  All  its  members  have  equal  votes.  Resolutions  are  passed  by  a  majority  of 
votes.     Votes  being  equal  the  president  shall  have  a  casting  vote. 

"  The  Committee  may  give  a  valid  decision  on  a  matter  not  enumierated  in  the  agenda, 
if  the  decision  is  approved  by  every  member  present.^  At  the  request  of  the  president  the 
Supervisory  Committee  may  pass  resolutions  by  written  voting  without  a  meeting  being 
called;  such  resolutions  only  to  be  valid  however  if  passed  unanimously  by  all  its  members. 

"  In  this  case  the  taking  of  the  votes  of  single  members  may  be  omitted,  when  and 
as  long  as  they  are  living  outside  the  German  Empire. 

"If  at  an  election  by  the  Supervisory  Committee,  no  absolute  majority  of  votes  is 
obtained  for  one  of  the  candidates  in  the  first  ballot,  then  a  second  ballot  shall  take  place 
among  those  two  persons,  who  have  received  the  highest  number  of  votes.  If  each  then 
obtains  an  even  number  of  votes,  lots  will  be  drawn  for  a  decision. 

"  Art.  27. — The  Supervisory  Committee  decides  on  its  order  of  business. 

"  Art.  28. — The  members  of  the  Supervisory  Committee  draw  no  salaries,  but  they  receive 
reimbursement  of  the  outlays  resulting  from  the  execution  of  their  duty  and  a  share  of 
profit  or  a  bonus  according  to  Par.  18  of  these  rules.  The  distribution  of  the  share  of 
profit  or  of  the  bonus  to  the  members  takes  place  in  accordance  with  regulations  to  be 
decided  upon  by  the  Supervisory  Committee. 

"  Art  29. — All  declarations  of  the  Supervisory  Committee  are  legally  executed  if  they 
are  done  under  the  style  *  Der  Verwaltungsrat  der  Schantung-Bergbau-Gesellschaft '  with  the 
signature  of  the  names  of  the  president — or  the  vice-president  as  the  case  may  be — and 
one  of  the  members  of  the  Committee.  The  Supervisory  Committee  is  legitimated  by  a 
notarial  certificate  of  election  giving  the  names  of  its  members  at  the  time  and  also  of 
its  president  and  vice-president. 

"  Art.  30. — Besides  the  general  supervision  of  the  management  through  the  Board  of 
Directors  and  other  powers  given  to  the  Supervisory  Committee  by  these  rules  this  Com- 
mittee may  particularly  decide : 

1)  on  the  principles  according  to  which  landed  property  shall  be  acquired,  made  use 
of,  and  realised, 

2)  on  the  principles  according  to  which  mining  and  other  industrial  enterprises  shall 
be  carried  on, 

3)  on  the  establishment  of  branch  undertakings, 

4)  on  the  appointment  of  the  higher  officers  of  the  Company  in  China,  and  also  of 
those  officers  receiving  an  annual  salary  of  more  than  5000  Marks  or  taken  on  for 
more  than  three  years  and  on  the  contracts  to  be  closed  with  them  and  also  on 
their  dismissal, 

5)  on  the  administration  in  China,  more  particularly  on  the  regulations  made  with 
respect  to  financial  matters  and  accounting, 

6)  on  the  budget  of  income  and  expenditure  of  the  Company  to  be  drawn  up  annually, 

7)  on  contracts,  if  the  object  exceeds  30,000  Marks  or  if  obligations  are  imposed  on 
the  Company,  for  a  term  exceeding  three  years, 

8)  pn  the  principles  for  the  drawing  up  of  the  annual  financial  statement,  as  well  as 
its  presentation  to  the  General  Meeting  and  proposals  regarding  the  use  and  dis- 
tribution of  profit  balances, 

9)  on  other  matters  to  be  brought  before  the  General  Meeting, 

10)  on  the  discharge  to  be  granted  annually  to  the  administration  in  China, 

11)  on  the  delegation  of  one  or  more  members  of  the  Committee  for  certain  commis- 
sions, more  particularly  for  examination  of  the  books  and  of  cash  in  hand  kept 
by  the  Board  of  Directors  and  for  examination  of  the  annual  financial  statement, 

12)  on  the  appointment  of  one  or  more  special  committees  from  among  the  members 
of  the  Committee  and  the  transfer  of  special  business  affairs  or  classes  of  such  to 
these  special  committees  by  special  powers  of  attorney. 

"Art.  31. — Of  the  transactions  and  resolutions  of  the  Supervisory  Committee  minutes 
shall  be  written  and  signed  by  the  participating  members. 

"  c)  General  Meeting. 
"  Art.  32. — The  General  Meeting,  properly  constituted,  represents  the  total  of  the  Com- 
pany's members. 


NUMBER  1900/4:  MARCH  21,  1900:  NOTE  259 

"  Its  resolutions  and  elections  are  binding  on  all  members. 

"  Art.  33. — The  General  Meetings  are  to  be  held  in  Berlin.  To  these  the  Board  of  Di- 
rectors or  the  Supervisory  Committee  shall  call  the  members  at  least  fourteen  days  before 
the  fixed  date,  the  latter  not  included,  by  notice  stating  the  busmess  to  be  transacted. 

"  There  may  be  represented :  commercial  firms  by  employees  authorised  by  legal  notifica- 
tion to  sign  per  procuration;  wives  by  their  husbands;  widows  by  their  sons,  if  of 
age ;  minors  or  the  persons  otherwise  under  guardianship  by  their  guardians  or  curators ; 
corporations,  institutes,  limited  liability  companies  by  one  of  the  Directors  or  a  person 
authorised  to  sign  per  procuration.  In  all  other  cases  a  member  may  only  be  represented 
by  another  member  taking  part  in  the  General  Meeting  by  virtue  of  a  written  proxy. 
Proxies  are  to  be  submitted  to  the  examination  of  the  Board  of  Directors  at  latest  on 
the  day  before  the  meeting  and  the  Board  may  require  an  official  or  other  satisfactory 
authentication  of  signatures. 

"  Art.  34. — At  the  General  Meeting  each  share  entitles  to  one  vote.  Voting  can  be 
exercised  only  by  those  members  who  have  deposited  their  shares  against  receipts  not  less 
than  five  days  before  the  date  of  the  General  Meeting  with  the  Board  of  Directors  or  at 
such  place  as  the  Board  may  have  designated  in  the  notice,  and  leave  them  there  till  the 
end  of  the  General  Meeting. 

"  Art.  35. — At  the  General  Meeting  the  chair  shall  be  taken  by  the  president  of  the 
Supervisory  Committee  or,  in  case  of  his  being  prevented,  by  the  vice-president,  or  if  he 
also  either  can  not  or  will  not  do  so,  by  another  one  of  the  members  present  of  the  Com- 
mittee, of  whom  always  the  senior  in  age  shall  have  precedence  to  take  the  chair.  The 
chairman  conducts  the  discussion,  fixes  the  succession  of  the  items  on  the  agenda  as  well 
as  the  modus  of  voting,  and  appoints  the  scrutineers,  when  necessary. 

"  Without  prejudice  to  the  regulation  in  Art.  37,  positions  3  and  4,  the  General  Meeting 
shall  only  discuss  and  pass  resolutions  on  items,  which  have  been  placed  on  the  agenda  at 
the  time  of  calling  it. 

"  Members,  entitled  to  hold  between  them  at  least  the  tenth  part  of  the  total  votes  pos- 
sible at  a  General  Meeting  may  apply  in  a  request,  signed  by  them,  that  matters,  being 
within  the  competency  of  General  Meetings,  be  announced  for  resolution  at  the  next  meet- 
ing. The  convener  is  then  bound  to  place  such  matters  on  the  agenda  of  the  next  General 
Meeting. 

"If  the  request  is  however  made  after  the  General  Meeting  has  already  been  called  such 
suggestions  to  amplify  the  agenda  must  be  in  the  hands  of  the  Board  of  Directors  not 
less  than  ten  days  prior  to  the  day  of  the  meeting. 

"  When  this  is  the  case,  these  matters  are  to  be  appointed  on  the  agenda  of  the  Gen- 
eral Meeting  convened,  and  this  shall  be  notified  not  less  than  six  days  before  the  day 
of  the  meeting. 

"  Art.  36. — An  ordinary  General  Meeting  shall  annually  take  place  before  the  end  of  the 
month  of  September. 

"  An  extraordinary  General  Meeting  shall  be  convened : 

1)  if  a  resolution  to  that  effect  has  been  passed  by  a  General  Meeting  (Art.  38), 

2)  if  members,  who  are  entitled  to  hold  between  them  the  fourth  part  of  the  total 
number  of  votes,  require  the  convening  and  hand  to  the  Board  of  Directors  in 
writing  a  motion  the  object  of  which  lies  within  the  competency  of  the  General 
Meeting. 

3)  if  a  resolution  has  to  be  passed  with  reference  to  the  dissolution  of  the  Company 
or  its  amalgamation  with  another  Company  or  the  alteration  of  its  legal  form, 

4)  if  the  Supervisory  Committee  decided  on  its  convening  for  any  other  special  cause. 
"  Art.  37. — At  the  ordinary  General  Meeting  the  financial  statement  with  the  profit  and 

loss  account  for  the  past  business  year  as  well  as  the  reports  rendered  by  the  Board  of 
Directors  and  the  Supervisory  Committee  shall  be  brought  forward  for  information  and 
discussion,  and  the  resolution  as  to  the  approval  of  the  financial  statement  and  also  as  to 
the  discharge  of  the  administration,  shall  be  passed.  Afterwards  the  necessary  elections 
(Art.  25)   shall  take  place. 

"  The  financial  statement  with  the  profit  and  loss  account  and  the  reports  of  the  Board 
of  Directors  and  of  the  Supervisory  Committee  shall  be  open  for  inspection  of  every  mem- 
ber during  two  weeks  preceding  the  meeting  on  such  business  premises  in  Berlin  as  are 
announced  at  the  time  of  convening  the  meeting. 

"  The  General  Meeting  is  authorised  to  appoint  a  committee  of  revision,  if  the  accounts 
are  not  passed  forthwith. 

"  It  is  authorized  to  pass  resolution  on  the  enforcement  of  the  responsibility  to  the  Com- 
pany of  the  members  of  the  Board  of  Directors  and  of  the  Supervisory  Committee  and 
on  the  measures  to  be  taken  for  this  purpose,  and  to  appoint  attorneys  for  the  execu- 
tion of  same. 

"  In  addition  the  ordinary  General  Meeting  is  entitled  to  pass  resolutions  on  every  pro- 
posal, which  is  not  assigned  to  the  extraordinary  General  Meeting  in  conformity  with  Art. 
36,  No.  3,  more  particularly : 

a)  on  the  issue  of  further  shares, 


260  CHINA  TREATIES  AND  AGREEMENTS 

b)  on  the  raising  of  loans, 

c)  on  alterations  and  additions  to  the  rules,  more  particularly  alterations  and  ampli- 
fications of  the  objects  of  the  Company. 

"Art.  38. — Resolutions  on  matters  denoted  in  Art.  36  under  No.  3  are  only  binding,  if 
at  least  three  quarters  of  the  shares  are  represented  at  the  meeting.  If  this  is  not  the 
case,  an  extraordinary  General  Meeting  may  be  convened  for  the  same  purpose  within  the 
following  six  weeks,  at  which  meeting  a  binding  resolution  may  be  passed,  even  if  less  than 
three  quarters  of  the  shares  are  represented.  Besides,  it  is  necessary  for  the  validity  of 
such  a  resolution  that  it  be  passed  by  a  majority  of  not  less  than  two  thirds  of  the  votes 
represented  at  the  meeting. 

"  Alterations  and  additions  to  these  rules  (Art.  2>7,  c)  may  be  passed  only  by  a  majority 
of  not  less  than  two  thirds  of  the  votes  represented  at  the  meeting. 

■■  Excepting  these  regulations,  resolutions  of  the  General  Meeting  are  to  be  passed  by 
absolute  majority.     With  even  votes  the  resolution  shall  be  considered  lost. 

"  If  at  elections,  objection  is  raised  against  any  other  modus  proposed,  the  voting  has  to 
be  done  by  handing  in  ballot-papers  and  an  absolute  majority  is  necessary  for  election. 
If  an  absolute  majority  is  not  attained  at  the  first  voting,  the  further  voting  is  limited  to 
those  two  members  who  have  received  most  of  the  votes.  When  votes  are  even,  lots  will 
be  drawn. 

"  The  minutes  of  the  General  Meeting  shall  be  written  by  a  notary,  and  shall  be  signed 
by  the  chairman  and  the  scrutineers,  if  such  have  been  appointed.  The  results  only  of  the 
discussions  shall  be  embodied  therein.  The  naming  of  every  individual  member  present 
is  not  required,  but  a  list,  signed  by  the  chairman,  of  the  members  present  or  represented 
with  a  statement  of  the  number  of  their  votes  shall  be  attached  to  the  minutes  of  the 
meeting. 

"  A  certificate  of  the  elections  by  the  notary  writing  the  minutes  serves  as  legitimation  to 
those  elected. 

"Art.  39. — The  redemption  of  the  bonus  shares  (Art,  13)  requires  an  alteration  of  the 
rules.  All  proprietors  of  bonus  shares  are  subject  to  an  agreement  as  to  their  redemption, 
if  at  a  meeting  of  the  proprietors,  to  be  convened  by  advertisement  (Art.  5)  stating  the 
object  of  the  agenda,  the  agreement  is  approved  by  them  with  not  less  than  two  thirds  of 
the  votes  represented  in  the  voting.  At  this  meeting  each  bonus  share  shall  be  allowed 
one  vote.  The  Supervisory  Committee  shall  decide  on  the  manner  of  the  further  proceed- 
ings at  the  meeting. 

"  V. — Dissolution. 

"  Art.  40. — In  case  of  the  dissolution  of  the  Company,  after  payment  of  all  debts,  the 
property,  calculated  in  Marks,  shall  be  divided  among  the  members  in  proportion  to  the 
instalments  paid  on  the  shares  up  to  the  amount  of  such  instalments,  and  the  surplus  if 
any,  shall  be  divided  at  the  rate  of  50%  among  the  members  in  the  same  proportions  and 
50%  among  the  proprietors  of  the  bonus  shares. 

"  The  distribution  shall  not  take  place  before  the  expiry  of  one  year,  counted  from  the 
day,  on  which  the  dissolution  of  the  Company  has  been  published  in  the  '  Deutscher  Reichs- 
Anzeiger '  with  an  invitation  to  the  creditors  to  hand  in  their  claims. 

"  Until  conclusion  of  the  distribution  proceedings  the  constitution  of  the  Company  and 
its  jurisdiction  remains  as  heretofore. 

"A  partial  return  of  the  share  capital  to  the  members  is  subject  to  the  same  conditions 
as  the  dissolution  of  the  Company. 

"  VI. — Court  of  CoJttrol. 

"  Art  41. — The  control  of  the  Company  is  exercised  by  the  Imperial  Chancellor,  who 
may  appoint  one  or  more  Commissioners  for  this  purpose.  These  Commissioners  are 
entitled  to  take  part  in  the  meetings  of  the  Supervisory  Committee  and  in  the  General 
Meetings  and  to  demand  at  any  time  a  report  from  the  Supervisory  Committee  on  the 
business  of  the  Company,  also  to  inspect  the  books  and  documents  of  the  same,  and  to 
convene  at  the  expense  of  the  Company  an  extraordinary  General  Meeting,  if  a  request 
for  such  by  members  of  the  Company  entitled  thereto  (Art.  36,  No.  2)  is  not  followed  out 
or  if  other  important  reasons  should  exist. 

"  Art.  42. — Subject  to  the  approval  of  the  controlling  authorities  are: 

1)  the  raising  of  loans  and  the  issue  of  further  shares, 

2)  the  resolutions  of  the  Company  according  to  which  an  alteration  of  or  additions 
to  the  rules  shall  result,  or  according  to  which  the  Company  shall  be  dissolved, 
amalgamated  with  another  or  its  legal  form  altered. 

"  VII. — Transitionarv  Regulations. 

"  Art.  43. — The  total  of  the  60,000  shares  are  taken  over  by  the  founders  of  the  Com- 
pany as  named  hereafter,  viz : 


NUMBER  1900/4:  MARCH  21,  1900:  NOTE  261 

shares 

1)  by  the  Direction   der  Disconto-Gesellschaft 4000 

2)  by  the  Deutsch-Asiatische    Bank 4000 

3)  by  the  Deutsche    Bank 4000 

4)  by  the  Bank  fiir   Handel  und  Industrie 4000 

5)  by  the  Berhner  Handelsgesellschaft 4000 

6)  by  the  Dresdener    Bank 4000 

7)  by  the  Nationalbank  fiir  Deutschland 4000 

8)  by  the  Schaf  fhausen'scher   Bankverein 4000 

9)  by  S.    Bleichroeder         4000 

10)  by  Robert    Warschauer   &   Co 4000 

11)  by  Born    &    Busse 4000 

12)  by  Jacob  S.  H.  Stern 4000 

13)  by  L.    Behrens    &    Soehne 4000 

14)  by  the  Xorddeutsche  Bank  in  Hamburg 4000 

15)  by  Messrs.  Sal.  Oppenheim  jr.  &  Co 4000 

"  On  the  above  mentioned  60,000  shares  taken  over  by  the  founders  25%  have  been 
paid  up  by  them  namely  50  IMarks  on  each  share. 

"  Art.  44. — The  first  Supervisory  Committee  is  to  be  elected  at  the  constitutive  General 
Meeting  in  the  year  1900. 

"  The  regulations  of  Art.  25  of  the  rules  shall  apply  to  the  Supervisory  Committee  to 
be  elected  at  this  meeting. 

"  The  first  Supervisory  Committee  appoints  immediately  after  the  constitutive  General 
Meeting  its  president  and  vice-president  and  resolves  on  the  constitution  of  the  Board  of 
Directors  and  elects  the  Directors. 

"  All  this  shall  be  valid  by  the  votes  of  members  present  in  the  foregoing  General 
Meeting,  even  if  less  than  half  of  the  members  of  the  -Supervisory  Committee  have  been 
present.  Absent  members  need  not  to  be  called  or  asked  for  a  declaration  as  to  the  accept- 
ance of  their  election. 

"Art.  45. — The  president  of  the  Supervisory  Committee  and  the  vice-president  shall  be 
authorised  to  petition  the  Imperial  Chancellor  for  the  approval  of  these  rules  and  for 
the  bestowal  of  the  privileges  of  incorporation  provided  for  in  Par.  9  of  the  Law  of  15th 
March,  1888,  also  to  order  any  additions  to  and  alterations  of  these  rules,  required  by  the 
Imperial  authorities  with  binding  power  upon  the  Company  and  upon  all  the  founders 
and  original  shareholders  thereof. 

"  Art.  46. — The  first  ordinary  General  Meeting  assembling  in  the  year  1900  shall  decide 
on  the  remuneration  which  shall  be  granted  to  the  Supervisory  Committee  up  to  the  business 
year  1903/1904  provided  no  share  of  profit  in  accordance  with  Art.  18  is  payable  before 
that  year." 

The  foregoing  Rules  of  the  Schantung  Berghau  Gesellschaft,  dated  October  10th,  1899, 
remained  in  force  until  February  12th,  1913,  when  the  General  Meeting  resolved  to  accept 
the  offer  made  by  the  Schantung  Eisenbahn  Gesellschaft  to  take  over  the  entire  mining 
property  against  an  issue  of  5400  new  Railway  shares  (at  par),  and  to  go  into  liquidation 
forthwith, — which  resolution  received  the  sanction  of  the  German  Imperial  Chancellor  on 
March  13th,  1913. 

By  a  Decree  of  the  German  Imperial  Chancellor,  dated  March  13th,  1913,  and  by  virtue 
of  §  9  of  the  foregoing  "Concession"  of  June  1st,  1899,  approval  was  given  to  the  liquida- 
tion of  the  Schantung  Bergbau  Gesellschaft,  and  to  the  transfer  of  the  concession  for 
mining  in  Shantung  to  the  Schantung  Eisenbahn  Gessellschaft,  on  the  condition  that  the 
tax  payable  by  the  latter  Company  for  dividends  exceeding  5%  on  the  capital  of  the  Rail- 
way Company — in  accordance  with  §  11  of  the  Railway  Concession  granted  to  that  Company, 
June  1st,  1899  (annexed  to  No.  1900/3,  ante,  at  page  240) — should  be  calculated  upon  the 
entire  net  profits  of  the  Railway  Company,  regardless  whether  such  profits  result  from  the 
working  of  the  railway  and/or  mines  and/or  from  other  operations  undertaken  by  the  Rail- 
way by  virtue  of  the  Rules  dated  February  12th,  1913  (annexed  to  No.  1900/3,  p.  243.  ante). 

In  the  meanwhile,  the  Schantung  Bergbau  GeseHschaft  had  arranged  with  the  Chinese 
authorities  to  liquidate  its  claim  to  a  general  privilege  in  respect  to  mining  within  a  zone  of 
30  li  along  the  railways  in  Shantung,  in  exchange  for  a  concession  of  specific  mining 
areas,  by  an  Agreement  under  date  of  July  24th,  1911,  of  which  the  following  is  a  trans- 
lation  from  the  Chinese  text : — 

Agreement  for  Delimitation  of  Mining  Areas  in  Province  of  Shantung. — July  24,  191 1. 

"  The  Government  of  Shantung  being  now  in  accord  regarding  the  readjustment  of  the 
mining  rights  along  the  line  of  the  railway,  the  substance  of  the  agreement  with  the  Shan- 
tung Mining  Corporation  (Schantung  Bergbau  Gesellschaft)  is  embodied  in  the  following 
Articles : 


262  CHINA  TREATIES  AND  AGREEMENTS 

"  Section  I. 

"  Article  I. — The  Shantung  Government  and  the  Schantung  Bergbau  Gessellschaft  con- 
firm, as  originally  agreed,  that  the  mines  of  Fangtzu  and  Tzu-ch'uan  together  with  those 
of  Chinling-chen  and  Chang-tien  for  the  space  of  30  li  wide  shall  be  exclusively  operated  by 
the  Schantung  Bergbau  GeseHschaft. 

'■  Article  II. — The  above  specified  mining  territory  of  the  Schantung  Bergbau  GeseHschaft 
is  defined  on  a  separate  map  which  constitutes  an  important  integral  part  of  this  Agree- 
ment. All  mining  rights  within  this  area  belong  to  the  Schantung  Bergbau  GeseHschaft. 
Chinese  Mining  Companies  have  no  rights  there. 

"Article  III. — Outside  of  the  special  rights  reserved  by  the  Schantung  Bergbau  GeseH- 
schaft as  specified  above,  the  rights  to  mines  within  30  li  of  the  finished  Shantung  Railway 
and  of  the  unfinished  Tientsin-Pukow  Railway  and  of  the  recently  surveyed  Kiaochow- 
Ichow  Railway  which  were  originally  granted  by  China  to  the  Schantung  Bergbau  GeseH- 
schaft are  hereby  cancelled. 

"  Article  IV. — The  original  purpose  of  the  Schantung  Bergbau  GeseHschaft  was  to  pre- 
serve the  right  to  operate  mines  in  Po-Shan  and  Tzu-ch'uan  within  the  30-Ii  belt.  Now  in 
order  to  display  a  friendly  spirit  it  is  agreed  that  the  rights  in  Po-Shan  Hsien  are  re- 
linquished ;  also  in  Tzu-ch'uan  from  Ta-k'uei-shan,  through  Lung-K'ou-Chen  towards  the 
northwest  south  of  the  oblique  line  through  the  eastern  part  of  Tzu-ch'uan  Hsien  the  mining 
rights  are  relinquished,  and  restored  to  China. 

"  Article  V. — The  mines  of  Fang-tzu  within  the  jurisdiction  of  Wei  Hsien  were  formerly 
included  in  the  3Q-li  belt  as  well  as  Ch'ang  Lo  and  An  Ch'in  Hsiens.  Now  the  Schantung 
Bergbau  GeseHschaft,  in  order  to  show  friendship,  returns  to  China  its  rights  to  the  mines 
of  Po-Shan  Hsien.  Also  the  mining  rights  are  returned  to  China  in  Tzu-Chow  south  of 
the  diagonal  line  from  Ta  K'uei  Shan  through  Lung  K'ou  Chen  toward  the  north-west 
through  Tzu-Chow  Hsien. 

"  Article  VI. — The  mining  area  map  agreed  upon  between  the  Shantung  Government 
and  the  Schantung  Bergbau  GeseHschaft  is  issued  in  four  sheets  as  follows  : 

(a)  Mining  areas  in  Tzu-Chow,  Chin-ling  Chen  and  Chang  Tien. 

(b)  Mining  areas  on  the  southern  boundary  of  Tzu-Chow. 

(c)  Mining  areas  in  Wei  Hsien  and  Ch'ang  Lo  Hsien. 

(d)  General  map. 

Ch'iu  Hsiens  which  were  included  within  the  30-/i  belt,  although  the  GeseHschaft  in  order 
to  show  friendship  has  turned  back  to  China  its  rights  in  the  north-west  part  of  An  Ch'iu 
"  Article  VII. — In  Fang-Tzu,  under  the  jurisdiction  of  Wei  Hsien  and  in  Lo-an  and  An 
Hsien  yet  it  retains  its  rights  in  Ch'ang  Lo  Hsien  and  Ta  Ching  Shan  to  a  distance  of  10 
Chinese  li  from  Fang-Tzu. 

"  Section  II. 

"  Article  I. — Along  the  line  of  the  Shantung  Railway  in  the  regions  of  Chang-Ch'iu,  Tzu- 
Chow  and  Po-Shan  Hsien,  which  have  been  relinquished  by  the  GeseHschaft,  Chinese  are 
forbidden  to  open  mines  on  a  large  scale  before  the  year  1920.  After  that  date  Chinese 
officials   and   merchants   may   decide    for   themselves. 

"  .-XTticIe  II. — W^ithin  one  month  of  the  exchange  of  ratifications  of  this  Agreement  be- 
tween the  Chinese  and  German  Governments  the  native  mines  within  the  railway  zone  shall 
be  closed. 

"  .Article  III. — According  to  the  Mining  Regulations  of  the  26th  Year  of  Kuanghsu,  i.e., 
A.  D.  1900,  the  mining  operations  of  the  Schantung  Bergbau  GeseHschaft  shall  be  specially 
protected. 

"  Article  IV. — If  the  Chinese  Government  or  Chinese  merchants  wish  to  carry  on  mining 
operations  in  the  areas  relinquished  by  the  GeseHschaft  according  to  this  Agreement,  when- 
ever the  capital  is  insufficient  they  must  borrow  German  capital.  If  they  require  supplies 
of  machinery  they  must  purchase  German  materials  and  if  they  wish  to  engage  foreign 
experts,  they  must  engage   Germans. 

"  Section  HI. 

"  China  undertakes  to  pay  Mex.  $210,000  to  be  expended  by  the  Schantung  Bergbau 
GeseHschaft  in  surveying,  in  purchasing  land  and  in  meeting  other  necessary  expenses. 
Within  one  year  after  the  signing  of  this  Agreement  this  shall  be  paid  in  two  instalments. 
As  soon  as  possible  after  the  signing  of  this  Agreement  the  Schantung  Bergbau  GeseHschaft 
shall  make  a  full  report  to  China  regarding  its  surveys  and  purchase  of  land,  with  maps 
and  observations. 

"  Section  IV. 

"  In  operating  iron  mines  near  Ching-ling-chen  the  Mining  Regulations  of  the  26th 
year  of  Kuanghsu    (A.   D.   1900)    must  be  conformed  to  without   evasion.     It   is,    further, 


NUMBER  1900/5:  OCTOBER  16,  1900  263 

the  expectation  of  the  Chinese  officials  that  an  iron-works  shall  be  opened  near  these  mines, 
the  capital  of  which  shall  be  subscribed  by  China  and  Germany  jointly.  It  is  stipulated 
that  the  call  on  Chniese  for  capital  shall  be  limited  to  about  $500,000.  The  detailed  regu- 
lations will  be  drawn  up  when  the  iron  works  are  to  be  opened. 

"  This  Agreement  is  drawn  up  in  both  the  Chinese  and  the  German  languages,  both  ver- 
sions to  agree  in  meaning,  in  four  copies.  To  each  are  attached  four  sheets  of  mining  ter- 
ritory maps.  The  deputies  of  the  two  nations  will  mutually  exchange  the  original  copies 
with  the  Supplement  and  sheets  as  proofs  of  the  Agreement  which  both  are  to  observe. 

"  Dated  at  Tsinan  Fu 

"July  24,  1911   (Hsuant'ung,  3rd  Year,  6th  Moon,  29th  day). 

"  Signed:  "Hsiao  Ying-p'eng  (Ch'ux?),  Industrial  Taotai  cf  Fengtien. 

"  Yu  TsE-TA,  Financial  Commissioner  of  Shantung. 
"  *  Ai-MEi-LO-Liu-HAi-ERH,'    Managing    Director    of    the    Schantiing 

Bergbau  Gesellschaft. 
" '  P'ei  Chih-chih,'  German  Consul  at  Tsinan  Fu." 


NUMBER  1900/5. 

GERMANY  AND  GREAT  BRITAIN. 
Agreement  relative  to  China.^ — October  16,  1900. 

Her  Britannic  Majesty's  Government  and  the  Imperial  German  Govern- 
ment, being  desirous  to  maintain  their  interests  in  China  and  their  rights  under 
existing  Treaties,  have  agreed  to  observe  the  following  principles  in  regard  to 
their  mutual  policy  in   China: — 

1.  It  is  a  matter  of  joint  and  permanent  international  interest  that  the 
ports  on  the  rivers  and  littoral  of  China  should  remain  free  and  open  to  trade 
and  to  every  other  legitimate  form  of  economic  activity  for  the  nationals  of  all 
countries  without  distinction;  and  the  two  Governments  agree  on  their  part  to 
uphold  the  same  for  all  Chinese  territory  as  far  as  they  can  exercise  influence. 

2.  Her  Britannic  Majesty's  Government  and  the  Imperial  German  Govern- 
ment will  not,  on  their  part,  make  use  of  the  present  complication  to  obtain  for 
themselves  any  territorial  advantages  in  Chinese  dominions,  and  will  direct  their 
policy  towards  maintaining  undiminished  the  territorial  condition  of  the  Chinese 
Empire. 

3.  In  case  of  another  Power  making  use  of  the  complications  in  China  in 
order  to  obtain  under  any  form  whatever  such  territorial  advantages,  the  two 
Contracting  Parties  reserve  to  themselves  to  come  to  a  preliminary  understand- 
ing as  to  the  eventual  steps  to  be  taken  for  the  protection  of  their  own  interests 
in  China. 

4.  The  two  Governments  will  communicate  this  Agreement  to  the  other 
Powers  interested,  and  especially  to  Austria-Hungary,  France,  Italy,  Japan, 
Russia,  and  the  United  States  of  America,  and  will  invite  them  to  accept  the 
principles  recorded  in  it. 


Ch 


*  Text  as  printed  in  British  Treaty  Scrips,  1901,  No.  1.    Printed  also  in  Rockhill,  p.  62 ; 
ina,  1900,  No.  5;  Hertslef,  p.  591 ;  Recueil,  p.  408.    See  Note  to  this  document,  post,  p.  264. 


254  CHINA  TREATIES  AND  AGREEMENTS 

Note. 

The  replies  of  the  several  Governments  to  the  communications  provided  in  Article  5, 
are  herewith  quoted  (or  translated)   from  Chma,  1900,  No.  5:— 

AUSTRIA-HUNGARY. 
"  Sir  F.  Plunkett  to  the  Marquess  of  Salisbury. 

"  My  Lord  Vienna,  October  25,  190C. 

"  On  receipt  of  your  Lordship's  telegram  of  the  20th  instant,  I  at  once  called  upon 
the  German  Ambassador  in  order  to  concert  with  his  Excellency  for  communicating  to  the 
Austro-Hungarian  Government  the  Agreement  respecting  China  which  your  Lordship  had 
signed  with  the  German  Ambassador  in  London  on  the  16th  instant. 

"  Prince  Eulenberg  expressed  much  satisfaction  at  your  Lordship  having  desired  me 
to  concert  with  him  for  the  communication  of  this  Agreement,  and  my  telegrams  of  the 
21st  and  23rd  instant  will  have  shown  that,  in  view  of  the  absence  from  Vienna  of  Count 
Goluchowski,  and  in  view  of  the  fact  of  Prince  Eulenberg  being  confined  to  his  house 
with  a  cold,  we  decided  to  communicate  the  Agreement  to  Count  Szecsen  through  our 
respective  Secretaries  of   Embassy,  _ 

"  Mr.  Milbanke  and  Baron  Romberg,  therefore,  went  to  the  Foreign  Department  next 
morning  and  made  communication  separately  of  the  Agreement. 

"  Count  Szecsen  called  at  this  Embassy  and  at  the  German  Embassy  the  day  before 
yesterday  to  say  that,  he  had  informed  the  Emperor  and  Count  Goluchowski  of  this  com- 
munication, and  was  authorized  to  state  that  the  Austro-Hungarian  Government  had  heard 
with  pleasure  that  Great  Britain  had  come  to  this  understanding  with  Germany,  and  ac- 
cepted willingly  the  principles  recorded  in  the  Agreement  which  had  been  signed  by  your 
Lordship  and  the  German  Ambassador  in  London. 

"I  have,  &c. 

"  F.  R.  Pluxkett." 

FRANCE. 
Memorandum  communicated  by  M.  Canihon,  Oct.  31st  1900. 

"  (Translation.) 

"  The  Government  of  the  Republic  has  taken  note  of  the  arrangement  of  October  16th, 
between  the  German  and  English  Governments,  which  was  communicated  to  it  by  the  Am- 
bassadors of   Germany  and  England  at  Paris. 

"  The  Government  of  the  Republic  has  long  manifested  its  desire  to  see  China  opened 
to  the  economic  activity  of  the  whole  world :  hence  the  emphatic  adherence  that  it  gave, 
in  the  month  of  December  last,  to  a  proposal  of  the  Government  of  the  United  States 
prompted  by  the  same  preoccupation.     Its  feeling  in  that  regard  has  not  been  changed. 

"  As  to  the  integrity  of  China,  the  Government  of  the  Republic  is  the  more  ready  to  as- 
sert that  principle,  having  made  it,  and  having  on  several  occasions  declared  it,  the 
basis  of  its  policy  in  the  crisis  for  which  the  joint  efforts  of  the  Powers  are  seeking  to 
find  a  satisfactory  solution. 

"  The  universal  assent  to  this  principle  seems  to  the  Government  of  the  Republic  a  sure 
guarantee  for  its  being  respected ;  and  if,  contrary  to  all  expectation,  it  should  suffer  any 
derogation,  France  would  take  the  circumstances  into  consideration,  with  a  view  to  the 
safeguarding  of  its  interests  and  of  the  rights  which  it  possesses  under  the  Treaties. 

"October  31st,  1900." 

ITALY. 

"  M.  Visconti-Venosta  to  Lord  Currie. 

"  (Translation.) 

"Ministry  of  Foreign  Affairs, 
"  M.  l'Ambassadeur,  "  Rome,  October  22,  1900. 

"  In  your  note  of  yesterday  your  Excellency  communicated  to  me,  in  accordance  with 
instructions  received  from  your  Government,  the  Agreement  arrived  at  on  the  16th  instant 
between  Lord  Salisbury  and  Count  Hatzfeldt  with  regard  to  China. 

"  The  two  Contracting  Governments  having  pledged  themselves  to  give  notice  of  their 
Agreement  to  the  Powers  interested,  especially  to  France,  Italy,  Japan,  Austria-Hungary, 
Russia,  and  the  United  States  with  an  invitation  to  agree  to  the  principles  enunciated 
therein,  your  Excellency  asked  me  whether  these  principles  were  accepted  by  the  Italian 
Government. 


NUAIBER  1900/5:  OCTOBER  16,1900:  NOTE  265 

■■  Having  taken  His  Majesty's  orders,  I  am  to-day  in  a  position  to  inform  your  Excel- 
lency that  the  Italian  Government,  recognizing  in  the  Anglo-German  Agreement  those 
same  principles  which  rule  their  own  policy  in  China,  do  not  hesitate  to  give  their  adhesion 
thereto. 

"  I  beg  you  Excellency  to  be  so  good  as  to  bring  the  above  to  the  knowledge  of 
Her  Majesty's  Government. 

"  I  have,  &c. 

"  Viscounti-Venosta." 
JAPAN. 
"Mr.    Kato    to    Mr.    Whitehead. 
"  (Translation.) 

"Department  of  Foreign  Affairs, 
"Sir,  "Tokio,   October  29,    1900. 

"  I  have  the  honour  to  acknowledge  the  receipt  of  your  note  of  the  24th  instant, 
in  which,  in  obedience  to  instructions  from  the  Marquess  of  Salisbury,  Her  Britannic 
Majesty's  Principal  Secretary  of  State  for  Foreign  Affairs,  you  communicated  to  me  the 
text  of  an  Agreement,  signed  on  the  16th  instant  by  his  Lordship  and  the  German  Am- 
bassador, which  reads  as  follows: —     [See  text  of  principal  document.] 

"  At  the  same  time,  in  further  compliance  with  Lord  Salisbury's  instructions,  you 
requested  me  to  inform  you  whether  the  Imperial  Japanese  Government  are  inclined  to  ac- 
cept the  principles  recorded  in  said  Agreement. 

"The  Imperial  Government,  having  received  assurances  from  the  contracting  Powers 
to  the  effect  that,  in  adhering  to  the  Agreement  in  question,  they  will  be  placed  in  relation 
to  such  Agreement  in  the  same  position  they  would  have  occupied  if  they  had  been  a 
signatory  instead  of  an  adhering  State,  do  not  hesitate  to  formally  declare  that  they 
adhere  to  the  said  Agreement,  and  accept  the  principles  embodied  therein. 

"  Accept,  &c. 

"  Kato  Takaaki." 

RUSSIA. 

"  (Translation.) 

"  Memorandum. 

"  The  Arrangement  concluded  between  Germany  and  England  does  not,  from  our 
viewpoint,   appreciably   modify   the   situation    in    China.  , 

"  The  first  point  of  this  agreement,  stipulating  that  the  ports  situated  on  the  rivers 
and  on  the  seacoast  of  China,  wherever  the  two  Governments  exercise  their  influence, 
remain  free  and  open  to  commerce,  may  be  favorably  received  by  Russia,  inasmuch  as  this 
stipulation  in  no  way  derogates  from  the  status  quo  established  in  China  by  the  existing 
Treaties. 

"The  second  point  is  even  more  responsive  to  the  intentions  of  Russia,  since,  from  the 
beginning  of  the  present  complications,  it  has  been  the  first  to  set  up  the  maintenance  of 
the  integrity  of  the  Celestial  Empire  as  the  fundamental  principle  of  its  policy  in  China. 

"  As  to  the  third  point,  relative  to  the  eventuality  of  any  derogation  from  this 
fundamental  principle,  the  Imperial  Government,  referring  to  its  Circular  of  August  12/25th, 
can  only  renew  the  declaration  that  such  an  event  would  compel  Russia  to  modify  its  atti- 
tude  in   accordance  with   the  circumstances. 

"  The   fourth   point  requires  no   comment. 

"  St.  Petersburg, 

"October  15/28th,  1900." 

UNITED  STATES. 

"Mr.  Hay  to  Lord  Pauncefoie. 

"Department   of   State,    Washington, 
"Excellency,  _  "October   29,    1900. 

"  I  have  the  honour  to  acknowledge  the  receipt  of  your  note  of  the  2.^rd  October,  in- 
closing the  text  of  an  Agreement  between  Great  Britain  and  Germany  relating  to  affairs  in 
China,  which  was  signed  in  London  on  the  16th  instant  by  the  Marquess  of  Salisbury  and 
the  German  Ambassador,  on  behalf  of  their  respective  Governments,  and  inviting  the  accept- 
ance by  the  United  States  of  the  principles  recorded  in  that  Agreement. 

"  These  principles  are — 

"  *  1.  It  is  a  matter  of  joint  and  permanent  international  interest  that  the  ports  on  the 
rivers  and   littoral  of   China   should   remain    free  and   open  to   trade,  and   to  every  other 


266  CHINA  TREATIES  AND  AGREEMENTS 

legitimate  form  of  economic  activity  for  the  nationals  of  all  countries  without  distinction, 
and  the  two  Governments  agree  on  their  part  to  uphold  the  same  for  all  Chinese  territory 
so  far  as  they  can  exercise  influence. 

"'2.  Her  Britannic  Majesty's  Government  and  the  Imperial  German  Government  will 
not  on  their  part  make  use  of  the  present  complication  to  obtain  for  themselves  any  ter- 
ritorial advantages  in  Chinese  dominions,  and  will  direct  their  policy  towards  maintaining 
undiminished  the  territorial  condition  of  the  Chinese  Empire.' 

"  The  United  States  have  heretofore  made  known  their  adoption  of  both  these  prin- 
ciples. During  the  last  year  this  Government  invited  the  Powers  interested  in  China  to  join 
in  an  expression  of  views  and  purposes  in  the  direction  of  impartial  trade  with  that 
country,  and  received  satisfactory  assurances  to  that  effect  from  all  of  them.  [See  No. 
1900/2,  atite.  Ci.  also  China,  No.  2  {1900):  "Correspondence  with  the  United  States  Gov- 
ernment respecting  Foreign  Trade  in  China  (the  Policy  of  the  'Open  Door.')  "]  When  the 
recent  troubles  were  at  their  height,  this  Government,  on  the  3rd  July,  once  more  made  an 
announcement  of  its  policy  regarding  impartial  trade  and  the  integrity  of  the  Chinese 
Empire,  and  had  the  gratification  of  learning  that  all  the  Powers  held  similar  views.  And 
since  that  time  the  most  gratifying  harmony  has  existed  among  all  the  nations  concerned 
as  to  the  ends  to  be  pursued,  and  there  has  been  little  divergence  of  opinion  as  to  the 
details  of  the  course  to  be  followed. 

"  It  is  therefore  with  much  satisfaction  that  the  President  directs  me  to  inform  you 
of  the  full  sympathy  of  this  Government  with  those  of  Her  Britannic  Majesty  and  the 
German  Emperor  in  the  principles  set  forth  in  the  clauses  of  the  Agreement  above  cited. 

"  The  third  clause  of  the  Agreement  provides — 

"'3.  In  case  of  another  Power  making  use  of  the  complications  in  China  in  order  to 
obtain,  under  any  form  whatever,  such  territorial  advantages,  the  two  Contracting  Parties 
reserve  to  themselves  to  come  to  a  preliminary  understanding  as  to  the  eventual  steps  to  be 
taken  for  the  protection  of  their  own  interests  in  China.' 

"  As  this  clause  refers  to  a  reciprocal  arrangement  between  the  two  High  Contracting 
Powers,  the  Government  of  the  United  States  does  not  regard  itself  as  called  upon  to  ex- 
press  an   opinion   in   respect  to   it. 

"  I  have,  &c., 

"John  Hay." 

In  connection  with  this  agreement,  see  also  the  understanding  between  the  British 
and  German  banking  groups  in  regard  to  railway  interests  in  China,  as  set  forth  in  the 
following  transcript  from  China,  1899,  No.  i,  p.  211 : 

Anglo-German  Bankers'  Arrangement  regarding  Spheres  of  Interest  in  Railway  Con- 
struction.— September  2,  1898. 

"Hongkong  and  Shanghai  Banking  Corporation  to  Foreign  Office. —  (Received  September  j.) 

■■  31,  Lombard  Street,  London, 
"  September  3,  1898. 
"Dear   :\Ir.   Bertie, 

"  As  requested  I  now  beg  to  hand  you  a  copy  of  the  Alinutes  of  the  meetings  held  be- 
tween M.  von  Hansemann  and  ourselves. 

"  In  case  it  may  interest  you,  I  also  enclose  copy  of  the  telegram  I  have  sent  to  our 
people  in  the  East  regarding  our  arrangement  with  Germany. 
"  I  remain,  &c. 

:  s  :     EwEN  Cameron. 

"  Inclosure  1 

"Minutes  of  IMeetings  held  at  New  Court,  St.  Swithen's  Lane,  London,  on  the  1st  and  2nd 

September,  1898. 

"  Present : 

"Representing  the  German  Syndicate — 

"  M.  A.  von   Hansemann. 
"Representing  the   British   and   Chinese    Corporation    (Limited)  — 

"  Mr.  \V.   Keswick. 
"  Representing    the    Hongkong    and    Shanghai    Banking    Corporation — 

"  Mr.  Ewen  Cameron. 

"  Mr.  Julius  Brussel. 

"  M.  yoN  Hansemann  proposed  the  following,  viz.: — 

"  '  It  is  desirable  for  the  British  and  German  Governments  to  agree  about  the  sphere  of 
mterest  of  the  two  countries  regarding  the  railway  constructions  in  China,  and  to  mutually 
support  the  interest  of  either  country.' 


NUMBER  1900/6:  OCTOBER  26,  1900  267 

"  This  proposal  was  agreed  to. 

"The   following  proposal   of    M.  von   Hansemann   regarding  the    British   and   German 
spheres  of  interest   for  applications   for   Railway   Concessions   in   China,   viz. : 

"'1.    British   sphere  of  interest,  viz.: 

"  '  The  Yangtsze  Valley  subject  to  the  connection  of  the  Shantung  lines  to  the  Yang- 
tsze  at  Chinkiang;  the  provinces  south  of  the  Yangtsze;  the  Province  of  Shansi  with 
connection  to  the  Peking-Hankow  line  at  a  point  south  of  Chengting  and  a  connecting  line 
to   the   Yangtsze   Valley,  crossing  the   Hoangho   Valley. 

"'2.    German  sphere  of  interest,  viz.: 

" '  The  Province  of  Shantung  and  the  Hoangho  Valley  with  connection  to  Tien-tsin 
and  Chengting,  or  other  point  of  the  Peking-Hankow  line,  in  the  south  with  connection  to 
the  Yangtzse  at  Chinkiang  or  Nanking.  The  Hoangho  Valley  is  understood  to  be  subject 
to  the  connecting  lines  in  Shansi  forming  part  of  the  British  sphere  of  interest,  and  to  the 
connecting  line  to  the  Yangtsze  Valley,  also  belonging  to  the  said  sphere  of  interest.' 

"  Was  agreed  to,  with  the  following  alterations,  viz. : — 

"  '  The  line  from  Tien-tsin  to  Tsinan,  or  to  another  point  on  the  northern  frontier  of 
the  Province  of  Shantung,  and  the  line  from  the  southern  point  of  the  Province  of  Shantung 
to  Chinkiang  to  be  constructed  by  the  Anglo-German  Syndicate  (meaning  the  German 
Syndicate  on  the  one  part,  and  the  Hongkong  and  Shanghai  Banking  Corporation  and  the 
British  and  Chinese  Corporation  (Limited)  on  the  other  part),  in  the  following  manner, 
viz. : — 

"'1.    The  capital  for  both  lines  to  be  raised  jointly. 

"'2.  The  line  from  Tien-tsin  to  Tsinan,  or  to  another  point  on  the  northern  frontier 
of  the  Province  of  Shantung,  to  be  built  and  equipped  and  worked  by  the  German  group. 

"  '  3.  The  line  from  the  southern  point  of  the  Province  of  Shantung  to  Chinkiang  to 
be  built  and  equipped  and  worked  by  the  English  group. 

"'4.    On  completion,  the  lines  to  be  worked  for  joint  account.' 

"  So  far  the  Minutes  of  the  proceedings  of  the  meetings,  and  it  is  further  agreed  upon 
that  neither  the  German  group  nor  the  English  group  will  be  bound  to  construct  the  lines 
assigned   to   their   sphere   unless   the   Shantung  lines   be   constructed   simultaneously. 

"  London,  September  2,  1898. 

"  Approved  and  signed  by— 

"  A.     VON     H.\NSEMANN, 

"  W.    Keswick, 
"  EwEN  Cameron, 
"  Julius   Brussel. 

"  P.S. — Wherever  the  term  'Valley'  is  used  it  means  '  Flussgebiet,'  the  signification  of  which 
is  the  districts  through  which  streams  flow  into  the  Yangtsze  or  Hoangho. 

"  (initialed)     A.  von  H. 
W.  K. 
E.  C. 
J.  B." 


NUMBER  1900/6. 

DENMARK  (Great  Northern  Telegraph  Company),  GREAT  BRITAIN  (East- 
ern Extension,  Australasia  and  China  Telegraph  Company)  AND  CHIN/\. 

Agreement  in  regard  to  the  land  telegraph  lines  between  Taku  and  Peking* — 

October  26,  1900. 

Whereas  the  Administration  is  desirous  of  restoring  their  telegraph  lines 
between  Taku  and  Peking,  and  of   reopening  their  stations  of   Tien-tsin  and 

*  Text  as  printed  in  Recueil,  p.  412. 

In  connection  with  this  agreement  see  the  telegraph  convention  among  the  same  parties, 
July  11,  1896  (No.  1896/3,  ante)  ;  see  also  the  agreements  of  the  Chinese  Telegraph  Adminis- 
tration with  the  Great  Northern,  and  with  the  Eastern  Extension,  October  22,  1902  (No. 
1902/10,  post). 


268  CHINA  TREATIES  AND  AGREEMENTS 

Peking,  and  whereas  the  Companies  are  wilHng  to  assist  the  Administration  in 
this  matter,  the  following  stipulations  have  been  agreed  on,  and  under  date 
below  given,  signed  by  the  Administration  represented  by  its  Director-General 
Sheng-hsuen-huai,  and  by  the  Great  Northern  Telegraph  Company,  Limited, 
of  Copenhagen  represented  by  its  acting  co-managers  in  China,  Mr.  Julius  V. 
Petersen  and  Mr.  K.  Suenson,  and  by  the  Eastern  Extension,  Australasia 
and  China  Telegraph  Company  Limited,  represented  by  Mr.  William  Bul- 
lard,  all  three  parties  duly  furnished  with  full  and  special  powers  for  this 
purpose. 

Article  L — The  Companies  undertake  to  use  their  influence  with  their  re- 
spective Governments  to  obtain  from  the  allies  permission  for  the  Administra- 
tion to  reerect  the  landlines  between  Taku  and  Peking,  and  to  reopen  public 
stations  at  Tien-tsin  and  Peking,  on  condition  that  the  Companies  shall  have 
the  absolute  control  of  the  working  of  the  above-named  landlines,  and  of  the 
stations  at  Taku,  Tien-tsin  and  Peking. 

Article  IL — For  the  purpose,  stated  in  Article  I,  the  Companies  shall  have 
the  right  to  appoint  an  agent  at  Tien-tsin  and  at  Peking  who  shall  have  com- 
plete control  of  the  entire  Chinese  stafif,  the  working  of  the  lines,  and  the 
management  of  the  stations. 

The  Companies  shall  further  have  the  right  to  appoint  such  other  foreigners 
as  they  deem  necessary  to  ensure  efficient  control. 

At  Taku  the  above-named  lines  shall  be  worked  from  the  present  cable 
station. 

Article  IIL — The  Administration  shall  provide  accountants  at  Tien-tsin 
and  Peking  who  shall  be  responsible  to  the  Administration  for  all  monies  received 
for  telegrams. 

At  the  Taku  station  the  Companies  will  receive  all  monies  for  all  telegrams 
and  will  pay  the  same  to  the  Administration. 

Article  IV. — The  Administration  undertakes  to  pay  all  expenses  incurred 
in  connection  with  the  establishment  and  working  of  the  said  lines  and  stations, 
and  further  to  reimburse  to  the  Companies  all  expenses  in  connection  with  the 
Europeans  stationed  at  the  afore-named  places  by  the  Companies. 

Article  V. — This  Agreement  shall  continue  in  force  until  the  majority  of 
the  foreign  troops  shall  have  been  withdrawn,  and  peace  and  the  normal  state 
of  afifairs  in  the  North  of  China  shall  have  been  reestablished,  when  the  Peking 
and  Tien-tsin  stations  will  be  handed  over  to  the  Administration  for  their  own 
management. 

In  witness  whereof  the  undersigned,  duly  authorized,  have  signed  the 
present  Agreement. 

Done  at  Shang-hai  in  the  Chinese  language  and  in  the  English  language. 
Three  expeditions  duly  compared  and  found  to  be  in  agreement  have  been 
signed  in  both  languages  on  the  twenty-sixth  day  of  the  month  of  October, 
nineteen  hundred,  corresponding  with  the  fourth  day  of  the  ninth  moon  of  the 
twenty-sixth  year  of   the   reign  of   Kwang-hsu. 

(L.  S.)  For  the  Imperial  Chinese  Administration — the  Director-General 
(Signed) :  Sheng-hsuen-huai. 


NUMBER  1901/1 :  APRIL  23,  1901  269 

(L.  S.)  For  the  Great  Northern  Telegraph  Company  Limited  of  Copen- 
hagen— the  acting  co-managers  in  China,  Kay  Suenson,  Julius  V.  Petersen. 

(L.  S.)  For  the  Eastern  Extension,  Australasia  and  China  Telegraph  Com- 
pany Limited — (Signed)  :  W.  Bullard. 


NUMBER  1901/1. 

GREAT    BRITAIN    (The    British    Government,   and   the    Eastern   Extension, 
Australasia  and  China  Telegraph  Company) 

Agreement  for  the  Provision  of  a  Submarine  Cable  between  Chefoo  and  Wei- 

haiwei.*— April  23,  1901. 

Agreement  made  the  23rd  day  of  April,  1901,  between  Henry  Torrens  An- 
struther,  Esq.,  and  Ailwyn  Edward  Fellowes,  Esq.  (commonly  called  the 
Honourable  Ailwyn  Edward  Fellowes),  two  of  the  Lords  Commissioners  of 
His  Majesty's  Treasury,  for  and  on  behalf  of  His  Majesty's  Government 
of  the  one  part,  and  the  Eastern  Extension  Australasia  and  China  Tele- 
graph Company,  Limited  (hereinafter  called  "the  Company  "),  of  the  other 
part. 

1. — Whereas  His  Majesty's  Government,  being  desirous  that  a  telegraph 
cable  should  be  laid  with  all  possible  dispatch  connecting  Shanghai  with  Wei- 
haiwei  and  Taku,  applied  to  the  Company  to  lay  such  cable  for  the  account  and 
at  the  cost  of  His  Majesty's  Government,  and  negotiations  have  been  proceed- 
ing as  to  the  terms  upon  which  such  cable  should  be  laid ; 

2. — And  whereas  since  the  said  negotiations  were  entered  on  the  Imperial 
Chinese  Telegraph  Administration  (hereinafter  called  "the  Administration") 
applied  to  the  Company  and  to  the  Great  Northern  Telegraph  Company  of 
Copenhagen  (a  Danish  Company  working  in  connection  with  the  Company  here- 
inafter called  the  Great  Northern  Company)  to  lay  a  cable  for  the  Administration 
from  Shanghai  to  Chefoo  and  Taku ;  and  the  Company,  with  the  approval  of 
His  Majesty's  Government,  entered  into  negotiations  with  the  Administration  with 
regard  to  the  laying  of  such  a  cable ; 

3. — And  whereas  the  said  negotiations  with  the  Administration  resulted  in 
the  following  basis  of  Agreement,  the  terms  of  which  have  since  been  embodied 
in  two  formal  Agreements  duly  executed  between  the  Administration  of  the 
one  part  and  the  Great  Northern  Company  and  the  Company  of  the  other 
part,  which  Agreements  bear  date  respectively  the  4th  day  of  August  and  the 
27th  day  of  October,  1900:— 

(a)   The  Company  and  the  Great  Northern  Company  are  to  provide  and 

♦Text  as  printed  in  Hertslet,  p.  1174.     See  Note  to  this  document,  post,  p.  273. 


270  CHINA  TREATIES  AND  AGREEMENTS 

lay,  for  Chinese  account,  a  cable  between  Taku  and  Shanghai,  connecting  Chefoo 
en  route;  with  the  right  to  lay  branch  cables  from  Chefoo  to  Weihaiwei,  Port 
Arthur,  and  Kiao-chau  to  meet  the  requirements  of  the  British,  Russian,  and 
German  Governments. 

(b)  For  the  Taku-Chefoo-Shanghai  Cable  the  Administration  is  to  pay  the 
Companies  210,000/.  by  instalments  spread  over  thirty  years,  together  with  inter- 
est on  the  outstanding  balance  at  the  rate  of  5  per  cent,  per  annum ;  with  power 
to  the  Administration  at  the  end  of  twenty-five  years,  but  not  before,  to 
pay  off  the  balance  then  remaining  due.  Until  the  whole  of  the  money  is 
paid  the  cables  are  to  be  mortgaged  to  the  Companies ;  and  as  additional 
security,  the  Companies  are  to  have  a  lien  on  the  balances  payable  by  the 
Companies  to  the  Administration  under  the  Joint  Purse  Agreement  of  July, 
1896.t 

(c)  The  Companies  are  to  work  and  maintain  at  the  expense  of  the 
Administration  the  Taku-Chefoo-Shanghai  Cable,  and  to  provide  a  steamer  at  a 
fixed  daily  cost  when  required  for  repairs  or  renewals  together  with  cable 
required. 

(d)  All  existing  Agreements  and  Concessions  between  the  Administration 
and  the  Companies,  or  either  of  them,  are  to  be  extended,  and  shall  continue  in 
force  until  the  31st  day  of  December,  1930; 

4, — And  whereas  the  Joint  Purse  Agreement  of  July,  1896,  referred  to  in 
the  said  basis  of  Agreement,  is  an  Agreement,  dated  the  11th  day  of  July,  1896, 
made  between  the  Administration  of  the  one  part  and  the  Great  Northern  Com- 
pany and  the  Company  of  the  other  part,  whereby  certain  arrangements  were 
come  to  as  to  the  transmission  of  telegraphic  trafific  to  and  from  China,  and 
to  and  from  certain  places  in  China,  and  as  to  sharing  the  profits  arising  from 
such  traffic,  and  as  to  matters  connected  therewith ; 

5. — And  whereas  an  Agreement,  dated  the  13th  day  of  May,  1897,  %  was 
entered  into  between  the  Administration  on  the  one  part  and  the  Great  Northern 
Company  on  the  other  part  relating  to  telegraphic  traffic  in  and  to  and  from 
China,  and  by  a  further  Agreement,  dated  the  6th  day  of  March,  1899,  made 
between  the  same  parties,  which  Agreement  and  further  Agreement  were  duly 
confirmed  by  the  Governments  of  China,  Russia,  and  Denmark,  there  was  added 
to  the  said  Agreement  of  the  13th  day  of  May,  1897,  the  following  additional 
Article : — 

"  That  in  the  interest  of  both  parties  to  the  Agreement,  dated  the  13th  May, 
1897,  and  for  the  same  term  of  years,  that  is  till  the  31st  December,  1910,  no 
other  party  will  be  allowed  without  the  consent  of  both  the  said  parties  to  land 
telegraph  cables  on  the  coast  of  China  and  islands  belonging  thereto,  or  to  work 
such  cables  in  connection  with  the  Chinese  lines,  or  otherwise  to  establish  tele- 
graph connections  which  might  create  competition  with  or  injure  the  interests 
of  the  existing  lines  belonging  to  China  or  to  the  Great  Northern  Telegraph 
Company  of  Copenhagen.  This  shall,  however,  not  prevent  the  Chinese  Gov- 
ernment from  establishing  local  internal  cables  where  no  competition  can  arise, 
nor  from  consenting  to  the  junction  by  cable  of  Port  Arthur  with  the  Russian 

t  No.  1896/3,  ante.  t  No.  1897/3,  ante. 


NUMBER  1901/1 :  APRIL  23,  1901  271 

telegraph  system  for  the  exchange  of  Hmitrophe  local  traffic,  neither  shall  it  pre- 
vent the  transmission  of  terminal  Formosa  traffic  over  the  Foochow-Formosa 
Cable  now  belonging  to  Japan,  whilst  other  traffic  must  not  be  exchanged  by  this 
line  except  with  the  consent  of  China  and  of  the  Great  Northern  Telegraph 
Company  of  Copenhagen  "  ; 

6.— And  whereas  the  said  Agreements  of  the  11th  July,  1896,  13th  May, 
1897,  and  6th  March,  1899,  are  the  principal  Agreements  referred  to  in  the 
said  basis  of  Agreement  as  "  all  existing  Agreements  and  Concessions,"  thereby 
agreed  to  be  extended  until  the  31st  day  of  December,  1930,  and  such  Agree- 
ments and  Concessions  by  virtue  of  the  Joint  Purse  Arrangements  subsisting 
between  the  Company  and  the  Great  Northern  Company  enure  for  the  benefit 
of  both  the  said  Companies ; 

7. — And  whereas  the  Company  has  already  laid  an  efficient  telegraph  cable 
(hereinafter  called  "  The  Chefoo-Weihaiwei  Cable  ")  from  Chefoo  to  a  point 
on  the  Island  of  Liu-kung-tau,  selected  by  the  military  authorities  at  Weihaiwei, 
and  has  at  such  last-mentioned  point  constructed  and  established  a  station  for 
the  purpose  of  working  such  cable,  and  has  provided  such  station  with  a  sufficient 
British  staff  and  all  needful  instruments  and  appliances,  and  has  connected  the 
same  with  the  station  at  Chefoo  from  which  the  Taku-Chefoo-Shanghai  Cable 
will  be  worked. 

8. — And  whereas  the  Company  has  also  laid  the  Taku-Chefoo-Shanghai 
Cable : 

Now  it  is  hereby  mutually  agreed  and  declared  as  follows : — 

1. — The  Company  will  carry  out,  or  will  procure  to  be  carried  out,  the  afore- 
said Agreements  of  the  4th  August,  1900,  and  27th  October,  1900,  with  the 
Administration  as  to  the  working  and  maintenance  of  the  Taku-Chefoo-Shanghai 
Cable. 

2. — The  Company  will  provide  and  keep  at  the  station  at  Chefoo  from  which 
the  Taku-Chefoo-Shanghai  Cable  will  be  worked,  and  will  also  provide  and 
keep  at  the  station  at  the  Island  of  Liu-kung-tau  a  sufficient  British  staff  to  trans- 
mit all  traffic  between  Weihaiwei,  Chefoo,  Shanghai,  and  Hong  Kong,  and 
between  Hong  Kong,  Shanghai,  Chefoo,  and  Weihaiwei,  and  the  Company  under- 
takes that  all  such  traffic  shall,  as  far  as  practicable,  be  transmitted  throughout 
exclusively  by  British  staff.  Any  case  in  which  such  transmission  by  British  staff 
has  been  found  impracticable  shall  at  once  be  reported  to  His  Majesty's  Govern- 
ment with  the  reason  thereof. 

3. — The  Company  will  maintain  the  connection  between  the  Taku-Chefoo- 
Shanghai  Cable  and  the  Chefoo-Weihaiwei  Cable  and  will  work  the  Chefoo- 
Weihaiwei  Cable  for  account  of  His  Majesty's  Government  on  the  terms  herein- 
after expressed  so  long  as  it  may  be  required  by  His  Majesty's  Government 
to  do  so.  But  the  Company  shall  be  entitled,  subject  to  the  priority  and  free 
transmission  of  all  messages  on  the  service  of  His  Majesty's  Government,  in- 
cluding the  local  administration  of  Weihaiwei,  to  use  such  cable  and  the  said 
station  on  Liu-kung-tau  for  the  transmission  of  any  other  messages,  and  all 
receipts  in  respect  of  such  last-mentioned  messages,  during  the  period  that  the 
cable  is  worked  by  the  Company  for  account  of   His  Majesty's  Government, 


272  CHINA  TREATIES  AND  AGREEMENTS 

shall  as  between  His  Majesty's  Government  and  the  Company  belong  to  the 
Company  but  subject  to  the  rights  of  the  Administration: 

Provided  that  His  Majesty's  Government  may  at  any  time  by  three  months' 
notice  to  the  Company  under  the  hand  of  the  Secretary  or  Assistant  Secretary 
to  the  Treasury,  determine  the  working  of  the  cable  by  the  Company  for  account 
of  His  Majesty's  Government. 

4. — If  and  whenever  while  the  Chefoo-Weihaiwei  Cable  shall  be  worked  by 
the  Company  for  account  of  His  Majesty's  Government,  such  cable  shall  require 
to  be  repaired  or  renewed,  the  Company  will,  upon  the  request  of  Mis  Majesty's 
Government,  supply  a  cable  steamer  to  effect,  and  will  therewith  use  its  best 
endeavours  to  effect,  with  all  dispatch  reasonably  possible,  the  necessary  repairs 
or  renewals,  at  the  price  of  150/.  for  each  day  or  part  of  a  day  such  steamer 
shall  be  employed  plus  the  cost  of  any  cable  used  for  such  repairs  or  renewals,  the 
period  of  employment  of  such  cable  steamer  to  be  computed  from  the  day  of  her 
leaving  her  port  or  station  to  the  day  of  her  return  thither  both  inclusive,  with  the 
addition  of  the  days  occupied  in  coaling  and  taking  cable  on  board  preparatory  to 
the  expedition,  and  in  discharging  cable  after  her  return  to  her  station,  provided 
that  the  said  daily  rate  of  150/.  shall  not  be  chargeable  in  going  or  returning  for 
any  greater  distance  than  from  or  to  Hong  Kong. 

Provided  that  if  the  Chefoo-Weihaiwei  Cable  shall  at  any  time  remain  out 
of  working  order  for  a  continuous  period  of  three  months  His  Majesty's  Gov- 
ernment may,  on  the  expiration  of  such  period  of  three  months,  by  notice  to  the 
Company  under  the  hand  of  the  Secretary  or  Assistant  Secretary  of  the  Treasury, 
determine  the  working  of  the  said  cable  by  the  Company  for  account  of  His 
Majesty's  Government  immediately  or  on  the  date  specified  in  such  notice. 

5. — His  Majesty's  Government  will,  out  of  moneys  provided  by  Parlia- 
ment, pay  to  the  Company  in  London  within  three  calendar  months  from  the 
approval  of  this  Agreement  by  the  House  of  Commons  the  sum  of  16,000/. 
His  Majesty's  Government  will  also  pay  to  the  Company  by  equal  quarterly 
payments  out  of  moneys  provided  by  Parliament  the  annual  sum  of  4,000/.  for 
the  working  of  the  Chefoo-Weihaiwei  Cable,  while  the  same  shall  be  worked  by 
the  Company  for  account  of  His  Majesty's  Government  as  aforesaid,  and  the 
connection  at  Chefoo  between  the  Chefoo-Weihaiwei  Cable  and  the  Taku- 
Chefoo-Shanghai  Cable  is  maintained,  and  for  the  transmission  of  Government 
messages  over  the  Chefoo-Weihaiwei  Cable. 

6. — In  case  of  war,  rebellion,  or  other  emergency,  His  Majesty's  Government 
may  take  possession  of  the  Chefoo-Weihaiwei  Cable,  and  of  the  stations,  offices, 
and  apparatus  on  such  telegraph  line,  and  may  keep  possession  thereof  for  so 
long  as  His  Majesty's  Government  may  think  requisite,  and  may  work  such 
telegraph  line  by  Government  servants ;  and  the  Company  shall  do  all  in  its 
power  to  enable  His  Majesty's  Government  to  have  and  enjoy  the  benefit  and 
advantage  thereof,  but  no  compensation  shall  be  payable  to  the  Company  by  His 
Majesty's  Government  for  taking  and  keeping  possession  as  aforesaid. 

7. — His  Majesty's  Government  will  give  to  the  Company  all  needful  protec- 
tion from  enemies,  rebels,  pirates,  or  other  assailants  during  the  working  of  the 
Taku-Chefoo-Shanghai  Cable  and  of  the  Chefoo-Weihaiwei  Cable. 


NUMBER  1901/1 :  APRIL  23,  1901 :  NOTE  273 

8. — His  Majesty's  Government  shall  use  their  best  endeavours  to  secure 
from  the  Administration  the  due  fulfilment  on  their  part  of  the  hereinbefore 
recited  Agreements  of  the  4th  August,  1900,  and  the  27th  October,  1900,  and 
also  the  due  observance  and  fulfilment  by  the  Administration  until  the  31st  day 
of  December,  1930,  of  the  terms  and  conditions  of  the  recited  Agreements  of 
the  11th  July,  1896,  13th  May,  1897,  and  6th  March,  1899,  stipulated  and  con- 
firmed in  manner  aforesaid,  so  far  as  the  same  relate  to  the  working  of  the 
Taku-Chefoo-Shanghai  Cable  or  to  matters  arising  out  of  this  Agreement. 

9. — In  the  event  of  any  difference  arising  between  His  Majesty's  Govern- 
ment and  the  Company  regarding  this  Agreement  or  any  matter  or  thing  therein 
contained  or  relating  thereto,  such  difference  shall  be  determined  in  manner 
provided  by  "  The  Arbitration  Act,  1889,"  or  any  then  existing  statutory  modi- 
fication thereof. 

10. — This  Agreement  shall  not  be  binding  on  His  Majesty's  Government 
or  the  Company  until  it  has  been  approved  by  the  House  of  Commons. 

In  witness  whereof  the  said  Henry  Torrens  Anstruther  and  the  said  Ailwyn 
Edward  Fellowes,  two  of  the  Lords  Commissioners  of  His  Majesty's  Treasury 
acting  for  and  on  behalf  of  His  Majesty's  Government,  have  hereunto  set  their 
hands  and  seals,  and  the  Eastern  Extension  Australasia  and  China  Telegraph 
Company,  Limited,  have  hereunto,  caused  their  common  seal  to  be  affixed  the  day 
and  year  first  above  written. 

(L.S.)     Ailwyn  E.  Fellowes. 
(L.S.)     H.  T.  Anstruther. 

Signed,  sealed,  and  delivered  by  the  above-named  Henry  Torrens  Anstruther 
and  Ailwyn  Edward  Fellowes  in  the  presence  of — 
George  Bull,  Treasury  Messenger. 

(L.S.) 

The  Common  Seal  of  the  Eastern  Extension  Australasia  and  China  Tele- 
graph Company,  Limited,  was  hereunto  affixed  in  the  presence  of — 
J.  Denison  Pender,  Director. 
F.  E.  Hesse,  Manager  and  Secretary, 


Note. 

The  following  Treasury  Minute,  dated  April  24,  1901,  is  appended  to  this  document  as 
printed  in  Hcrtslet,  loc.  cit. 

British    Treasury    Minute    regarding    Chefoo-Weihaiwei    Telegraph    Agreement. — 

April  24,  1901. 

"  My  Lords  have  before  them  an  Agreement  dated  the  23rd  .April,  1901,  with  the  Eastern 
Extension  Telegraph  Company  for  the  construction,  laying,  maintenance,  and  working  on 
behalf  of  his  Majesty's  Government  of  a  submarine  cable  between  Chefoo  and  Weihaiwei. 

"  The  need  for  telegraphic  communication  with  Weihaiwei  became  apparent  soon  after 
its  occupation  by  Her  IMajesty's  Government,  and  the  events  of  last  year  rendered  this  need 
so  urgent,  that  my  Lords  approached  the  Eastern  Extension  Telegraph  Company  with  the 
view  of  ascertaining  the  terms  upon  which  they  would  be  prepared  to  connect  the  place  with 
their  system  in  China. 

"  At  the  time  these  negotiations  were  entered  into,  the  cables  of  the  Eastern  Exten- 
sion Company  (and  of  the  (Danish)  Great  Northern  Company,  who  work  in  connection 
with  them  in  China),  went  no  further  north  than  Woosung,  near  Shanghai,  communication 
northwards  with  Peking,  being  carried  on  over  the  Chinese  land  lines.    But  while  the  nego- 


274  CHINA  TREATIES  AND  AGREEMENTS 

tiations  were  in  progress  the  Company  intimated  that  they  had  been  requested  by  the  local 
Chinese  Telegraph  administration  to  extend  their  system  to  Chefoo  and  Taku,  at  the  mouth 
of  the  Pei-ho  River,  and  that,  if  this  extension  should  be  effected,  communication  with 
Weihaiwei  could  be  afforded  by  the  laying  of  a  comparatively  short  cable  from  that  place 
to  Chefoo.  The  Company  were  prepared  to  lay  such  a  line  for  a  payment  of  16,000/.,  and  to 
work  it  on  behalf  of  His  Majesty's  Government,  for  a  subsidy  of  4,000/.  per  annum.  They 
asked  for  the  promise  of  the  support  of  His  Majesty's  Government  in  connection  with  the 
negotiations  which  they  and  the  Great  Northern  Company  were  carrying  on  with  the  Chinese 
Telegraph  Administration. 

"  These  negotiations  resulted  in  the  conclusion  between  the  Chinese  Administration  and 
the  Great  Northern  and  Eastern  Extension  Companies  of  an  arrangement  (subsequently 
embodied  in  Agreements  dated  the  4th  August  and  27th  October,  1900),  [for  the]  establish- 
ment of  cable  communication  under  the  complete  control  of  the  Companies  between  Shanghai, 
Chefoo,  and  Taku,  with  the  right  to  lay  branch  lines  from  Chefoo  to  Weihaiwei,  Port  Arthur 
and  Kiao-chau  to  meet  the  requirements  of  the  British,  Russian,  and  German  Governments  re- 
spectively. The  Chinese  Administration  further  agreed  to  extend  up  to  the  31st  December, 
1930,  all  existing  Agreements  and  Concessions  between  it  and  the  Companies.  On  learning 
of  the  conclusion  of  this  arrangement,  my  Lords  accepted  the  terms  quoted  by  the  Com- 
pany for  the  Chefoo-Weihaiwei  connection,  and  requested  them  to  lay  the  line  as  quickly  as 
possible.     It  was  opened  for  traffic  on  the  5th  September  last. 

"  The  present  Agreement  recites  the  arrangements  explained  above,  and  provides  for 
the  payment  to  the  Company  of  the  sum  of  16,000/.  for  the  construction  and  laying  of  the 
cable  within  three  months  of  the  approval  of  this  contract  by  the  House  of  Commons.  It 
also  provides  for  an  annual  payment  of  4,000/.  to  the  Company  for  working  the  cables  on 
behalf  of  His  Majesty's  Government  so  long  as  they  may  so  work  it,  and  maintain  the 
connection  between  it  and  the  Taku-Chefoo-Shanghai  Cable.  His  Majesty's  Government 
will  pay  for  any  repairs  required  to  the  cable.  The  Agreement  further  stipulates  for  the 
employment  of  British  staff  at  Chefoo  and  Weihaiwei,  and  for  the  transmission  of  all 
traffic  between  these  places,  Shanghai  and  Hong  Kong,  as  far  as  possible  by  British  staff. 
His  Majesty's  Government  undertakes  to  protect  the  Company  during  the  working  of  the 
cables,  and  to  use  its  best  endeavours  to  secure  from  the  Chinese  Administration  the  due 
fulfilment  of  its  engagements  with  the  Company  so  far  as  they  relate  to  the  Taku-Chefoo- 
Shanghai  Cable,  or  to  matters  arising  out  of  this  Agreement. 

"  My  Lords  approve  of  the  terms  of  this  Agreement. 

"April  24,  1901." 

In  connection  with  this  agreement  see  also  the  Convention  for  the  lease  of  Weihaiwei, 
July  1,  1898  (No.  1898/14,  ante). 


NUMBER  1901/2. 

RUSSIA    (Chinese    Eastern    Railway    Company)    AND    CHINA    (Provincial 

Government  of  Kirin). 

Agreement  regarding  jurisdiction  over  Chinese  subjects  in  the  raikcav  cone* — 

July  5/18,  1901. 

Under  instructions  from  the  Engineer-in-Chief  of  the  Chinese  Eastern  Rail- 
way, his  duly  authorized  representative,  Mr.  Daniel,  has  concluded  with  the  Chiang 
Chun  of  Kirin  at  the  present  time,  that  is  on  July  5/18,  1901,  and  according 
to  the  Chinese  calendar  the  3rd  day  of  the  6th  month  of  the  27th  year  of  the 
reign   of    Kuang   Hsii,   the    following   agreement,    supplementing   and    amend- 

*  Translation    from   the  Russian   version   printed   in  Soglashenia,  p.  23.     See   Note  to 
this  document,  post.  p.  277. 


NUMBER  1901/2:  JULY  5/18,  1901  275 

ing  the  agreement  concluded  on  May  19/31,  1899,  with  Chiang-Chun  Yang  of 
Kirin  for  the  estabHshment  in  Harbin  of  a  Principal  Department  for  Foreign 
and  Railway  Affairs : 

1. — In  Harbin,  Kirin  Province,  there  is  established  a  Principal  Depart- 
ment of  Foreign  and  Railway  Affairs.  For  this  purpose,  there  shall  be  appointed 
a  special  staff  of  Chinese  officials,  of  whom  some  shall  be  stationed  permanently 
in  Harbin,  while  others  shall  be  distributed  along  the  line,  so  that  there  shall  be 
one  official  with  each  district  superintendent,  it  being  provided  that  these  latter 
officials  shall  be  directly  subordinate  to  and  at  the  disposition  of  the  Harbin 
Department. 

2. — The  said  Department  is  established  for  the  final  settlement  of  all  cases 
arising  in  Kirin  Province,  if  these  affairs  directly  or  indirectly  touch  the  inter- 
ests of  the  Chinese  Eastern  Railway  Company,  and  also  directly  or  indirectly 
touch  the  interests  of  Chinese  subjects,  not  only  those  working  on  the  railway, 
such  as  employees  of  various  kinds,  artisans,  laborers,  contractors  and  persons 
supplying  goods  to  the  railway,  but  also  and  in  the  same  measure  all  other 
Chinese  subjects,  whether  merchants,  artisans,  domestic  servants  and  other  Chi- 
nese, temporarily  or  permanently  residing  in  the  leased  zone  of  the  railway,  even 
if  the  nature  of  their  occupation  does  not  have  any  direct  relation  to  the  rail- 
way. The  Harbin  Department,  having  its  officials  along  the  line  with  the  district 
superintendents,  shall  entrust  to  these  officials  the  settlement  on  the  spot  with 
the  knowledge  of  and  by  agreement  with  the  district  superintendent  of  cases 
which  do  not  constitute  serious  violations  of  Chinese  laws  and  railway  regula- 
tions ;  the  consideration,  however,  and  decision  of  the  more  important  cases, 
such  as  cases  of  murder,  open  and  collective  disobedience  of  the  authorities, 
Russian  or  Chinese,  adultery,  theft  of  over  three  hundred  Kirin  tiao,  usury 
and  the  like,  even  if  these  cases  shall  arise  in  the  section  of  the  line  furthest 
removed  from  Harbin,  shall  be  transferred  for  examination  and  final  decision 
to  the  Harbin  Department.  In  doubtful  cases,  the  Chinese  official  briefly  setting 
forth  the  case  in  conjunction  with  the  district  superintendent,  shall  inquire  of  the 
Harbin  Department  whether  the  case  is  to  be  settled  on  the  spot  or  whether 
it  is  to  be  transferred  with  the  accused  persons  to  Harbin,  In  case  of  need  such 
communications  shall  be  made  by  telegram  through  the  district  superintendent. 
A  telegraphic  report  shall  also  be  made  immediately  regarding  all  cases  coming 
outside  the  competence  of  the  local  official  in  the  district.  All  this  second  article 
refers  equally  to  Chinese  and  to  Manchus  and  Mongols  living  in  Kirin 
Province. 

3. — Regarding  each  case  coming  within  one  of  the  definitions  set  forth  in 
Article  2,  and  in  w^hich  proceedings  have  previously  been  begun  in  any  office 
or  by  any  particular  official,  a  report  must  immediately  be  sent  to  the  said  Harbin 
Principal  Department,  which  in  its  turn  shall  notify  the  Engineer-in-Chief,  in 
order  to  determine  whether  the  case  should  be  referred  to  the  said  Department 
for  continuation  and  decision,  or  whether  it  is  to  be  left  for  examination  and 
decision  to  the  official  of  the  Department  who  is  nearest  to  the  place  on  the  line 
where  the  case  arose. 

4. — Hereafter  all  officials  and  offices  shall  refer  to  the  Harbin   Principal 


276  CHINA  TREATIES  AND  AGREEMENTS 

Department  for  settlement  all  new  complaints  and  claims  coming  before  them, 
which  refer  to  the  cases  set  forth  in  Article  2. 

5. — All  complaints  and  claims,  and  also  all  cases  in  general  mentioned  in 
the  second  article  shall  be  examined  and  investigated  by  members  of  the  Harbin 
Principal  Department,  in  conjunction  with  the  Engineer-in-Chief  of  the  Chinese 
Eastern  Railway  or  his  authorized  representative.  Also  all  decisions  in  all  cases 
shall  be  arrived  at  by  mutual  agreement  with  the  Engineer-in-Chief  or  his 
authorized  representative. 

6. — The  Chinese  subjects  mentioned  in  Article  2  shall  be  subject  to  punish- 
ment only  in  accordance  with  a  decision  of  the  Principal  Department  at  Harbin 
arrived  at  by  due  process  of  law,  provided  that  the  Department  shall  decide 
whether  to  execute  the  sentence  in  Harbin  or  at  the  place  where  the  case 
originated.  In  cases  of  sentence  of  criminals  to  banishment  to  places  not  so 
remote  (not  further  than  3000  li),  the  Harbin  Department  may  give  orders  for 
the  execution  of  such  sentences  to  the  nearest  local  Chinese  authorities.  For 
preliminary  detention  of  Chinese  who  are  arrested  and  for  the  serving  of 
terms  of  imprisonment  by  sentences  of  the  Harbin  Department,  a  jail  shall  be 
built  in  connection  with  this  office. 

7. — All  crimes  for  the  commission  of  which  the  convicted  persons  shall  be 
sentenced  to  the  death  penalty  or  to  banishment  to  remote  places  (more  than 
3,000  //),  and  also  in  all  cases  when  the  opinions  of  the  members  of  the  Harbin 
Department  are  not  in  harmony  with  the  opinion  of  the  Engineer-in-Chief,  are 
subject  to  the  final  judgment  of  the  Chiang-Chun  of  Kirin,  which  shall  be  based 
on  the  reports  of  the  members  of  the  Department  and  on  communications  of 
the  Engineer-in-Chief.  All  other  cases,  regardless  of  the  degree  of  their  im- 
portance, shall  be  finally  settled  and  carried  into  execution  by  order  of  the  Presi- 
dent and  Vice-President  of  the  Department  by  mutual  agreement  with  the 
Engineer-in-Chief  or  his  authorized  representative.  The  President  and  Vice- 
President  of  the  Department  shall  on  the  one  hand  report  their  decisions  by 
memorial  to  the  Chiang-Chun  of  Kirin  for  his  information,  and  on  the  other 
hand  shall  send  a  communication  to  the  Principal  Department  for  Foreign  Re- 
lations of  Kirin  Province  for  preservation  in  the  archives. 

8. — All  the  members  of  the  Harbin  Principal  Department  and  the  soldiers 
shall  be  appointed  by  the  Chiang-Chun  of  Kirin;  the  President  and  Vice-Presi- 
dent of  the  Department  shall  also  be  appointed  and  removed  by  the  Chiang- 
Chun,  but  after  preliminary  consultation  with  the  Engineer-in-Chief,  in  order 
that  for  such  important  posts  may  be  chosen  persons  known  to  the  Chiang- 
Chun  and  to  the  Engineer-in-Chief  as  worthy  men,  enlightened  and  acquainted 
with  railway  afifairs  and  regulations.  Persons  chosen  in  this  way  by  mutual 
agreement  shall  be  confirmed  in  their  appointments  by  the  Chiang-Chun. 

9. — In  order  to  meet  all  the  expenses  for  maintenance  of  the  President, 
Vice-President,  all  officials  and  soldiers  of  the  said  Principal  Department,  the 
Engineer-in-Chief  shall  place  at  the  disposition  of  the  President  of  the  Depart- 
ment annually  60,000  taels  according  to  the  Kirin  market  weight.  This  sum 
shall  be  placed  by  the  Engineer-in-Chief  at  the  disposition  of  the  President  of 
the  Department  in  instalments  for  every  three  months  in  advance. 

10. — Apart  from  this  the  sum  necessary  for  the  construction  of  the  build- 


NUMBER  1901/2:  JULY  5/18,  1901:  NOTE  277 

ings  of  the  Department  and  houses  for  the  employees  (of  inferior  position),  and 
also  for  the  furnishing  and  equipping  of  the  buildings  of  the  Department,  shall  be 
fixed  by  agreement  between  the  President  of  the  Department  and  the  Engineer- 
in-Chief.  The  President  of  the  Department  shall  receive  this  sum  from  the 
Engineer-in-Chief  in  instalments  according  as  it  shall  be  required. 

11. — The  present  agreement  written  in  Chinese  and  in  Russian  in  duplicate, 
after  its  signature  by  the  Kirin  Chiang-Chun  Chang  and  by  the  authorized 
representatives  of  the  Engineer-in-Chief,  Mr.  Daniel,  shall  be  submitted  for 
the  signatures  of  the  Engineer-in-Chief  of  the  Chinese  Eastern  Railway,  Yugo- 
vitch,  and  his  substitute.  Engineer  Ignatius.  One  copy  of  this  agreement  must 
be  preserved  in  the  office  of  the  Chiang-Chun  of  Kirin,  and  the  other  in  the 
office  of  the  Engineer-in-Chief. 

The  Russian  text  is  a  true  rendering  of  the  Chinese  text. 


Note. 

In  connection  with  this  agreement  see  Chinese  Eastern  Railway  Contract  of  September 
8,  1896  (No.  1896/5,  ante)  ;  also  similar  agreement  of  January  1/14,  1902,  with  the  pro- 
vincial authorities  of  Heilungkiang  (No.  1902/1,  post). 

The  following  is  a  translation  (from  the  Russian  version  printed  in  Soglashenia,  p.  21) 
of  the  agreement  of  May  19/31,  1899,  which  the  present  document  supplements  and  amends : 

Agreement  regarding  Jurisdiction  over  Chinese  Subjects  in  Railway  Zone. — May  31, 

1899. 

"  1. — In  Harbin,  Kirin  Province,  there  is  established  a  Principal  Department  of  Foreign 
and  Railway  Affairs. 

"  2. — The  above-mentioned  Department  is  established  to  settle  all  cases  arising  in 
Kirin  Province  if  these  cases  directly  or  indirectly  touch  the  interests  of  the  Chinese 
Eastern  Railway  Company,  and  also  directly  or  indirectly  touch  the  interests  of  persons 
working  on  the  Chinese  Eastern  Railway,  and  also  the  interests  of  contractors  of  every 
sort  for  the  supply  of  labor  and  work,  and  of  artisans.  As  regards  cases  concerning 
unskilled  laborers,  such  matters  are  subject  to  examination  and  decision  by  the  Chinese 
authorities  of  the  place  where  the  cases  arise,  or  according  to  the  place  where  the  laborer 
is,  according  to  the  Chinese  laws,  if  any  murder,  theft,  adultery  or  similar  crime,  is  com- 
mitted by  them  (unskilled  laborers).  However,  in  regard  to  exceptional  cases,  each  dis- 
trict superintendent  of  the  railway  on  the  one  hand  shall  make  a  report  to  the  Principal 
Department  in  Harbin,  and  on  the  other  hand  shall  inform  the  local  official,  and  the 
proceedings  in  the  case  shall  be  suspended  until  the  receipt  of  a  decision  from  the  Harbin 
Principal  Department  as  to  whether  the  case  will  be  removed  to  the  Principal  Department  for 
settlement  or  whether  it  will  be  left  in  the  hands  of  the  local  official,  after  which  the  case 
shall  be  conducted  in  accordance  with  such  instructions. 

"3. — In  regard  to  any  case  coming  within  one  of  the  definitions  in  the  second  article 
in  which  proceedings  have  been  begun  in  any  government  establishment,  or  by  any  particular 
official  whatsoever,  information  must  be  given  to  the  above-mentioned  Principal  Department 
at  Harbin,  which  in  its  turn  shall  inform  the  Engineer-in-Chief  in  order  to  determine 
whether  the  case  should  be  brought  to  the  said  Department  for  continuation  and  decision, 
or  whether  the  consideration  and  decision  is  to  be  placed  in  the  hands  of  the  local 
authorities. 

"  4. — In  the  future  all  officials  and  offices  should  turn  over  to  the  Principal  Depart- 
ment in  Harbin  for  decision  all  new  complaints  and  claims  filed  with  them  coming  within  the 
definition  of  cases  referred  to  in  the  second  paragraph  :  but  the  execution  of  the  judgments 
of  the  Principal  Department  at  Harbin  shall  be  carried  out  by  the  Chinese  authorities  in 
the  place  where  the  case  originated. 

"  5. — All  complaints  and  claims,  and  also  all  cases  in  general  mentioned  in  the  second 
paragraph,  shall  be  examined  and  investigated  by  members  of  the  Principal  Department  at 
Harbin,  in  conjunction  with  the  Engineer-in-Chief  of  the  Chinese  Eastern  Railway,  or  his 
authorised  representative.  Also  all  decisions  in  all  cases  shall  be  arrived  at  by  mutual 
agreement  with  the  Engineer-in-Chief  or  his  authorized  representative. 


278  CHINA  TREATIES  AND  AGREEMENTS 

"6. — The  Chinese  subjects  referred  to  in  the  second  paragraph,  who  shall  be  working 
on  the  railway,  shall  be  subjected  to  punishment  only  according  to  a  judgment  of  the  said 
Principal  Department  at  Harbin  arrived  at  by  due  process  of  law. 

"  7. — All  the  most  important  matters  and  also  cases  when  the  opinion  of  the  members 
of  the  Principal  Department  in  Harbin  shall  not  be  in  harmony  with  the  opinion  of  the 
Engineer-in-Chief,  shall  be  subject  to  decision  by  the  Chiang-Chun  of  Kirin,  which 
decision  shall  be  based  upon  the  reports  of  the  members  of  the  Department  and  upon  the 
communications  of  the  Engineer-in-Chief.  All  other  affairs  shall  be  settled  by  the  Presi- 
dent and  Vice-President  by  mutual  agreement  with  the  Engineer-in-Chief  or  his  authorized 
representative.  But  the  President  and  Vice-President  should  report  their  decisions  on  the 
one  hand  by  a  memorial  to  the  Chiang-Chun  to  be  reviewed  by  him,  and  on  the  other 
hand  should  send  a  communication  to  the  Principal  Department  for  Foreign  Relations  of 
Kirin  Province  for  preservation  in  its  archives. 

"  8. — All  members  of  the  Principal  Department  at  Harbin  and  the  soldiers  shall  be 
appointed  by  the  Chiang-Chun  of  Kirin ;  the  President  and  Vice-President  of  the  Department 
shall  also  be  appointed  by  the  Chiang-Chun,  but  after  preliminary  notice  to  the  Engineer-in- 
Chief,  in  order  to  give  weight  to  this  appointment.  Thereafter,  when  these  persons  are  to 
be  replaced,  the  Engineer-in-Chief  may  recommend  for  appointment  as  President  and 
Vice-President  officials  of  Kirin  Province  actually  known  to  the  Engineer-in-Chief  who  are 
talented  and  have  an  intimate  knowledge  of  railway  affairs :  such  recommendations  shall  be 
considered  by  the  Chiang-Chun,  who  shall  make  his  decision  in  accordance  with  them. 

"  9. — To  meet  all  expenses  for  the  maintenance  of  the  President,  Vice-President,  all 
officials  and  soldiers  of  the  said  Principal  Department,  the  Engineer-in-Chief  shall  each 
year  place  at  the  disposition  of  the  President  of  the  Department  60,000  taels  according  to  the 
Kirin  market  weight.  This  sum  shall  be  placed  by  the  Engineer-in-Chief  at  the  disposition 
of  the  President  of  the  Department  in  instalments  for  each  three  months  in  advance. 

"  10. — Apart  from  this,  the  sum  necessary  for  the  construction  of  the  buildings  of  the 
Department  and  houses  for  the  employees  (of  inferior  position),  and  also  for  the  furnish- 
ing and  equipping  of  the  buildings  of  the  Department,  shall  be  determined  by  agreement 
between  the  President  of  the  Department  and  the  Engineer-in-Chief.  The  President  of 
the  Department  shall  receive  it  from  the  Engineer-in-Chief  in  instalments  according  as  it 
shall  be  required. 

"  The  Russian  text  is  a  true  rendering  of  the  Chinese  text. 

"  The  agreement  was  signed  by 

"  YuGOviTCH,  Engineer-in-Chief  of  tlie  Chinese 

Eastern  Railway:  his  assistant, 
"Ignatius:   and 
"  Yang,   Chiang-Chun  of  Kirin  Province." 


NUMBER  1901/3. 

AUSTRIA-HUNGARY,   BELGIUM,    FRANCE,   GERMANY,   GREAT 

BRITAIN,  ITALY,  JAPAN.  THE  NETHERLANDS,  RUSSIA, 

SPAIN,  THE  UNITED  STATES  AND  CHINA. 

Final  Protocol  for  the  settlement   of   the  disturbances   of  1900* — September 

7,  1901. 

The  plenipotentiaries  of  Germany,  His  Excellency  M.  A.  Mumm  von 
Schwarzenstein ;  of  Austria-Hungary,  His  Excellency  M.  M.  Czikann  von  Wahl- 
born;  of  Belgium,  His  Excellency  M.  Joostens ;  of  Spain,  M.  B.  J.  de  Cologan ; 
of  the  United  States,  His  Excellency  M.  W.  W.  Rockhill ;  of  France,  His  Excel- 

*  Translation  from  the  French  text,  as  printed  in  U.  S.  Treaty  Series,  No.  397. 

Printed  also  in  Rockhill,  p.  63;  British  Treaty  Series,  No.  i?  (1902);  China  No.  i 
{1902)  ;  Customs,  Vol.  I,  p.  303;  Traitcs  et  Conventions,  p.  217;  Hertslet,  p.  123;  Malloy, 
p.  2006;  Am.  Int.  Law  Journal,  Supplement,  1907,  p.  388.  See  Note  1  to  this  document, 
post,  p.  308. 


NUMBER  1901/3:  SEPTEMBER  7,  1901  279 

lency  M.  Paul  Beau;  of  Great  Britain,  His  Excellency  Sir  Ernest  Satow ;  of 
Italy,  Marquis  Salvago  Raggi ;  of  Japan,  His  Excellency  M.  Jutaro  Komura;  of 
the  Netherlands,  His  Excellency  M.  F.  M.  Knobel ;  of  Russia,  His  Excellency 
M.  M.  de  Giers;  and  of  China,  His  Highness  Yi-K'uang  Prince  Ching  of  the 
first  rank.  President  of  the  Ministry  of  Foreign  Affairs,  and  His  Excellency 
Li  Hung-chang,  Earl  of  Su-i  of  the  first  rank,  Tutor  of  the  Heir  Apparent, 
Grand  Secretary  of  the  Wen-hua  Throne  Hall,  Minister  of  commerce,  Superin- 
tendent of  the  northern  trade,  Governor-General  of  Chihli,  have  met  for  the  pur- 
pose of  declaring  that  China  has  complied  to  the  satisfaction  of  the  Powers  with 
the  conditions  laid  down  in  the  note  of  the  22d  of  December,  1900  f  and  which 
were  accepted  in  their  entirety  by  His  Majesty  the  Emperor  of  China  in  a  decree 
dated  the  27th  of  December.     (Annex  No.  1.) 

Article  P. — By  an  Imperial  Edict  of  the  9th  of  June  last  (Annex  No.  2), 
Tsai  Feng,  Prince  of  Ch'iin,  was  appointed  Ambassador  of  His  Majesty  the 
Emperor  of  China,  and  directed  in  that  capacity  to  convey  to  His  Majesty  the 
German  Emperor  the  expression  of  the  regrets  of  His  Majesty  the  Emperor  of 
China  and  of  the  Chinese  Government  for  the  assassination  of  His  Excellency 
the  late  Baron  von  Ketteler,  German  minister. 

Prince  Ch'iin  left  Peking  the  12th  of  July  last  to  carry  out  the  orders  which 
had  been  given  him. 

Article  P. — The  Chinese  Government  has  stated  that  it  will  erect  on  the 
spot  of  the  assassination  of  His  Excellency  the  late  Baron  von  Ketteler  a  com- 
memorative monument,  worthy  of  the  rank  of  the  deceased,  and  bearing  an 
inscription  in  the  Latin,  German,  and  Chinese  languages,  which  shall  express  the 
regrets  of  His  Majesty  the  Emperor  of  China  for  the  murder  committed. 

Their  Excellencies  the  Chinese  Plenipotentiaries  have  informed  His  Excel- 
lency the  German  Plenipotentiary,  in  a  letter  dated  the  22nd  of  July  last  (Annex 
No.  3)  that  an  arch  of  the  whole  width  of  the  street  would  be  erected  on  the 
said  spot,  and  that  work  on  it  was  begun  the  25th  of  June  last. 

Article  IP. — Imperial  Edicts  of  the  13th  and  21st  of  February,  1901  (An- 
nexes Nos.  4,  5,  and  6),  inflicted  the  following  punishments  on  the  principal 
authors  of  the  outrages  and  crimes  committed  against  the  foreign  Governments 
and  their  nationals : 

Tsai-I  Prince  Tuan  and  Tsai  Lan  Duke  Fu-kuo  were  sentenced  to  be 
brought  before  the  autumnal  court  of  assize  for  execution,  and  it  was  agreed  that 
if  the  Emperor  saw  fit  to  grant  them  their  lives,  they  should  be  exiled  to  Turke- 
stan and  there  imprisoned  for  life,  without  the  possibility  of  commutation  of 
these  punishments. 

Tsai  Hsiin  Prince  Chuang,  Ying  Nien,  President  of  the  Court  of  censors, 
and  Chao  Shu-Chiao,  President  of  the  Board  of  punishments,  were  condemned  to 
commit  suicide. 

Yii  Hsien,  Governor  of  Shanhsi,  Chi  Hsiu,  President  of  the  Board  of  rites, 
and  Hsii  Cheng-yu,  formerly  senior  vice-President  of  the  Board  of  punishments, 
were  condemned  to  death. 

Posthumous  degradation  was  inflicted  on  Kang  Yi,  assistant  Grand  Secre- 
t  See  Note  2  to  this  document,  post,  p.  309. 


280  CHINA  TREATIES  AND  AGREEMENTS 

tary,  President  of  the  Board  of  Works,  Hsii  Tung,  Grand  Secretary,  and  Li 
Ping-heng,  formerly  Governor-General  of   Szu-ch'uan. 

An  Imperial  Edict  of  February  13th,  1901  (Annex  No.  7),  rehabilitated 
the  memories  of  Hsii  Yung-yi,  President  of  the  Board  of  war,  Li  Shan,  Presi- 
dent of  the  Board  of  works,  Hsii  Ching-cheng,  senior  vice-President  of  the 
Board  of  works,  Lien  Yuan,  vice-Chancellor  of  the  Grand  Council,  and  Yuan 
Chang,  vice-President  of  the  Court  of  sacrifices,  who  had  been  put  to  death  for 
having  protested  against  the  outrageous  breaches  of  international  law  of  last 
year. 

Prince  Chuang  committed  suicide  the  21st  of  February,  1901,  Ying  Nien  and 
Chao  Shii-chiao  the  24th,  Yii  Hsien  was  executed  the  22nd,  Chi  Hsiu  and 
Hsu  Cheng-yu  on  the  26th.  Tung  Fu-hsiang,  General  in  Kan-su,  has  been 
deprived  of  his  office  by  Imperial  Edict  of  the  13th  of  February,  1901,  pending 
the  determination  of  the  final  punishment  to  be  inflicted  on  him. 

Imperial  Edicts  dated  the  29th  of  April  and  19th  of  August,  1901,  have 
inflicted  various  punishments  on  the  provincial  officials  convicted  of  the  crimes 
and  outrages  of  last  summer. 

Article  IP. — An  Imperial  Edict  promulgated  the  19th  of  August,  1901 
(Annex  No.  8),  ordered  the  suspension  of  official  examinations  for  five  years 
in  all  cities  where  foreigners  were  massacred  or  submitted  to  cruel  treatment. 

Article  III. — So  as  to  make  honorable  reparation  for  the  assassination  of 
Mr.  Sugiyama,  chancellor  of  the  Japanese  legation.  His  Majesty  the  Emperor  of 
China  by  an  Imperial  Edict  of  the  18th  of  June,  1901  (Annex  No.  9),  appointed 
Na  Tung,  vice-President  of  the  Board  of  revenue,  to  be  his  Envoy  Extraordinary, 
and  specially  directed  him  to  convey  to  His  Majesty  the  Emperor  of  Japan  the 
expression  of  the  regrets  of  His  Majesty  the  Emperor  of  China  and  of  his  Gov- 
ernment at  the  assassination  of  the  late  Mr.  Sugiyama. 

Article  IV. — The  Chinese  Government  has  agreed  to  erect  an  expiatory 
monument  in  each  of  the  foreign  or  international  cemeteries  which  were  dese- 
crated and  in  which  the  tombs  were  destroyed. 

It  has  been  agreed  with  the  Representatives  of  the  Powers  that  the  legations 
interested  shall  settle  the  details  for  the  erection  of  these  monuments,  China 
bearing  all  the  expenses  thereof,  estimated  at  ten  thousand  taels  for  the  ceme- 
teries at  Peking  and  within  its  neighborhood,  and  at  five  thousand  taels  for  the 
cemeteries  in  the  provinces.  The  amounts  have  been  paid  and  the  list  of  these 
cemeteries  is  enclosed  herewith.     (Annex  No.  10.) 

Article  V. — China  has  agreed  to  prohibit  the  importation  into  its  territory 
of  arms  and  ammunition,  as  well  as  of  materials  exclusively  used  for  the 
manufacture  of  arms  and  ammunition. 

An  Imperial  Edict  has  been  issued  on  the  25th  of  August,  1901  (Annex 
No.  11),  forbidding  said  importation  for  a  term  of  two  years.  New  Edicts 
may  be  issued  subsequently  extending  this  by  other  successive  terms  of  two 
years  in  case  of  necessity  recognized  by  the  Powers. 

Article  VI.— By  an  Imperial  Edict  dated  the  29th  of  May,  1901  (Annex  No. 
12),  His  Majesty  the  Emperor  of  China  agreed  to  pay  the  Powers  an  indemnity 
of   four  hundred  and  fifty  millions  of  Haikwan  Taels.     This  sum  represents 


NUMBER  1901/3:  SEPTEMBER  7,  1901  281 

the  total  amount  of  the  indemnities  for  States,  companies  or  societies,  private 
individuals,  and  Chinese  referred  to  in  Article  VI  of  the  note  of  December  22nd, 
19004 

(a)  These  four  hundred  and  fifty  millions  constitute  a  gold  debt  cal- 
culated at  the  rate  of  the  Haikwan  tael  to  the  gold  currency  of  each  country, 
as  indicated  below. 

Haikwan  tael=marks 3.055 

=Austro-Hungary  crown    3.595 

=go\d  dollar   0.742 

=f rancs    3.750 

==pound  sterling   3s.0d. 

=yen    1.407 

^Netherlands    florin    1.796 

=gold  rouble  (17.424  doHas  fine) 1.412 

This  sum  in  gold  shall  bear  interest  at  4  per  cent  per  annum,  and  the 
capital  shall  be  reimbursed  by  China  in  thirty-nine  years  in  the  manner  indicated 
in  the  annexed  plan  of  amortization.     (Annex  No.  13.) 

Capital  and  interest  shall  be  payable  in  gold  or  at  the  rates  of  exchange 
corresponding  to  the  dates  at  which  the  different  payments  fall  due. 

The  amortization  shall  commence  the  1st  of  January,  1902,  and  shall  finish 
at  the  end  of  the  year  1940.  The  amortizations  are  payable  annually,  the  first 
payment  being  fixed  on  the  1st  of  January,  1903. 

Interest  shall  run  from  the  1st  of  July,  1901,  but  the  Chinese  Government 
shall  have  the  right  to  pay  ofif  within  a  term  of  three  years,  beginning  January, 
1902,  the  arrears  of  the  first  six  months,  ending  the  31st  of  December,  1901,  on 
condition,  however,  that  it  pays  compound  interest  at  the  rate  of  4  per  cent  per 
annum  on  the  sums  the  payments  of  which  shall  have  thus  been  deferred.  In- 
terest shall  be  payable  semiannually,  the  first  payment  being  fixed  on  the  1st 
of  July,  1902. 

(b)  The  service  of  the  debt  shall  take  place  in  Shanghai,  in  the  following 
manner :  § 

Each  Power  shall  be  represented  by  a  delegate  on  a  commission  of  bankers' 
authorized  to  receive  the  amount  of  interest  and  amortization  which  shall  be 
paid  to  it  by  the  Chinese  authorities  designated  for  that  purpose,  to  divide  it 
among  the  interested  parties,  and  to  give  a  receipt  for  the  same. 

(c)  The  Chinese  Government  shall  deliver  to  the  Doyen  of  the  Diplomatic 
Corps  at  Peking  a  bond  for  the  lump  sum,  which  shall  subsequently  be  con- 
verted into  fractional  bonds  bearing  the  signatures  of  the  delegates  of  the 
Chinese  Government  designated  for  that  purpose.  This  operation  and  all  those 
relating  to  issuing  of  the  bonds  shall  be  performed  by  the  above-mentioned 
Commission,  in  accordance  with  the  instructions  which  the  Powers  shall  send 
their  delegates. 

(d)  The  proceeds  of  the  revenues  assigned  to  the  payment  of  the  bonds 

shall  be  paid  monthly  to  the  Commission. 

t  See  Note  3  to  this  document,  post,  p.  311. 

§  For  final  settlement  of  the  question  of  indemnity,  as  embodied  in  the  collective  note 
of  the  Powers,  July  2,  1905,  see  Note  6  to  this  document,  (post,  p.  319). 


282  CHINA  TREATIES  AND  AGREEMENTS 

(e)   The  revenues  assigned  as  security  for  the  bonds  are  the   following: 

1.  The  balance  of  the  revenues  of  the  Imperial  maritime  Customs  after 
payment  of  the  interest  and  amortization  of  preceding  loans  secured  on  these 
revenues,  plus  the  proceeds  of  the  raising  to  five  per  cent  effective  of  the 
present  tariff  on  maritime  imports,  including  articles  until  now  on  the  free  list, 
but  exempting  foreign  rice,  cereals,  and  flour,  gold  and  silver  bullion  and 
coin. 

2.  The  revenues  of  the  native  customs,  administered  in  the  open  ports  by  the 
Imperial  maritime  Customs. 

3.  The  total  revenues  of  the  salt  gabelle,  exclusive  of  the  fraction  previously 
set  aside  for  other  foreign  loans. 

The  raising  of  the  present  tariff  on  imports  to  five  per  cent  effective  is 
agreed  to  on  the  conditions  mentioned  below. 

It  shall  be  put  in  force  two  months  after  the  signing  of  the  present  protocol, 
and  no  exceptions  shall  be  made  except  for  merchandise  shipped  not  more  than 
ten  days  after  the  said  signing. 

1  °.  All  duties  levied  on  imports  "  ad  valorem  "  shall  be  converted  as  far  as 
possible  and  as  soon  as  may  be  into  specific  duties.  This  conversion  shall  be 
made  in  the  following  manner :  The  average  value  of  merchandise  at  the  time 
of  their  landing  during  the  three  years  1897,  1898,  and  1899,  that  is  to  say, 
the  market  price  less  the  amount  of  import  duties  and  incidental  expenses,  shall 
be  taken  as  the  basis  for  the  valuation  of  merchandise.  Pending  the  result  of 
the  work  of  conversion,  duties  shall  be  levied  "ad  valorem." 

2°.  The  beds  of  the  rivers  Peiho  and  Whangpu  shall  be  improved  with  the 
financial  participation  of  China. 

Article  VII. — The  Chinese  Government  has  agreed  that  the  quarter  oc- 
cupied by  the  legations  shall  be  considered  as  one  specially  reserved  for  their 
use  and  placed  under  their  exclusive  control,  in  which  Chinese  shall  not  have 
the  right  to  reside  and  which  may  be  made  defensible. || 

The  limits  of  this  quarter  have  been  fixed  as  follows  on  the  annexed  plan 
(Annex  No.  14)  :  ^ 

On  the  west,  the  line  1,  2,  3,  4,  5. 

On  the  north,  the  line  5,  6,  7,  8,  9,  10. 

On  the  east,  Ketteler  street  (10,  11,  12). 

Drawn  along  the  exterior  base  of  the  Tartar  wall  and  following  the  line 
of  the  bastions,  on  the  south  of  the  line  12,1. 

In  the  protocol  annexed  to  the  letter  of  the  16th  of  January,  1901,  China 
recognized  the  right  of  each  Power  to  maintain  a  permanent  guard  in  the  said 
quarter  for  the  defense  of  its  legation. 

Article  VIII. — The  Chinese  Government  has  consented  to  raze  the  forts 
of  Taku  and  those  which  might  impede  free  communication  between  Peking  and 
the  sea ;  steps  have  been  taken  for  carrying  this  out.* 

Article    IX. — The    Chinese    Government   has   conceded   the    right   to   the 

Powers  in  the  protocol  annexed  to  the  letter  of  the  16th  of  January,  1901.  to 

*  See  Note  5  to  this  document,  post,  p.  316. 
II  See  Note  4  to  this  document,  post.  p.  315. 
it  See  plane-table  survey  facing  p.  298. 


NUMBER  1901/3:  SEPTEMBER  7,  1901  283 

occupy  certain  points,  to  be  determined  by  an  agreement  between  them,  for  the 
maintenance  of  open  communication  between  the  capital  and  the  sea.  The 
points  occupied  by  the  powers  are : 

Huang-tsun,  Lang-fang,  Yang-tsun,  Tientsin,  Chun-hang  Ch'eng,  Tang-ku, 
Lu-tai,  Tang-shan,  Lan-chou,  Chang-h,  Ch'in-wang  tao,  Shan-hai  kuan.f 

Article  X. — The  Chinese  Government  has  agreed  to  post  and  to  have  pub- 
Hshed  during  two  years  in  all  district  cities  the  following  Imperial  edicts : 

(a)  Edict  of  the  1st  of  February  (Annex  No.  15),  prohibiting  forever, 
under  pain  of  death,  membership  in  any  antiforeign  society. 

{b)  Edicts  of  the  13th  and  21st  February,  29th  April,  and  19th  August, 
enumerating  the  punishments  inflicted  on  the  guilty. 

(c)  Edict  of  the  19th  August,  1901,  prohibiting  examinations  in  all  cities 
where  foreigners  were  massacred  or  subjected  to  cruel  treatment. 

(d)  Edict  of  the  1st  of  February,  1901  (Annex  No.  16),  declaring  all 
governors-general,  governors,  and  provincial  or  local  officials  responsible  for 
order  in  their  respective  districts,  and  that  in  case  of  new  antiforeign  troubles 
or  other  infractions  of  the  treaties  which  shall  not  be  immediately  repressed 
and  the  authors  of  which  shall  not  have  been  punished,  these  officials  shall 
be  immediately  dismissed,  without  possibility  of  being  given  new  functions  or 
new  honors. 

The  posting  of  these  edicts  is  being  carried  on  throughout  the  Empire. 

Article  XI. — The  Chinese  Government  has  agreed  to  negotiate  the  amend- 
ments deemed  necessary  by  the  foreign  Governments  to  the  treaties  of  com- 
merce and  navigation  and  the  other  subjects  concerning  commercial  relations,  with 
the  object  of  facilitating  them.lj: 

At  present,  and  as  a  result  of  the  stipulation  contained  in  Article  VI  con- 
cerning the  indemnity,  the  Chinese  Government  agrees  to  assist  in  the  improve- 
ment of  the  courses  of  the  rivers  Peiho  and  Whangpu,  as  stated  below. 

(a)  The  works  for  the  improvement  of  the  navigability  of  the  Peiho,  begun 
in  1898  with  the  cooperation  of  the  Chinese  Government,  have  been  resumed 
under  the  direction  of  an  international  Commission.  As  soon  as  the  administra- 
tion of  Tientsin  shall  have  been  handed  back  to  the  Chinese  Government,  it 
will  be  in  a  position  to  be  represented  on  this  commission,  and  will  pay  each  year 
a  sum  of  sixty  thousand  Haikwan  taels  for  maintaining  the  works. 

(b)  A  conservancy  Board,  charged  with  the  management  and  control  of  the 
works  for  straightening  the  Whangpu  and  the  improvement  of  the  course  of  that 
river,  is  hereby  created. 

This  Board  shall  consist  of  members  representing  the  interests  of  the 
Chinese  Government  and  those  of  foreigners  in  the  shipping  trade  of  Shanghai. 
The  expenses  incurred  for  the  works  and  the  general  management  of  the  under- 
taking are  estimated  at  the  annual  sum  of  four  hundred  and  sixty  thousand 
Haikwan  taels  for  the  first  twenty  years.  This  sum  shall  be  supplied  in  equal 
portions  by  the  Chinese  Government  and  the  foreign  interests  concerned.     De- 

t  See  Note  5  to  this  document,  post,  p.  316. 

i  See  commercial  treaties  concluded  by  Great  Britain,  September  5,  1902  (No.  1902/7, 
post),  the  United  States,  October  8,  1903  (No.  1903/5,  post),  and  Japan,  October  8,  1903 
(No.  1903/4,  post). 


284  CHINA  TREATIES  AND  AGREEMENTS 

tailed  stipulations  concerning  the  composition,  duties,  and  revenues  of  the  con- 
servancy board  are  embodied  in  annex  No.  17. § 

Article  XII. — An  Imperial  Edict  of  the  24th  of  July,  1901  (Annex  No. 
18),  reformed  the  Office  of  foreign  affairs  (Tsungli  Yamen),  on  the  lines  indi- 
cated by  the  Powers,  that  is  to  say,  transformed  it  into  a  Ministry  of  foreign 
affairs  (Wai-wu  Pu),  which  takes  precedence  over  the  six  other  Ministries  of 
State.    The  same  edict  appointed  the  principal  members  of  this  Ministry. 

An  agreement  has  also  been  reached  concerning  the  modification  of  Court 
ceremonial  as  regards  the  reception  of  foreign  Representatives  and  has  been  the 
subject  of  several  notes  from  the  Chinese  Plenipotentiaries,  the  substance  of  which 
is  embodied  in  a  memorandum  herewith  annexed  (Annex  No.  19). 

Finally,  it  is  expressly  understood  that  as  regards  the  declarations  specified 
above  and  the  annexed  documents  originating  with  the  foreign  Plenipotentiaries, 
the  French  text  only  is  authoritative. 

The  Chinese  Government  having  thus  complied  to  the  satisfaction  of  the 
Powers  with  the  conditions  laid  down  in  the  above-mentioned  note  of  Decem- 
ber 22nd,  1900,  the  Powers  have  agreed  to  accede  to  the  wish  of  China  to  termi- 
nate the  situation  created  by  the  disorders  of  the  summer  of  1900.  In  con- 
sequence thereof  the  foreign  Plenipotentiaries  are  authorized  to  declare  in  the 
names  of  their  Governments  that,  with  the  exception  of  the  legation  guards 
mentioned  in  Article  VII,  the  international  troops  will  completely  evacuate  the 
city  of  Peking  on  the  17th  September,  1901,  and,  with  the  exception  of  the 
localities  mentioned  in  Article  IX,  will  withdraw  from  the  province  of  Chihli  on 
the  22d  of  September. 

The  present  final  Protocol  has  been  drawn  up  in  twelve  identic  copies  and 
signed  by  all  the  Plenipotentiaries  of  the  Contracting  Countries.  One  copy  shall 
be  given  to  each  of  the  foreign  Plenipotentiaries,  and  one  copy  shall  be  given  to 
the  Chinese  Plenipotentiaries. 


Peking,  7th  September,  1901. 


A.  V,   MUMM. 

m.  czikann. 

joostens. 

b,  j.  de  cologan. 

w.  w.  rockhill. 

Beau. 

Ernest   Satow. 

Salvago  Raggi. 

Jutaro  Komura. 

F.  M.  Knobel. 

M.    DE   GlERS. 


Signatures 

and 

seals 

of 

Chinese 

plenipotentiaries. 


§  Annex  No.  17  was  replaced  by  the  stipulations  of  the  Huangpu  Conservancy  Agree- 
ment of  September  27,  1905  (No.  1905/10,  post). 


NUMBER  1901/3:  SEPTEMBER  7,  1901:  ANNEXES  285 

[Translation.] 
ANNEXES  TO  THE  FINAL  PROTOCOL. 

No.  1.  Imperial  Edict  of  27  December,  1900. 

2.  Imperial  Edict  of  9  June,  1901. 

3.  Letter  of  the  Chinese  plenipotentiaries  of  22  July,  1901. 

4.  Imperial  Edict  of  13  Feburary,  1901. 

5.  Imperial  Edict  of  13  February,  1901. 

6.  Imperial  Edict  of  21  February,  1901. 

7.  Imperial  Edict  of  13  February,  1901. 

8.  Imperial  Edict  of  19  August,  1901. 

9.  Imperial  Edict  of  18  June,  1901. 

10.  List  of  desecrated  cemeteries. 

11.  Imperial  Edict  of  25  August,  1901. 

12.  Imperial  Edict  of  29  May,  1901. 

13.  Table  of  amortization. 

14.  Plan  of  the  diplomatic  quarter  and  notice. 

15.  Imperial  Edict  of  1st  February,  1901. 

16.  Imperial  Edict  of  1st  February,  1901. 

17.  Regulations  for  the  improvement  of  the  Whangpu. 

18.  Imperial  Edict  of  24  July,  1901. 

19.  Memorandum  concerning  court  ceremonial. 


Annex  No.  1. 

IMPERIAL  EDICT  of  the  27th  December,  1900   (Translation). 

[Seal  of  the  Emperor.] 

The  6th  day  of  the  Uth  moon  of  the  26th  year  of  Kuang-hsti  (27  December, 
1900),  the  following  Edict  was  rendered: 

"  We  have  taken  cognizance  of  the  whole  telegram  of  Yi-K'uang  and  Li 
Hung-chang.     It  is  proper  that  We  accept  in  their  entirety  the  twelve  articles 
which  they  have  submitted  to  us." 
Respect  this ! 

Correct  copy.  A.  d'Anthouard. 

B.  Kroupensky. 
Reginald  Tower. 
G.  Bohlen-Halbach. 


Annex  No.  2. 

IMPERIAL  EDICT  of  the  9th  of  June,  1901   (Translation). 

"  We  confer  on  Tsai  Feng,  Prince  Ch'iin  of  the  first  rank,  the  title  of 
Ambassador  extraordinary,  and  We  direct  him  to  proceed  to  Germany  to 
respectfully  discharge  the  mission  which  We  confide  to  him. 

"  Chang  Yi,  reader  of  the  Grand  Chancellery,  and  Yin   Ch'ang,  military 
Lieutenant-Governor,  shall  accompany  him  as  secretaries. 
"  Respect  this  !  " 

Correct  copy.  A.  d'Anthouard. 

B.  Kroupensky. 
Reginald  Tower. 
G.  Bohlen-Halb.ach. 


286  CHINA  TREATIES  AND  AGREEMENTS 

Annex  No.  3. 

Despatch  of  Prince  Ching  and  of  Li  Hung-chang  of  the  22  July,  1901,  to  His 
Excellency  M.  de  Mumm,  German  Plenipotentiary   {Translation). 

Official  reply. 

On  the  3rd  day  of  the  5th  moon  of  the  present  year  (18th  of  June,  1901), 
We  have  received  from  Your  Excellency  the  following  official  communication: 

"  Messrs.  Jui-liang,  secretary,  and  Lien-fang,  expectant  taotai,  delegates 
entrusted  with  carrying  out  Article  I  of  the  Joint  Note  providing  for  the  erec- 
tion of  a  commemorative  monument  on  the  place  of  the  assassination  of  Baron 
von  Ketteler,  former  Minister  of  Germany,  commenced  some  time  ago  the  dis- 
cussion of  the  subject  with  my  Legation,  and  have  taken  up  the  question  of  the 
plan  of  this  monument. 

"  During  frequent  conversations  they  have  stated  that  if  it  were  necessary 
that  a  commemorative  arch  in  marble,  from  Ta-li  and  extending  the  whole 
width  of  the  avenue  of  Ch'ung-wen-men,  should  be  erected  on  the  spot  of  the 
assassination,  the  work  would  require  a  great  deal  of  time,  in  view  of  the  diffi- 
culty in  transporting  the  materials ;  but  as  to  adopting  some  other  means,  either 
of  transferring  to  the  place  of  the  assassination  an  archway  erected  at  the  present 
time  in  some  other  spot,  or  of  putting  up  a  new  arch,  or  of  using  an  old  archway 
to  be  transported  to  the  place,  they  left  this  to  the  determination  of  my  Govern- 
ment. 

"  I  at  once  telegraphed  my  Government  to  inform  me  of  its  views. 

"  The  reply  which  I  have  just  received  informs  me  that  His  Majesty 
the  Emperor  of  Germany  has  himself  decided  that  a  new  archway  extending 
across  the  whole  width  of  the  street  should  be  put  up. 

"  I  have  consequently  to  urgently  request  you  to  take  immediate  steps, 
so  that  the  work  may  begin  at  once." 

We,  Prince  and  Minister,  have  at  once  directed  the  said  secretary  and 
taotai  to  act  in  conformity.  According  to  the  report  which  they  have  sent  us, 
"  the  work  was  begun  on  the  10th  day  of  the  5th  moon  (25th  of  June)  by  the 
foundations.  But  a  certain  length  of  time  is  necessary  for  getting  out  the  stone, 
cutting  it  and  for  the  transportation  of  materials;  and  the  only  thing  that  can 
be  done  is  to  watch  that  the  workmen  use  their  best  endeavors  to  carry  on 
promptly  the  work." 

Besides  having  directed  that  We  should  be  kept  informed  of  the  execution 
of  the  work.  We  deem  it  necessary  to  send  the  present  official  reply  to  Your 
Excellency,  requesting  you  to  take  note  of  it. 

Correct  copy.  A.  d'Anthouard. 

B,  Kroupensky. 
Reginald  Tower. 
G.  Bohlen-Halbach. 


NUMBER  1901/3:  SEPTEMBER  7,  1901:  ANNEXES  287 

Annex  No.  4. 
IMPERIAL  EDICT  of  the  13th  of  February,  1901  (Translation). 

Since  the  5th  moon  (end  of  May)  the  Boxers  have  created  trouble  in 
the  capital  and  have  begun  hostilities  against  friendly  countries.  Yi-K'ung 
and  Li  Hung-chang  are  negotiating  for  peace  at  Peking  with  Representatives  of 
the  Powers,  and  a  whole  preliminary  arrangement  has  already  been  signed. 

(If)  We  consider  the  commencement  of  these  events,  we  find  that  they  are 
attributable  to  several  stupid  Princes  and  Ministers,  insane,  absolutely  ignorant, 
turbulent,  and  who  have  ignored  the  laws.  They  had  most  absolute  confidence 
in  pernicious  methods  and  have  led  on  the  Court.  Not  only  did  they  refuse  to 
obey  Our  orders  to  exterminate  the  Boxers,  but  they  have  been  so  far  as  to 
believe  in  them,  and,  stupidly,  they  began  to  attack  (the  Legations).  So  it  was 
that  this  evil  fire  spread  abroad,  and  circumstances  did  not  permit  of  its  being 
stopped,  several  tens  of  thousands  of  evil-doers  having  assembled  at  the  elbow 
and  the  armpit  (that  is  to  say,  at  the  most  important  points).  Furthermore, 
the  leaders  forced  generals  and  ignorant  soldiers  to  attack  the  Legations,  and 
so  it  befell  that  inconceivable  evils  persisted  for  several  months. 

The  tutelary  deities  of  the  Empire  have  been  in  danger,  the  Imperial 
tombs  and  the  temples  of  Ancestors  have  trembled,  the  country  has  been 
devastated;  the  inhabitants  are  plunged  in  misery.  No  words  can  express  the 
dangers  which  We  and  H.  M.  the  Empress  Dowager  have  been  exposed  to. 
Our  heart  and  Our  head  are  still  painful;  Our  tears  and  Our  resentment  are 
confounded.  It  is  to  you.  Princes  and  Ministers,  who,  by  believing  in  evil 
words  and  allowing  evil-doers  free  hand,  have  put  in  danger  in  Heaven  our 
Ancestors  and  Our  gods,  and  who  here  below  have  caused  the  people  to  endure 
these  calamities.     Do  you  ask  what  punishments  you  deserve? 

We  have  already  issued  two  decrees.  But,  considering  that  such  light 
punishments  for  such  grievous  faults  could  not  be  sufficient  to  make  you  expiate 
your  crimes,  We  must  impose  upon  you  new  and  more  severe  punishments 
according  to  your  degree  of  guilt. 

TsAi-i  HsiJN,  Prince  Chuang,  already  degraded,  allowed  the  Boxers  to 
attack  the  Legations.  He,  on  his  own  authority,  published  proclamations  con- 
trary to  the  treaties ;  he  lightly  believed  the  statements  of  evil-doers ;  he  unlaw- 
fully caused  to  be  decapitated  a  great  number  of  persons;  he  has  shown  him- 
self, of  a  truth,  vulgar  and  stupid.  We  invite  him,  as  a  favor,  to  commit  suicide. 
We  direct  Ko-pao-hua,  acting  president  of  the  Court  of  Censors,  to  go  and  see 
(that  the  suicide  has  taken  place). 

TsAi-i,  Prince  Tuan,  already  degraded,  led  away  with  him  several  Princes 
and  Peilo  (Princes  of  the  3d  class).  He  foolishly  gave  heed  to  the  Boxers  and 
stupidly  advised  fighting.  So  all  these  troubles  broke  out ;  his  faults,  of  a  truth, 
can  not  be  ignored.  Tsai-lan,  Duke  Fu-kuo,  reduced  in  rank,  in  concert  with 
TsAi-HsiJN,  foolishly  published  proclamations  contrary  to  the  treaties.  He 
should  also  be  punished  for  his  faults.  We  deprive  them  of  their  nobiliary 
titles,  but,  considering  that  they  belong  to  our  family,  we  order,  by  special  act 


288  CHINA  TREATIES  AND  AGREEMENTS 

of  grace,  that  they  be  sent  to  Hsin-chiang  (Hi)  where  they  shall  be  condemned 
to  prison  for  life.     Deputies  shall  be  at  first  sent  to  watch  them. 

Yu-HSiEN,  degraded  governor,  foolishly  believed,  when  formerly  discharg- 
ing the  duties  of  governor  in  Shantung,  in  the  charms  of  the  Boxers.  Arriving 
in  Peking,  he  extolled  them  so  highly  that  several  Princes  and  Ministers  fell 
under  his  evil  influence.  Being  governor  of  Shansi,  he  massacred  a  great 
number  of  missionaries  and  Christians.  He  is  worse  than  an  imbecile,  than  a 
fool,  than  a  murderer;  he  is  the  chief  culprit  and  the  author  of  all  these 
calamities.  He  has  already  been  sent  to  Hsin-chiang,  and,  believing  that  he  has 
arrived  in  Kan-su,  We  order  that,  on  the  receipt  of  the  order  which  We  send, 
he  shall  be  at  once  beheaded.  We  direct  the  Provincial  Judge  Ho  Fu-kun  to 
see  that  the  penalty  is  carried  out. 

Kang-yi,  Assistant  Grand  Secretary  of  State,  President  of  the  Board  of 
Works,  having  lent  his  aid  to  the  Boxers,  serious  disturbances  broke  out.  He 
aided  in  publishing  proclamations  contrary  to  the  treaties.  A  severe  punish- 
ment was  to  have  been  inflicted  on  him  at  first,  but  he  has  died  of  disease.  We 
order  that  the  honors  which  he  previously  held  shall  be  withdrawn  from  him 
and  that  he  be  at  once  degraded. 

Tung  Fu-hsiang,  general  in  Kan-su,  degraded  but  retained  in  office,  entered 
(Peking)  to  defend  (the  city)  with  the  troops  under  his  orders;  he  was  unable 
to  maintain  strict  discipline.  Ignorant,  furthermore,  of  international  questions, 
he  followed  his  ideas  and  acted  in  an  inconsiderate  manner.  Although  the  attacks 
on  the  Legations  were  ordered  him  by  the  above  degraded  Princes,  it  is  never- 
theless difficult  to  absolve  him  of  all  faults.  We  intended  in  the  first  instance  to 
have  punished  him  severely,  but,  considering  the  signal  services  he  has  rendered  in 
Kan-su  and  the  sympathy  felt  for  him  by  Mussulman  and  Chinese,  as  an  act 
of  extraordinary  grace.  We  order  that  he  shall  be  immediately  degraded. 

YiNG-xiEN,  President  of  the  Court  of  Censors,  reduced  in  rank  and  dis- 
placed, opposed  TsAi-HsiJN  publishing  on  his  own  authority  proclamations  con- 
trary to  the  treaties.  We  may  make  due  allowance  for  this  circumstance,  but  as 
he  was  not  able  to  overcome  (this  resistance)  by  force,  it  is,  after  all,  difficult 
to  absolve  him.  We  order,  as  a  mark  of  great  benevolence,  that  he  be  degraded. 
We  condemn  him  to  death,  and  he  shall  await  in  prison  that  his  case  be  passed  on. 

Chao  Shu-chiao,  President  of  the  Board  of  Punishments,  degraded  and 
retained  in  office,  had  never  shown  till  then  any  unfriendly  feeling  in  relations 
with  the  Foreign  Powers.  Having  made  a  report  on  the  Boxers,  he  said 
nothing  in  their  favor,  but  through  his  negligence  faults  were  made.  We  order, 
as  a  special  act  of  grace,  that  he  be  degraded.  We  condemn  him  to  death,  and 
he  will  await  in  prison  that  his  case  be  passed  on. 

We  command  that  Ying-nien  and  Chad  Shu-chiao  be  in  the  first  place 
confined  in  the  prison  of  the  capital  of  Shensi. 

Hsu  Tung,  Grand  Secretary  of  State,  and  Li  Ping-heng,  former  Governor- 
General  of  Sze-chuan,  reduced  in  rank  and  displaced,  died  for  their  country,  but 
everyone  knows  their  faults.  We  order  that  they  be  degraded,  and  We  deprive 
them  of  the  posthumous  honors  which  We  had  conferred  on  them. 

After   the   promulgation   of    this    decree    all    our    friendly    nations    should 


NUMBER  1901/3:  SEPTEMBER  7,  1901:  ANNEXES 


289 


recognize  that  the  events  caused  by  the  Boxers  are  in  truth  only  attributable  to 
the  principal  authors  of  trouble  and  in  no  wise  to  the  wishes  of  the  Court. 

We,  the  Emperor,  not  lightly  punishing  several  of  the  principal  authors  of 
trouble,  the  officials  and  the  people  of  the  Empire  will  understand  at  once  that 
the  consequences  of  such  acts  are  most  serious. 
Respect  this ! 

Correct  copy.  A.  d'Anthouard. 

B.  Kroupensky. 
Reginald  Tower. 
G.  Bohlen-Halbach. 


Annex  No.  5. 


IMPERIAL  EDICT  of  the  13  February,  1901      {Translation.) 

Ch'i-hsiu,  president  of  the  Board  of  Rites,  and  Hsu  Cheng-yu,  formerly 
senior  Vice-President  of  the  Board  of  Punishments,  are  in  the  first  place  to  be 
degraded. 

We  order  Yi  K'uang  and  Li  Hung-chang  to  obtain  exact  proof  of  their 
guilt  and  to  send  Us  at  once  a  report.  They  shall  be  punished  with  the  greatest 
severity. 

Respect  this !  , 

Correct  copy.  A.  d'Anthouard. 

B.  Kroupensky. 
Reginald  Tower. 
G.  Bohlen-Halbach. 


Annex  No.  6. 
IMPERIAL  EDICT  of  the  21  February,  1901  (Translation.) 

Edict  published  and  sent  telegraphically  the  3rd  day  of  the  1st  moon  (21 
February,  1901),  and  received  on  the  4th  by  the  Grand  Chancellery. 

"  By  a  former  Edict  We  had  already  severely  punished,  according  to  the 
several  cases,  all  the  high  officials,  the  principal  authors  of  the  present  misfor- 
tunes. But  We  received  some  time  ago  a  telegraphic  report  from  Yi-K'uang  and 
Li  Hung-chang  telling  Us  that,  according  to  an  official  despatch  from  the  Minis- 
ters Plenipotentiary  of  the  various  Powers,  new  and  severer  punishments  were 
necessary,  and  begging  Us  to  take  action. 

"  Besides  Tsai-hsun,  who  has  been  ordered  to  commit  suicide,  and  Yu- 
hsien,  against  whom  has  been  pronounced  the  penalty  of  immediate  decapitation, 
and  for  each  of  whom  deputies  have  been  ordered  to  go  see  that  (the  sentences 
have  been  carried  out).  We  decide  that  the  penalty  to  be  inflicted  on  Tsai-yi 
(Prince  Tuan)  and  Tsai-lan  (Duke  Lan)  is  decapitation  with  reprieve;  neverthe- 
less, in  view  of  the  relationship  in  which  they  stand  to  Us,  We  show  them  the 


290  CHINA  TREATIES  AND  AGREEMENTS 

Special  act  of  grace  of  sending  them  to  the  frontier  of  the  Empire,  in  Turkestan, 
where  they  shall  be  imprisoned  for  life.  A  deputy  to  take  them  under  escort  shall 
be  designated,  and  shall  leave  at  once. 

"  As  to  Kang-yi,  whose  crimes  were  greater,  the  penalty  should  have  been 
immediate  decapitation,  but  as  he  has  already  died  of  disease,  as  an  act  of  grace, 
he  shall  be  spared  further  inquiry  into  his  case. 

"  As  regards  Ying-nien  and  Chad  Shu-chiao,  whose  punishments,  accord- 
ing to  Our  former  decisions,  were  to  have  been  decapitation  with  reprieve,  We 
command  that  they  be  requested  to  commit  suicide,  and  We  direct  Ch'en  Ch'un- 
huan,  Governor  of  Shan-si,  to  go  and  verify  (their  deaths). 

"  As  to  Ch'i-hsiu  and  Hsu  Cheng-yu,  whom  the  Powers  designate  as  the 
most  ardent  protectors  of  the  Boxer  bandits,  and  as  having  most  particularly 
done  harm  to  foreigners.  We  had  previously  ordered  their  degradation;  We 
(now)  order  Yi-K'uang  and  Li  Hung-chang  to  ask  the  Powers,  by  despatch,  for 
their  surrender,  and  to  have  them  executed  at  once.  One  of  the  Presidents  of 
the  Board  of  Punishments  shall  be  directed  to  verify  (their  execution). 

"  As  to  Hsu  Tung,  who  compromised  the  great  general  interests  by  putting 
his  confidence  in  the  Boxers,  and  Li  Ping-heng,  whose  bragging  ways  directly 
brought  about  these  misfortunes,  the  punishment  which  should  have  been  theirs 
was  decapitation  with  reprieve;  but  taking  into  consideration  the  fact  that  they 
committed  suicide  when  they  saw  the  disaster  coming,  and  that  they  have  already 
been  degraded,  and  that  the  posthumous  honors  which  had  been  granted  them 
have  been  annulled  and  withdrawn,  it  is  needless  to  take  up  their  cases. 

"  The  nature  of  the  crimes  committed  by  all  the  principal  authors  of  the 
wrong  has  been  set  forth  in  a  clear  and  detailed  way  in  previous  decrees. 

Respect  this ! 

Correct  copy.  A.  d'Anthouard. 

B.  Kroupensky. 
Reginald  Tower. 
G.  Bohlen-Halbach. 


Annex  No.  7. 
IMPERIAL  EDICT  of  the  13th  February,  1901    {Translation). 

The  trouble  brought  about  by  the  Boxers  during  the  5th  moon  (May- 
June)  having  spread  from  day  to  day,  the  Court  had  two  difficult  methods  to 
adopt — to  take  coercitive  measures  or  to  pacify  them.  In  the  hope  that  a  line  of 
conduct  would  be  shown  Us  the  Ministers  were  several  times  called  in  audience. 

We  have  repeatedly  questioned  Hsu  Yung-Yi,  President  of  the  Board  of 
War,  Li-shan,  President  of  the  Board  of  Finance,  Hsu  Ching-cheng,  senior 
vice-President  of  the  Board  of  Works,  Lien-Yuan,  vice  Chancellor  of  the  Grand 
Council,  Yuan-chang,  vice-President  of  the  Court  of  Sacrificial  Worship. 

In  their  speech  and  in  their  mind  all  admitted  that  the  two  methods  were 
possible.     Several  Ministers,  instigators  of  trouble,  availing  themselves  of  this 


NUMBER  1901/3:  SEPTEMBER  7,  1901:  ANNEXES  291 

fact,  unjustly  accused  them,  handed  in  memorials  in  which  they  denounced  them. 
So  it  came  about  that  they  were  severely  punished  in  their  persons. 

But  considering  that  Hsii  Yung-yi  and  the  others  showed  great  zeal  for 
many  years  and  have  always  had  charge  of  international  questions,  that  they 
may  have  been  faithful,  and  that  they  had  shown  themselves  industrious,  We 
should  grant  them  a  favor. 

We  command  that   Li-shan,   Hsu  Yung-yi,   Hsii   Ching-cheng,   Lien- 
Yuan,  and  YuAN-CHANG  be  restored  to  their  former  honors. 
Let  the  ministry  concerned  be  informed. 
Respect  this ! 

Correct  copy.  A.  d'Anthouard. 

B.  Kroupensky. 
Reginald  Tov^er. 
G.  Bohlen-Halbach. 


Annex  No.  8. 
IMPERIAL  EDICT  of  the  19th  August,  1901   {Translation). 

Edict  received  by  the  Grand  Chancellery  the  6th  day  of  the  7th  moon  of 
the  27th  year  of  Kuang-hsii   (19  August,  1901). 

"  Considering  the  report  of  this  day  by  which  Yi-K'uang  and  Li  Hung- 
chang  inform  Us  that  the  foreign  Powers  have  decided  on  the  suspension  during 
five  years  of  civil  and  military  examinations  in  the  localities  where  troubles  have 
taken  place ; 

"  Considering  that  it  is  declared  that  this  suspension  shall  remain  applicable 
to  the  local  examinations  for  licentiates  of  Shun-t'ien  and  of  T'ai-yuan; 

"  Considering  the  list  comprising  the  localities  of — 

"  Province  of  Shan-si :  T'ai-yuan  Fu,  Hsin-chou,  Tai-ku  Hsien,  Ta-t'ung 
Fu,  Fen-chou  Fu,  Hsiao-i  Hsien,  Ch'u-wo  Hsien,  Ta-ning  Hsien,  Ho-ching 
Hsien,  Yueh-yang  Hsien,  So-p'ing  Fu,  Wen-shui  Hsien,  Shuo-yang  Hsien, 
P'ing-yang  Fu,  Ch'ang-tzu  Hsien,  Kao-p'ing  Hsien,  Tse-chou  Fu,  Hsi  Chou, 
P'u  Hsien,  Chiang-chou,  Kuei-hua  Ch'eng,  Sui-yuan  ch'eng; 

"  Province  of  Ho-nan :  Nan-yang  Fu,  Kuang-chou; 

"  Province  of  Che-chiang :  Ch'iJ-chou  Fu ; 

"  Province  of  Chih-li :  Pei-ching,  Shun-t'ien  Fu,  Pao-ting  Fu,  Yung-ching 
Hsien,  T'ien-ching  Fu,  Shun-te  Fu,  Wang-tu  Hsien,  Huai-lu  Hsien,  Hsin-ngan 
Hsien,  T'ung-chou,  Wu-i  Hsien,  Ching-chou,  Luan-ping  Hsien ; 

"Three  provinces  of  Manchuria:  Sheng-ching  (—Mukden),  Chia-tzii- 
ch'ang,  Lien-shan,  Yu-ch'ing-chieh,  Pei-lin-tzii,  Hu-lan  Ch'eng; 

"  Province  of  Shen-si :  Ning-chiang  Chou  ; 

"  Province  of  Hu-nan :  Heng-chou  Fu ; 

"  We  command  that  in  all  these  localities  civil  and  military  examinations 
shall  be  suspended  during  a  period  of  five  years,  and  We  order  all  governors- 


292  CHINA  TREATIES  AND  AGREEMENTS 

general,  governors,  and  examiners  of  the  aforesaid  provinces  to  act  in  con- 
iormity  and  to  publish  proclamations. 
"  Respect  this  !  " 

Correct  copy.  A.  d'Anthouard. 

B,  Kroupensky, 
Reginald  Tower. 
G.  Bohlen-Halbach. 


Annex  No.  9. 

IMPERIAL  EDICT  of  18th  of  June,  1901  {Translation). 

Edict  received  by  telegraph  from  Hsi-an-Fu  the  3d  day  of  the  5tl.  moon 
(18th  of  June,  1901): 

We  confer  on  Na-tung,  second  Vice-President  of  the  Board  of  Finances, 
the  official  button  of  the  first  rank,  and  we  designate  him  as  special  Envoy  to  go 
to  Japan  and  to  there  respectfully  discharge  the  mission  We  entrust  to  him. 
Respect  this! 

Correct  copy.  A.  d'Anthouard. 

B.  Kroupensky. 
Reginald  Tower. 
G.  Bohlen-Halbach. 


Annex  No.  10. 


List  of  cemeteries  situated  in  the  neighborhood  of  Peking  and  zvhich  have  been 

desecrated. 

British  cemetery One 

French  cemeteries Five 

Russian  cemetery One 

Total Seven 

Correct  copy.  A.  d'Anthouard. 

B.  Kroupensky. 
Reginald  Tower. 
G.  Bohlen-Halbach. 


Annex  No.  11. 

IMPERIAL  EDICT  of  the  25th  of  August,  1901    {Translation). 

We  command  all  Tartar  Generals,  Governors  general,  and  Governors  of 
provinces,  as  well  as  the  Customs  taotais,  to  forbid,  in  the  first  place  for  a  period 


NUMBER  1901/3:  SEPTEMBER  7,  1901:  ANNEXES  293 

of  two  years,  the  importation  of  implements  of  war  as  well  as  of  material  serving 
exclusively  in  their  manufacture  and  of  foreign  origin. 
Inform  the  ministry  concerned. 
Respect  this ! 

Correct  copy.  A.  d'Anthouard. 

B.  Kroupensky. 
Reginald  Tower. 
G.  Bohlen-Halbach. 


Annex  No.  12. 


Despatch  of  Prince  Ch'ing  and  Li  Hung-chang  to  M.  de  Cologan,  Minister  of 
Spain,  Doyen  of  the  Diplomatic  Body  {29  May,  1901)   (Translation). 

The  12th  day  of  the  4th  moon  of  the  27th  year  of  Kuang-hsu  (29th  May, 
1901). 

Official  Reply. 

The  7th  day  of  the  4th  moon  of  the  present  year  (24  May,  1901),  we  re- 
ceived from  Your  Excellency  the  following  official  despatch : 

"  I  have  the  honor  to  acknowledge  to  Your  Highness  and  Your  Excellency 
receipt  of  the  letter  which  you  were  pleased  to  send  me  in  reply  to  my  com- 
munication dated  May  7th  concerning  the  indemnities.  In  the  letter  to  which 
Your  Highness  and  Your  Excellency  have  just  replied  we  informed  you  that 
the  approximate  figure  of  the  expenses  incurred  and  of  the  losses  sustained  by 
the  Powers  amounted  to  the  sum  of  450  millions  of  taels,  calculated  to  the  1st 
of  July  of  the  current  year. 

"  In  reply  to  this  communication  Your  Highness  and  Your  Excellency  have 
informed  me  that  the  Chinese  Government  proposed  to  pay  off  this  sum  to  the 
powers  by  monthly  payments  of  1,250,000  taels  during  30  years. 

"  The  Representatives  of  the  Powers  have  not  failed  to  transmit  this  pro- 
posal to  their  Governments.  But  they  must  call  the  attenion  of  Your  Highness 
and  Your  Excellency  to  the  fact  that  the  total  of  the  payments  proposed  by  the 
Chinese  Government  only  represents  the  capital  of  the  sum  mentioned,  without 
the  question  of  interest  having  been  taken  account  of. 

"  I  consquently  beg  Your  Highness  and  Your  Excellency  to  be  so  kind  as  to 
inform  us  as  soon  as  possible  of  the  intention  of  the  Chinese  Government  in  this 
respect." 

In  considering  in  a  previous  despatch  the  question  of  indemnities,  we  ex- 
plained to  your  Excellency  the  penury  of  the  Chinese  treasury. 

In  your  last  communication  Your  Excellency  is  pleased  to  call  our  attention 
to  the  fact  that  the  annual  payments  of  fifteen  millions  of  taels  which  we  pro- 
posed only  represent  the  capital,  and  you  now  call  our  attention  to  the  question 
of  interest. 

As  we,  on  our  side,  had  already  considered  that  besides  the  capital  there  also 
had  to  be  taken  into  consideration  the  question  of  annual  interest  at  4  per  cent, 
we  had  already,  by  telegram,  submitted  to  the  Throne  proposals  on  this  subject, 


294 


CHINA  TREATIES  AND  AGREEMENTS 


and  in  reply  we  have  received  an  Imperial  Edict,  stating  that  "  the  figure  of 
four  hundred  and  fifty  millions  of  indemnities  to  be  paid  the  Powers,  with  inter- 
est at  4  per  cent,  is  approved,"  and  we  are  commanded  to  take  the  necessary 
measures  to  carry  out  this  decision. 

We  have,  therefore,  only  to  comply  with  the  orders  of  the  Throne. 

Nevertheless  this  obliges  us  to  recall  to  Your  Excellency  that  the  financial 
resources  of  China  are  so  restricted  that  nothing  more  can  be  taken  from  them 
possibly  beyond  the  fifteen  millions  of  taels  which  we  have  already  proposed  to 
Your  Excellency  to  devote  specially  to  the  payment  of  indemnities,  but  as  this 
sum  must  not  only  furnish  payment  of  the  capital,  but  also  that  of  interest,  we 
have  no  other  alternative  to  propose  than  to  prolong  the  terms  of  payments, 
which  we  had  in  the  first  place  fixed  at  30  years,  in  such  a  way  that  the  instal- 
ments paid  during  the  first  period  of  this  term  thus  extended  shall  be  considered 
as  destined  to  extinguish  the  capital,  while  those  made  during  the  second  period 
shall  be  applied  to  liquidating  the  interest  account,  after  which  all  payments 
would  cease  through  the  extinction  of  the  debt.  The  Imperial  Maritime  Cus- 
toms, already  entrusted  as  we  suggested,  with  the  payments  of  the  capital, 
would  likewise  be  entrusted  with  the  payments  on  account  of  interest.  As  to  the 
amount  of  the  annual  interest,  it  would  be  understood  that  it  would  decrease 
proportionately  every  year,  according  to  the  progressive  reduction  of  the  capital. 

We  have  the  honor  to  request  Your  Excellency  to  kindly  inform  us  what 
you  think  of  the  plan  we  suggest  above  to  pay  off  both  capital  and  interest,  or 
if  in  your  opinion  it  would  not  be  better  to  consider  a  portion  of  the  fifteen  mil- 
lions paid  annually  as  an  instalment  on  the  capital  to  be  paid  off,  and  the  balance 
as  an  instalment  on  the  interest.  These  details  require  a  careful  examination, 
and  demand  a  previous  and  full  understanding  between  the  parties.  || 

China  having  thus  shown  its  good  will  in  assenting  to  the  demands  of  the 
Powers  on  the  question  of  the  indemnity,  and  in  taking  all  the  necessary  steps 
to  insure  an  integral  payment  of  it,  we  hope  to  have  soon  the  satisfaction  of 
learning  that  the  Powers  are  in  a  position  to  fix  an  early  date  for  the  evacuation. 

We  have  the  honor  to  request  Your  Excellency  to  kindly  communicate  the 
above  to  the  Representatives  of  the  Powers. 

Correct  copy. 

A.  d'Anthouard. 

B.  Kroupensky. 
Reginald  Tower. 

G.  Bohlen-Halbach. 

II  See  Note  6  to  this  document,  post,  p.  319. 


296 


CHINA  TREATIES  AND  AGREEMENTS 


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NUMBER  1901/3:  SEPTEMBER  7,  1901:  ANNEXES 


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298  CHINA  TREATIES  AND  AGREEMENTS 

Annex  No.  14. 
Description  of  the  boundaries  of  the  Legation  quarter  at  Peking.^ 

Point  1  is  situated  on  the  south  wall  of  the  Tartar  City  an  hundred  feet  to 
the  east  of  the  east  side  of  the  superstructure  of  the  Ch'ien  Men.  From  this 
point  the  boundary  runs  for  a  distance  of  two  hundred  and  sixteen  feet,  fol- 
lowing a  line  nearly  due  north,  as  far  as 

Point  2,  southeast  corner  of  the  balustrade  in  white  stone  which  encloses 
the  open  paved  space  before  the  principal  entrance  of  the  Imperial  City. 

From  this  point  the  boundary  runs  for  a  length  of  three  hundred  and  ten 
feet  along  the  east  side  of  this  balustrade,  nearly  directly  north  until 

Point  3,  situated  on  the  north  side  of  the  road  which  forms  a  continua- 
tion of  Legation  street,  and  is  at  the  intersection  of  the  boundary  line  coming 
from  2  and  of  a  line  drawn  along  the  continuation  of  the  north  side  of  the 
Legation  street. 

From  this  point  the  line  runs  for  a  length  of  six  hundred  and  forty-one 
feet  and  a  half  (measured  around  and  in  the  angles  of  the  wall)  along  the 
north  side  of  Legation  street  as  far  as 

Point  4,  at  one  hundred  and  forty-six  to  the  west  of  the  corner  (south- 
west) of  Gaselee  road,  measured  along  the  north  of  Legation  street. 

From  this  point  the  boundary  runs  for  a  length  of  two  thousand  one  hun- 
dred and  fifty-two  feet  (measured  around  and  in  the  angles  of  the  buildings) 
in  a  general  northerly  direction,  but  following  the  line  of  the  buildings  now 
existing  and,  in  the  open  spaces  between  the  buildings,  a  line  parallel  to  the 
general  line  of  the  buildings  on  the  left  side  of  Gaselee  road  and  at  one  hundred 
and  fifty-seven  feet  on  the  west  side  of  the  west  side  of  the  gate  which  leads 
from  Gaselee  road  to  the  exterior  court  of  the  Imperial  City,  as  far  as 

Point  5,  on  the  south  side  of  the  south  wall  of  the  interior  court  of  the 
Imperial  City,  and  at  one  hundred  and  fifty-seven  feet  from  the  west  side  of 
the  gate  at  the  end  of  Gaselee  road. 

From  this  point  the  line  runs  for  a  distance  of  one  thousand  two  hundred 
and  eighty-eight  feet  nearly  directly  toward  the  east,  along  the  wall  as  far  as 

Point  6,  southeast  corner  of  the  exterior  court  of  the  Imperial  City. 

From  there  the  line  runs  nearly  directly  north  along  the  wall  for  a  distance 
of  two  hundred  and  eighteen  feet  measured  in  a  straight  line  to 

Point  7,  northeast  corner  of  the  exterior  court. 

From  there  the  line  runs  nearly  due  east  for  a  distance  of  six  hundred  and 
eighty-one  feet  to 

Point  8,  southeast  corner  of  the  wall  of  the  Imperial  City. 

From  there  the  boundary  runs  nearly  due  north  for  a  distance  of  sixty-five 
feet  along  the  wall  to 

Point  9,  at  sixty-five  feet  from  the  southeast  corner  of  the  wall  of  the 
Imperial  City. 

H  See  Plane-table  Survey,  opposite. 


PEKING  LEGA 


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NUMBER  1901/3 :  SEPTEMBER  7,  1901 :  ANNEXES  299 

From  there  the  boundary  runs  direct  due  east  for  a  distance  of  three 
thousand  and  ten  feet  to 

Point  10,  on  the  west  side  of  Ketteler  Strasse  and  at  three  hundred  feet 
from  the  angle  of  intersection  of  Ketteler  Strasse  and  the  Viale  Italia. 

From  this  point  the  boundary  runs  nearly  due  south  along  the  west  side 
of  Ketteler  Strasse  to 

Point  11,  northwest  corner  of  the  archway  of  the  Hatamen,  on  the  south 
wall  of  the  Tartar  City. 

From  there  the  boundary  runs  along  the  wall  and  includes  the  west  ramp  of 
the  Hatamen  to 

Point  12,  on  the  wall  at  one  hundred  feet  to  the  west  of  the  superstructure 
of  the  Hatamen. 

From  Point  12,  the  boundary  follows  the  south  side  of  the  wall,  as  shown 
in  the  plan,  including  in  it  the  bastions  and  joins  1. 

The  points  of  the  plan  which  have  been  fixed  are  the  following: 

A.  Point  at  one  hundred  and  seven  feet  from  the  superstructure  of  the 
Chien-Men,  measured  to  the  east  along  the  north  side  of  the  crest  of  the  wall 
of  the  Tartar  City. 

B.  Point  on  the  top  of  the  north  edge  of  the  wall  of  the  Tartar  City, 
exactly  above  the  middle  of  the  canal  for  the  drainage  of  water. 

C.  Northwest  corner  of  the  superstructure  of  the  Hatamen. 
Correct  copy.  A.  d'Anthouard. 

B.  Kroupensky, 
Reginald  Tower. 
G.  Bohlen-Halbach. 


Annex  No.  15. 
IMPERIAL  EDICT  of  February  1,  1901. 

In  all  the  provinces  bandits  called  for  followers  and  established  antiforeign 
societies.  Various  edicts  were  issued  formally  forbidding  this.  We  repeated 
this  many  times,  but,  nevertheless,  in  late  years  there  have  been  in  all  the  Shan- 
tung districts  sects  under  the  name  of  Ta-tao-huei  (Great  Knives  Society)  and 
I-ho-chuan  (Boxers),  which  spread  everywhere,  with  the  object  of  willful 
murder  and  theft.  Little  by  little  they  reached  the  Chi-li  territory  and  suddenly 
entered  the  capital,  where  they  set  fire  to  the  foreign  establishments  and  attacked 
the  Legations.  Crimes  were  also  committed  against  neighboring  countries  and 
offenses  against  the  general  interest.  For  not  having  assured  protection  we 
have  incurred  heavy  responsibilities. 

You  people  who  in  ordinary  times  nourish  yourselves  and  live  from  the 
products  of  this  land,  and  who  have  all  been  loaded  with  the  Empire's  favors 
— you  have,  however,  dared  to  incite  these  bandits  with  the  desire  to  fight,  to 
teach  methods  for  casting  spells,  and  to  devote  themselves  to  false  practices. 
You  have  rashly  resisted  your  officials,  whom  you  have  massacred ;  you  have 


300  CHINA  TREATIES  AND  AGREEMENTS 

assassinated  foreigners,  and  then  you  have  been  the  cause  of  unprecedented 
calamities,  which  above  all  else  have  plunged  your  Sovereign  and  your  fathers 
in  grief. 

We  can  not  think  of  what  has  been  done  without  feeling  a  still  deeper 
resentment.  We  have  already  formally  ordered  the  Commanders  in  chief  of  all 
the  regions  to  use  their  most  strenuous  efforts  to  destroy  these  societies.  It  is 
incumbent  that  the  root  of  the  evil  be  suppressed,  and  the  Princes  and  Ministers 
who  have  lent  their  support  to  the  Boxers  shall  suffer  the  heaviest  penalties 
according  to  their  crimes,  and  in  order  to  inspire  fear,  all  civil  and  military 
examinations  shall  be  suspended  during  five  years  in  all  cities  where  foreigners 
were  massacred  or  suffered  cruel  treatment. 

Fearing  lest  the  ignorant  rural  populations  may  not  hear  (of  these  punish- 
ments), new  and  severe  prohibitions  shall  be  specially  made  in  order  to  avoid 
the  execution  of  people  who  have  not  been  notified. 

You,  soldiers  and  people,  should  know  that  it  is  formally  forbidden  by  law 
to  organize  or  belong  to  secret  societies.  Our  ancestors  have  never  shown  the 
slightest  indulgence  in  the  repression  of  societies  of  malefactors. 

Moreover,  the  foreign  Powers  are  all  friendly  countries,  the  Christians  are 
children  of  our  blood  w'hom  the  Court  regards  with  a  same  kindness,  and  It 
could  not  allow  different  sentiments  to  be  displayed  towards  them.  All  Chinese, 
whether  Christians  or  not,  who  may  be  illtreated,  should  complain  to  the 
authorities  and  wait  until  a  fair  and  equitable  judgment  is  rendered.  How  can 
you  lightly  believe  all  the  rumors  which  have  been  spread?  How  can  you  dis- 
regard the  penal  laws? 

Then,  when  all  is  lost,  the  clever  ones  save  themselves  by  flight  and  the 
innocent  are  put  to  death.  The  law  is  slow  to  pardon,  and  all  that  has  hap- 
pened is  really  very  regrettable.  From  the  publication  of  this  present  edict, 
each  one  must  reform  and  repent  him  of  the  teaching  he  has  received. 

If  hardened  and  incorrigible  malefactors  should  again  secretly  organize 
antiforeign  societies,  they  shall  be  punished  by  death,  as  well  as  those  belonging 
to  these  societies.     They  shall  not  be  shown  the  slightest  mercy. 

The  Tartar  Generals,  Governors-general,  Governors,  and  High  provincial 
Authorities  whose  duty  it  is  to  direct  the  population,  should  give  explicit  instruc- 
tions to  their  subordinates  to  publish  severe  proclamations  and  to  have  the 
present  edict  printed  on  yellow  paper,  which  shall  be  posted  in  all  parts  of 
the  Empire.  It  is  important  that  all  families  be  notified,  and  urged  to  good 
conduct,  and  that  all  be  informed  that  the  will  of  the  Court  is  that  everyone 
should  thoroughly  understand  that  punishments  will  be  meted  out,  in  order 
to  avoid  the  necessity  of  inflicting  other  punishments. 

Let  this  edict  be  made  known  to  all  in  the  Empire. 

Respect  this ! 

Correct  copy.  A.  d'Anthouard. 

B.  Kroupensky. 
Reginald  Tower. 
G.  Bohlen-Halbach. 


NUMBER  1901/3:  SEPTEMBER  7,  1901:  ANNEXES  301 


Annex  No.  16. 
IMPERIAL  EDICT  of  December  24,  1901  (Translation). 

It  has  been  stipulated  in  the  treaties  concluded  between  China  and  the 
Foreign  Powers  that  the  citizens  of  these  Powers  shall  be  allowed  to  penetrate 
into  the  interior. 

The  Court,  in  order  to  assure  and  maintain  relations  with  other  countries, 
has  already  published  decrees  ordering  that  most  sincere  efforts  be  made  in 
the  provinces  to  assure  protection.  Nevertheless,  the  local  authorities  having 
gradually  grown  lax  (in  the  exercise  of  their  duties),  malefactors  have  caused 
trouble,  and  attacks  have  been  directed  against  foreigners.  Similar  incidents 
have  repeatedly  occurred. 

We  realize  that  our  ability  was  too  limited  to  reform  the  ignorant  people, 
and  consequently  we  have  made  very  grievous  mistakes.  In  ordinary  times,  not 
one  of  the  local  officials  has  been  able  to  make  understood  European  affairs, 
and  none  have  comprehended  the  importance  of  foreign  relations.  Consequently 
the  conflagration  spread  everywhere,  threatening  the  Empire,  and,  if  they  reflect, 
they  will  find  they  have  cause  for  uneasiness. 

Henceforth  each  one  of  you  must  strive  to  overcome  his  resentment  and 
to  lay  aside  his  prejudices.  You  should  know  that  the  maintenance  of  friendly 
relations  with  foreign  countries  has  in  all  times  been  a  fundamental  law. 
People  coming  to  China  from  afar,  whether  as  merchants  to  exchange  their 
products,  or  as  travelers  to  increase  their  scientific  knowledge,  or  yet  as  mis- 
sionaries to  preach  religion  with  the  object  of  exhorting  the  people  to  do  good, 
have  crossed  mountains  and  seas  at  the  risk  of  great  fatigue. 

Since  China  passes  for  a  civilized  country,  it  should  practice  the  duties 
of  a  host  toward  its  guests.  Moreover,  the  Chinese  whp  have  gone  abroad  in 
recent  years  number  at  least  several  hundreds  of  thousands.  The  safety  of 
their  persons  and  property  depends  upon  the  guaranty  assured  them  by  the 
Powers,  who  have  given  them  their  protection.  How  could  we  continue  to 
treat  their  citizens  differently? 

We  again  command  all  the  responsible  High  civil  and  military  Authorities 
of  all  the  provinces  to  order  their  subordinates  to  protect,  in  the  most  efficacious 
manner,  the  agents  and  nationals  of  the  foreign  Powers  who  may  enter  within 
their  districts.  In  case  daring  malefactors  should  urge  to  illtreat  and  massacre 
foreigners,  order  must  be  restored  immediately  and  the  guilty  parties  arrested 
and  punished  without  delay.  No  delay  should  occur.  If,  owing  to  Indifference, 
or  rather  of  voluntary  tolerance,  great  calamities  take  place,  or  if  treaties  should 
be  violated  and  no  immediate  steps  taken  to  make  reparation  or  inflict  punish- 
ment, the  Governors-general,  Governors,  and  the  provincial  or  local  Officials 
responsible  will  be  removed  and  shall  not  be  reappointed  to  other  offices  in  other 
provinces,  or  hope  to  be  reinstated  or  receive  any  further  honors. 


302  CHINA  TREATIES  AND  AGREEMENTS 

The  present  decree  must  be  printed  and  published  to   warn  the   officials 
and  put  an  end  to  all  shameful  customs. 
Respect  this ! 
Correct  copy.  A.  d'Anthouard, 

B.  Kroupensky. 

Reginald  Tower. 

G.  Bohlen-Halbach. 


Annex  No.  17. 
Regulations  for  the  improvement  of  the  course  of  the  IVhangpu* 

I.  A  River  Conservancy  Board  is  established  at  Shanghai  for  the  Whangpu 
river. 

II.  The  Board  shall  have  the  twofold  duty  of  acting  as  agent  for  the 
straightening  and  improvement  of  the  river,  and  as  controlling  agent. 

III.  The  jurisdiction  of  the  Board  shall  extend  from  a  line  drawn  from 
the  lower  limit  of  the  Kiang-nan  Arsenal  towards  the  mouth  of  Arsenal  Creek, 
to  the  red  buoy  in  the  Yangtze. 

IV.  The  Board  shall  consist  of:  (a)  The  Taotai ;  (b)  the  Commissioner  of 
Customs;  (c)  two  members  elected  by  the  Consular  Body;  (d)  two  members 
of  the  General  Chamber  of  Commerce  of  Shanghai,  elected  by  the  committee 
of  the  said  Chamber;  (e)  two  members  representing  shipping  interests,  elected 
by  shipping  companies,  commercial  firms,  and  the  merchants  the  total  of  whose 
entrances  and  clearances  at  Shanghai,  Woosung,  and  other  ports  on  the 
Whangpu  exceeds  50,000  tons  per  annum ;  (/)  a  member  of  the  municipal 
Council  of  the  International  Settlement ;  (g)  a  member  of  the  municipal 
Council  of  the  French  Concession,  and  (h)  a  representative  of  each  country 
the  total  tonnage  of  whose  ships  entering  and  clearing  at  Shanghai  and  any 
other  port  of  the  Whangpu  exceeds  two  hundred  thousand  tons  a  year. 

V.  The  ex  officio  members  shall  hold  office  as  long  as  they  fill  the  position 
by  virtue  of  which  they  sit  on  the  Board. 

VI.  The  representatives  of  the  muncipal  Councils  and  of  the  Chamber  of 
Commerce  shall  be  elected  for  a  period  of  one  year.  They  may  be  immediately 
reelected. 

The  term  of  office  of  the  members  to  be  designated  by  the  Governments 
(provided  under  paragraph  h)  shall  also  be  one  year. 

The  term  of  the  other  members  is  for  three  years.  They  may  be  immedi- 
ately reelected. 

VII.  In  case  of  a  vacancy  during  a  term,  the  successor  of  the  out-going 
member  shall  be  designated  for  one  year  or  for  three  years,  according  to  the 
class  to  which  he  belongs. 

VIII.  The    Board    shall    elect    its    Chairman    and    Vice-Chairman    from 

*  These  Regulations  have  been   replaced  by  the   Huangpu   Conservancy   Agreement  of 
September  27,  1905  (No.  1905/10,  post). 


NUMBER  1901/3:  SEPTEMBER  7,  1901:  ANNEXES  303 

amongst  its  members  for  a  term  of  one  year.  If  there  is  no  majority  at  the 
election  of  Chairman,  the  Senior  Consul  shall  be  requested  to  give  a  casting 
vote. 

IX.  In  case  of  the  absence  of  the  Chairman  the  Vice-Chairman  shall  take 
his  place.  If  both  of  them  are  absent  the  members  shall  choose  amongst  them- 
selves a  President  for  the  occasion. 

X.  In  all  meetings  of  the  Board,  if  votes  are  equally  divided,  the  Chair- 
man shall  have  a  casting  vote. 

XI.  Four  members  form  a  quorum. 

XII.  The  Board  shall  appoint  the  officials  and  employees  deemed  neces- 
sary for  carrying  out  the  works  and  enforcing  its  regulations ;  it  shall  fix  their 
salaries,  wages,  and  gratuities,  and  shall  pay  them  out  of  the  funds  placed  at 
its  disposal,  and  it  may  make  regulations  and  take  every  measure  necessary 
concerning  its  staff,  which  it  can  dismiss  at  pleasure. 

XIII.  The  Board  shall  decide  on  the  necessary  steps  for  the  regulation 
of  traffic,  including  the  placing  of  moorings  in  the  river  and  the  berthing  61 
vessels  within  the  limits  indicated  in  Article  III,  and  on  all  water  courses 
(such  as  the  Soochow  Creek  and  others)  passing  through  the  French  Conces- 
sion or  the  International  Settlement  at  Shanghai  and  the  foreign  quarter  at 
Woosung,  as  well  as  on  all  the  other  creeks  emptying  into  the  river,  for  a 
distance  of  2  English  miles  above  their  mouths. 

XIV.  The  Board  shall  have  power  to  expropriate  the  private  moorings 
and  to  establish  a  system  of  public  moorings  in  the  river. 

XV.  The  authorization  of  the  Board  shall  be  necessary  to  carry  out  any 
dredging,  to  build  bunds,  to  construct  jetties,  or  to  place  pontoons  and  hulks  in 
the  section  of  the  river  mentioned  in  Article  XIII.  The  Board  may,  at  its 
discretion,  refuse  ^uch  authorization. 

XVI.  The  Board  shall  have  full  power  to  remove  all  obstacles  in  the 
river,  or  the  above-mentioned  creeks,  and  to  recover,  if  necessary,  the  cost 
of  so  doing  from  those  responsible. 

XVII.  The  Board  shall  have  control  of  all  floating  lights,  buoys,  beacons, 
landmarks,  and  light  signals  within  the  section  of  the  river  and  within  the 
creeks  mentioned  in  Article  XIII,  as  well  as  over  such  marks  on  the  shore  as 
may  be  necessary  for  the  safe  navigation  of  the  river,  with  the  exception  of 
light-houses,  which  shall  remain  subject  to  Article  XXXII  of  the  treaty  of  1858 
between  Great  Britain  and  China. 

XVIII.  The  improvement  and  conservancy  works  of  the  Whangpu  shall 
be  entirely  under  the  the  technical  control  of  the  Board,  even  should  the  carry- 
ing out  of  them  necessitate  works  beyond  the  limits  of  its  jurisdiction.  In 
this  case  the  necessary  orders  will  be  transmitted  by  and  the  work  will  be  done 
with  the  consent  of  the  Chinese  authorities. 

XIX.  The  Board  shall  receive  and  disburse  all  the  funds  collected  for  the 
works  and  take,  in  conjunction  with  the  competent  authorities,  all  proper 
and  efficacious  measures  to  ensure  the  collection  of  the  taxes  and  the  enforce- 
ment of  the  regulations. 

XX.  The  Board  shall  appoint  the  Harbour  Master  and  his   staff.     This 


304  CHINA  TREATIES  AND  AGREEMENTS 

department  shall  act,  within  the  limits  of  the  powers  assigned  to  the  board,  in 
the  section  of  the  river  indicated  in  Article  XIII. 

XXI.  The  Board  shall  have  authority  to  organize  a  police  and  watch 
service  to  ensure  the  execution  of  its  regulations  and  orders. 

XXII.  The  Board  shall  have  the  direction  and  control  of  the  Shanghai 
(Lower  Yangtze)  pilot  service.  Licenses  for  pilots  for  ships  bound  for 
Shanghai  shall  only  be  issued  by  the  Board  and  at  its  discretion. 

XXIII.  In  case  of  infractions  of  its  regulations,  the  Board  shall  sue 
oflFenders  in  the  following  way:  Foreigners,  before  their  respective  consuls  or 
competent  judicial  authority ;  Chinese  or  foreigners  whose  Governments  are 
not  represented  in  China,  in  the  mixed  Court,  in  the  presence  of  a  foreign 
assessor. 

XXIV.  All  suits  against  the  Board  shall  be  brought  before  the  Court  of 
Consuls  at  Shanghai.    The  Board  shall  be  represented  in  suits  by  its  secretary. 

XXV.  Members  of  the  Board  and  persons  employed  by  it  shall  not  incur 
any  personal  responsibility  for  the  votes  and  acts  of  the  Board,  for  contracts 
made  or  expenses  incurred  by  the  said  body,  when  the  said  votes,  acts,  con- 
tracts, and  expenses  concern  the  carrying  out  or  the  enforcement,  under  the 
authority  or  by  order  of  the  Board  or  of  one  of  its  branches,  of  the  regulations 
enacted  by  said  body. 

XXVI.  Besides  the  provisions  mentioned  in  Article  XIII  of  the  present 
annex,  the  Board  shall  have  power  to  enact,  within  the  limits  of  its  competency, 
all  necessary  ordinances  and  regulations,  and  to  fix  fines  for  the  violation 
thereof. 

XXVII.  The  ordinances  and  regulations  mentioned  in  Article  XXVI  shall 
be  submitted  for  the  approbation  of  the  Consular  Body.  If  two  months  after 
presenting  the  draft  of  the  proposed  ordinances  and  regulations  the  Consular 
Body  has  made  no  objection  or  suggested  no  modification,  it  shall  be  con- 
sidered as  approved  and  shall  come  into  force. 

XXVIII.  The  Board  shall  have  power  to  acquire  by  purchase  the  lands 
necessary  for  carrying  out  the  works  of  improvement  and  conservancy  of 
the  Whangpu  and  to  dispose  of  them. 

If,  for  this  purpose,  it  shall  be  deemed  necessary  to  expropriate  land,  the 
rules  laid  down  in  Article  VI  (a)  of  "  The  Land  Regulations  for  the  Foreign 
Settlement  of  Shanghai  North  of  the  Yang-king-pang "  shall  be  followed. 
The  price  shall  be  fixed  by  a  Committee  consisting  of,  first,  a  person  chosen 
by  the  authority  to  whose  jurisdiction  the  owner  is  subject;  second,  one  chosen 
by  the  Board,  and,  third,  one  chosen  by  the  Dean  of  the  Consular  Corps. 

XXIX.  Riparian  owners  shall  have  the  refusal  of  all  land  made  in  front 
of  their  properties  by  the  reclamation  carried  out  for  the  improvement  of  the 
waterways  in  question.  The  purchase  price  of  these  lands  shall  be  fixed  by 
a  Committee  composed  in  the  same  manner  as  provided  for  in  Article  XXVIII. 

XXX.  The  revenues  of  the  Board  are  to  be  derived  from — 

(a)  An  annual  tax  of  one-tenth  of  1  per  cent  (0.1  per  cent)  on  the 
assessed  value  of  all  lands  and  houses  in  the  French  Concession  and  the 
International  Settlement. 


NUMBER  1901/3:  SEPTEMBER  7,  1901:  ANNEXES  305 

(b)  A  tax  of  equal  amount  on  all  property  with  water  frontage  on  the 
Whangpu,  from  a  line  drawn  from  the  lower  limit  of  the  Kiang-nan  Arsenal 
toward  the  mouth  of  Arsenal  Creek  to  the  place  where  the  Whangpu  empties 
into  the  Yangtze.  The  assessed  value  of  this  property  shall  be  fixed  by  the 
Committee  mentioned  in  Article  XXVIII. 

(c)  A  tax  of  five  candereens  per  ton  on  all  ships  of  non-Chinese  type 
and  of  a  tonnage  superior  to  150  tons  entering  or  leaving  the  port  of  Shanghai, 
Woosung,  or  any  other  port  on  the  Whangpu. 

Ships  of  non-Chinese  type  of  150  tons  and  under  shall  pay  a  quarter  of 
the  above-mentioned  tax.  These  taxes  shall  only  be  leviable  on  each  ship  once 
every  four  months,  irrespective  of  the  number  of  its  entrances  and  clearances. 

Foreign-built  ships  navigating  the  Yangtze  and  only  stopping  at  Woosung 
to  take  their  river  papers  shall  be  exempted  from  the  taxes  above  mentioned, 
on  condition  that  on  their  way  up  or  down  they  shall  not  carry  on  any  com- 
mercial transactions  at  Woosung.  They  shall,  however,  be  allowed  to  take  on 
water  and  supplies  at  Woosung. 

(d)  A  tax  of  one-tenth  of  1  per  centum  (0.1  per  cent)  on  all  merchandise 
passing  through  the  customs  at  Shanghai,  Woosung,  or  any  other  port  on  the 
Whangpu. 

(e)  An  annual  contribution  from  the  Chinese  Government  equal  to  that 
supplied  by  the  various  foreign  interests. 

XXXI.  The  collection  of  the  taxes  enumerated  in  Article  XXX  shall  be 
made  through  the  medium  of  the  following  authorities : 

Tax  a,  by  the  respective  Municipalities. 

Tax  b,  to  be  collected  from  persons  under  the  jurisdiction  of  Governments 
represented  in  China  by  their  respective  Consuls ;  the  taxes  to  be  collected  from 
Chinese  or  from  persons  whose  Governments  are  not  represented  in  China  by 
the  Taotai. 

Taxes  c  and  d,  by  the  Imperial  Maritime  Customs. 

XXXII.  Should  the  total  annual  revenues  of  the  Board  not  be  sufficient 
for  the  payment  of  interests  and  the  amortization  of  the  capital  to  be  borrowed 
for  carrying  out  the  works,  for  keeping  up  the  completed  works,  and  for  the 
service  in  general,  the  Board  shall  have  the  power  to  increase  in  the  same  pro- 
portion the  various  taxes  on  shipping,  on  land  and  houses,  and  on  trade,  to  a 
figure  sufficient  to  supply  its  recognized  needs.  This  eventual  increase  would 
apply  in  the  same  proportion  to  the  contribution  of  the  Chinese  Government 
mentioned  in  paragraph  e  of  Article  XXX. 

XXXIII.  The  Board  shall  give  notice  to  the  Superintendent  of  Southern 
Trade  and  to  the  Consular  Body  of  the  necessity  for  the  increase  referred  to 
in  Article  XXXII.     Such  increase  shall  only  come  into  force  after  its  approval 

by  the  Consular  Body  at  Shanghai. 

XXXIV.  The  Board  shall  submit  to  the  Superintendent  of  Southern 
Trade  and  to  the  Consular  Body  at  Shanghai,  within  six  months  after  the 
closing  of  each  financial  year,  its  annual  accounts,  accompanied  by  a  detailed 
report  on  the  general  management  and  the  receipts  and  expenditures  during 
the  preceding  twelve  months.     This  report  shall  be  published. 


306  CHINA  TREATIES  AND  AGREEMENTS 

XXXV.  If  the  exact  and  published  accounts  of  receipts  and  expenditures 
show  a  balance  of  receipts  over  expenses,  the  taxes  mentioned  in  Article  XXX 
shall  be  proportionately  reduced  by  the  Board  and  the  Consular  Body  at 
Shanghai  acting  conjointly.  The  eventual  reduction  shall  apply  in  the  same 
proportion  to  the  contribution  of  the  Chinese  Government  referred  to  in 
paragraph  e  of  Article  XXX. 

XXXVI.  At  the  expiration  of  the  first  term  of  three  years  the  signatories 
shall  examine  conjointly  whether  the  provisions  contained  in  the  present  annex 
require  revision.  A  new  revision  can  take  place  every  three  years  under  the 
same  conditions. 

XXXVII.  The  regulations  of  the  Board  within  the  limits  provided  for  in 
Article  XIII,  and  subject  to  the  approbation  of  the  Consular  Body  at  Shanghai, 
shall  be  binding  on  all  foreigners. 

Done  at  Peking  September  7th,  1901. 

Correct  copy.  A.  d'Anthouard. 

B.  Kroupensky. 

Reginald  Tower. 

G.  Bohlen-Halbach. 


Annex  No.   18. 
IMPERIAL  EDICT  of  the  24th  July,  1901    {Translation). 

The  9th  day  of  the  6th  moon  the  Grand  Chancellery  received  the  following 
Edict : 

"  The  creation  of  offices  and  the  determination  of  their  duties  has  until 
now  been  regulated  by  the  requirements  of  the  times.  Now,  at  the  present  time, 
when  a  new  treaty  of  peace  is  concluded,  international  affairs  take  the  first 
place  among  important  business,  and  it  is  more  than  ever  necessary  to  have 
recourse  to  competent  men  to  devote  themselves  to  all  that  relates  to  estab- 
lishing friendly  relations  and  confidence  in  speech. 

"  The  Office  of  Foreign  Affairs,  formerly  created  to  treat  international 
questions,  has  been  in  existence,  it  is  true,  for  years,  but,  in  view  of  the 
Princes  and  Ministers  composing  it  only  discharging  for  the  most  part  their 
functions  accessorily  with  others,  they  could  not  devote  themselves  to  them 
exclusively.  It  is  naturally,  therefore,  proper  to  create  special  functions,  so 
that  each  one  may  have  his  particular  attributions. 

"  We  command,  in  consequence,  that  the  Office  of  Foreign  Affairs  (Tsung- 
li-ko  kuo  shih-wu  ya-men)  be  changed  into  a  Ministry  of  Foreign  Affairs 
(Wai-wu  Pu)  and  take  rank  before  the  six  Ministries.  And  we  designate 
Yi-K'uang,  Prince  Ch'ing  of  the  first  rank,  as  President  of  the  Ministry  of 
Foreign  Affairs. 

"  Wang  Wen-shao,  Grand  Secretary  of  State  of  the  Ti-jen  Ko,  is 
appointed  Assistant-President  of  the  Ministry  of  Foreign  Aft'airs.  Ch'u 
Hung-chi,  President  of  the  Board  of  Works,  is  transferred  with  the  same 
rank  to  the  Ministry  of  Foreign  Affairs,  in  which  he  is  appointed  Assistant- 


NUMBER  1901/3:  SEPTEMBER  7,  1901:  ANNEXES  307 

President.  Hsu  Shou-p'eng,  Director  of  the  Imperial  Stud,  and  Lien-fang, 
Expectant  Metropolitan  Subdirector  of  the  third  or  fourth  rank,  are  appointed 
first  and  second  Directors  (or  Assistant  Secretaries). 

"  As  regards  the  fixing  of  the  personnel,  the  rules  to  be  followed  in  its 
choice,  the  salaries  to  be  given  the  Ministers,  Directors,  and  other  Agents,  We 
command  the  Councilors  of  State  to  come  to  an  agreement  with  the  Board  of 
Civil  Office  and  to  promptly  submit  to  Us  their  conclusions  in  a  report. 
"  Respect  this." 

Correct  copy.  A.  d'Anthouard. 

B.  Kroupensky. 
Reginald  Tower. 
G.  Bohlen-Halbach. 


Annex  No.  19. 
MEMORANDUM  on  the  ceremonial  to  be  followed  in  solemn  audiences. 

1°.  Solemn  audiences  to  be  given  by  His  Majesty  the  Emperor  of  China 
to  the  Diplomatic  Body  or  to  Representatives  of  the  Powers  separately  shall 
take  place  in  the  palace  hall  called  "  Ch'ien-ch'ing  Kung." 

2°.  In  going  to  or  coming  back  from  these  solemn  audiences  the  Repre- 
sentatives of  the  Powers  shall  be  carried  in  their  sedan  chairs  as  far  as  outside 
of  the  Ching-yun  gate.  At  the  Ching-yun  gate  they  will  get  out  of  the  sedan 
chair  in  which  they  have  come  and  will  be  carried  in  a  little  chair  (i  chiao)  as 
far  as  the  foot  of  the  steps  of  the  Ch'ien-ch'ing  gate. 

On  arriving  at  the  Ch'ien-ch'ing  gate  the  Representatives  of  the  Powers 
shall  get  out  of  their  chairs,  and  shall  proceed  on  foot  into  the  presence  of 
His  Majesty  in  the  Ch'ien-ch'ing  Kung  hall. 

When  departing  the  Representatives  of  the  Powers  shall  return  to  their 
residences  in  the  same  manner  as  that  in  which  they  arrived. 

3°.  When  a  Representative  of  a  Power  shall  have  occasion  to  present  to 
His  Majesty  the  Emperor  his  letters  of  credence  or  a  communication  from  the 
Head  of  the  State  by  whom  he  is  accredited,  the  Emperor  shall  cause  to  be 
sent  to  the  residence  of  said  Representative,  to  bear  him  to  the  Palace,  a  sedan 
chair  with  yellow  trimmings  and  tassels,  such  as  are  used  by  the  Princes  of 
the  Imperial  family.  The  said  Representative  shall  be  taken  back  to  his  resi- 
dence in  the  same  manner.  An  escort  of  troops  shall  likewise  be  sent  to  the 
residence  of  said  Representative  to  accompany  him  going  and  returning. 

4°.  When  presenting  his  letters  of  credence  or  communication  from  the 
Head  of  the  State  by  whom  he  is  accredited,  the  Diplomatic  Agent,  while  bear- 
ing said  letters  or  communications,  shall  pass  by  the  central  openings  of  the 
Palace  doors  until  he  has  arrived  in  the  presence  of  His  Majesty.  On  returning 
from  these  audiences  he  will  comply,  as  regards  the  doors  by  which  he  may 
have  to  pass,  with  the  usages  already  established  at  the  Court  of  Peking  for 
audiences  given  to  Foreign  Representatives. 

5°.    The  Emperor  shall  receive  directly  into  his  hands  the  letters  and  com- 


308  CHINA  TREATIES  AND  AGREEMENTS 

munications  above  mentioned  which  the  Foreign  Representatives  may  have  to 
hand  to  him. 

6°.  If  His  Majesty  should  decide  upon  inviting  to  a  banquet  the  Rep- 
resentatives of  the  Powers  it  is  well  understood  that  this  banquet  shall  be  given 
in  one  of  the  halls  of  the  Imperial  Palace  and  that  His  Majesty  shall  be 
present  in  person. 

7°.  In  brief,  the  ceremonial  adopted  by  China  as  regards  Foreign  Rep- 
resentatives shall,  in  no  case,  be  different  from  that  which  results  from  perfect 
equality  between  the  Countries  concerned  and  China,  and  without  any  loss 
of  prestige  on  one  side  or  the  other. 

Correct  copy.  A.  d'Anthouard. 

B.  Kroupensky. 
Reginald  Tower. 
G.  Bohlen-Halbach. 


Note  1. 

In  connection  with  this  Protocol,  see  Russo-Chinese  Convention  in  regard  to  Manchuria, 
April  8  1902  (No.  1902/3)  and  Anglo-Chinese  Agreement  for  the  restoration  of  the  Pe- 
king-Shanhaikuan  Railway,  April  29,  1902  (No.  1902/4,  post).  Consult  also  For.  Rel.  of 
the  U.  S..  1900,  and  1901  (Appendix)  ;  Moore's  Digest  of  International  Law,  vol.  5,  pp. 
476-534;  China,  Nos.  3  and  4  (1900)  and  Nos.  i  to  7  iiQOi). 

During  the  so-called  Boxer  disturbances.  Secretary  Hay  defined  the  attitude  of  the 
American  Government  in  the  following  telegraphic  circular  to  American  diplomatic 
representatives  for  communication  to  the  Governments  concerned,  under  date  of  July  3, 
1900: 

Secretary  Hay's  Circular  concerning  the  Boxer  Crisis. — ^July  3,  1900. 

"  Department  of   State, 
"Washington,   July   3,    igoo. 

"  In  this  critical  posture  of  affairs  in  China  it  is  deemed  appropriate  to  define  the 
attitude  of  the  United  States  as  far  as  present  circumstances  permit  this  to  be  done. 
We  adhere  to  the  policy  initiated  by  us  in  1857  of  peace  with  the  Chinese  nation,  of  fur- 
therance of  lawful  commerce,  and  of  protection  of  lives  and  property  of  our  citizens  by 
all  means  guaranteed  under  extraterritorial  treaty  rights  and  by  the  law  of  nations.  If 
wrong  be  done  to  our  citizens  we  propose  to  hold  the  responsible  authors  to  the  uttermost 
accountability.  We  regard  the  condition  at  Peking  as  one  of  virtual  anarchy,  whereby 
power  and  responsibility  are  practically  devolved  upon  the  local  provincial  authorities.  So 
long  as  they  are  not  in  overt  collusion  with  rebellion  and  use  their  power  to  protect  foreign 
life  and  property,  we  regard  them  as  representing  the  Chinese  people,  with  whom  we  seek 
to  remain  in  peace  and  friendship.  The  purpose  of  the  President  is,  as  it  has  been  hereto- 
fore, to  act  concurrently  with  the  other  Powers  ;  first,  in  opening  up  communication  with 
Peking  and  rescuing  the  American  officials,  missionaries,  and  other  Americans  who  are 
in  danger ;  secondly,  in  affording  all  possible  protection  everywhere  in  China  to  American 
life  and  property ;  thirdly,  in  guarding  and  protecting  all  legitimate  American  interests ; 
and  fourthly,  in  aiding  to  prevent  a  spread  of  the  disorders  to  the  other  provinces  of  the 
Empire  and  a  recurrence  of  such  disasters.  It  is  of  course  too  early  to  forecast  the  means 
of  attaining  this  last  result;  but  the  policy  of  the  Government  of  the  United  States  is  to 
seek  a  solution  which  may  bring  about  permanent  safety  and  peace  to  China,  preserve 
Chinese  territorial  and  administrative  entity,  protect  all  rights  guaranteed  to  friendly 
Powers  by  treaty  and  international  law,  and  safeguard  for  the  world  the  principle  of  equal 
and  impartial  trade  with  all  parts  of  the  Chinese  Empire. 

"  You  will  communicate  the  purport  of  this  instruction  to  the  Minister  for  Foreign 
Affairs.  "  Hay." 

(For.  Rel.  of  the  U.  S.,  1901,  Appendix  re  "Affairs  in  China,"  p.  12.)  For  the  replies 
of  the  several  Powers  thus  addressed,  see  Moore's  Digest  of  International  Law,  vol.  5, 
p.  482,  or  Am.  Journal  of  Int.   Law,  Sxipplemcnt,  1907,  p.  386. 


NUMBER  1901/3:  SEPTEAIBER  7,  1901:  NOTES  309 

Note  2. 

The  following  are  translations  (as  printed  in  Rockhill,  63-66)  of  the  Joint  Note 
referred  to  in  the  preamble  to  the  Protocol  (p.  279),  and  of  the  reply  thereto: 

Joint  Note  regarding  Conditions  for  Re-establishment  of  normal  relations  between 
China  and  the  Powers. — December  22,  1900,  and  January  16,  1901. 

"  (1)  Joint  note  signed  by  the  diplomatic  representatives  at  Peking  of  Germany,  Austria- 
Hungary,  Belgium,  Spain,  the  United  States,  France,  Great  Britain.  Italy,  Japan,  the 
Netherlands,  and  Russia,  embodying  conditions  for  reestablishment  of  normal  rela- 
tions with  China:  Signed  at  Peking  December  22,  1900;  handed  to  the  Chinese 
Plenipotentiaries,  Yi  K'uang  (Prince  Ch'ing)  and  Li  Hung-chang,  on  December  24,  1900. 

"  [Translation  from  French.] 

"  During  the  months  of  May,  June,  July,  and  August  of  the  present  year  serious 
disturbances  broke  out  in  the  northern  provinces  of  China  and  crimes  unprecedented  in 
human  history — crimes  against  the  law  of  nations,  against  the  laws  of  humanity,  and 
against  civilization — were  committed  under  peculiarly  odious  circumstances.  The  principal 
of  these  crimes  were  the  following : 

"  1.  On  the  20th  of  June  His  Excellency  Baron  von  Ketteler,  German  ]\Iinister, 
proceeding  to  the  Tsungli  Yamen,  was  murdered  while  in  the  exercise  of  his  official 
duties  by   soldiers  of  the  regular  army,  acting  under  orders  of  their  chiefs. 

"  2.  The  same  day  the  foreign  legations  were  attacked  and  besieged.  These  attacks 
continued  without  intermission  until  the  14th  of  August,  on  which  date  the  arrival  of 
foreign  troops  put  an  end  to  them.  These  attacks  were  made  by  regular  troops,  who 
joined  the  Boxers,  and  who  obeyed  orders  of  the  Court,  emanating  from  the  Imperial 
Palace.  At  the  same  time  the  Chinese  Government  officially  declared  by  its  representatives 
abroad  that  it  guaranteed  the  security  of  the  legations. 

"3.  The  11th  of  June  Mr.  Sugiyama,  Chancellor  of  the  Legation  of  Japan,  in  the  dis- 
charge of  an  official  mission,  was  killed  by  regulars  at  the  gates  of  the  city.  At  Peking 
and  in  several  provinces  foreigners  were  murdered,  tortured,  or  attacked  by  Boxers  and 
regular  troops,  and  only  owed  their  safety  to  their  determined  resistance.  Their  establish- 
ments  were  pillaged  and   destroyed. 

"  4.  Foreign  cemeteries,  at  Peking,  especially,  were  desecrated,  the  graves  opened,  the 
remains  scattered  abroad.  These  events  led  the  foreign  Powers  to  send  their  troops  to 
China  in  order  to  protect  the  lives  of  their  Representatives  and  their  nationals,  and  to 
restore  order.  During  their  march  to  Peking  the  Allied  Forces  met  with  the  resistance 
of  the  Chinese  armies  and  had  to  overcome  it  by  force.  China  having  recognized  her 
responsibility,  expressed  her  regrets,  and  manifested  the  desire  to  see  an  end  put  to 
the  situation  created  by  the  disturbances  referred  to,  the  Powers  have  decided  to  accede 
to  her  request  on  the  irrevocable  conditions  enumerated  below,  which  they  deem  indis- 
pensable to  expiate  the  crimes  committed  and  to  prevent  their  recurrence : 

"  1.  (a)  Dispatch  to  Berlin  of  an  extraordinary  mission,  headed  by  an  Imperial 
Prince,  to  express  the  regrets  of  His  Majesty  the  Emperor  of  China,  and  of  the  Chinese 
Government,  for  the  murder  of  His  Excellency  the  late  Baron  von  Ketteler,  German 
Minister. 

"  (&)  Erection  on  the  place  where  the  murder  was  committed  of  a  commemora- 
tive monument  suitable  to  the  rank  of  the  deceased,  bearing  an  inscription  in  the  Latin, 
German,  and  Chinese  languages,  expressing  the  regrets  of  the  Emperor  of  China  for 
the  murder. 

"2.  (a)  The  severest  punishment  in  proportion  to  their  crimes  for  the  persons 
designated  in  the  Imperial  decree  of  September  25,  1900,  and  for  those  whom  the  Represen- 
tatives of  the  Powers  shall  subsequently  designate. 

"  (&)  Suspension  of  all  official  examinations  for  five  years  in  all  the  towns  where 
foreigners  have  been   massacred,  or  have  been   subjected   to   cruel  treatment. 

"  3.  Honorable  reparation  shall  be  made  by  the  Chinese  Government  to  the  Japanese 
Government  for  the  murder  of  Mr.  Sugiyama,  Chancellor  of  the  Japanese  Legation. 

"  4.  An  expiatory  monument  shall  be  erected  by  the  Imperial  Chinese  Government  in 
each  of  the  foreign  or  international  cemeteries  which  have  been  desecrated  and  in  which 
the  graves  have  been  destroyed. 

"  5.  Maintenance,  under  conditions  to  be  settled  between  the  Powers,  of  the  prohibition 
of  the  importation  of  arms  as  well  as  of  material  used  exclusively  for  the  manufacturing 
of  arms  and  ammunition. 

"  6.  Equitable  indemnities  for  governments,  societies,  companies,  and  private  individuals, 
as  well  as  for  Chinese  who  have  suffered  during  the  late  events  in  person  or  in  property 
in  consequence  of  their  being  in  the  service  of  foreigners.  China  shall  adopt  financial 
measures  acceptable  to  the  Powers  for  the  purpose  of  guaranteeing  the  payment  of  said 
indemnities   and   the   interest  and   amortization    of   the   loans. 

"7.  Right    for   each    Power   to   maintain   a   permanent   guard    for   its   legation    and    to 


310  CHINA  TREATIES  AND  AGREEMENTS 

put  the  legation  quarter  in  a  defensible  condition.  Chinese  shall  not  have  the  right 
to   reside   in   this   quarter. 

"  8.  The  Taku  and  other  forts,  which  might  impede  free  communication  between 
Peking  and  the   sea,   shall   be   razed. 

"  9.  Right  of  military  occupation  of  certain  points,  to  be  determined  by  an  under- 
standing between  the  Powers,  for  keeping  open  communication  between  the  capital  and  the 
sea. 

"  10.  (a)  The  Chinese  Government  shall  cause  to  be  published  during  two  years 
in  all  subprefectures  an  Imperial  decree  embodying: 

"  Perpetual  prohibition,  under  pain  of  death,  of  membership  in  any  antiforeign 
society ; 

"  Enumeration  of  the  punishments  which  shall  have  been  inflicted  on  the  guilty,  together 
with  the  suspension  of  all  official  examinations  in  the  towns  where  foreigners  have 
been  murdered   or  have  been   subjected  to  cruel   treatment. 

"  lb)  An  Imperial  decree  shall  be  issued  and  published  everywhere  in  the  Empire 
declaring  that  all  Governors-General,  Governors,  and  Provincial  or  local  officials  shall  be 
responsible  for  order  in  their  respective  jurisdictions,  and  that  whenever  fresh  antiforeign 
disturbances  or  any  other  treaty  infractions  occur,  which  are  not  forthwith  suppressed 
and  the  guilty  persons  punished,  they,  the  said  officials,  shall  be  immediately  removed  and 
forever  prohibited  from  holding  any  office  or  honors. 

"  11.  The  Chinese  Government  will  undertake  to  negotiate  the  amendments  to  the 
treaties  of  commerce  and  navigation  considered  useful  by  the  Powers,  and  upon  other  sub- 
jects connected  with  commercial  relations,  with  the  object  of  facilitating  them. 

"  12.  The  Chinese  Government  shall  undertake  to  reform  the  Office  of  Foreign 
Affairs  and  to  modify  the  court  ceremonial  relative  to  the  reception  of  foreign  Represen- 
tatives in  the  manner  which  the   Powers   shall  indicate. 

"  Until  the  Chinese  Government  have  complied  with  the  above  to  the  satisfaction  of  the 
Powers,  the  Undersigned  can  hold  out  no  expectation  that  the  occupation  of  Peking  and  the 
province  of   Chihli  by  the  general   forces  can  be  brought  to  a  conclusion. 

"  Peking,  December  22,  1900. 

"  For  Germany,  A.   Mumm. 

"  For  Austria-Hungary,  M.  Czikann, 

"  For  Belgium,  Joostens. 

"  For  Spain,  B.  J.  de  Cologan, 

"  For  United  States  of  America,         E.   H.   Conger. 

"  For  France,  S.    Pichon. 

"  For  Great  Britain,  Ernest   Satow. 

"  For  Italy,  Salvago   Raggi. 

"  For  Japan,  T.    Nissr. 

"  For  Netherlands,  F.    M.    Knobel. 

"  For  Russia,  Michel  de  Giers." 

"  (2)  Reply  of  the  Chinese  Plenipotentiaries  to  the  joint  note  of  December  22,  1900;  Peking, 
January  16,  1901. 

"  [Translation.] 

"  Under  date  of  December  24,  1900,  the  Plenipotentiaries  of  Germany,  Austria- 
Hungary,  Belgium,  Spain,  the  United  States,  France,  Great  Britain,  Italy,  Japan,  the 
Netherlands,  and   Russia,  have  sent   Us   the    following   Note: 

"  [The  Joint  Note  is  here  quoted  textually  and  in  its  entirety]  : 

"We  hastened  to  transmit  the  full  text  of  this  note  to  His  Majesty  the  Emperor 
who,  having  taken  cognizance  of   it,   rendered  the   following  decree: 

" '  We  have  taken  cognizance  of  the  whole  of  the  telegram  of  Yi  K'uang  and  Li 
Hung-chang.  It  behooves  Us  to  accept,  in  their  entirety,  the  twelve  articles  which  they  have 
submitted  to  Us.' 

"  Consequently,  we,  Ch'ing,  Prince  of  the  first  rank.  Plenipotentiary,  President  of  the 
Council  of  Foreign  Affairs,  and  Li,  Earl  of  the  first  rank,  Su-yi,  Plenipotentiary,  Tutor 
to  the  Heir  Apparent,  Grand  Secretary  of  the  Wen-hua  tien  Throne  Hall,  Minister  of 
Commerce,   Superintendent  of  trade   for  the  northern  ports,  Governor  General  of   Chih-li, 

"  Declare  that  we  accept  in  their  entirety  the  twelve  articles  which  we  have  been 
requested  to  insure  the  transmission  of  to  His  Majesty  the  Emperor. 

"  In  witness  of  which  we  have  signed  the  present  protocol  and  we  transmit  to  the 
foreign  Plenipotentiaries  a  copy  of  the  Edict  of  His  Majesty  the  Emperor,  bearing  the 
Imperial  Seal. 

"  It  is  understood  that  in  case  of  disagreement,  the  French  text  shall  be  authoritative. 

"  Peking,  i6  January,  igoi.  (Signed)  "  Yi  K'uang 

(Prince  Ch'ing). 

[l.   s.]  "Li." 


NUMBER  1901/3:  SEPTEMBER  7,  1901:  NOTES 


311 


Note  3. 

The  apportionment  of  this  indemnity  among  the  several  Powers  was  fixed  by  a 
protocol  of  June  14,  1902,  of  which  the  translation  (from  the  French  text  as  printed 
in  Negotiations  de  Pekin,  igoo-1902:  lime  Partie,  p.  LVII)  is  as  follows: 

Protocol  regarding  Apportionment  of  the  Boxer  Indemnity.— June  14,  1902. 

"  The  representatives  of  the  Foreign  Powers  signatory  to  the  Final  Protocol,  assembled 
at  a  meeting  on  June  14,  1902,  have  declared  that  they  accept,  each  in  so  far  as  concerns 
his  own  Government,  the  division  of  the  indemnity  of  450,000,000  taels  in  accordance  with 
the  following  list : 


"  Percentage 


Amount  in  Taels 


Germany  

Austria-Hungary   

Belgium    

Spain   

United    States    

France  

Great  Britain  \ 

Portugal   ....  ) 

Italy  

Japan   

The  Netherlands   

Russia 

International  Claims  .  ) 
Sweden   and   Norway  j 


20.01567 

.88976 

1.88541 

.03007 

7.31979 

15.75072 

11.24901  I 

.02050  \ 

5.91489 

7.73180 

.17380 

28.97136 

.03326 

.01396 


j   .03326  I 
I    .01396  1 


11.26951 


.04722 


90,070,515 

4,003.920 

8,484,345 

135,315 

32.939,055 

70,878,240 

50,620,545  1  ^„^,^^„^ 

92,250  \  50.712,795 

26,617,005 

34793,100 

782,100 

130,371,120 

•«gOi      2,2,490 


Grand  Total 


iSgd.) 


100.00000 


450,000,000 


"  For  Germany 

Austria-Hungary 

Belgium 

Spain 

United  States 

France 

Great  Britain 

Italy 

Japan 

Netherlands 

Russia 


Peking,  June  14,  1902. 

A.  V.  MUMM. 
M.   C.ZIKANN. 

E.  DE  Cartier. 

Manuel  de  Carcer. 

E.  H.  Conger. 

Beau. 

Ernest  Satow. 

G.  Gallina. 

Y.  UCHIDA. 

J.  Loudon. 
P.  Lessar." 


As,  upon  final  adjudication  by  the  American  authorities,  it  was  found  that  the  claims 
in  behalf  of  American  nationals  totaled  less  than  the  amount  of  the  indemnity  apportioned 
to  the  United  States,  a  Joint  Resolution  (Public  Resolution  No.  29)  to  provide  for  the 
remission  of  a  portion  of  the  Chinese  indemnity  was  passed  by  the  Congress  of  the 
United  States,  and  approved  by  the  President  on  May  25,  1908,  in  the  following  terms : 

Joint  Resolution  providing  for  Remission  of  a  Portion  of  American  Share  of  Boxer 

Indemnity. — May  25,  1908. 

"Resolved  by  the  Senate  and  Plouse  of  Representatives  of  the  United  States  of 
America  in  Congress  assembled.  That  the  President  is  hereby  authorized  to  consent  to  a 
modification  of  the  bond  for  twenty-four  million  four  hundred  and  forty  thousand  seven 
hundred  and  seventy-eight  dollars  and  eighty-one  cents,  dated  December  fifteenth,  nine- 
teen hundred  and  six,  received  from  China  pursuant  to  the  protocol  of  September  seventh, 
nineteen  hundred  and  one.  for  indemnity  against  losses  and  expenses  incurred  by  reason 
of  the  so-called  Boxer  disturbances  in  China  during  the  year  nineteen  hundred,  so  that 
the  total  payment  to  be  made  by  China  under  the  said  bond  shall  be  limited  to  the  sum 
of  thirteen  million  six  hundred  and  fifty-five  thousand  four  hundred  and  ninety-two 
dollars  and  sixty-nine  cents  and  interest  at  the  stipulated  rate  of  four  per  centum  per  an- 
num, and  that  the  remainder  of  the  indemnity  to  which  the  United  States  is  entitled  under 
the  said  protocol  and  bond  may  be  remitted  as  an  act  of  friendship,  such  payments  and 
remission  to  be  at  such  times  and  in  such  manner  as  the  President  shall  deem  just : 
Provided,  That  within  one  year  from  the  passage  of  this  resolution  any  person  whose 
claim  upon  the  Chinese  indemnity,  nineteen  hundred,  was  presented  to  the  United  States 


312  CHINA  TREATIES  AND  AGREEMENTS 

commissioners  or  to  the  Department  of  State  and  disallowed  in  whole  or  in  part  may  present 
the  same  by  petition  to  the  Court  of  Claims,  which  court  is  hereby  invested  with  jurisdic- 
tion to  hear  and  adjudicate  such  claim,  without  appeal,  and  to  render  such  judgments 
de  novo,  or  in  addition  to  any  allowance  or  allowances  heretofore  made,  as,  in  each 
case  shall  be  fully  and  substantially  compensatory  for  actual  losses  and  expenses  of  the 
claimant  caused  by  the  antiforeign  disturbances  in  China  during  the  year  nineteen  hundred, 
excluding  merely  speculative  claims  or  elements  of  damage :  And  provided  also.  That  the 
sum  of  two  million  dollars  be  reserved  from  the  Chinese  indemnity,  nineteen  hundred, 
for  the  payment  of  such  judgments,  the  same  to  be  paid  by  the  Treasurer  of  the  United 
States  as  and  when  they  shall  be  certified  to  the  Secretary  of  the  Treasury  by  the  said 
court,  and  any  balance  remaining  after  all  such  claims  have  been  adjudicated  and  paid 
shall  be  returned  to  the  Chinese  Government  in  such  manner  as  the  Secretary  of  State 
shall  decide,  and  the  Secretary  of  the  Treasury  is  hereby  authorized  and  directed  to  so  return 
the  same :  And  provided  further,  That  all  evidence  furnished  by  the  claimants,  and  statements 
made  by  them  to  the  said  commissioners  or  to  the  Department  of  State,  shall  be  trans- 
mitted by  the  said  Department  to  the  said  Court  of  Claims  and  considered  together  with 
such  other  additional  testimony  as  may  be  presented  by  either  side,  and  the  Government 
of  the  United  States  shall  defend  the  said  claim.s  in  the  said  court  by  such  attorney 
or  attorneys  as  may  be  designated  for  such  service  by  the  Attorney-General  of  the 
United  States :  Provided  further,  That  in  no  case  shall  the  Court  of  Claims  award  a 
principal  sum  to  any  claimant  which,  together  with  the  principal  sums  said  claimant  may 
have  already  received  by  decision  of  the  United  States  commissioners  and  the  Department 
of   State,    shall   exceed   the   amount   originally   claimed   by    said   claimant. 

'•  Approved,  May  25,  1908." 

(For.  Rel.  of  the  U.  S.,  1908,  p.  65.) 

In  pursuance  of  this  Resolution,  the  President  on  December  28th,  1908,  issued  the 
following  Executive  Order : 

Executive  Order  in  regard  to  Remission  of  a  Portion  of  American  Share  of  Boxer 

Indemnity. — December  28,  1908. 

"  Pursuant  to  the  authority  of  the  joint  resolution  of  Congress  to  provide  for  the  re- 
mission of  a  portion  of  the  Chinese  indemnity,  approved  May  25,  1908,  I  hereby  consent 
to  a  modification  of  the  bond  for  $24,440,778.81,  dated  December  15,  1906,  received  from 
China  pursuant  to  the  protocol  of  September  7,  1901,  for  indemnity  against  losses  and 
expenses  incurred  by  reason  of  the  so-called  Boxer  disturbances  in  China  during  the  year 
1900,  so  that  the  total  payment  to  be  made  by  China  under  the  said  bond  shall  be  limited 
to  the  sum  of  $13,655,492.69  and  interest  at  the  stipulated  rate  of  4  per  cent  per  annum, 
and  that  the  remainder  of  the  indemnity  to  which  the  United  States  is  entitled  under  the 
said  protocol  and  bond  be  remitted  as  an  act  of  friendship,  such  payment  and  remission 
to  be  made  at  the  time  and  in  the  manner  hereinafter  provided,  which  I  deem  to  be  just, 
that  is  to  say : 

"  In  accordance  with  the  plan  of  amortization  annexed  to  the  original  indemnity  bond, 
the  amounts  payable  hereafter  by  China  to  the  United  States  would  be  as  set  forth  in  the 
schedule  annexed  hereto  marked  '  Schedule  A,'  and  identified  by  the  signature  of  the 
Secretary  of   State. 

"  I  have  caused  an  account  to  be  made  by  the  Treasury  Department  in  which  the  pay- 
ments already  made  under  the  original  bond  are  credited  as  against  a  debt  of  $13,655,492.69 
with  interest  at  4  per  cent  per  annum  beginning  July  1,  1901,  in  lieu  of  the  original  sum 
specified  in  the  bond  and  I  find  that  after  such  credits,  and  including  in  such  credits  the 
sum  of  $85,223.04,  which  it  is  assumed  will  be  paid  on  the  1st  day  of  January,  1909,  there 
will  remain  on  that  day  to  be  paid  and  retained  by  the  United  States  in  satisfaction  of 
the  sum  of  $13,655,492.69  and  interest  thereon,  the  sum  of  $9,644,367.60. 

"  It  also  appears  by  the  said  new  account  that  the  payment  to  and  retention  by  the 
United  States  of  the  sums  specified  in  the  paper  hereto  attached,  marked  '  Schedule  B ' 
and  identified  by  the  signature  of  the  Secretary  of  State,  will  satisfy  the  principal  and 
interest  of  the  said  sum  of  $9,644,367.60  by  the  end  of  the  period  contemplated  in  the 
original  plan  of  amortization.  And  I  direct  that  after  the  said  1st  day  of  January,  1909, 
from  the  several  payments  made  under  the  said  bond  of  December  15,  1906,  in  accordance 
with  Schedule  A,  there  be  retained  and  paid  into  the  Treasury  of  the  United  States  only 
the  sums  specified  in  Schedule  B ;  and  that  the  remainder  of  the  said  several  payments 
so  made  by  China  in  accordance  with  Schedule  A  over  and  above  the  sums  specified  by 
Schedule  B  be  returned  by  indorsing  back  the  drafts  therefor,  or  otherwise,  and  thus 
remitted  to  the  Government  of  China.  The  sums  to  be  so  returned  in  each  year  will  be 
as  stated  in  the  paper  hereto  attached  marked  '  Schedule  C,'  identified  by  the  signature 
of  the  Secretary  of   State. 

"The  provision  contained  in  the  original  bond  for  an  adjustment  of  interest  because 
payments  are  made  monthly  instead  of  semiannually  will  continue  to  be  applicable  to  the 
payments  of  the  sums  specified  in  Schedule  B. 


NUMBER  1901/3:  SEPTEMBER  7,  1901:  NOTES 


313 


"  In  witness  whereof,  I  have  caused  the  seal  of  the  United  States  to  be  hereunto  affixed. 
"  Done  at  Washington,  this  twenty-eighth  day  of  December,  one  thousand  nine  hundred 
and  eight. 

[seal]  "Theodore  Roosevelt. 

"  By  the   President : 
"  Elihu   Root, 

"  .Secretary    of   State." 

"SCHEDULE   A 


Years. 

Amount  due 

yearly,  payable 

half  yearly. 

Monthly 
install- 
ments. 

Years. 

Amount  due 

yearly,  payable 

half  yearly. 

Monthly 
install- 
ments. 

1909       

$1,022,683.66 
1,022,683.66 
1,080,787.54 
1,080,787.54 
1,080,787.53 
1.080,787.53 
1,264,582.18 
1,329,784.76 
1,329,784.76 
1,329,784.76 
1,329,784.75 
1,329,784.76 
1,329,784.75 
1,329,784.75 
1,329.784.75 
1,329,784.76 
1,329,784.75 

$85,223.64 

85,223.64 

90,065.63 

90,065.63 

90,065.63 

90,065.63 

105,381.85 

110,815.40 

110,815.40 

110,815.40 

110,815.40 

110,815.40 

110,815.40 

110,815.40 

110,815.40 

110,815.40 

110,815.40 

1926 

$1,329,784.76 
1,329,784.75 
1,329,784.76 
1,329,784.75 
1,329,784.76 
1,329,784.75 
1,919,967.11 
1,919,967.10 
1,919,967.10 
1,919,967.11 
1,919,967.09 
1,919,967.09 
1,919,967.11 
1.919.967.10 
1,923,374.12 
3,407.02 

$110,815.40 
110,815.40 
110,815.40 
110,815.40 
110,815.40 
110,815.40 
159,997.26 
159,997.26 
159,997.26 
159,997.26 
159,997.26 
159,997.26 
159,997.26 
159  997  26 

1910 

1927 

1911 

1928 

1912 

1929 

1913 

1930 

1914 

1931 

1915 

1932 

1916 

1933 

1917 

1934     

1918 

1935 

1919 

1936 

1920 

1937 

1921 

1938 

1922 

1939 

1923 

1940 

160  281  18 

1924 

Deficit 

1925 

"  Schedule  A   referred   to   in   the   Executive   order  of   the    President,   dated   December 
28,  1908. 

"  Elihu  Root. 
"Secretary  of  State." 


"  SCHEDULE  B. 


Principal 

Interest  to 

Total  pay- 

Principal 

Interest  to 

Total  pay- 

Years. 

to  be  re- 

be re- 

ment to  be 

Years. 

to  be  re- 

be re- 

ment  to  be 

tained. 

tained. 

retained. 

tained. 

retained. 

retained. 

1909 

$153,814.06 

$385,774.70 

$539,588.76 

1925 

$288,090.85 

$251,497.91 

$539,588.76 

1910 

159,966.62 

379,622.14 

539,588.76 

1926 

299,614,49 

239,974.27 

539.588.76 

1911 

166,365.29 

2,7Z,2ZZ.A7 

539,588.76 

1927 

311,599.07 

227,989.69 

539.588.76 

1912 

173,019.90 

366,568.86 

539.588.76 

1928 

324,063.03 

215,525.73 

539.588.76 

1913 

179,940.70 

359,648.06 

539.588.76 

1929 

337.025.56 

202,563.20 

539.588.76 

1914 

187,138.32 

352,450.44 

539.588.76 

1930 

350,506.57 

189,082.19 

539,588.76 

1915 

194,623.86 

344,964.90 

539.588.76 

1931 

364,526.84 

175,061.92 

539,588.76 

1916 

202,408.81 

337,179.95 

539,588.76 

1932 

379,107.92 

160,480.84 

539,588.76 

1917 

210,505.16 

329,083.60 

539.588.76 

1933 

394,272.22 

145,316.54 

539,588.76 

1918 

218,925.37 

320.663.39 

539,588.76 

1934 

410,043.11 

129,545.65 

539.588.76 

1919 

227,682.38 

311,906,38 

539.588.76 

1935 

426,444.84 

113,143.92 

539,588.76 

1920 

236,789.68 

302,799.08 

539.588.76 

1936 

443.502.64 

96,086.12 

539,588.76 

1921 

246,261.27 

293,327.49 

539.588.76 

1937 

461,242.74 

78.346.02 

539,588.76 

1922 

256,111.72 

283,477.04 

539.588.76 

1938 

479,692.45 

59,896.31 

539.588.76 

1923 

266,356.19 

273,232.57 

539,588.76 

1939 

498,880.14 

40.708.62 

539,588.76 

1924 

277,010.44 

262,578.32 

539,588.76 

1940 

518,835  36 

20,753.40 

539,588.76 

"  Schedule   B   referred  to  in  the   Executive  order  of  the   President,   dated   December 
28,  1908. 

"  Elihu  Root, 
"  Secretary  of  State." 


314 


CHINA  TREATIES  AND  AGREEMENTS 


SCHEDULE  C. 


Years. 

Amount 
remitted 
yearly. 

Years. 

Amount 
remitted 
yearly. 

Years. 

Amount 
remitted 
yearly. 

1909 

$483,094.90 
483,094.90 
541,198.78 
541,198.78 
541,198.78 
541,198.78 
724.993.42 
790,196.00 
790,196.00 
790,196.00 
790,195.99 

1920 

$790,196.00 
790,195.99 
790,195.99 
790,195.99 
790,196.00 
790,195.99 
790,196.00 
790,195.99 
790,196.00 
790,195.99 
790,196.00 

1931 

1932 

$790,195.99 

1910 

1921 

1,380,378  35 

1911            

1922 

1933 

1934 

1935 

1936 

1,380,378.34 

1912     

1923 

1,380,378.34 

1913 , 

1924 

1,380,378.35 

1914 

1925 

1926 

1,380,378.43 

1915 

1937 

1938 

1939 

1940 

1,380,378.43 

1916 

1927 

1,380,378.35 

1917 

1928 

1,380,378  34 

1918     

1929 

1,380,378.36 

1919 

1930 

1908. 


"  Schedule   C   referred   to   in   Executive  order   of   the   President   dated   December  28, 


(For.  Rel.   of  the   U.   S.,   1908,   p.   72.) 


"  Elihu  Root,  Secretary  of  State. 


Exchange  of  Notes  regarding  American  share  of  Boxer  Indemnity. 

The  note  of  the  American  Minister,  communicating  the  purport  of  the  Resolution  to  the 
Wai-wu  Pu,  under  date  of  July  11,  1908,  and  the  replies  thereto,  under  date  of  July 
14,  1908,  are  herewith  quoted  from  For.  Rel.  of  the  U.  S.,  1908,  p.  67: 

"  Minister  Rockhill  to  the  Prince  of  Ch'ing. 

"  American  Legation, 
"Peking,  July  11,  1908. 

"Your  Highness:  It  is  with  great  satisfaction  that  I  have  the  honor  to  inform 
your  highness,  under  direction  of  the  Secretary  of  State  of  the  United  States,  that  a  bill 
has  passed  the  Congress  of  the  United  States  authorizing  the  President  to  modify  the 
indemnity  bond  given  the  United  States  by  China  under  the  provisions  of  Article  VI  of  the 
final  protocol  of  September  7,  1901,  from  $24,440,000  United  States  gold  currency  to  $13,- 
655,492.29,  with  interest  at  4  per  cent  per  annum.  Of  this  amount  $2,000,000  are  held 
pending  the  result  of  hearings  on  private  claims  presented  to  the  Court  of  Claims  of  the 
United  States  within  one  year.  Any  balance  remaining  after  such  adjudication  is  also 
to  be  returned  to  the  Chinese  Government  in  such  manner  as  the  Secretary  of  State  shall 
decide. 

"  The  President  is  further  authorized  under  the  bill  to  remit  to  China  the  remainder 
of  the  indemnity  as  an  act  of  friendship,  such  payments  and  remissions  to  be  made  at 
such  times  and  in  such  a  manner  as  he  may  deem  just. 

"  I  am  also  directed  by  the  Secretary  of  State  to  request  the  Imperial  Government 
kindly  to  favor  him  with  its  views  as  to  the  time  and  manner  of  the  remissions. 

'  Trusting  that  your  imperial  highness  will  favor  me  with  an  early  reply  to  com- 
municate to  my  Government,  I  avail,  etc. 

"  W.   W.  Rockhill." 

"  The  Prince  of  Ch'ing  to  Minister  Rockhill. 

"  (Translation.) 

"  Foreign  Office, 
"  Peking,  July  14,  1908. 
"Your  Excellency:  I  have  the  honor  to  acknowledge  the  receipt  of  your  dispatch  of 
July  11,  informing  me  that  you  had  been  directed  by  the  Secretary  of  State  to  notify 
me  that  a  bill  has  passed  the  Congress  of  the  United  States  authorizing  the  President  to 
modify  the  indemnity  bond  given  the  United  States  by  China  under  the  provision  of 
Article  VI  of  the  final  protocol  of  September  7,  1901,  from  $24,440,000  United  States 
gold  currency,  to  $13,665,492.29,  with  interest  at  4  per  cent  per  annum.  Of  this  amount 
$2,000,000  are  held  pending  the  result  of  hearings  on  private  claims  presented  to  the  Court 
of  Claims  of  the  United  States  within  one  year.  Any  balance  remaining  after  such 
adjudication  is  also  to  be  returned  to  the  Chinese  Government  in  such  manner  as  the 
Secretary  of  State  shall  decide.  The  President  is  further  authorized  under  the  bill  to 
remit  to  China  the  remainder  of  the  indemnity  as  an  act  of  friendship,  such  payments  to 


NUMBER  1901/3:  SEPTEMBER  7,  1901:  NOTES  315 

be  made  at  such  times  and  in  such  a  manner  as  he  may  deem  just.  As  directed  by  the 
Secretary  of  State,  your  excellency  requests  the  Imperial  Government  kindly  to  favor  him 
with  its  views  as  to  the  time  and  manner  of  the  remissions,  and  asks  an  early  reply  to  com- 
municate  to  your   excellency's    Government. 

"On  reading  this  dispatch  I  was  profoundly  impressed  with  the  justice  and  great 
friendliness  of  the  American   Government,  and  wish  to  express  our  sincerest  thanks. 

"  Concerning  the  time  and  manner  of  the  return  to  China  of  the  amounts  to  be  re- 
mitted, the  Imperial  Government  has  no  wishes  to  express  in  the  matter.  It  relies  im- 
plicitly on  the  friendly  intentions  of  the  United  States  Government,  and  is  convinced 
that  it  will  adopt  such  measures  as  are  best  calculated  to  attain  the  end  it  has  in  view. 

"  The  Imperial  Government,  wishing  to  give  expression  to  the  high  value  it  places  on  the 
friendship  of  the  United  States,  finds  in  its  present  action  a  favorable  opportunity  for 
doing  so.  Mindful  of  the  desire  recently  expressed  by  the  President  of  the  L^nited  States 
to  promote  the  coming  of  Chinese  students  to  the'  United  States  to  take  courses  in  the 
schools  and  higher  educational  institutions  of  the  country,  and  convinced  by  the  happy  re- 
sults of  past  experience  of  the  great  value  to  China  of  education  in  American  schools, 
the  Imperial  Government  has  the  honor  to  state  that  it  is  its  intention  to  send  henceforth 
yearly  to  the  United  States  a  considerable  number  of  students  there  to  receive  their  educa- 
tion. The  board  of  foreign  affairs  will  confer  with  the  American  minister  in  Peking 
concerning  the  elaboration  of  plans  for  the  carrying  out  of  the  intention  of  the  Imperial 
Government. 

"  A  necessary  dispatch. 

"  [Seal  of  the  Wai  Wu  Pu.]" 

"  The   Foreign    OfUce    to    Minister   Rockhill. 

"  (Translation.) 

"  Foreign  Office, 
"  Peking,  July  14,  1908. 
"  Referring  to  the  dispatch  just  sent  to  your  excellency  regarding  sending  students 
to  America,  it  has  now  been  determined  that  from  the  year  when  the  return  of  the  indemnity 
begins  100  students  shall  be  sent  to  America  every  year  for  four  years,  so  that  400  students 
may  be  in  America  by  the  fourth  year.  From  the  fifth  year  and  throughout  the  period 
of  the   indemnity  payments  a   minimum   of   50  students  will   be  sent   each  year. 

"  As  the  number  of  students  will  be  very  great  there  will  be  difficulty  in  making 
suitable  arrangements  for  them.  Therefore  in  the  matter  of  choosing  them,  as  well  as  in 
the  matter  of  providing  suitable  homes  for  them  in  America  and  selecting  the  schools 
which  they  are  to  enter  we  hope  to  have  your  advice  and  assistance.  The  details  of 
our  scheme  will  have  to  be  elaborated  later,  but  we  take  this  occasion  to  state  the  general 
features  of  our  plan  and  ask  you  to  inform  the  American  Government  of  it.  We  sincerely 
hope  that  the  American  Government  will  render  us  assistance  in  the  matter. 
"  Wishing  you  all  prosperity, 

"  Prin'ce  of  Ch'ing. 

"  N.\    T'UNG. 

"  Yuan  Shih-k'ai. 

"  Lien  Fang. 

"  Liang  Tun-yen." 

Note  4. 

The  administration  of  the  Diplomatic  Quarter  thus  reserved  was  provided  for  by  the 
Diplomatic  Body  by  a  Protocol,  under  date  of  June  13,  1904,  of  which  the  translation  (as 
communicated  by  the  American  Legation  to  the  Department  of  State  for  approval)  is  as 
follows : 

Protocol  regarding  Legation  Quarter  at  Peking, — June  13,  1904. 

"  The  undersigned  representatives  of  the  Powers  signers  of  the  Final  Protocol  of  the 
7th  of  September,  1901,  in  view  of  Article  VII  of  the  said  Protocol,  by  which  the 
Chinese  Government  has  admitted  that  the  quarter  occupied  by  the  Legations  should  be 
considered  as  a  quarter  specially  reserved  for  their  usage,  placed  under  their  exclusive 
police  where  Chinese  would  not  have  the  right  to  live,  and  which  might  be  put  into 
a  state  of  defense,  and  in  view  of  the  plan  fixing  the  limits  of  this  quarter  in  accordance 
with  the   Protocol,  have  agreed  on  what  follows : 

"  1. — The  possession  of  the  land  indicated  by  having  their  name  inscribed  on  the 
map  made  for  that  purpose,  and  annexed  to  this  Protocol,  is  conceded  to  each  Legation, 
also  to  the  Imperial  Maritime  Customs,  to  each  foreign  association,  and  to  all  private 
individuals. 

"  2. — All  land  included  between  the  limits  of  the  quarter  and  the  defensive  walls  marked 


316  CHINA  TREATIES  AND  AGREEMENTS 

on  the  map,  land  which  is  reserved  as  a  glacis  for  the  defense  of  the  quarter,  also  the 
roads,  sidewalks,  gutters,  bridges,  drains,  trees,  and  constructions  of  whatever  nature, 
are  conceded  to  belong  to  the  Diplomat.     Quarter  as  a  common  possession. 

■'  3. — Are  excepted,  parcels  of  land  situated  on  the  glacis,  which  are  conceded  to 
have  belonged  to  private  individuals  before  the  20th  of  June,  1900,  the  date  of  the 
beginning  of  the  siege  of  the  Legations,  which  are  also  indicated  on  this  map. 

'■  These  parcels  remain  the  property  of  their  former  proprietors,  or  of  those  deriving 
their  rights  from  them.  To  avoid  all  misunderstanding  a  list  of  such  parcels  is  added,  as 
follows : 

"  On  the  glacis,  in  front  of  the  German  Legation,  the  land  belonging  to  the  Russo- 
Chinese  Bank,  and  the  land  in  front  of  the  German  Legation  which  formerly  belonged 
to  Air.  Coltman. 

"  On  the  glacis  in  front  of  the  Austro-Hungarian  Legation,  the  land  belonging  to 
Mr.   Splingaerd. 

"  4. — No  construction,  permanent  or  temporary,  with  the  exception  of  those  now 
existing,  shall  be  made  upon  any  part  whatever  of  the  glacis,  without  the  unanimous  con- 
sent of  the  Representatives  of  the  Powers  signers  of  the  Final  Protocol  of  the  7th  of 
September,    1901. 

■'  5. — The  glacis  being  recognized  as  common  property,  each  Legation  is  provisionally 
charged  with  the  control  of  that  part  of  which  it  has  at  present  assumed  the  defence,  and 
the  Commandants  of  the  Guards  shall  be  invited  to  consult  together  on  all  matters  relat- 
ing  to   its   military   organization. 

"  6. — The  Legations,  the  Imperial  Customs,  Associations,  and  private  individuals,  shall 
not  make  any  encroachments  on  the  glacis,  the  roads,  sidewalks,  bridges,  or  canals,  as  they 
are  indicated  on  the  map. 

"  7. — The  Representatives  of  the  Powers  signers  of  the  Final  Protocol  of  September 
7th,  1901,  agree  to  proceed  forthwith  to  the  drawing  up  of  a  plan  of  general  Government 
of  the  police  and  control  of  the  roads,  and  to  submit  this  to  the  approbation  of  their 
respective  Governments.  JMoreover  they  shall  take  such  steps  as  they  shall  deem  advisable 
to  obtain  the  necessary  authority  to  enforce  these  regulations  upon  their  nationals,  and 
to  oblige  them  to  pay  the  taxes  intended  to  insure  the  service  of  the  police  and  the 
maintenance  of  the  roads. 

"  8. — The  Korean  Legation,  having  taken  the  place  of  a  citizen  of  the  United  States 
as  proprietor  of  the  land  at  present  occupied  by  it,  is  looked  upon  as  succeeding  only 
to  his  individual  rights,  but  by  courtesy  it  shall  be  invited  to  take  part,  in  the  name 
of  the  Government,  in  the  drawing  up  of  the  general  plan  of  Government. 

"  9. — Works  already  executed  at  the  expense  of  certain  Legations,  to  rebuild  roads, 
sidewalks,  canals,  bridges,  or,  in  fact,  any  other  work  of  public  utility,  are  entitled  to  no 
compensation    from    the   community. 

■'  10. — Three  copies  of  this  Protocol,  with  the  annexed  plan,  shall  be  printed  for  each 
Legation. 

"  Done  at  Peking,  June  13,  1904. 

(Signed)   A.  von  Mumm; 
m.  czikann  ; 
De  Gaiffier  ; 
De   Carcer  ; 
Dubail; 
Satow  ; 
Gallina  ; 

UCHIDA  ; 

Van  Citters  ; 
Lessar." 


Note  5. 

In  connection  with  the  handing  back  to  the  Chinese  authorities  of  the  administration 
of  Tientsin  (as  to  which  see  For.  Rel.  of  the  U.  S.,  1902,  pp.  184-201),  the  representatives 
of  the  five  Powers  maintaining  the  provisional  government  of  that  port  (namely,  France, 
Germany,  Great  Britain,  Italy  and  Japan)  addressed  to  the  Chinese  Government,  under 
date  of  July  15,  1902,  identical  notes  of  the   following  tenor: 

Conditions  for  Dissolution  of  Provisional  Government  of  Tientsin. — July  15,  1902. 

"  I  have  the  honor  to  acknowledge  the  receipt  of  Your  Highness's  note  of  the  5th 
instant,  inclosing  copy  of  a  letter  from  his  excellency  the  viceroy  Yuan,  urging  reasons 
why  the  administration  of  the  city  of  Tientsin  should  be  handed  back  to  his  excellency  at 
an  early  date. 


NUMBER  1901/3:  SEPTEMBER  7,  1901:  NOTES  317 

"  In  reply  I  have  the  honor  to  state  to  Your  Highness  that,  in  accord  with  my  col- 
leagues representing  powers  that  still  have  delegates  on  the  council  of  the  Tientsin  pro- 
visional government,  I  am  authorized  by  my  Government  to  consent  to  the  dissolution  of 
that  body,  provided  that  the  Chinese  Government  signifies  its  adherence  to  the  following 
propositions : 

•'  By  Article  VIII  of  the  final  protocol  of  September  7,  1901,  it  was  declared  that 
the  Chinese  Government  agreed  to  have  the  forts  at  Taku,  and  others  which  might  interfere 
with  free  communication  between  Peking  and  the  sea,  demolished;  and  it  was  added  that 
arrangements  had  been  made   for  this  purpose. 

"  The  Chinese  plenipotentiaries  having  expressed  to  the  diplomatic  body  their  desire 
to  be  relieved  of  the  direct  responsibility  for  carrying  out  this  article,  the  representatives 
of  the  signatory  powers  intrusted  the  work  to  the  Tientsin  provisional  government.  It  is 
not  yet  entirely  completed.  In  order  therefore  to  insure  the  fulfillment  of  this  article, 
I  have  the  honor  to  propose  to  Your  Highness  that  the  work  of  demolition  shall,  from 
the  moment  of  the  dissolution  of  the  Tientsin  provisional  government,  be  placed  in  the 
hands  of  the  G.  O.  C.'s  at  Tientsin,  the  necessary  funds  being  provided  out  of  the  moneys 
then  remaining  in  the  treasury  of  the  Tientsin  provisional  government. 

"  By  Article  IX  of  the  same  protocol  it  is  provided  that  the  powers  shall  have  the 
right  of  occupying  certain  points  between  Peking  and  the  sea,  of  which  the  whole  town 
of  Tientsin  is  one.  Consequently,  after  the  dissolution  of  the  Tientsin  provisional  gov- 
ernment, foreign  troops  will  continue  as  hitherto  to  be  stationed  there,  in  the  places  ac- 
tually occupied  by  them,  and  their  supplies  of  all  sorts  continuing,  as  at  present,  to  be 
exempt  from  all  taxes  or  dues  whatsoever.  They  will  have  the  right  of  carrying  on 
field  exercises  and  rifle  practice,  etc.,  without  informing  the  Chinese  authorities,  except  in 
the  case  of  feu.v  de  guerre. 

"  It  is  desirable,  however  to  avoid  as  far  as  possible  occasions  of  collision  between 
the  foreign  troops  and  those  of  China.  I  propose,  therefore,  that  with  this  object  the 
Chinese  Government  shall  undertake  not  to  station  or  march  any  troops  within  20  Chinese 
li  (6  2/3  English  miles)  of  the  city  or  of  the  troops  stationed  at  Tientsin;  further,  in  cor- 
respondence exchanged  between  the  foreign  representatives  and  the  Chinese  plenipotentiaries, 
of  whom  Your  Highness  was  one,  previous  to  the  signature  of  the  protocol,  it  was  agreed 
that  the  jurisdiction  of  the  commanders  of  the  posts  to  be  established  along  the  line  of  com- 
munications should  extend  to  a  distance  of  2  miles  on  either  side  of  the  railway,  and  this 
arrangement  ought  to  be  maintained  as  long  as  the  line  of  posts  specified  in  Article  IX  of 
the  protocol  continue  to  be  occupied. 

"  I  am  willing,  however,  in  concert  with  my  colleagues,  to  consent  that  the  viceroy 
should  have  the  right  of  maintaining  a  personal  bodyguard  in  the  city  of  Tientsin  not 
exceeding  in  number  300  men;  and  also  that  his  excellency  may  maintain  an  efficient  body 
of  river  police  along  the  line  of  the  river,  even  where  it  runs  within  the  2-mile  limit  above 
mentioned. 

"  The  demolition  of  the  forts  implies  an  obligation  upon  China  not  to  reconstruct  them, 
and  the  same  obligation  applies  to  the  walls  of  Tientsin  city,  which,  during  the  troubles  of 
1900,  were  made  use  of  as  a  fortification  directed  against  the  security  of  the  foreign  settle- 
ments. We  can  not,  however,  consent  that  the  Chinese  Government  establish  maritime 
defenses  at  the  mouth  of  the  Peiho  at  Chingwangtao  or  at  Shanhaikuan. 

"  We  propose  that  the  accounts  of  revenue  and  expenditure  of  the  Tientsin  provisional 
government  be  audited  by  two  competent  persons,  one  to  be  chosen  by  the  G.  O.  C.'s  at 
Tientsin,  the  other  by  the  viceroy,  and  the  balance,  after  deduction  of  the  sum  required  to 
complete  the  demolition  of  the  forts,  be  handed  over  to  the  provincial  treasury. 

"Your  Highness  will  no  doubt  think  it  right  to  agree  that  no  Chinese  subject  who  has 
been  in  the  service  of  the  Tientsin  provisional  government  or  of  the  foreign  contingent 
shall  be  in  any  way  molested  on  the  ground  of  such  service. 

"  Chinese  subjects  in  the  employ  of  the  foreign  forces  on  the  lines  of  communication 
will  be  provided  with  certificates  of  identity.  It  appears  to  me  necessary  that  the  Chinese 
Government  should  admit  that  in  case  any  such  Chinese  person  commits  an  oflfense  the 
commandant  in  whose  service  he  is  should  have  the  right  of  punishing  him  or  of  handing 
him  over  to  the  Chinese  authoritites  as  may,  in  his  opinion,  be  best  calculated  to  secure  the 
ends  of  justice. 

"  The  right  of  foreign  troops  to  occupy  summer  quarters  when  necessary  ought,  in  my 
opinion,  to  be  recognized. 

"  A  list  of  unexpired  punishments  imposed  by  the  Tientsin  provisional  government  will 
be  furnished  when  that  body  is  dissolved  to  the  provincial  government,  which  ought  to 
undertake  to  carry  them  out.  No  action,  either  criminal  or  civil,  adjudicated  by  the  pro- 
visional government  can  ever  be  opened  anew. 

"  The  archives  of  the  Tientsin  provisional  government  I  consider  should  be  intrusted 
to  the  senior  consul,  and  application  can  be  made  to  him  by  any  person  entitled  to  consult 
them. 

"  As  regards  taxation.  I  consider  that  the  inhabitants  of  the  city  and  district  should 
be  regarded  as  having  discharged  their  duty  to  the  Chinese  Government  during  the  period  of 


318  CHINA  TREATIES  AND  AGREEMENTS 

the  continuance  of  the  administration  of  the  Tientsin  provisional  government  and  that  no 
arrears  ought  to  be  demanded  of  them  under  this  heading. 

"  Such  are  the  proposals  which  1  consider  it  my  duty  to  place  before  Your  Highness 
for  the  acceptation  of  the  Chinese  Government,  and  I  have  the  honor  to  declare  that  I  am 
ready  to  consent  to  the  dissolution  of  the  Tientsin  provisional  government  four  weeks  after 
I  receive  from  Your  Highness  an  intimation  that  they  are  accepted.  I  have  only  further 
to  request  that  Your  Highness  will  be  so  good  as  to  designate  the  official  to  whom  formal 
delivery  of  the  city  and  district  can  be  made  by  the  council  of  the  Tientsin  provisional 
government. 

"  I  have,  etc." 

The  understanding  upon  which  the  terms  of  this  note  were  accepted  by  the  Chinese 
Government  was  communicated  to  the  American  Minister  in  a  note  from  Prince  Ch'ing 
under  date  of  July  18,  1902,  of  which  the  substance  is  (in  translation)  as  follows: 

"On  the  10th  of  the  sixth  moon,  twenty-eighth  year  of  Kuang-hsu  (July  14,  1902),  I 
received  a  dispatch  from  certain  ministers  of  the  treaty  powers,  stating  that  in  regard  to 
the  transfer  of  the  city  of  Tientsin  and  the  country  adjacent  to  the  jurisdiction  of  the 
viceroy  of  Chihli,  these  foreign  ministers  were  agreed  (of  the  same  opniion).  They  also 
had  had  the  honor  of  receiving  the  sanction  of  their  respective  governments  for  the  abroga- 
tion of  the  provisional  government,  provided  only  that  the  Chinese  Government  should,  first 
of  all,  distinctly  consent  to  the  conditions  proposed,  when  they,  on  their  part,  would  promise  that 
in  four  weeks  from  the  day  on  which  consent  was  given,  the  provisional  goyernment  of 
Tientsin  should  be  abrogated.  They  therefore  request  that  it  be  clearly  pointed  out  to 
whom,  when  the  time  arrives,  and  into  whose  hands  the  provisional  government  should 
transfer  Tientsin  city  and  the  country  adjacent. 

"  I  have  carefully  perused  the  dispatch  with  regard  to  the  point  that  military  posts 
should  be  established  along  the  highway  or  line  of  communication  from  Pekin  to  the  sea, 
with  powers  to  control  and  punish,  the  distance  to  extend  as  far  as  two  English  miles  on 
each  side  of  the  railroad. 

"  I  would  remark  that  according  to  the  doyen,  His  Excellency  Cologan's  dispatch  of  the 
sixth  moon,  twenty-seventh  year  of  Kuang-hsu  (July,  1901),  military  control  would  only 
refer  to  offenses  against  the  railroad,  the  telegraph  lines,  or  against  the  allies  or  their 
property. 

"  As  to  the  remaining  articles  I  have  no  objection  to  make. 

"  On  the  13th  of  the  current  moon  (July  17)  I  memorialized  the  Throne  on  the  subject 
and  had  the  honor  of  receiving  the  sanction  of  the  Throne  by  imperial  decree. 

"Whereupon.  I  at  once  sent  replies  to  the  ministers  of  the  treaty  powers,  in  order  that 
they  might  transmit  the  same  to  the  provisional  government  of  Tientsin,  that  the  provisional 
government  be  abolished  within  four  weeks,  and  the  city  of  Tientsin  and  its  adjacent 
country  be  returned  to  Chinese  administration  and  handed  over  to  the  superintendent  of  the 
northern  ports,  who,  at  the  head  of  the  local  officials,  civil  and  military,  will  be  there  to 
receive  it. 

"  Hereafter,  whenever  there  is  need  for  consultation,  the  foreign^  civil  and  military 
authorities  can,  from  time  to  time,  consult  with  his  excellency  the  superintendent  of  north- 
ern ports,  which,  I  hope,  will  be  for  the  good  of  the  place." 

{For.  Rel.  of  the  U.  S.,  1902,  p.  201.) 

During  the  Revolution  of  1911-12,  the  representatives  of  the  Powers  found  it  advisable 
to  exercise  the  right  of  military  control  over  the  Peking-Mukden  Railway  from  the  capital 
to  Shanhaikuan ;  and  American,  British,  French,  German,  Italian  and  Japanese  troops 
accordingly  occupied  allotted  sections  of  the  railway,  between  the  points  specified,  in 
accordance  with  the  following  resolutions  adopted  by  the  Diplomatic  Body  at  Peking  and 
embodied  in  its  circular  No.  13A  of  January  26,  1912: 

Resolutions  of  Diplomatic  Body  regarding  Military  Occupation  of  the  Railway  from 
Peking  to  Shanhaikwan. — ^January  26,  191 2. 

"  1, — That  troops  should  be  placed  at  important  stations,  bridges,  etc.,  along  the  line  of  the 
railway. 

"2. — Both  Chinese  Imperial  and  Revolutionist  troops  are  at  liberty  to  utilize  the  rail- 
way line  and  adjoining  piers  and  wharfage  for  the  purposes  of  transportation,  landing  or 
embarkation  and  will  not  be  interfered  with. 

'•  3. — Both  parties  will  be  notified  to  avoid  any  interference  with  the  railway  and  to 
refrain  from  damaging  it  in  any  way.  The  Board  of  the  Imperial  Railways  of  North  China 
will  be  requested  to  maintain  at  both  Shanhaikuan  and  Tientsin  a  repair  train  loaded  with 
suitable  materials  for  repairing  damages. 

"4. — Any  attempts  to  permanently  damage  important  parts  of  the  line,  such  as  sta- 
tions, depots,  machinery,  bridges,  etc.,  will  be  resisted  by  the  combined  forces  of  the  six 
Powers  cooperating  in  the  defense  of  the  railway. 


NUMBER  1901/3:  SEPTEMBER  7,  1901:  NOTES  319 

"5. — The  Board  of  the  Imperial  Railways  of  North  China  will  be  requested  to  always 
keep  ready  at  Shanhaikuan  and  Tientsin  sufficient  rolling  stock  to  transport  250  infantry 
in  order  that  reenforcements  can  rapidly  be  dispatched. 

"  6. — The  telegraph  offices  are  to  be  protected  and  telegraphic  communication  main- 
tained.   Chinese  troops  of  either  side  may  make  use  of  the  line. 

"  7.— Officers  commanding  posts  and  patrols  should  be  informed  of  the  conditions 
laid  down  in  paragraphs  2,  3,  4,  and  6  and  told  to  do  their  best,  with  the  forces  at  their 
disposal,  to  carry  them  out." 


Note  6. 

The  final  settlement  of  the  question  of  the  Indemnity  is  embodied  in  the  following 
joint  note  addressed  to  the  Prince  of  Ch'ing  by  the  diplomatic  representatives  of  Germany, 
Austria-Hungary,  Belgium,  Spain,  France,  Great  Britain,  Italy,  Japan,  the  Netherlands  and 
Russia,  under  date  of  July  2,  1905  : 

Exchange  of  Notes  regarding  Final  Settlement  of  the  Question  of  the  Boxer 

Indemnity. — ^July  2,  1905. 

■'  Peking,  July  2,  1905. 
"  Your  Highness  : 

"  We  have  the  honour  to  acknowledge  the  receipt  of  the  letter  which  Your  Highness 
was  so  good  as  to  address  to  us  on  July  2,  1905,  in  answer  to  the  Collective  Note  of  the 
Representatives  of  the  Powers,  dated  July  26,  1904,  regarding  the  payment  of  the  indemnity. 

"  It  is  therein  stated  as  follows :  '  On  July  26th  last  we  had  the  honour  to  receive  the 
Collective  Note  by  which  the  Representatives  of  Germany,  Austria-Hungary,  Great  Britain, 
Italy,  Japan,  the  Netherlands  and  Russia  made  certain  proposals  to  us  for  the  regulating  the 
payment  of  the  indemnity. 

"'We  have  examined  these  proposals  with  the  greatest  care.  After  having  discussed 
them  several  times  both  verbally  and  in  writing  with  the  Belgian  and  other  Ministers,  we 
are  now  in  a  position  to  submit  to  the  Powers  concerned  and  to  ask  them  to  be  so  good 
as  to  accept,  a  definitive  arrangement  respecting  both  the  liquidation  of  the  arrears  and  the 
payments  to  be  made  in  future. 

"  '  Recognizing  that  the  sum  of  450,000,000  Taels  constitutes  a  debt  in  gold,  that  is  to  say 
for  each  Haikwan  Tael  due  to  each  of  the  Powers  China  must  pay  in  gold  the  amount  which 
is  shown  in  Article  VI  of  the  Final  Protocol  as  the  equivalent  of  one  Tael,  we  undertake: 

"'  1.  To  extinguish  by  means  of  a  lump  sum  of  8,000,000  Protocol  Taels,  the  whole  of 
the  debt  incurred  towards  all  the  Powers  collectively  on  account  of  the  payment  in  silver 
during  the  years  up  to  January  1,  1905.  This  lump  sum  shall  be  divided  among  the  Powers 
in  proportion  to  the  amount  of  the  sums  which  remained  due  to  each  of  them  on  January 
1,  1905.  With  regard  to  these  sums,  which  are  determined  by  converting  the  balance  of  each 
half  year  into  gold  and  carrying  it  forward  in  Protocol  Haikwan  Taels  we  beg  the  Minis- 
ters to  be  so  good  as  to  let  us  know  what  they  are,  in  order  that  they  may  be  paid  by 
telegraphic  transfers  to  each  Power  direct,  a  fortnight  after  the  present  proposals  have 
been  accepted.  These  8,000,000  Taels  will  bear  interest  at  4  per  cent  per  annum  from  January 
1,  1905,  to  the  day  of  payment. 

"'2.  To  sign  the  national  bonds  as  soon  as  the  Powers  have  given  their  assent  to  our 
proposals. 

"  '  3.  In  future  on  the  last  day  of  each  month,  to  pay  equal  monthly  instalments  of  the 
whole  of  the  sum  payable  each  year  for  interest  and  sinking-fund,  which  is  fixed  by  the 
sinking-fund  tables  attached  to  the  respective  national  bonds,  the  Powers  agreeing  that 
China  at  the  end  of  each  half  year  may  deduct  interest  at  the  rate  of  4  per  cent  per  annum 
on  these  instalments  from  the  date  on  which  they  have  been  made  to  the  last  day  of  the  half 
year. 

" '  China  will  make  these  payments,  calculated  on  the  basis  set  forth  above,  which 
fixes  the  value  of  the  Haikwan  Protocol  Tael  in  relation  to  the  money  of  each  country, 
either  in  silver,  according  to  the  price  of  silver  on  the  London  market,  or  in  gold  bills,  or 
in  telegraphic  transfers,  at  the  choice  of  each  Power.  China  may  obtain  bills  and  telegraphic 
transfers  as  best  suits  her  interests  at  any  place  and  at  any  bank  at  the  lowest  price  or  by 
public  tender,  provided  that  the  payments  in  gold  be  made  to  each  Power  direct  on  the 
due  date.  It  is  understood  that  China  is  responsible  for  the  exact  payment  of  the  trans- 
fers and  the  bills.  Each  Power  in  accepting  the  present  proposals  must  inform^  the  Chinese 
Government  which  of  the  three  methods  cited  above  is  the  one  it  chooses  'till  the  debt 
is  extinguished. 

"  '  4.  As  to  the  sums  in  silver  which  have  been  paid  over  to  the  Bankers'  Commission 
between  January  1,  1905,  and  the  coming  into  force  of  the  new  arrangement  regarding  the 
indemnity,  we  propose  that  they  should  be  repaid  to  the  Shanghai  Taotai.     He  will  then 


320 


CHINA  TREATIES  AND  AGREEMENTS 


meet  the  instalments  that  have  then  fallen  due,  in  accordance  with  the  methods  set  forth 
above,  with  deduction  of  interest  at  4  per  cent  per  annum  from  the  day  the  payment  shall 
have  been  re-effected,  up  to  the  date  of  the  next  half  yearly  payment. 

"  '  We  beg  Their  Excellencies  the  Ministers  of  the  Powers  to  inform  us  as  soon  as 
possible  whether  their  Governments  accept  our  proposals.' 

"  We  have  submitted  these  proposals  to  our  respective  Governments,  who  after  examin- 
ing them  in  a  conciliatory  spirit,  have  assented  to  them. 

"  We  therefore  have  the  honor  to  inform  Your  Highness  that  we  all  accept  the  definite 
arrangement  of  the  question  of  the  indemnity  proposed  in  your  letter  of  today. 

"  It  is  understood  that  Article  4  of  the  present  agreement  shall  be  applied  in  an 
equitable  manner.  • 

"  Your  Highness  will  find  attached  a  table  setting  forth  the  division  of  the  8,000,000 
taels  which  you  have  expressed  the  desire  to  receive. 

A.   V.   MUMM. 
A.    ROSTHORN. 

E.  DE  Gaiffier. 
Manuel  de  Carcer. 
M.  Dubail. 
Ernest  Satow. 

C.  Baroli. 
Y.  Uchida. 

A.  J.   CiTTERS. 

D.  POKOTILOW." 

"Amount  du-e  each  power  from  the  sum  of  8,000,000  protocol  taels. 


Country. 


Germany 

Austria-Hungary   . . . . 

Belgium    

Spain   

United  States  

France  

Great  Britain    

Portugal   

Italy  

Japan  

Netherlands  

Russia    

International  claims   . 
Sweden  and  Norway 


Marks 

Crowns 

Francs    

...do  

Gold  dollars 

Francs    

Pounds  

...do  

Francs    

Yen   

Florins   

Rubles    

Pounds  

...do  


Foreign  cur- 
rency. 


4,971,917.95 

263,700.83 

560,776.83 

8,943.75 

490,435.44 

4,684,727.62 

138,114.91 

250.16.4 

1,759,261.46 

724,487.16 

24,169.69 

3,266,264.32 

408.73 

171.73 


Protocol 
taels. 


,627,469.05 

73,352.11 

149,540.44 

2,385.00 
660,964.20 
,249.260.70 
920,763.04 

1,672.11 

469,136.39 

514,916.25 

13,457.51 

,313,218.36 

2,722.42 

1,142.42 


8,000,000.00  " 


(Translation,  as  printed  in  For.  Rel.  of  the  U.  S.,  1905,  p.  156,  from  French  original.) 

In  reply  to  a  request,  by  the  signatories  of  this  collective  note,  to  be  informed  whether 
the  Government  of  the  United  States  would  accept  the  proposals  of  the  Chinese  Gov- 
ernment as  embodied  therein,  the  American  Minister  replied  under  date  of  July  2,  1905, 
as  follows : 

"  Messieurs  les  Ministres  et 

Monsiei'r  le  Charge  d'affaires  : 
"  I  have  the  honor  to  acknowledge  the  receipt  of  your  joint  letter  which  you  have  been 
pleased  to  address  me  under  date  of  today,  and  in  which  you  communicate  to  me  the  notes 
exchanged  by  you  and  the  Chinese  Government  with  the  object  of  a  final  settlement  of  the 
question  of  the  indemnity  in  the  Final  Protocol  of  7th  September,  1901. 

"  I  am  pleased  to  inform  you  that  I  accept  in  the  name  of  my  Government  the  pro- 
posals of  the  Chinese  Government  as  stated  in  these  two  notes. 

"  Please  accept,  Excellencies  and  Monsieur,  the  assurance  of  my  highest  consideration. 

{Sgd.)  "W.  W.  RocKHiLL. 

"A  LL.  EE.  mm.  les  Ministres 

d'Allemagne,  de  Grande  Bretagne,  de  Jafon, 

DE  France,  des  Pays-Bas,  de  Belgique,  d'Italie, 
d'Espagne  et  de  Russie  ;  et  M.  le  Charge 
d'affaires  d'Autriche-Hongrie." 


NUMBER  1902/1 :  JANUARY  1/14,  1902  321 


NUMBER  1902/1. 

RUSSIA    (Chinese    Eastern    Railway    Company)    AND    CHINA    (Provincial 

Government  of  Heilungkiang). 

Agreement  regarding  Jurisdiction  over  Chinese  Subjects  in  the  Raihi'ay 
Zone.*— January  1/14,  1902. 

In  view  of  the  fact  that  the  conditions  of  the  old  agreement  for  the  Prin- 
cipal Heilungkiang  Bureau  in  Fulierdi  for  conducting  the  affairs  of  the  province 
in  relation  to  the  Chinese  Eastern  Railway,  concluded  between  His  Excellency 
En,  former  Chiang-Chun  of  Heilungkiang,  and  Messrs.  Yugovitch,  Engineer- 
in-Chief,  and  Ignatius,  his  assistant,  signed  November  20/December  2,  1899, 
and  according  to  the  Chinese  calendar  the  1st  day  of  the  9th  month  of  the  25th 
year  of  Kuang  Hsii,  are  not  in  harmony  with  the  present  state  of  affairs,  His 
Excellency  Sah,  acting  Chiang-Chun  of  Heilungkiang,  appointed  on  September 
28/November  11,  1901,  the  Expectant  Taotai  of  Hunan  Province,  Mr. 
Djoumyan,  his  authorized  representative  for  negotiations  with  the  Engineer-in- 
Chief,  Mr.  Yugovitch,  his  Assistant,  Mr.  Ignatius,  and  his  representative,  Mr. 
Daniel,  regarding  necessary  additions  to  and  changes  in  the  said  agreement. 
They  have  arrived  at  an  agreement  upon  the  following  articles : 

Article  1. — The  Principal  Heilungkiang  Bureau  for  the  conduct  of  affairs 
in  relations  between  the  Province  and  the  Chinese  Eastern  Railway,  shall  be 
established  in  the  immediate  neighborhood  of  the  Central  Station.  It  is  neces- 
sary to  appoint  officials  to  the  Principal  Bureau,  each  of  whom  shall  perform  his 
special  functions  and  shall  live  mainly  in  Harbin,  and  for  all  important  sections 
special  officials  who  shall  be  subject  to  the  orders  of  the  Principal  Bureau. 

Article  2. — The  purpose  of  the  founding  of  this  Bureau  is  the  examina- 
tion and  final  decision  of  all  cases  arising  in  Heilungkiang  Province  which 
directly  or  indirectly  touch  the  interests  of  the  Chinese  Eastern  Railway  Com- 
pany, of  interpreters,  servants,  artisans  and  ordinary  laborers  in  the  railway 
service,  persons  supplying  materials,  contractors  for  work  of  various  kinds,  and 
finally  of  all  Chinese  residing  in  the  territory  of  the  railway.  In  cases  of  impor- 
tant violation  of  Chinese  laws,  or  of  the  provisions  of  the  present  agreement,  as 
for  example  in  cases  of  murder,  robbery,  resistance  to  authorities,  illegal 
assembly,  adultery,  concealment  of  criminals,  arson,  usury,  freeing  of  criminals, 
larceny,  or  the  theft  of  money  exceeding  three  hundred  tiao,  regardless  of  how 
far  the  place,  where  the  offense  was  committed,  may  be  from  the  Principal 
Bureau,  all  such  cases  shall  be  examined  and  finally  decided  by  the  Principal 

*  Translation  from  the  Russian  version  printed  in  Soglashenia,  p.  29. 

In  connection  with  this  Agreement  see  also  the  similar  Agreement  of  July  5/18,  1901, 
with  the  Provincial  Authorities  of  Kirin   (No.  1901/2,  ante). 

The  agreement  of  November  20/December  2,  1899,  which  the  present  agreement  sup- 
plements and  amends,  is  printed  (in  Russian  version)  m  Soglashenia,  p.  26.  It  is  of  the 
same  tenor  as  the  agreement  of  May  19/31,  1899,  printed  in  a  footnote  to  the  Kirin  Agree- 
ment cited  above,  with  the  substitution  of  Tsitsihar  (Heilungkiang)  for  Kirin,  and  (in 
§§9,  10  and  11)  somewhat  different  financial  provisions,  among  them  one  for  40,000  Tsitsihar 
taels,  instead  of  60,000  Kirin  taels,  for  expenses  of  maintenance. 


322  CHINA  TREATIES  AND  AGREEMENTS 

Bureau.  In  the  above-mentioned  cases,  or  in  any  other  important  and  urgent 
question  arising  on  any  section  of  the  railway,  the  special  official  of  the  local 
branch  of  the  Bureau,  and  the  district  engineer  shall  immediately  make  a  report 
each  to  his  own  central  office.  All  unimportant  and  ordinary  affairs,  however, 
which  do  not  constitute  such  a  serious  infringement  of  the  Chinese  laws  or  of  the 
present  agreement,  may  be  investigated  and  settled  on  the  spot  by  the  special 
official  of  the  branch  of  the  Bureau  by  agreement  with  the  district  engineer ;  if 
the  two  sides  on  account  of  diflference  of  opinion  cannot  arrive  at  a  decision,  each 
of  them  shall  immediately  report  to  this  effect  to  his  central  office  by  letter  or  by 
telegram,  and  shall  request  instructions  or  suggestions  for  the  settlement  of  the 
case. 

In  case  of  matters  arising  in  the  territory  of  Heilungkiang  Province  directly 
or  indirectly  affecting  the  interests  of  the  Chinese  Eastern  Railway  Company,  all 
persons,  whether  Chinese,  Manchus  or  Mongols,  are  required  to  submit  to  the 
provisions  of  this  agreement. 

Article  3. — All  cases  coming  within  the  definition  in  Article  2,  the  examina- 
tion of  which  has  already  been  begun  but  has  not  been  completed  by  different 
yamens  or  officials,  must  as  soon  as  possible  be  turned  over  with  all  the  docu- 
ments to  the  Principal  Bureau,  which  shall  determine  by  agreement  with  the 
Engineer-in-Chief  of  the  Chinese  Eastern  Railway  the  manner  in  which  the 
case  is  to  be  conducted. 

Article  4. — In  the  future  all  questions  arising  in  connection  with  com- 
plaints and  petitions  coming  before  different  yamens  or  officials  and  falling 
within  the  definition  in  Article  2,  must  be  turned  over  to  the  Principal  Bureau  for 
proper  settlement.  All  yamens  or  bureaus  having  any  official  business  requiring 
official  relations  with  the  railway  company  are  required  to  report  regarding  it  to 
the  Principal  Bureau,  in  order  that  it  may  communicate  it  to  the  company. 
There  is  no  need  for  them  to  send  their  communications  directly  to  the  company, 
in  order  that  confusion  may  be  avoided,  and  in  order  that  unity  of  policy  may 
be  maintained. 

Article  5. — Since  each  question  connected  with  claims  and  petitions  falling 
within  the  definition  in  paragraph  2  must  be  examined  or  investigated  by  the 
President  of  the  Principal  Bureau,  in  conjunction  with  the  Engineer-in-Chief 
or  his  representative,  the  decision  also  shall  be  arrived  at  in  the  same  manner. 

Article  6. — In  cases  in  which  there  have  been  committed  by  Chinese  sub- 
jects the  crimes  mentioned  in  paragraph  2,  as  soon  as  the  Principal  Bureau  has 
legally  imposed  a  penalty  for  the  same,  the  said  penalty  shall  be  carried  into 
execution  either  by  the  Principal  Bureau  itself  or  by  the  authority  of  that 
locality  where  the  crime  was  committed,  and  to  which  the  Bureau  shall  deliver 
the  criminals.  This  question  shall  be  settled  according  to  the  circumstances  by 
the  Principal  Bureau  itself.  A  jail  must  be  built  in  the  Principal  Bureau  for 
the  imprisonment  of  Chinese  criminals. 

Article  7. — In  cases  of  offenses  of  great  importance  committed  by  Chi- 
nese and  subject  to  more  severe  punishment  than  banishment,  or  in  case  of 
difference  of  opinion  between  the  President  of  the  Principal  Bureau  and  the 
Engineer-in-Chief,  their  decision   shall  be  undertaken   by  the   Chiang-Chun  in 


NUMBER  1902/1:  JANUARY  1/14,  1902  323 

accordance  with  the  reports  of  the  President  and  the  communications  of  the 
Engineer-in-Chief.  Other  afifairs  more  or  less  important  shall  be  examined  and 
finally  settled  by  the  President  of  the  Bureau  in  conjunction  with  the  Engineer- 
in-Chief  or  his  representative ;  the  former  shall  from  time  to  time  impose  sentence 
in  these  cases,  and  shall  forward  reports  regarding  them  monthly  to  the  Chiang- 
Chun,  who  shall  preserve  them  in  his  archives. 

Article  8. — Officials  and  soldiers  of  the  Principal  Bureau  and  its  branches 
shall  be  appointed  by  the  Chiang-Chun.  But  the  President  and  Vice-President 
occupying  most  important  offices,  must  be  worthily  selected,  and  in  case  of  their 
appointment  or  removal,  it  is  necessary  that  the  Chiang-Chun  should  previously 
take  deliberate  steps  in  conjunction  with  the  Engineer-in-Chief,  and  should 
suggest  to  him  for  appointment  officials  whose  intelligence,  capability  and  ac- 
quaintance with  railway  affairs,  is  known  to  both  parties.  After  the  choice  has 
been  made,  it  is  necessary  to  request  the  Chiang-Chun  to  confirm  them. 

Besides  the  President  and  the  Vice-President,  who  shall  reside  at  the  Prin- 
cipal Bureau,  there  shall  be  appointed  another  Vice-President  in  the  branch 
bureau  at  Fulierdi.  The  choice  of  the  other  officials  of  the  Principal  Bureau 
and  its  branches,  who  are  to  carry  heavy  and  important  responsibilities,  shall  be 
made  by  the  President  of  the  Principal  Bureau  from  among  upright,  just,  honest 
and  intelligent  men,  who  have  ability  in  affairs  of  mutual  relations.  Having 
come  to  a  decision  with  the  general  consent  of  the  Engineer-in-Chief,  he  shall 
petition  the  Chiang-Chun  to  issue  to  each  of  them  a  document  certifying  this 
appointment. 

Article  9. — To  meet  all  necessary  expenses  of  the  President,  Vice-President, 
officials  and  soldiers  of  the  Principal  Bureau  and  its  branches,  the  Engineer-in- 
Chief  shall  annually  pay  to  the  President  of  the  Bureau  Tsitsihar  taels  40,000. 
Payment  shall  be  made  four  times  a  year,  beginning  with  January  1,  1902  (the 
5th  day  of  the  12th  month  of  the  27th  year  of  Kuang  Hsu),  at  the  beginning  of 
each  three  months. 

Article  10. — Besides  the  sum  above  mentioned,  the  President  with  the 
consent  of  the  Engineer-in-Chief  has  fixed  a  second  sum  of  Tsitsihar  taels  8,000 
for  the  construction  of  the  buildings  of  the  Principal  Bureau  and  quarters  for 
the  officials,  employees  and  soldiers,  and  a  third  sum  of  Tsitsihar  taels  2,000  for 
the  purchase  of  furniture  and  utensils  necessary  for  the  Principal  Bureau  and  its 
branches ;  the  houses  and  apartments  for  the  branches  of  the  Bureau  shall  be  pre- 
pared by  the  railway  with  a  sufficient  number  of  rooms  for  the  needs  of  the  em- 
ployees and  soldiers. 

Article  11. — All  protocols  or  documents  for  lots  of  land  leased  for  the 
requirements  of  the  railway  must,  in  accordance  with  paragraph  6  of  the  railway 
agreement  signed  on  the  20th  day  of  the  7th  month  of  the  22nd  year  of  Kuang 
Hsii,  16/28  of  August,  1896,  be  presented  to  the  Principal  Heilungkiang  Bureau 
for  verification  and  affixing  of  the  seal.  This  rule  shall  be  general  for  all  lots  of 
land,  Manchu,  Mongol  and  Chinese,  without  distinction,  whether  they  are  owned 
by  communities,  by  the  Government  or  by  private  individuals. 

Article  12. — The  present  agreement  is  made  in  duplicate,  and  has  been 
drawn  up  in  three  languages :  Chinese,  Russian  and  French.     It  shall  be  sent  to 


324  CHINA  TREATIES  AND  AGREEMENTS 

His  Excellency  Sah,  acting  Chiang-Chun  of  Heilungkiang,  for  signature  after  it 
has  been  signed  by  Taotai  Djoumyan,  fully  authorized  President  f  appointed  by 
His  Excellency  Chiang-Chun  Sah,  by  Mr.  Yugovitch,  Engineer-in-Chief  of  the 
Chinese  Eastern  Railway,  by  Mr.  Ignatius,  his  assistant,  and  Mr.  Daniel,  his 
representative.  After  this,  His  Excellency  the  acting  Chiang-Chun  and  the 
Engineer-in-Chief  shall  each  retain  one  copy  of  the  present  agreement.  In  case 
of  dispute,  we  shall  take  as  a  basis  the  French  version.  The  French  text  is  a 
true  rendering  of  the  Chinese  text. 

Signed  the  5th  day  of  the  12th  month  of  the  27th  year  of  Kuang  Hsii, 
(January  1,  1902,  Russian  style.) 


NUMBER  1902/2. 

GREAT  BRITAIN  AND  JAPAN. 
Agreement  relative  to  China  and  Corea* — January  30,  1902. 

The  Governments  of  Great  Britain  and  Japan,  actuated  solely  by  a  desire 
to  maintain  iho.  status  quo  and  general  peace  in  the  Extreme  East,  being  more- 
over specially  interested  in  maintaining  the  independence  and  territorial  integrity 
of  the  Empire  of  China  and  the  Empire  of  Corea,  and  in  securing  equal  oppor- 
tunities in  those  countries  for  the  commerce  and  industry  of  all  nations,  hereby 
agree  as  follows  : — 

Article  I. — The  High  Contracting  Parties  having  mutually  recognized  the 
independence  of  China  and  of  Corea,  declare  themselves  to  be  entirely  uninflu- 
enced by  any  aggressive  tendencies  in  either  country.  Having  in  view,  however, 
their  special  interests,  of  which  those  of  Great  Britain  relate  principally  to  China, 
while  Japan,  in  addition  to  the  interests  which  she  possesses  in  China,  is  interested 
in  a  peculiar  degree  politically  as  well  as  commercially  and  industrially  in  Corea, 
the  High  Contracting  Parties  recognize  that  it  will  be  admissible  for  either  of 
them  to  take  such  measures  as  may  be  indispensable  in  order  to  safeguard  those 
interests  if  threatened  either  by  the  aggressive  action  of  any  other  Power,  or  by 
disturbances  arising  in  China  or  Corea,  and  necessitating  the  intervention  of  either 
of  the  High  Contracting  Parties  for  the  protection  of  the  lives  and  property  of 
its  subjects. 

Article  II. — If  either  Great  Britain  or  Japan,  in  the  defence  of  their  re- 
spective interests  as  above  described,  should  become  involved  in  war  with  another 
Power,  the  other  High  Contracting  Party  will  maintain  a  strict  neutrality,  and  use 
its  efforts  to  prevent  other  Powers  from  joining  in  hostilities  against  its  ally. 

Article  III. — If,  in  the  above  event,  any  other  Power  or  Powers  should 

*  Text  as  printed  in  the  British  Treaty  Series,  No.  3  (1902).     Printed  also  in  Rockhill, 
p.  97 ;  Hertslct,  p.  597.    See  Note  to  this  document,  post.  p.  325. 

t  Sic.  Probably  the  word  "  representative  "  was  intended. — Editor. 


NUMBER  1902/2 :  JANUARY  30,  1902  :  NOTE  325 

join  in  hostilities  against  that  ally,  the  other  High  Contracting  Party  will  come  to 
its  assistance,  and  will  conduct  the  war  in  common,  and  make  peace  in  mutual 
agreement  with  it. 

Article  IV. — The  High  Contracting  Parties  agree  that  neither  of  them  will, 
without  consulting  the  other,  enter  into  separate  arrangements  with  another 
Power  to  the  prejudice  of  the  interests  above  described. 

Article  V. — Whenever,  in  the  opinion  of  either  Great  Britain  or  Japan,  the 
above-mentioned  interests  are  in  jeopardy,  the  two  Governments  will  communi- 
cate with  one  another  fully  and  frankly. 

Article  VI. — The  present  Agreement  shall  come  into  effect  immediately 
after  the  date  of  its  signature,  and  remain  in  force  for  five  years  from  that  date. 
In  case  neither  of  the  High  Contracting  Parties  should  have  notified  twelve 
months  before  the  expiration  of  the  said  five  years  the  intention  of  terminating 
it,  it  shall  remain  binding  until  the  expiration  of  one  year  from  the  day  on  which 
either  of  the  High  Contracting  Parties  shall  have  denounced  it.  But  if,  when 
the  date  fixed  for  its  expiration  arrives,  either  ally  is  actually  engaged  in  war, 
the  alliance  shall,  ipso  facto,  continue  until  peace  is  concluded. 

In  faith  whereof  the  Undersigned,  duly  authorized  by  their  respective  Gov- 
ernments, have  signed  this  Agreement  and  have  affixed  thereto  their  seals. 
Done  in  duplicate  at  London,  the  30th  day  of  January,  1902. 
(L.S.)  (Signed)  Lansdowne, 

His  Britannic   Majesty's  Principal 
Secretary  of  State  for  Foreign 
Affairs. 
(L.S.)  (Signed)  Hayashi, 

Envoy  Extraordinary  and  Minister 
Plenipotentiary  of  His  Majesty 
the  Emperor  of  Japan  at  the 
Court  of  St.  James. 


Note. 

This  agreement  was  replaced  by  that  of  August  12,  1905  (No.  1905/6,  post),  which  was 
in  turn  replaced  by  that  of  July  13,  1911   (No.  1911/7,  post).^  ,.,,,. 

In  connection  with  this  agreement,  see  the  Franco-Russian  declaration  of  March  3/16, 
1902  (China,  No.  2  (1904),  p.  37;  Recueil,  p.  527;  Hertskt,  p.  598)  of  which  the  translation, 
as  printed  in  Rockhill,  203,  is  as  follows  : 

Franco-Russian  Declaration  regarding  the  Anglo-Japanese  Alliance.— March  i6,  1902. 

"The  allied  Governments  of  Russia  and  France  have  received  a  copy  of  the  Anglo- 
Japanese  Agreement  of  the  30th  January  1902,  concluded  with  the  object  of  maintammg  the 
status  quo  and  the  general  peace  in  the  Far  East,  and  preserving  the  independence  of  Chma 
and  Korea,  which  are  to  remain  open  to  the  commerce  and  industry  of  all  nations,  and 
have  been  fully  satisfied  to  find  therein  affirmed  the  fundamental  principles  which  they  have 
themselves,  on  several  occasions,  declared  to  form  the  basis  of  their  policy,  and  which  still 
remain  so.  •  ,      •  1. 

"  The  two  Governments  consider  that  the  observance  of  these  principles  is  at  the  same 
time  a  guarantee  of  their  special  interests  in  the  Far  East.  Nevertheless,  being  obliged  them- 
selves also  to  take  into  consideration  the  case  in  which  cither  the  aggressive  action  of  third 
Powers,  or  the  recurrence  of   disturbances   in   China,   jeopardizing  the   integrity   and    free 


326  CHINA  TREATIES  AND  AGREEMENTS 

development  of  that  Power,  might  become  a  menace  to  their  own  interests,  the  two  allied 
Governments  reserve  to  themselves  the  right  to  consult  in  that  contingency  as  to  the  means  to 
be  adopted  for  securing  those  interests. 
"St.  Petersburg,  March  3  {16),  1902." 

As  printed  in  Recueil,  this  declaration  is  followed  by  a  communique  oMciel,  dated  St. 
Petersburg,  March  7/20,  1902,  of  which  the  following  is  a  translation : 

"  The  Convention  concluded  in  the  month  of  January  last  between  England  and  Japan 
has  given  rise  to  the  most  contradictory  interpretations  and  the  most  varied  surmises, 
principally  by  reason  of  the  fact  that,  by  that  act,  two  of  the  eleven  Powers  which  had  only 
just  signed  the  Peking  Protocol,  after  the  accomplishment  of  their  collective  action  in 
China,  seemed  to  separate  themselves  from  the  other  Cabinets,  and  to  place  themselves  in  a 
special  situation  in  reference  to  the  Celestial  Empire  where,  thanks  to  the  joint  efforts,  the 
traditional  order  of  affairs  had  been  reestablished,  and  the  legitimate  central  authority 
restored. 

"  The  Imperial  Government,  appreciating  the  friendly  communications  made  in  this 
regard  to  Russia  by  the  Japanese  and  English  Governments,  has  received  the  conclusion  of 
that  convention  with  the  utmost  calm.  The  principles  that  have  guided  Russian  policy  have 
remained  and  still  remain  invariable ;  Russia  insists  on  the  independence  and  integrity 
of  China — a  friendly  neighboring  country — as  well  as  on  that  of  Korea ;  Russia  desires 
the  maintenance  of  the  sfatits  quo  and  the  general  pacification  of  the  Far  East.  By  the 
construction  of  the  great  Siberian  Railway,  with  a  branch  running  through  Manchuria 
to  a  port  always  free  of  ice,  Russia  is  favoring  the  extension,  in  those  regions,  of  the 
commerce  and  industry  of  the  whole  world.  Would  it  be  in  her  interests  actually  to  set  up 
obstacles  to  that  ? 

"  The  intention,  expressed  by  England  and  Japan,  to  contribute  to  the  attainment  of  the 
same  aims  which  are  invariably  pursued  by  the  Russian  Government,  can  only  appeal  to 
the  sympathy  of  Russia,  in  spite  of  comments  emanating  from  certain  political  spheres 
and  from  various  organs  of  the  foreign  press,  which  have  made  an  effort  to  present  under 
quite  a  different  aspect  the  impassive  attitude  of  the  Imperial  Government  in  regard  to  a 
diplomatic  act  which,  in  its  view,  does  not  at  all  change  the  general  situation  of  the 
political  horizon. 

"  Indeed,  in  view  of  the  constantly  persistent  agitation  on  the  subject  of  the  Anglo- 
Japanese  arrangement,  the  allied  Governments  of  Russia  and  of  France  have  deemed  it 
necessary  to  formulate  precisely  their  point  of  view  on  this  subject  in  an  identic  declaration 
addressed  to  the  Powers  whose  representatives,  jointly  with  the  plenipotentiaries  of  Russia 
and  of  France,  signed  the  Peking  Protocol  of  August  25/September  7,  1901." 


NUMBER  1902/3. 

RUSSIA  AND  CHINA. 
Convention  with  regard  to  Manchuria* — April  8,  1902. 

His  Majesty  the  Emperor  and  Autocrat  of  All  the  Russias,  and  His 
Majesty  the  Emperor  of  China,  with  the  object  of  re-establishing  and  confirming 
the  relations  of  good  neighborhood,  which  were  disturbed  by  the  rising  in  the 
Celestial  Empire  of  the  year  1900,  have  appointed  their  Plenipotentiaries  to  come 
to  an   agreement  on   certain   questions   relating  to   Manchuria.      These   Pleni- 

*  Translation  from  the  French  text,  as  reprinted  in  RockhUl,  p.  99,  from  China.  No.  2 
{1904),  p.  36.  Printed  also  in  Hertslef,  p.  509;  Am.  Int.  Law  Journal,  Supplement.  1910, 
p.  304;  French  text  in  Customs,  Vol.  I,  p.  239;  Recueil,  p.  538  (where  also  are  printed  a 
Russian  Communication  Officielle  en  date  du  3/16  Dcccmhre,  1900,  concernant  Ic  Chemin  de 
Fer  Chinois  de  Vang-tsoun-Chang-hai  Kouan,  at  p.  416;  and  a  Communique  Officiel:  St.- 
Pctersbourg,  30  Mars/ 12  Avril,  1902,  at  p.  535).     See  Note  1  to  this  document,  post,  p.  329. 


NUMBER  1902/3 :  APRIL  8,  1902  327 

potentiaries,  furnished  with  full  powers  which  were  found  to  be  in  order,  agreed 
as  follows : — 

Article  I. — Chinese  authority  in  Manchuria  to  be  re-established. — His 
Imperial  Majesty  the  Emperor  of  Russia,  desirous  of  giving  fresh  proof  of  his 
peaceable  and  friendly  disposition  towards  His  Majesty  the  Emperor  of  China, 
and  overlooking  the  fact  that  attacks  were  first  made  from  frontier  posts  in 
Manchuria  on  peaceable  Russian  Settlements,  agrees  to  the  re-establishment  of 
the  authority  of  the  Chinese  Government  in  that  region,  which  remains  an 
integral  part  of  the  Chinese  Empire,  and  restores  to  the  Chinese  Government  the 
right  to  exercise  therein  governmental  and  administrative  authority,  as  it  existed 
previous  to  the  occupation  by  Russian  troops  of  that  region. 

Article  H. — China  to  protect  railway  and  all  Russian  subjects  and  their 
undertakings. — In  taking  possession  of  the  governmental  and  administrative 
authority  in  Manchuria,  the  Chinese  Government  confirms,  both  with  regard  to 
the  period  and  with  regard  to  all  other  Articles,  the  obligation  to  observe  strictly 
the  stipulations  of  the  Contract  concluded  with  the  Russo-Chinese  Bank  on  the 
27th  August,  1896,t  and  in  virtue  of  paragraph  5  of  the  above-mentioned  Contract, 
takes  upon  itself  the  obligation  to  use  all  means  to  protect  the  railway  and  the 
persons  in  its  employ,  and  binds  itself  also  to  secure  within  the  boundaries  of 
Manchuria  the  safety  of  all  Russian  subjects  in  general  and  the  undertakings 
established  by  them. 

Evacuation  of  Manchuria  by  Russia. — The  Russian  Government,  in  view 
of  these  obligations  accepted  by  the  Government  of  His  Majesty  the  Emperor  of 
China,  agrees  on  its  side,  provided  that  no  disturbances  arise  and  that  the  action 
of  other  Powers  should  not  prevent  it,  to  withdraw  gradually  all  its  forces  from 
within  the  limits  of  Manchuria  in  the  following  manner : — 

(o)  Within  six  months  from  the  signature  of  the  Agreement,  to  clear  the 
southwestern  portion  of  the  Province  of  Mukden  up  to  the  River  Liao  ho  of 
Russian  troops,  and  to  hand  the  railways  over  to  China. 

(b)  Within  further  six  months  to  clear  the  remainder  of  the  Province  o! 
Mukden  and  the  Province  of  Kirin  of  Imperial  troops. 

(r)  Within  the  six  months  following  to  remove  the  remaining  Imperial 
Russian  troops  from  the  Province  of  Hei-lung-chiang. 

Article  III. — Chinese  forces  pending  evacuation. — In  view  of  the  neces- 
sity of  preventing  in  the  future  any  recurrence  of  the  disorders  of  last  year. 
In  which  Chinese  troops  stationed  on  the  Manchurian  frontier  also  took  part, 
the  Imperial  Russian  and  Chinese  Governments  shall  undertake  to  instruct  the 
Russian  military  authorities  and  the  Tsiang-Tsungs,  mutually  to  come  to  an  agree- 
ment respecting  the  numbers  and  the  disposition  of  the  Chinese  forces  until  the 
Russian  forces  shall  have  been  withdrawn.  At  the  same  time  the  Chinese  Govern- 
ment binds  itself  to  organize  no  other  forces  over  and  above  those  decided  upon 
by  the  Russian  military  authorities  and  the  Tsiang-Tsungs  as  sufficient  to  sup- 
press brigandage  and  pacify  the  country. 

Chinese  forces  after  evacuation. — After  the  complete  evacuation  of  Man- 
churia by  Russian  troops,  the  Chinese  Government  shall  have  the  right  to 
ii.e.,  Contract  for  the  Chinese  Eastern  Railway,  September  8th,  1896  (No.  1896/5,  ante). 


328  CHINA  TREATIES  AND  AGREEMENTS 

increase  or  diminish  the  number  of  its  troops  in  Manchuria,  but  of  this  must 
duly  notify  the  Russian  Government,  as  it  is  natural  that  the  maintenance  in  the 
above-mentioned  district  of  an  over  large  number  of  troops  must  necessarily  lead 
to  a  reinforcement  of  the  Russian  military  force  in  the  neighbouring  districts, 
and  thus  would  bring  about  an  increase  of  expenditure  on  military  requirements 
undesirable  for  both  States. 

Chinese  police  guard  in  Manchuria. — For  police  service  and  the  mainten- 
ance of  internal  order  in  the  districts  outside  those  parts  allotted  to  the  Eastern 
Chinese  Railway  Company,  a  police  guard,  under  the  local  Governors  ("  Tsiang- 
Tsungs"),  consisting  of  cavalry  and  infantry,  shall  be  organized  exclusively 
of  subjects  of  his  Majesty  the  Emperor  of  China. 

Article  IV. — Shanhaikwan-Sinminting  railw^ay  to  be  restored. — The  Rus- 
sian Government  agrees  to  restore  to  the  owners  the  railway  Shanhaikwan-New- 
chwang-Sinminting,  which,  since  the  end  of  September,  1900,  has  been  occupied 
and  guarded  by  Russian  troops.:]:  In  view  of  this,  the  Government  of  His 
Majesty  the  Emperor  of  China  binds  itself  : — 

1.  China  alone  to  protect  this  line. — In  case  protection  of  the  above-men- 
tioned line  should  be  necessary,  that  obligation  shall  fall  exclusively  on  the  Chi- 
nese Government,  which  shall  not  invite  other  Powers  to  participate  in  its  pro- 
tection, construction,  or  working,  nor  allow  other  Powers  to  occupy  the  terri- 
tory evacuated  by  the  Russians. 

2.  Completion  and  working  of  this  line. — The  completion  and  working  of 
the  above-mentioned  line  shall  be  conducted  in  strict  accordance  with  the  Agree- 
ment between  Russia  and  England  of  the  16th  April,  1899,§  and  the  Agreement 
with  the  private  Corporation  respecting  the  loan  for  the  construction  of  the  line.|| 
And  furthermore,  the  Corporation  shall  observe  its  obligations  not  to  enter  into 
possession  of  or  in  any  way  to  administer  the  Shanhaikwan-Newchwang- 
Sinminting  line. 

3.  Extension  of  line  in  South  Manchuria. — Should,  in  the  course  of  time, 
extensions  of  the  line  in  Southern  Manchuria,  or  construction  of  branch  lines  in 
connection  with  it,  or  the  erection  of  a  bridge  in  Newchwang,  or  the  moving  of 
the  terminus  there,  be  undertaken,  these  questions  shall  first  form  the  subject 
of  mutual  discussion  between  the  Russian  and  Chinese  Governments. 

4.  China  to  pay  Russia  for  repair  and  keep  of  line, — In  view  of  the  fact 
that  the  expenses  incurred  by  the  Russian  Government  for  the  repair  and  work- 
ing of  the  Shanhaikwan-Newchwang-Sinminting  line  were  not  included  in  the 
sum  total  of  damages,  the  Chinese  Government  shall  be  bound  to  pay  back  the 
sum  which,  after  examination  with  the  Russian  Government,  shall  be  found  to 
be  due. 

The  stipulations  of  all  former  Treaties  between  Russia  and  China  which  are 
not  affected  by  the  present  Agreement  shall  remain  in  force. 

The  Agreement  shall  have  legal  force  from  the  day  of  its  signature  by  the 
Plenipotentiaries  of  both  States. 

t  See  Note  2  to  this  document,  post,  p.  330. 
§/.^.,  Agreement  of  April  16/28,  1899  (No.  1899/3,  ante). 

II  I.e.,   Shanhaikuan-Newchwang   Railway   Loan   Agreement   of   October   10,    1898    (No. 
1898/20,  ante). 


NUMBER  1902/3 :  APRIL  8,  1902 :  NOTES  329 

The  exchange  of  ratifications  shall  take  place  in  St.  Petersburg  within  three 
months  from  the  date  of  the  signature  of  the  Agreement. 

For  the  confirmation  of  the  above,  the  Plenipotentiaries  of  the  two  Con- 
tracting Powers  have  signed  and  sealed  two  copies  of  the  Agreement  in  the 
Russian,  French,  and  Chinese  languages.  Of  the  three  texts,  which,  after  com- 
parison, have  been  found  to  correspond  with  each  other,  that  in  the  French 
language  shall  be  considered  as  authoritative  for  the  interpretation  of  the 
Agreement. 

Done  in  Peking  in  duplicate,  the  26th  March  (8th  April),  1902.^ 


Note  1. 

In  connection  with  this  convention  see  also  the  Agreement  for  the  transfer  of  the 
Peking-Shanhaikvvan  Railway  from  the  British  mihtary  authorities  to  the  Chinese  civil 
authorities,  and  Additional  Agreement  respecting  the  management  of  the  northern  railways, 
April  29th,  1902  (No.  1902/4,  post).  See  also  the  following  arrangement  between  Tseng  Chi, 
Tartar  General  of  Mukden,  and  Admiral  Alexeieff,  Commander  in  Chief  of  Kuantung 
Peninsula  and  of  the  Russian  naval  and  military  forces  in  the  Pacific,  as  printed  (in  trans- 
lation) in  Rockhill,  p.  201,  under  the  heading  "  Signed  at  Port  Arthur,  January  30,  1901," 
and  with  a  footnote  stating  that  "the  original  convention  bears  date  November  11,  1900": 

Preliminary  Russo-Chinese  Arrangement  regarding  Manchuria. — January  30,  1901. 

"  1. — All  official  residences  in  Mukden  to  be  handed  back  to  the  Chinese  officials  who 
will  act  in  accordance  with  the  terms  arranged. 

"  2. — Chinese  officials  to  be  allowed  to  go  to  their  posts  in  all  those  towns  taken  by  the 
Russians.  They  may  establish  police  forces  ;  in  large  places  to  the  number  of  500  men,  in 
medium  sized  places  300  men,  in  others  200.  These  police  may  carry  arms  but  must  be 
provided  with  distinguishing  badges  stamped  by  the  Russian  and  Chinese  authorities. 

"  3. — Robbers  and  rebels  taken  by  Russian  police  to  be  handed  over  to  the  local  officials 
to  be  dealt  with  by  Russian  and  Chinese  law  {sic). 

"  4. — The  Xewchwang  customs  duties  and  likin  to  be  collected  temporarily  by  Rus- 
sians and  the  Imperial  commands  awaited  as  to  the  application  of  such  funds  after  a  treaty 
has  been  signed  between  Russia  and  China.  All  other  sources  of  revenue  are  to  be  under 
the  control  of  the  Tartar  General. 

"  5. — The  western  roads  of  the  province  are  at  present  disturbed  and  unsafe.  Rus- 
sian troops  to  be  withdrawn  from  those  parts  so  that  traffic  may  be  resumed.  Newchwang 
being  now  closed  by  ice,  the  products  of  the  southern  roads,  tobacco,  hemp,  beans  and  grain 
have  no  exit.     The  rail  by  Port  Arthur  can  be  used  for  their  transport. 

"  6. — Russia  may  establish  a  Resident  at  Mukden  and  two  Deputies  for  international 
business,  who  will  transact  such  business  in  conjunction  with  the  Chinese  Deputies. 

"  7. — The  duty  of  the  Taotai  of  Newchwang  is  to  control  the  customs.  The  Russian 
authorities  are  at  present  collecting  the  revenue  of  the  Foreign  Customs  House.  The 
Tartar  General  may  order  the  Taotai  to  return  and  act  in  cooperation  with  them. 

"  8. — The  disbanded  Chinese  troops  for  the  most  part  took  their  weapons  with  them  in 
their  flight.  The  Russian  military  authorities  need  not  send  to  search  them  out.  The  Tartar 
General  will  despatch  officials  in  all  directions  to  find  them  and  so  obviate  any  alarm  to  the 
populace. 

"  9. — The  Tartar  General  has  no  plenipotentiary  powers.  The  result  of  the  negotiations 
of  Prince  Ch'ing  and  Grand  Secretary  Li  Hung-chang  must  be  awaited.  Russia  is  desirous 
of  a  lasting  peace. 

"  10.— The  Tartar  General  Tseng  Chi  is  to  rernain  for  four  years  in  office  in  this 
province  to  reorganize  public  affairs  after  the  late  disturbances. 

"  korostovetz. 
"  Chou  Mien." 

In  Shina  Kankei  Tokushu  Joyaki  Isatt,  p.  109,  is  printed  a  Japanese  version  of  what 
purports  to  be  a  "  Secret  Treaty  between  Russia  and  China,"  concluded  in  February,  1901. 

H  This  treaty  was  signed  by  M.  Paul  Lessar,  Envoy  Extraordinary  and  Minister  Pleni- 
potentiary of  Russia  to  China,  on  the  part  of  Russia,  and  by  Prince  Ch'ing  and  Wang 
Wen-shao,  on  the  part  of  China. 


330       '  CHINA  TREATIES  AND  AGREEMENTS 

This  document  appears  to  be  a  translation  from  a  Chinese  original,  and  is  somewhat  obscure 
in  its  phraseology.     The  following  translation  is  therefore  offered  with  all  reserves : 

Alleged  Secret  Russo-Chinese  Treaty  regarding  Manchuria. — February,  igoi. 

"  1. — In  accordance  with  the  desire  of  His  Majesty  the  Emperor  of  Russia  to  express 
his  friendly  feelings  to  China,  acts  of  hostility  in  Manchuria  will  be  forgotten ;  and  when 
Manchuria  is  completely  restored,  the  Chinese  Administration  will  be  conducted  as  formerly. 

"2. — In  accordance  with  Article  6  [?5]  of  the  Manchurian  Railway  Treaty  [?  Russo- 
Chinese  Bank  Contract  for  the  Construction  and  Operation  of  the  Chinese  Eastern  Railway, 
September  8,  1896],  the  railway  guard  which  has  been  established  will  restore  order,  and 
will  be  maintained  until  China  has  fulfilled  the  conditions  mentioned  in  the  four  articles  of 
the  last  paragraph   [?   four  paragraphs  of  the  last  article]    of  that  treaty. 

"3. — In  case  an  emergency  should  arise,  the  Russian  troops  stationed  (in  this  region) 
will  assist  China  with  all  their  force,  and  repress  it. 

"  4. — Until  the  Manchurian  Railway  shall  have  been  completed,  China  shall  not  quarter 
any  troops  (there).  If  she  is  to  place  troops  there  in  future,  it  shall  be  decided  in  con- 
sultation with  Russia.  Moreover,  the  importation  of  arms  and  munitions  into  Manchuria 
shall  be  prohibited. 

"  5. — The  Tartar  General  at  Mukden,  or  the  local  officials,  shall  at  the  request  of  Russia 
dismiss  anyone  who  obstructs  the  relations  between  Russia  and  China.  If  China  establishes 
infantry  patrols  in  Manchuria,  the  personnel  shall  be  decided  in  consultation  with  Russia. 

"  6. — China  shall  not  employ  foreigners  other  than  Russians  as  military  or  naval  in- 
structors in  the  various  Provinces  of  northern  China. 

"  7. — In  order  to  assure  the  tranquility  of  districts,  the  disposal  of  unoccupied  land, 
mentioned  in  Article  5  [?  6  ]  of  the  Lease  Agreement  [?  Contract  of  September  8,  1896] 
shall  be  determined  by  a  special  agreement  by  the  local  officials.  The  rights  of  self- 
government  of  Shengking  Province  shall  be  abolished. 

"  8. — China  shall  not,  without  the  consent  of  Russia,  transfer  to  other  nations,  or  to 
the  subjects  of  other  nations,  mines  or  other  interests  in  Manchuria,  Mongolia  or  Sinkiang. 
Moreover,  she  shall  not  construct  railways  in  those  regions. 

"Except  in  Newchwang,  there  shall  be  no  leases  or  grants  made  to  the  subjects  of  other 
nations. 

"9. — Russia  shall  be  indemnified  for  her  military  expenditures  in  the  present  situation, 
as  speedily  as  in  the  case  of  the  indemnities  to  the  various  Powers.  Security  for  the 
amount  of  the  indemnity  shall  be  given  within  the  period  for  payment.  It  shall  be  under 
the  joint  management  of  the  Powers. 

"  10. — Indemnity  for  damage  to  the  railway  and  for  damages  to  the  engineers  of  the 
railway  shall  be  paid  after  consultation  between  China  and  the  Company. 

"  11. — The  said  indemnity  shall  be  agreed  upon  with  the  Company.  Compensation  for 
all  or  part  of  the  amount  may  be  made  by  the  grant  of  other  privileges. 

"  12. — One  railway  may  be  constructed  to  Peking  from  the  railway  already  agreed  upon, 
and  it  may  be  extended  to  the  Great  Wall  [  ?]  .  This  shall  be  managed  in  accordance  with 
the  railway  agreement  now  in  force." 


Note  2. 

The  restoration  of  this  railway — the  section  of  the  Imperial  Railways  of  North  China 
byond  the  Great  Wall — was  the  subject  of  a  further  agreement  signed  at  Peking  on  Septem- 
ber 9/22,  1902,  of  which  the  following  is  the  translation  from  the  Chinese  text : 

Agreement  for  Rendition  by  Russia  of  Shanhaikwan-Hsinmintun-Yingk'ou  Railway. — 

September  22,  1902. 

"Whereas  the  Treaty  of  March  26  (Apr.  8),  1902,  provides  for  the  rendition  of  the 
said  railway  to  China  on  or  before  September  26  (Oct  9),  1902, 

"  And  Whereas  the  said  limit  is  about  to  expire, 

"  Now,  therefore,  Paul  Lessar,  Envoy  Extraordinary  and  Minister  Plenipotentiary  for 
Russia  in  China,  and  Prince  Ch'ing,  President  of  the  Board  of  Foreign  Affairs,  etc.,  etc., 
etc.,  and  Wang,  Associate  President  of  the  Board  of  Foreign  Affairs,  etc.,  etc.,  etc..  Pleni- 
potentiaries for  China,  have  agreed  upon  the   following  Articles. 

"  Article  I. — The  Governments  of  Russia  and  China,  for  the  purpose  of  turning  over, 
and  receiving,  the  railway,  respectively,  shall  each  appoint  Plenipotentiaries,  who  may  ap- 
point such  assistants  as  are  necessary,  and  who  shall  agree  upon  the  procedure  to  be  fol- 
lowed, and  the  regulations  to  be  observed,  in  the  rendition  of  the  railway. 

"  Article  II. — The  Imperial  Chinese  Railway  Administration  for  North  China  shall 
take  over  at  their  market  value  all  works  made  by  the  Russian  Military  Authorities  with  a 


NUMBER  1902/4:  APRIL  29,  1902  331 

view  toward  the  upkeep  and  protection  of  the  railway  line,  and  all  utensils  and  materials 
provided  by  the  said  Russian  Military  Authorities. 

"  Article  111. — Russian  troops  shall  enjoy  the  same  privileges  on  the  Shanhaikuan- 
Yingk'ou  line  as  the  troops  of  other  nations  enjoy,  or  may  hereafter  enjoy,  on  the  Peking- 
Shaiihaikuan  line,  for  such  time  as  Legation  guards  are  stationed  in  Peking  and  troops  in 
Chihli  for  the  protection  of  communication  between  Peking  and  the  sea,  as  provided  m  the 
Protocol  of  August  25  (Sept.  7),  1901;  and  to  facilitate  the  transfer  of  time  expired 
men  from  such  detachments,  and  their  replacement  by  others,  vessels  transporting  Rus- 
sian troops  and  military  supplies  shall  enjoy  the  special  privilege  of  priority  over  other  ship- 
ping at  the  railway  wharves  at  Yingk'ou. 

"  Article  IV. — Russian  troops  and  military  supplies  transported  between  Shanhaikuan 
and  Yingk'ou  shall  be  charged  for  at  the  same  schedule  of  prices  as  that  in  force  at  the 
time  on  the  Peking-Shanhaikuan  line. 

"  Article  V. — The  offices  used  by  the  Russian  Post  and  Telegraph  Administrations  at 
Shanhaikuan  shall  be  turned  over  to  the  Imperial  Chinese  Railway  Administration  at  the 
same  time  as  the  offices  of  the  Imperial  Chinese  Railway  Administration  used  by  the 
British   Military  Administration  at  Tientsin  and  Shanhaikuan  are  turned  over. 

"Article  VI. — During  the  time  stated  in  Article  III  of  this  Convention,  Russia  shall 
enjoy  the  same  privileges  in  regard  to  the  Yingk'ou-Shanhaikuan-Peking  telegraph  line 
strung  on  the  poles  erected  by  the  Railway  as  the  other  powers  enjoy  between  Peking  and 
Shanhaikuan  under  Article  VIII  of  the  British-Chinese  Convention  of  April  16  (29)  of  the 
present  year  in  regard  to  the  rendition  to  China  of  the  Railway. 

"Article  VII. — The  Russian  Government  shall  enjoy  the  same  privileges  in  regard 
to  the  despatch  of  mails  from  Peking  to  Yingk'ou  as  other  powers  enjoy  on  the  railway 
between  Peking  and  Shanhaikuan.  Hereafter  as  the  Russian  mails  increase  in  bulk,  if 
special  cars  should  be  necessary  for  their  despatch,  the  Imperial  Chinese  Railway  Adminis- 
tration shall  provide  a  car  on  one  day's  notice ;  as  a  matter  of  convenience  the  cars 
supplied  from  Peking  to  the  Chinese  Eastern  Railway  for  the  transport  (of  mails) 
to  Russia  shall  be  paid  for  each  Sunday,  and  the  charges  for  such  cars  shall  not  exceed 
the  rate  charged  for  the  transport  of  military  supplies. 

"  (Signed)  "  Paul  Lessar. 

"  "  Ch'ing. 

"Wang  Wen-shag." 

A  French  translation  from  the  Russian  text  of  this  agreement  is  printed  in  Recueil,  p. 
633. 

In  regard  to  restoration  by  the  British  military  authorities  of  the  section  of  the  Imperial 
railways  of  North  China  within  the  Wall,  see  the  agreements  of  April  29,  1902  (No.  1902/4, 
post.) 


NUMBER  1902/4. 

GREAT  BRITAIN  AND  CHINA. 

Agreement  for  the  restoration  of  the  Peking-Shanhaikuan  Raihvay  to  the 
Chinese  civil  authorities  by  the  British  military  authorities,  and  Additional 
Agreement  respecting  the  management  of  the  nortJiern  raihvays  and  the 
building  of  new  branch  lines  * — April  29,  1902. 

Agreement   for    Transfer   of   Peking-Shanhaikuan    Railway    to    Chinese    Civil 

Administration. 

The  British  MiHtary  Authorities  are  prepared  to  hand  over  to  the  Admin- 
istrators-General of  the  Northern  Railways  the  railway  from  Peking  to  Shan- 
haikuan, including  the'^xtensions  to  Tungchow,  Chien  Men  and  Temple  of 
Heaven,  on  the  following  conditions : 

*  Texts  as  printed,  in  Wang,  pp.  117,  123.     Printed  also  in  Recueil,  pp.  546,  551.     See 
Note  1  to  this  document,  post,  p.  335. 


332  CHINA  TREATIES  AND  AGREEMENTS 

1.  Whereas  by  Article  9  of  the  Protocol  of  September  7  f  the  Chinese  Gov- 
ernment accorded  to  the  Powers  the  right  of  occupying  certain  points  to  be 
determined  by  agreement  among  themselves,  for  the  purpose  of  maintaining 
free  communication  between  Peking  and  the  sea,  and  the  railway  is  essentially 
the  principal  line  of  communications,  the  Chinese  Government  undertakes  to 
give  precedence  to  the  transport  of  troops  occupying  these  points  and  Legation 
guards,  horses,  artillery,  stores  and  all  military  impedimenta,  in  accordance 
with  the  annexed  regulations  for  military  traffic  on  the  line  from  Shanhaikuan 
to  Peking4 

2. — The  Administrators-General  agree,  as  long  as  the  military  posts  referred 
to  in  Article  1  are  maintained,  that  a  Military  Co-director  and  two  Military 
deputy  Co-directors  shall  be  retained,  to  attend  to  the  requirements  of  military 
traffic.  All  such  requirements,  whether  in  transport  or  works,  shall  be  arranged 
by  the  Military  Co-director  with  the  Chinese  Administration,  who  will  give 
orders  for  their  fulfilment. 

The  position  of  Co-director  will  be  held  by  a  British  officer  while  the 
German  and  Japanese  Military  Authorities  will  each  have  the  power  to  appoint 
one  of  the  deputy  Co-directors. 

3. — To  facilitate  communication  between  the  various  contingents  and  the 
railway  administration  the  commanding  officers  may  as  long  as  the  military 
posts  are  maintained  appoint  station  officers  at  all  the  stations  which  appear  to 
them  to  be  of  special  importance,  and  every  facility  will  be  afforded  to  them  to 
guard  the  interests  of  their  contingents.  For  this  purpose  they  will  correspond 
direct  with  the  British  Military  Co-director. 

4. — The  Administrators-General  of  the  Northern  Railways  agree  to  appoint 
an  officer  to  take  over,  after  verification,  and  fulfil  all  engagements  and  agree- 
ments whatsoever  entered  into  by  the  British  Railway  Administration  previous 
to  the  date  of  handing  over.  The  same  course  shall  be  adopted  with  regard  to 
the  buildings  occupied  at  Tientsin  by  the  British  Railway  Authorities,  whether 
as  offices  or  quarters,  should  the  Chinese  Administration  be  called  upon  to  take 
them  over. 

5. — Subject  to  the  conditions  of  Article  2,  the  fixing  of  rates  for  the  con- 
veyance of  civil  passengers  and  goods,  the  repairs  and  construction,  time  tables, 
contracts,  indents  for  material  and  rolling-stock,  the  keeping  of  accounts,  in 
short  every  matter,  except  the  requisitioning  of  trains  for  the  conveyance  of 
foreign  troops,  horses,  artillery,  stores  and  other  military  impedimenta,  will  be 
entirely  in  the  hands  of  the  Chinese  Administration,  as  it  was  previous  to  the 
line  being  taken  possession  of  by  the  Allied  Military  Authorities  in  1900. 

6. — The  accounts  of  the  British  Railway  Administration  from  the  date  on 
which  it  took  over  charge  from  the  German  Military  Head-quarters  up  to  the 
date  of  the  handing  back  to  the  Chinese  Administration  shall  be  examined  and 
audited  by  two  auditors,  one  appointed  by  the  Officer  Commanding  the  British 
Contingent  in  North  China  and  the  other  by  the  Chinese  Administration. 

7. — No  part  of  the  lines  or  stations  existing  at  the  date  of  the  signature  of 

t  No.  1901/3,  ante. 

t  See  Note  2  to  this  document,  post,  p.  336. 


NUMBER  1902/4:  APRIL  29,  1902  333 

this  agreement  shall  be  removed  without  communications  or  accommodation 
being  first  provided  in  lieu  thereof.  All  such  changes  shall,  before  being  carried 
out,  be  referred  by  the  Chinese  Administration  to  the  Military  Commanders 
through  the  Military  Co-director  and  their  concurrence  obtained. 

8. — The  railway  telegraph  lines  shall  be  handed  over  concurrently  with  the 
railways,  but  the  military  authorities  shall  have  the  right  to  establish  a  line  for 
military  purposes  on  the  railway  telegraph  poles.  Until  this  line  is  in  working 
order  military  telegrams  shall  be  treated  in  accordance  with  rule  12  in  the 
annexed  regulations  for  military  traffic,  precedence  being  given  over  all  other 
messages  to  telegrams  marked  "  urgent "  or  "  clear  the  line  "  despatched  by  the 
various  military  commanders  and  the  officers  commanding  posts  and  officers 
commanding  Legation  Guards. 

9. — The  transfer  to  the  Chinese  Administration  shall  take  place  on  the 
same  day  as  the  Russian  Military  Authorities  surrender  the  portion  of  the 
Shanhaikuan  Railway  Station  and  buildings  including  the  bridge  works  and  the 
portion  of  line  from  Shanhaikuan  up  to  and  including  the  bridge  at  the  Great 
Wall  near  Shanhaikuan  now  held  by  them,  and  not  before,  or  on  the  1st  of  June, 
whichever  is  the  later  date. 

10. — The  full  consent  in  writing  of  the  military  commanders  having  troops 
posted  on  the  line  of  communications  in  accordance  with  the  9th  Article  of 
the  Protocol  of  September  7,  1901,  as  well  as  that  of  the  Representatives  of 
Foreign  Powers  maintaining  guards  for  their  Legations  at  Peking  shall  be 
obtained  by  the  Chinese  Government  to  the  transfer  from  the  British  Military 
Authorities  to  the  Chinese  Administration  before  this  agreement  comes  into 
force. 

Signed  at  Peking,  this  twenty-ninth  day  of  April  one  thousand  nine  hundred 
and  two. 

(Sgd.)  Ernest  Satow. 

(Sgd.  in  Chinese)  Yuan  Shih-kai. 

(Sgd.  in  Chinese)  Hu  Yu-fen. 


Additional  Agreement. 

For  the  better  management  of  the  railways  after  the  British  Military 
Authorities  have  handed  them  over  to  the  Chinese  Administration,  in  the 
interests  of  the  Chinese  public  revenue  and  of  the  British  bondholders,  the 
following  Regulations  have  been  agreed  to  by  the  Administrators-General 
Yuan  and  Hu  in  consultation  with  Sir  Ernest  Satow,  His  Britannic  Majesty's 
Minister : 

1. — Under  the  authority  of  Their  Excellencies  Yuan  and  Hu,  the  Admin- 
istrators-General of  the  Northern  Railways,  the  Board  of  Administration  of  the 
Peking-Shanhaikuan  Railway  shall  be  constituted  as  follows: 

Managing  Director; 

Foreign  Director; 


334  CHINA  TREATIES  AND  AGREEMENTS 

General  Manager  (British)  specially  to  control  the  works,  foreign  and 
native  workmen,  the  inspection  of  materials,  etc. ; 

Representative  of  the  British  and  Chinese  Corporation  (unsalaried)  specially 
to  deliberate  in  important  railway  matters. 

To  assist  in  the  transaction  of  international  business,  there  shall  be  an 
English  Secretary  and  a  Chinese  Translator.  There  shall  also  be  a  competent 
European  storekeeper. 

All  appointments  whatsoever  of  officials  or  employes  on  the  railway  or 
in  the  departments  thereof  shall  be  subject  to  the  approval  of  the  Board  and 
of  the  Administrators-General. 

2. — All  rolling-stock,  materials,  etc.,  obtained  from  foreign  countries  for 
the  use  of  the  railways  shall  as  far  as  possible  be  purchased  by  means  of  public 
tenders. 

3. — The  books  shall  be  audited  annually  by  a  qualified  accountant  not  con- 
nected with  the  railways,  selected  by  the  Representative  of  the  British  and 
Chinese  Corporation.  The  results  of  the  annual  working  of  the  railways  shall 
be  published  in  the  same  manner  as  the  Imperial  Maritime  Customs  Reports. 

4. — It  is  agreed  that  the  lines  from  the  Chien  Men  at  Peking  to  Fengtai 
and  from  Peking  to  Tungchow,  constructed  by  the  British  Military  Administra- 
tion, shall  be  added  to  and  form  part  of  the  railways  of  North  China  pledged 
as  security  for  the  loan  of  £2,300,000  by  paragraph  3  of  the  Agreement  between 
His  Excellency  Hu  and  the  British  and  Chinese  Corporation  dated  October 
10th  1898.§ 

5. — Under  Clause  3  of  the  Agreement  dated  October  10th  1898  it  is  stipu- 
lated that  the  construction  of  branch  lines  or  extensions  shall  be  undertaken  by 
the  Northern  Railways  Administration,  and  the  intent  of  this  stipulation  is 
hereby  confirmed  in  order  to  secure  the  existing  interests  of  the  railways.  It  is 
therefore  agreed  that  the  construction  of  any  new  railway  within  a  distance  of 
eighty  miles  of  any  portion  of  the  existing  lines,  for  which  concessions  have  not 
been  signed  previous  to  the  date  of  this  Agreement,  shall  be  undertaken  by  the 
Administrators-General  of  the  Imperial  Northern  Railways. 

Such  lines  as  the  following: 

A  northern  line  from  Peking  or  Fengtai  to  the  Great  Wall ;  a  chord  line 
from  Tungchow  to  Kuyeh  or  Tongshan ;  a  line  from  Tientsin  to  Paotingfu ; 
shall  not,  in  view  of  the  interests  of  the  Imperial  Northern  Railways,  be  allowed 
to  fall  into  other  hands. 

Signed  at  Peking  this  twenty-ninth  day  of  April  one  thousand  nine  hun- 
dred and  two. 

(Signed)  Ernest  Satow. 

{Signed  in  Chinese)  Yuan  Shih-kai.     Hu  Yu-fen. 

§  No.  1898/20,  ante. 


NUMBER  1902/4:  APRIL  29,  1902:  NOTES  335 


Note   1. 

In  connection  with  these  agreements,  see  the  Russo-Chinese  Convention  with  regard 
to  Manchuria,  April  8,  1902  (No.  1902/3,  ante),  and  Agreement  for  the  restoration  of  the 
Shanhaikuan-Hsinmintun-Yink'ou  Railway,  September  22,  1902,  printed  at  p.  330. 

In  special  reference  to  Articles  2  and  3  of  the  principal  agreement  and  Article  5  of 
the  additional  agreement,  consult  the  following  exchange  of  despatches  between  the 
Wai-wu  Pu  and  the  Russian  Legation  at  Peking,  as  translated  from  the  Russian  versions 
printed  in  Soglashenia,  p.  1  : 

Exchange  of  Notes  between  China  and  Russia  regarding  Pledging  of  Peking-Kalgan 
and  other  Railways  north  of  Peking. — June  23,  1902. 

"  Despatch  of  Prince  Ch'ing  to  Mr.  Lessor,  June  10/23,  igo2. 

"  Some  time  ago  we  had  the  honor  to  receive  a  communication  from  Your  Excellency 
in  which  you  staled  that  Articles  2  and  3  of  the  original  agreement  concluded  by  the 
dignitaries  Yuan  and  Hu  with  the  English  Minister  regarding  the  turning  over  of  the 
Peking-Tientsin-Shanhaikuan  railroad  lines,  which  Articles  relate  to  the  establishment  of 
the  office  of  railroad  co-director,  as  well  as  Article  5,  which  relates  to  branch  lines,  pre- 
sented various  and  numerous  obstacles. 

"  Our  ministry  immediately  solicited  a  supreme  order  directing  the  aforementioned 
dignitaries  to  revise  (the  articles  in  question),  and  we  had  the  honor  to  preliminarily 
advise  Your  Excellency  to  that  effect. 

"  Yesterday  we  received  the  report  of  the  aforesaid  dignitaries,  as  follows : 

"  '  Articles  2  and  3  of  the  agreement  regarding  the  turning  over  of  the  Peking-Tientsin- 
Shanhaikuan  railroad  lines  relate  to  the  necessity  of  having  foreign  military  co-directors  in 
questions  concerning  the  transportation  of  military  baggage.  We  dignitaries  desire  that,  in 
all  questions  relating  to  the  transportation  of  foreign  baggage  and  articles  necessary  to 
the  detachments,  the  heads  of  the  Guard  detachments  of  the  Foreign  Missions  at  Peking, 
as  well  as  the  higher  military  authorities  looking  after  the  unobstructed  communication 
between  the  capital  and  the  sea,  should  confer  in  due  time  and  directly  with  the  main  rail- 
road administration.  As  regards  Article  5  of  the  agreement  concluded  on  the  same  date 
in  regard  to  the  privileges  of  the  railroad  lines,  which  article  provides  that  all  branch 
lines  must  be  constructed  by  the  dignitaries  having  chief  supervision  over  the  northern 
railroads,  we  dignitaries  desire  to  stipulate  that  the  branches  to  the  north  of  Peking,  as 
well  as  the  line  from  Peking  to  Chang-chia-k'ou  (Kalgan),  must  be  constructed  by  the 
Chinese  Government  without  interference  by  foreigners  and  with  Chinese  capital,  without 
the  application  of  foreign  capital  for  this  purpose;  and  these  lines,  or  the  revenues  derived 
therefrom,  must  never  serve  as  security  for  loans  placed  in  foreign  nations.  In  accordance 
with  what  is  set  forth  in  the  report,  we  request  you  to  refer  the  matter  to  the  English 
Minister  for  examination  and  reply.' 

"  Our  ministry  did  not  delay  in  officially  communicating  the  circumstances  of  the  case 
to  the  English  Government. 

"  On  June  6  last  the  ministry  received  the  reply  of  the  English  Government,  as  follows : 

" '  After  analysing  all  the  points  set  forth  in  the  communication  of  the  Honorable 
Ministry  on  the  basis  of  the  deliberations  of  the  dignitaries  Yuan  and  Hu,  I  deem  it  my 
duty  to  remark  that  they  are  in  accordance  with  my  views  and  that,  as  a  matter  of  course, 
I  can  give  my  consent  to  their  being  carried  into  execution.' 

"  Upon  the  receipt  of  the  reply,  our  Ministry  assured  itself  that  the  aforesaid  digni- 
taries and  the  English  Minister  had  revised  the  articles  in  the  way  desired  by  Your 
Excellency,  and,  upon  re-examination,  we  amended  points  2  and  3  of  the  Chinese-English 
agreement  so  as  to  provide  that  foreign  military  co-directors  shall  not  be  admitted  into 
the  railroad  administration  ;  at  the  same  time  point  5  of  the  supplementary  agreement  was 
amended  as  stated  before. 

"  We  hope  that  Your  Excellency,  having  long  worked  for  the  strengthening  of  friendly 
(international)  relations,  will  sincerely  welcome  the  turning  over  by  England  of  the  Peking- 
Tientsin-Shanhaikuan  railroad  lines  and  that  you  will  gladly  lend  your  cooperation  in  order 
to  confirm  the  sincerity  of  the  friendly  relations  between  China  and  Russia. 

"  As  regards  the  communication  of  the  Tsung-li-yamen  to  former  Minister  de  Giers 
of  May  20/June  1,  1899  [No.  1899/5,  ante],  reading  as  follows:  'The  Chinese  Government 
agrees  that,  if  any  additional  railroads  are  built  in  future  to  the  north  of  Peking  or  to  the 
northeast  in  the  direction  of  the  Russian  frontier,  and  unless  they  are  built  with  Chinese 
capital  by  Chinese  officials,  if  the  intention  is  manifested  of  holding  conferences  in  view  of 
turning  over  the  construction  to  a  foreign  nation,  such  intention  shall  be  primarily  discussed 
with  the  Russian  Government  or  a  Russian  syndicate  for  the  purpose  of  granting  the  con- 
cession  (for  the  work)  ;  and  the  concesssion  shall  by  no  means  be  granted  to  any  other 


336  CHINA  TREATIES  AND  AGREEMENTS 

nation  or  to  a  syndicate  of  any  other  nation,'  our  Ministry  still  adheres  to  its  original  deci- 
sion, in  which  it  makes  no  change. 

"  While  communicating  the  foregoing  to  Your  Excellency  for  your  examination,  we 
have  the  honor  to  request  you  to  answer  and  give  your  consent  to  carrying  it  into  execution." 

"Dispatch  of  Mr.  Lessor  to  Prince  Ch'ing,  June  11/24,  1902. 

"  I  had  the  honor  to  receive  your  communication.  Honorable  Prince  and  Dignitaries, 
under  date  of  June  10/23  instant,  in  regard  to  the  amendment  of  certain  articles  of  the 
Chinese-English  agreement  of  April  16/29  last,  which  articles  relate  to  the  northern  rail- 
roads, and  against  which  I  deemed  it  my  duty  to  protest  on  April  29  (May  12)  on  behalf 
of  my  Government. 

"I  very  highly  appreciate  the  feelings  of  genuine  justice  of  the  Honorable  Ministry, 
which  hastened  to  solicit  a  supreme  order  for  the  restoration  of  the  rights  of  Russia 
which  were  violated  by  these  articles.  You  inform  me  that,  pursuant  to  the  supreme  decree 
issued,  the  dignitaries  Yuan  and  Hu  prepared  the  necessary  amendments,  which  were 
communicated  by  you,  Honorable  Prince  and  Dignitaries,  to  the  English  Minister,  who 
expressed  his  consent  thereto. 

"  From  the  note  to  the  English  Minister  as  quoted  in  your  communication  as  well  as 
from  the  remainder  of  your  communication  itself,  I  am  gratified  to  see  that  foreign  military 
and  civil  co-directors  will  not  be  admitted  in  the  administration  of  the  northern  railroads. 
I  am  sincerely  glad  of  this,  for  if  there  were  foreign  military  or  civil  co-directors  I  could 
only  give  my  consent  to  the  turning  over  of  the  road  from  Peking  to  Shanhaikuan  on 
condition  that  a  Russian  military  and  civil  co-director  be  also  appointed. 

"  The  amendment  to  Article  5  of  the  special  agreement  concluded  on  the  same  date, 
as  set  forth  in  your  communication,  very  correctly  places  the  question  of  the  railroad 
lines  to  the  north  of  the  latitude  of  Peking  and  especially  the  line  from  Peking  to  Kalgan. 
You  also  recognize  as  being  in  full  force  the  communication  of  the  Tsung-li-yamen 
addressed  to  the  former  Minister  Kammerherr  de  Giers  on  May  20/June  1st,  1899,  regarding 
the  roads  north  of  Peking  to  the  Russian  frontier. 

"  In  view  hereof  I  shall  not  fail  to  report  at  once  to  my  Government  in  regard  to  the 
happy  termination  of  the  misunderstandings  which  had  arisen.  The  possibility  now  presents 
itself  again  of  continuing  unlrammeled  the  cultivation  of  our  friendly  relations,  and  I  on 
my  part  am  ready  to  cooperate  in  the  earliest  possible  turning  over  to  the  Chinese  admin- 
istration of  the  railroads  now  occupied." 


Note  2. 

The  regulations  mentioned  in  Article  1  are  given  as  follows  in  Wang,  p.  177. 
Regulations  for  Military  Traffic  on  Peking-Shanhaikwan  Railway. 

"  1. — All  kinds  of  railway  traffic  for  the  military  purposes  of  all  contingents  will  be 
accepted  at  the  prices  given  in  paragraph  8,  in  so  far  as  the  traffic  capacity  of  the  line 
permits,  regard  being  had  to  the  numerical  strength  of  each  contingent,  including  fol- 
lowers, in  proportion  to  the  total  number  of  the  allied  troops  in  the   Province  of  Chihh, 

"  2. — The  Railway  Administration  is  not  responsible  for  any  damage  or  hurt  to  military 
persons  or  military  goods  while  these  are  being  transported  on  the  railway. 

"  3. — Military  persons  in  uniform  do  not  require  to  purchase  tickets.  With  a  view  to 
the  settlement  of  accounts  between  the  Railway  Administration  and  the  various  con- 
tingents, officers  and  military  officials  will  inform  the  guard  on  duty  of  their  destination, 
the  number  of  soldiers  and  horses  accompanying  them  and  the  number  of  articles  of  lug- 
gage, while  non-commissioned  officers  and  men  must  be  provided  with  an  order  signed  by 
an  officer  or  a  military  official,  which  will  serve  as  a  pass  for  the  journey  and  will  be 
given  up  at  the  end  of  it  to  the  guards  on  duty. 

"  4. — 'For  civilians  who  are  travelling  on  military  duty,  and  who  are  not  required  to 
purchase  tickets,  a  pass  must  be  made  out  as  above  by  some  military  authority,  and  pro- 
vided with  his  Office  stamp,  giving  the  destination  and  the  amount  of  the  goods. 

"  5. — In  the  transport  of  goods,  their  loading,  unloading,  and  guarding  during  the 
journey  must  be  arranged   for  by  the  military  authority  despatching  them. 

"  With  every  waggon-load  two  men,  and  with  every  living  animal  one  man  will  be 
forwarded  free  on  the  goods  trucks. 

"  6. — In  the  case  of  troops  and  goods  which  are  to  be  transported  as  a  body  or  in 
one  load  in  the  trains  laid  down  in  the  timetables,  at  least  twenty-four  hours'  notice  must 
be  given  to  the  railway  direction  at  Tientsin  or  at  the  station  of  despatch.     Demands  for 


NUMBER  1902/4:  APRIL  29,  1902:  NOTES 


337 


special  trains  are  to  be  restricted  as  much  as  possible.  Passenger  special  trains  can  only 
be  supplied  for  the  Commanders  and  Generals  of  the  various  contingents. 

"  7. — Everybody  is  bound  to  obey  the  orders  of  the  railway  officials.  To  facilitate  com- 
munication between  the  railway  officials  and  the  Military  persons  belonging  to  other 
nations  who  are  travelling,  station  officers  belonging  to  the  various  contingents  who  rep- 
resent the  interests  of  the  latter  are  to  be  found  at  all  the  larger  stations. 

"  8.— Tariff : 


-( 


A  waggon-load  of 

do 

do 

do 


For  each  kilometre 
or  part  of  one 

. . . .         ....  2  cents 

1  cent 

0.5  cent 


5  cents 
3  cents 
2  cents 


"  (A)  Persons:— 

Officers,  military  officials  and  first  class  passengers  .... 
Non-commissioned  officers  and  men  and  2nd  class  'passengers 
3rd  class  passengers    (carried  in  open  or  closed  waggons) 

"(B)  Living  Animals: — 

A  horse,  a  cow  (   If    a    whole    waggon- 

An  ass  or  pony  -|   load     is     not     cheap- 

A    pig,    calf,    sheep  or    goat         (  er 

"  (C)  Passenger  Luggage: — 

Hand  baggage,  the  bulk  and  weight  of  which  permit  its 
being  allowed  in  the  passenger  carriage,  is  carried  free. 
Passenger  baggage  of  the  usual  bulk  and  weight,  which 
must  be  carried  in  the  luggage  van  is  charged  5  cents  for 
each  travelling  zone  or  part  of  a  zone,  i.e.  Peking  to 
Tientsin,  Tientsin  to  Tongshan,  Tongshan  to   Shanhaikuan. 

"(D)   Goods:— 

30  tons 

20  tons 

15  tons         ....         ....         ....         .... 

10  tons         

Single  articles  the  weight  of  which  is  attested  by  a  rnilitary 
authority  on  a  certificate  provided  with  his  office  stamp  for 

every  100  kilog.  or  part  of  the  same       

For  goods  packages  not  so  attested  after  these  have  been 
weighed  or  judged  by  the  railway  authorities,  the  starting  on 
Goods    waggon    of    10    tons         ....         ....      .   ••••         •.••• 

For   special  trains   the  above  prices   are  the   journey  being 
accepted   as   confirming  this    weighing,    for   every    10   kilog. 
or    part    of    same  ....         ....         ....         ....         .  . .  ■ 

[It  would  appear  that  several  lines  have  been  transposed  in 
this  and  the  preceding  clause  as  printed  in  Wang,  the  true 
reading  probably  being  as  follows : 
For  goods  packages  not  so  attested  after  these  have  been 
weighed  or  judged  by  the  railway  authorities,  the   starting 
on  the  journey  being  accepted  as  confirming  this  weighing, 
for  every  10  kilog.  or  part  of  same         ....         ....         •  •  •  • 

For  special  trains  the  above  prices  are  Goods  waggons  of 
10  tons  

"(E)  Military  carriages: — 

Four  wheeled  carriage  or  field-gun  and  limber  either  whole 
or    taken    to    pieces         ....         ....    _     .  .  •  •         •  •  •  •         •  •  •  • 

Two    wheeled    carts    field-guns    or    limbers         

"  (F)  Special  waggons  and  special  trains: — 

Passenger  carriages  1st  and  2nd  class      

Luggage    or    guard    vans  

Goods    waggon   of    30  tons        ....         

do  20  tons         ....         .  .  • ■         

do  15  tons         ;•  ■ 

to  be  charged,  and  further  for  the  loan  of  a  locomotive 
and  tender  60  dollars  for  each  day  or  part  of  a  day,  but 
at  least  2  dollars  for  each  kilometre  of  run  and  not  less  than 
75  dollars  in  all. 

"9. — Hiring  of  locomotives  and  waggons:  .... 

"For  the  loan  of  the  rolling-stock  of  the  line  to  other  Administrations,  counting 
from  the  time  of  its  transfer  to  their  line  until  its  return,  the  following  prices  are  to  be 
charged  for  each  vehicle  and  for  each  twenty- four  hours  or  part  of  the  same:— 


.36  cents 
.24  cents 
.18  cents 
.12  cents 


.0.5  cent 


.12  cents 


.0.1  cent 


,  0.1  cent 
12  cents] 


. .10  cents 
. .  5  cents 

. .30  cents 
. .15  cents 
. . .36  cents 
. .24  cents 
. .18  cents 


20 

15 

10 

iy2 

1 

11/2 

1 

338  CHINA  TREATIES  AND  AGREEMENTS 

Mcx.  Dollars. 
Locomotive  with  three  or  more  couples  of 

driving  wheels  ....         ....         ....         .... 

Locomotive    with    two    couples    of    driving    wheels 
Lighter  Locomotives      ....         ....         ....         .... 

Passenger   carriages    of   all    classes         ....         .... 

Luggage  vans   ....         ....         ....         ....         .... 

Large  goods  waggons  of  20  or    nore  tons  capacity 
Small  goods  waggons  of  less  than  20  tons  capacity 
"10.    Delays  in  loading  and  unloading: 

"  For  loading  and  unloading  of  goods  waggons  which  last  longer  than  twent\'-four 
hours  after  notice  of  the  arrival  of  the  waggon  has  been  given,  the  following  rates  will 
be  charged   for  each  waggon  and  part  of  twenty-four  hours : — 

Dollars. 
Goods  waggons  of  30  tons  ....         ....         ....         ....         ....         ....  9 

"    20     "  6 

"    15     "  4.5 

"     10     "  3 

"  No  change  is  hereby  made  in  the  rights  of  the  Railway  Administration  to  use  for 
other  purposes  waggons  which  have  been  detained  more  than  twenty-four  hours  for  loading 
or  unloading,  or  to  cause  the  goods  which  have  been  loaded  in  them  to  be  imloaded  at 
the  cost  of  the  sender,  and  without  the  railway  being  responsible  for  their  safe  keeping. 

"11.    Postal  arrangements; 

"  The  military  postal  packages  of  all  the  allied  contingents  will  be  carried  free. 

"  12.    Utilization  of  the  railway  telegraph  : 

"  Military  telegrams  will  be  sent  along  the  whole  line  at  an  unit  word  price  of  40  cents 
for  ordinary  service  messages  (to  be  marked  S),  and  of  60  cents  for  urgent  service  mes- 
sages (to  be  marked  XS),  provided  that  the  necessity  for  the  use  of  the  railway's  telegraph 
is  attested  by  military  authority  with  his  office  stamp,  and  that  the  service  of  the  railway 
permits  of  the  telegraph  line  being  so  used.  Urgent  service  messages  rank  behind  train 
reports  and  before  line  service  telegrams ;  ordinary  service  messages  after  line  service 
telegrams." 


NUMBER  1902/5. 

INTERNATIONAL  AND  CHINA. 

Provisional  Rules  for  defining  the  respective  jurisdictions  of  the  mixed  courts 
of  the  International  and  French  Settlements  at  Shanghai.^ — June  10,  1902. 

In  all  civil  cases  between  Chinese  the  plaintiff  will  follow  the  defendant, 
and  will  sue  him  before  the  Mixed  Court  of  his,  the  defendant's,  residence. 

2. — In  all  criminal  cases  where  foreigners  are  not  concerned  and  in  all 
police  cases  against  Chinese  residents  in  the  Settlements,  the  Mixed  Court  of  the 
Settlement  in  which  the  crime  or  contravention  has  been  committed,  is  alone 
competent. 

[N.  B. — The  above  two  clauses  include  cases  where  the  defendant  or  accused 
is  in  the  employ  of  a  foreigner,  the  countersignature  of  the  Consular  represen- 
tative of  the  national  concerned  being  as  heretofore  to  be  obtained.] 

*  Text  as  referred  by  Senior  Consul  at  Shanghai  to  Dean  of  Diplomatic  Body  at 
Peking.  A  somewhat  defective  text  is  printed  in  China,  No.  2  (1903).  These  provisional 
rules  were  adopted  by  the  Consular  Body  at  Shanghai  on  June  10,  1902,  and  agreed  to 
by  the  Shanghai  Taotai  on  the  following  day :  having  been  referred  to  the  Diplomatic 
Body  at  Peking,  they  received  its  approval  at  the  meeting  of  June  28,  1902  (Negociations 
de  Pekin,  etc.,  p.  LXIl). 


NUMBER  1902/6:  AUGUST  29,  1902  339 

3. — In  mixed  civil  cases, 

(a.)  If  the  plaintiff  is  a  foreigner — not  of  French  nationality — and  the 
Chinese  defendant  is  a  resident  of  the  International  Settlement,  he  is  to  be  sued 
before  the  Mixed  Court  of  the  International  Settlement. 

(b.)  If  the  plaintiff  is  French  and  the  Chinese  defendant  is  a  resident  of 
the  French  Settlement  he  is  to  be  sued  before  the  Mixed  Court  of  the  French 
Settlement. 

(c.)  If  the  plaintiff  is  a  foreigner — not  of  French  nationality — and  the 
Chinese  defendant  is  a  resident  of  the  French  Settlement,  the  latter  shall  be 
sued  before  the  Mixed  Court  of  the  International  Settlement  whose  warrant  or 
summons  for  his  appearance  after  counter-signature  by  the  French  Consul- 
General  will  be  executed  or  served  by  the  runners  of  the  International  Mixed 
Court  with  the  assistance  of  the  police  of  the  French  Settlement,  without  pre- 
vious hearing  in  the  Mixed  Court  of  the  French  Settlement. 

(d.)  If  the  plaintiff  is  French  and  the  Chinese  defendant  is  a  resident  of 
the  International  Settlement  the  latter  shall  be  sued  before  the  Mixed  Court  of 
the  French  Settlement  whose  warrant  or  summons  for  his  appearance  after 
counter-signature  by  the  Senior  Consul  will  be  executed  or  served  by  the 
runners  of  the  French  Mixed  Court  with  the  assistance  of  the  police  of  the 
International  Settlement,  without  previous  hearing  in  the  Mixed  Court  of  the 
International  Settlement. 

4. — In  criminal  cases  where  a  foreigner — not  of  French  nationality — is 
complainant,  the  Mixed  Court  of  the  International  Settlement  is  competent ;  if 
a  Frenchman  is  complainant  the  Mixed  Court  of  the  French  Settlement  is 
competent. 

The  provisions  under  clause  3,  (c)  and  (d)  as  to  executing  warrants  also 
apply  under  this  clause. 


NUMBER  1902/6. 

AUSTRIA-HUNGARY,  BELGIUM,  DENMARK,  FRANCE,  GERMANY, 
GREAT  BRITAIN,  ITALY,  JAPAN,  THE  NETHERLANDS,  NOR- 
WAY, PORTUGAL,  RUSSIA,  SPAIN,  SWEDEN,  THE  UNITED 
STATES  AND  CHINA. 

Tariff  Agreement   relating   to    the   revised    import   tariff,   1902* — August   29, 

1902.J 

Whereas  it  was  provided  by  the  Final  Protocol  signed  at  Peking  on  the  7th 
of  September  1901  (Article  VI)  that  the  existing  Tariff  on  goods  imported  into 

*  Text  as  printed  in  Customs,  Vol.  I,  p.  953,  omitting  the  Tariff  and  attached  Rules, 
which  are  herein  printed  as  an  Annex  to  the  American  Commercial  Treaty  of  October  8, 
1903  (No.  1903/5),  at  pp.  433,  449,  post.  For  Tarifif  and  Rules  now  in  force,  however,  see 
Revised  Import  Tarifif  of  1918  (Xo.  1918/18,  post). 

Printed  also  in  Hertslet,  p.  148 ;  Soglashenia,  p.  80 ;  Traites  et  Conventions,  p.  163. 

See  Note  1  to  this  document,  post,  p.  340. 

t  In  regard  to  date,  see  Note  2  to  this  document,  post,  p.  341, 


340  CHINA  TREATIES  AND  AGREEMENTS 

China  should  be  increased  to  an  effective  five  per  cent. ;  and  whereas  it  was  fur- 
ther provided  that  all  Duties  levied  on  Imports  ad  valorem  should  be  converted 
as  far  as  feasible  and  with  the  least  possible  delay  into  specific  Duties,  this  con- 
version to  be  effected  in  the  following  manner :  The  average  value  of  merchandise 
at  the  time  of  landing  during  the  three  years  1897,  1898,  and  1899,  that  is  to  say, 
the  market  price  less  the  amount  of  Import  Duty  and  incidental  expenses  to  be 
taken  as  the  basis  for  the  valuation  of  such  merchandise : 

The  Special  Commissioners  of  China : 

and  of : 

have  agreed  and  determined,  on  the  basis  aforesaid,  upon  the  Tariff  hereto 
appended  together  with  certain  Rules  for  the  application  thereof ;  and  do  hereby 
agree  that  the  said  Tariff  and  Rules  shall  be  binding  on  the  Governments  and 
subjects  of   their  respective  countries. 

The  Tariff  and  Rules  aforesaid  shall  be  binding  on  and  after  the 

Should  it  be  ascertained  hereafter  that  any  articles  have  been  omitted  from 
this  Tariff  which  it  is  found  can  be  conveniently  provided  for  on  a  specific  basis 
in  terms  of  the  Final  Protocol  of  1901,  it  is  understood  that  the  necessary  addi- 
tions shall  be  made  at  rates  to  be  mutually  agreed  upon  by  Representatives  of 
the  various  Powers  by  whom  this  Tariff  has  been  signed. 

It  is  understood  that,  in  the  event  of  there  being  any  difference  of  mean- 
ing between  the  English  and  Chinese  texts  of  the  Tariff  and  Rules,  the  sense 
as  expressed  in  the  English  text  shall  be  held  to  be  the  correct  sense. 

The  present  Agreement  has  been  drawn  up  in  two  identical  copies  and  signed 
by  the  Special  Commissioners  of  the  countries  aforesaid.  One  copy  shall  be 
given  to  the  Special  Commissioners  of  China  and  one  copy  shall  be  given  to 
the  Special  Commissioners  of  

Done  at  Shanghai,  in  the  Empire  of   China,  this day  of 

in  the  year  of  Our  Lord  one  thousand  nine  hundred  and ,  corresponding 

with   the   Chinese   date,   the day   of    the moon    of    the 

year  of  Kuang  Hsu. 


Note  1. 

In  connection  with  this  agreement  see  also  the  British  commercial  treaty  of  September  5, 
1902  (No.  1902/7),  and  the  American  and  Japanese  commercial  treaties  of  October  8,  1903 
(Nos.  1903/4  and  1903/5,  post)  ;  also  the  Revised  Tariflf  approved  by  the  International 
Tariff  Commission,  December  19,  1918  (No.  1918/18,  post). 

For  the  duty-free  list,  see  the  following  copy  of  a  despatch  addressed  by  the  foreign 
members  of  the  Import  Tariff  Revision  Commission  to  the  Chinese  Commissioners,  as 
printed  in  Customs: 

Despatch  of  Import  Tariff  Commission  regarding  Duty  Free  List. — August  29,  1902. 

"SH.A.NGHAI,  29th  August  1902. 
"  Your  Excellencies, 

"  With  reference  to  the  new  Tariff  which  has  just  been  signed,  this  note  puts  on  record 
that  the  following  words  have  been  erased  from  Rule  II  of  the  Rules  at  the  end  of  the 
Tariff: — 'Samples  in  reasonable  quantities,  and  certified  to  be  for  show  and  not  for  sale; 
Government  Stationery  for  Consulates  in  China ;  Passengers  Baggage  for  bona  fide  private 
use;  Circulars,  etc.,  distributed  gratis,  of  mercantile  houses;  and  Private  Effects  (not 
including  Wines,  Stores,  and  Tobacco)  of  individual  foreigners  imported  by  themselves 
for  their  own  personal  use  and  not  for  sale,  provided  that  the  Customs  Authorities  are  satis- 


NUMBER  1902/6:  AUGUST  29,  1902:  NOTES 


341 


fied  that  the  articles  in  question  fulfil  these  conditions ; '  and  also  '  Personal  Baggage  of 
less  than  twenty  passengers  and.' 

"  It  is  understood  between  the  Foreign  and  Chinese  Commissioners  that,  though  the 
above  words  have  been  eliminated  from  the  Rules,  the  matter  therein  referred  to  \yill  be 
dealt  with  by  the  Inspector  General  of  the  Imperial  Maritime  Customs  at  his  discretion,  in 
accordance  with  the  instructions  issued  by  him  subsequent  to  the  Final  Protocol  of  the  7th 
September  1901. 

"  We  have  the  honour  to  be, 

"  Your  Excellencies  obedient  Servants, 
"(Signed)         "  HIRSCH. 

"JAS.  L.  MACKAY. 

"J.  YAMAOKA. 

"E.  HIOKI. 

"D.  SIFFERT. 

"  ADVOCAAT  "  F.  B.  s'JACOB. 

"  Dr.  BOYE. 

"D.  SIFFERT. 

"JOHN  GOODNOW." 

"DUTY  FREE  LIST. 

"(Vide  I.  G.  Circulars  Nos.  979,  984,  1,016,  1,020,  1,022,  1,025,  1,026,  instructions 
received.) 


12th  October  1901 

12th  October  1901 
7th  November  1901 
19th    April    1902 


•1st    Mav   1902 
"31st  May  1902 

"10th  May  1902 

"  3rd  June  1902 

"  12th  October  1901 
'•3rd  June   1902 

"3rd  June  1902 


Foreign  Rice,  Cereals,  and  Flour ;  Gold  and  Silver,  coined 
and  uncoined. 

Legations  Supplies  from  abroad. 

Suplies  for  the  use  of  Foreign  Forces,  military  and  naval. 

Official  Stationery  actually  transmitted  by  Foreign  Govern- 
ment Departments  for  Foreign  Consulates. 

Supplies  under  Government  Stores  Certificates. 

Materials  for  Railways  the  import  of  which  '  free '  is  pro- 
vided for  by  agreements  antedating  the  Peace  Protocol. 

Samples,  in  reasonable  quantities,  certified  for  show  and 
not  for  sale. 

Circulars,  etc.,  distributed  gratis  by  mercantile  houses. 

The  bond  fide  baggage  of  travellers,  i.e..  Passengers  Lug- 
gage arriving  either  with  the  owner  or  by  a  vessel  other 
than    that    by    which    the    passenger    travels. 

Clothing,  Books,  Pictures,  and  Furniture  already  in  use 
when  brought  in  by  residents  and  not  for  sale. 
\'_B. — Ships  Coal  and  Provisions  are  entitled  to  Drawbacks." 


9. 


10 


"31st  May  1902 

For   the    export  tariff,    see   the    Anglo-Chinese   Agreement   containing   rules    of    trade, 
November  8.  1858  {Hertslet,  p.  45). 


Note  2. 

The  date  is  that  of  the  original  conclusion  of  the  agreement:  in  Customs,  loc.  cit.,  it  is 
noted  that  the  Tariff  Agreement  was  signed  by  the  representatives  of  the  several  Powers 
on  the  following  dates : 

"1902,   August  29th    (Kuang   Hsu,  28th  year,  7th   moon,   26th   day),   to  come  into   effect 
October  31st   (10th  moon,  1st  day)  : 


"  Austria-Hungary 
"  Belgium  .... 

"  Germany        .... 
"  Great  Britain 
"  Japan  *. . . . 


"  The  Netherlands      .... 

"  Spain  ....         .... 

"  United  States  of  America 


Signed  by    E.  VON   HIRSCH    {ad  referendum). 
"  D.  SIFFERT   {ad  referendum). 

A.  B0Y6. 

Sir  JAMES  L.  AIACKAY. 
E.  HIOKI. 
M.    ODAGIRI. 
J.   YAMAOKA. 

D.  SIFFERT. 
J.  GOODNOW. 


342  CHINA  TREATIES  AND  AGREEMENTS 

"  The  Representatives  of  China  signing  on  the  above  date  were — 

"LU  HAI-HUAN. 
"WU  TTNG-FANG. 
"1903,  March  28th  (Kuang  Hsii,  29th  year,  2nd  moon,  30th  day),  to  come  into  effect  April 
27th   (4th  moon,   1st  day)  : 

"  Italy  Signed  by    Major  C.   NERAZZINI. 

"  Russia  "  D.  M.  POSDNEEFF. 

"  1904,  March  23rd  (Kuang  Hsu,  30th  year,  2nd  moon,  7th  day),  to  come  into  effect  May 
5th  (3rd  moon,  20th  day)  : 

"Denmark        Signed  by  F.  HAGBERG. 

"1904,  March  30th  (Kuang  Hsu,  30th  year,  2nd  moon,  14th  day),  to  come  into  effect  on 
signature : 
"  France  Signed  by  L.  RATARD. 

"^ri'^r    \     "  F.  HAGBERG. 

"1904,  November  11th  (Kuang  Hsu;  30th  year,  10th  moon,  5th  day),  to  come  into  effect  on 
signature : 

'■  Portugal Signed  by  J.  D'A.  CASTELLO  BRANCO. 

"  The  Representatives  of  China  signing  on  the  above  datfj  were — 

"  LU , HAI-HUAN. 
"  SHENG  HSUAN-HUAI." 


NUMBER  1902/7. 

GREAT  BRITAIN  AND  CHINA. 

Treaty  respecting  commercial  relations,  etc.   {with  Annexes.)* — September 

5,  1902. 

His  Majesty  the  King  of  the  United  Kingdom  of  Great  Britain  and  Ireland 
and  of  the  British  Dominions  beyond  the  Seas,  Emperor  of  India,  and  His 
Majesty  the  Emperor  of  China,  having  resolved  to  enter  into  negotiations  with 
a  view  to  carrying  out  the  provision  contained  in  Article  11  of  the  Final  Protocol 
signed  at  Peking  on  the  7th  September,  1901,  mider  which  the  Chinese  Govern- 
ment agreed  to  negotiate  the  amendments  deemed  useful  by  the  foreign  Govern- 
ments to  the  Treaties  of  Commerce  and  Navigation  and  other  subjects  concern- 
ing commercial  relations  with  the  object  of  facilitating  them,  have  for  that 
purpose  named  as  their  Plenipotentiaries,  that  is  to  say : 

His  Majesty  the  King  of  Great  Britain  and  Ireland,  His  Majesty's  Special 
Commissioner,  Sir  James  Lyle  Mackay,  Knight  Commander  of  the  Most  Emi- 
nent Order  of  the  Indian  Empire,  a  member  of  the  Council  of  the  Secretary  of 
State  for  India,  &c. 

And  His  Majesty  the  Emperor  of  China,  the  Imperial  Commissioners  Lii 
Hai-huan,  President  of  the  Board  of  Public  Works,  &c.,  and  Sheng  Hsiian-huai, 
Junior  Guardian  of  the  Heir-Apparent,  Senior  Vice-President  of  the  Board  of 
Public  Works,  &c. 

*  Text  as  printed  in  British  Treaty  Series,  No.  17  (1903).  Printed  also  in  Rockhill,  p. 
102;  Customs,  Vol.  I,  p.  543;  Hertslet,  p.  171;  Recueil,  p.  594. 

In  connection  with  this  treaty  see  the  Tariff  Agreement  of  August  29,  1902  (No.  1902/6, 
ante)  ;  see  also  Japanese  and  American  commercial  treaties  of  October  8,  1903  (Nos.  1903/4 
and  1903/5,  post). 


NUMBER  1902/7 :  SEPTEMBER  5,  1902  343 

Who  having  communicated  to  each  other  their  respective  full  powers,  and 
found  them  to  be  in  good  and  due  form  have  agreed  upon  and  concluded 
the  following  Articles: — 

Article  I.f — Delay  having  occurred  in  the  past  in  the  issue  of  Drawback 
Certificates  owing  to  the  fact  that  those  documents  have  to  be  dealt  with  by  the 
Superintendent  of  Customs  at  a  distance  from  the  Customs  Office,  it  is  now 
ac^reed  that  Drawback  Certificates  shall  hereafter  in  all  cases  be  issued  by 
the  Imperial  Maritime  Customs  within  three  weeks  of  the  presentation  to  the 
Customs  of  the  papers  entitling  the  applicant  to  receive  such  Drawback 
Certificates. 

These  Certificates  shall  be  valid  tender  to  the  Customs  authorities  in  pay- 
ment of  any  duty  upon  goods  imported  or  exported  (transit  dues  excepted), 
or  shall,  in  the  case  of  Drawbacks  on  foreign  goods  re-exported  abroad  within 
three  years  from  the  date  of  importation,  be  payable  in  cash  without  deduction 
by  the  Customs  Bank  at  the  place  where  the  import  duty  was  paid. 

But  if,  in  connection  with  any  application  for  a  Drawback  Certificate,  the 
Customs  authorities  discover  an  attempt  to  defraud  the  revenue,  the  applicant 
shall  be  liable  to  a  fine  not  exceeding  five  times  the  amount  of  the  duty  whereof 
he  attempted  to  defraud  the  Customs,  or  to  a  confiscation  of  the  goods. 

Article  II. $ — China  agrees  to  take  the  necessary  steps  to  provide  for  a  uni- 
form national  coinage  which  shall  be  legal  tender  in  payment  of  all  duties,  taxes 
and  other  obligations  throughout  the  Empire  by  British  as  well  as  Chinese 
subjects. 

Article  III. — China  agrees  that  the  duties  and  likin  combined  levied  on 
goods  carried  by  junks  from  Hong  Kong  to  the  Treaty  ports  in  the  Canton 
Province  and  vice  versa,  shall  together  not  be  less  than  the  duties  charged  by 
the  Imperial  Maritime  Customs  on  similar  goods  carried  by  steamer. 

Article  IV.§ — Whereas  questions  have  arisen  in  the  past  concerning  the 
right  of  Chinese  subjects  to  invest  money  in  non-Chinese  enterprises  and  com- 
panies, and  whereas  it  is  a  matter  of  common  knowledge  that  large  sums  of 
Chinese  capital  are  so  invested,  China  hereby  agrees  to  recognise  the  legality  of 
all  such  investments  past,  present  and  future. 

It  being,  moreover,  of  the  utmost  importance  that  all  shareholders  in  a  Joint- 
Stock  Company  should  stand  on  a  footing  of  perfect  equality  as  far  as  mutual 
obligations  are  concerned,  China  further  agrees  that  Chinese  subjects  who  have 
or  may  become  shareholders  in  any  British  Joint-Stock  Company  shall  be  held 
to  have  accepted,  by  the  very  act  of  becoming  shareholders,  the  Charter  of  In- 
corporation or  Memorandum  and  Articles  of  Association  of  such  Company  and 
regulations  framed  thereunder  as  interpreted  by  British  Courts,  and  that  Chinese 
Courts  shall  enforce  compliance  therewith  by  such  Chinese  shareholders,  if  a 
suit  to  that  effect  be  entered,  provided  always  that  their  liability  shall  not  be  other 
or  greater  than  that  of  British  shareholders  in  the  same  Company. 

Similarly  the  British  Government  agree  that  British  subjects  investing  in 

t  See  American  treaty  of  1903,  Article  8. 

t  See  American  treaty  of  1903,  Article  13,  and  Japanese  treaty  of  1903,  Article  13. 

§  See  Japanese  treaty  of  1903,  Article  4. 


344  CHINA  TREATIES  AND  AGREEMENTS 

Chinese  Companies  shall  be  under  the  same  obligations  as  the  Chinese  share- 
holders in  such  Companies. 

The  foregoing  shall  not  apply  to  cases  which  have  already  been  before  the 
Courts  and  been  dismissed. 

Article  V. — The  Chinese  Government  undertake  to  remove  within  the  next 
two  years  the  artificial  obstructions  to  navigation  in  the  Canton  River.  The 
Chinese  Government  also  agree  to  improve  the  accommodation  for  shipping 
in  the  harbour  of  Canton  and  to  take  the  necessary  steps  to  maintain  that  im- 
provement, such  work  to  be  carried  out  by  the  Imperial  Maritime  Customs  and 
the  cost  thereof  to  be  defrayed  by  a  tax  on  goods  landed  and  shipped  by  British 
and  Chinese  alike  according  to  a  scale  to  be  arranged  between  the  merchants  and 
Customs. 

The  Chinese  Government  are  aware  of  the  desirability  of  improving  the 
navigability  by  steamer  of  the  waterway  between  Ichang  and  Chungking,  but 
are  also  fully  aware  that  such  improvement  might  involve  heavy  expense  and 
would  affect  the  interests  of  the  population  of  the  Provinces  of  Szechuen,  Hunan, 
and  Hupeh.  It  is,  therefore,  mutually  agreed  that  until  improvements  can  be 
carried  out  steam-ship  owners  shall  be  allowed,  subject  to  approval  by  the  Imperial 
Maritime  Customs,  to  erect,  at  their  own  expense,  appliances  for  hauling  through 
the  rapids.  Such  appliances  shall  be  at  the  disposal  of  all  vessels,  both  steamers 
and  junks,  subject  to  regulations  to  be  drawn  up  by  the  Imperial  Maritime  Cus- 
toms. These  appliances  shall  not  obstruct  the  waterway  or  interfere  with  the 
free  passage  of  junks.  Signal  stations  and  channel  marks  where  and  when  neces- 
sary shall  be  erected  by  the  Imperial  Maritime  Customs.  Should  any  practical 
scheme  be  presented  for  improving  the  waterway  and  assisting  navigation  without 
injury  to  the  local  population  or  cost  to  the  Chinese  Government,  it  shall  be  con- 
sidered by  the  latter  in  a  friendly  spirit. || 

Article  VI. f[ — The  Chinese  Government  agree  to  make  arrangements  to  give 
increased  facilities  at  the  open  ports  for  bonding  and  for  repacking  merchandise 
in  bond,  and,  on  official  representation  being  made  by  the  British  authorities,  to 
grant  the  privileges  of  a  bonded  warehouse  to  any  warehouse  which  it  is  estab- 
lished to  the  satisfaction  of  the  Customs  authorities  affords  the  necessary  security 
to  the  revenue. 

Such  warehouses  will  be  subject  to  regulations,  including  a  scale  of  fees 
according  to  commodities,  distance  from  custom-house  and  hours  of  working, 
to  be  drawn  up  by  the  Customs'  authorities  who  will  meet  the  convenience  of 
merchants  so  far  as  is  compatible  with  the  protection  of  revenue. 

Article  VII.* — Inasmuch  as  the  British  Government  afford  protection  to 
Chinese  trade-marks  against  infringement,  imitation,  or  colourable  imitation  by 
British  subjects,  the  Chinese  Government  undertake  to  afford  protection  to 
British  trade-marks  against  infringement,  imitation,  or  colourable  imitation  by 
Chinese  subjects. 

The   Chinese  Government   further  undertake  that  the   Superintendents   of 

Northern  and  of  Southern  Trade  shall  establish  offices  within  their  respective 

*  See  American  treaty  of  1903,  Article  9,  and  Japanese  treaty  of  1903,  Article  5, 
II  See  Japanese  treaty  of  1903,  Article  2. 
K  See  American  treaty  of  1903,  Article  6. 


NUMBER  1902/7:  SEPTEMBER  5,  1902  345 

jurisdictions  under  control  of  the  Imperial  Maritime  Customs  where  foreign  trade- 
marks may  be  registered  on  payment  of  a  reasonable  fee. 

Article  VIII. f — Preamble. — The  Chinese  Government,  recognizing  that 
the  system  of  levying  likin  and  other  dues  on  goods  at  the  place  of  production, 
in  transit,  and  at  destination,  impedes  the  free  circulation  of  commodities  and 
injures  the  interests  of  trade,  hereby  undertake  to  discard  completely  those 
means  of  raising  revenue  with  the  limitations  mentioned  in  section  8. 

The  British  Government,  in  return,  consent  to  allow  a  surtax,  in  excess 
of  the  Tariff  rates  for  the  time  being  in  force  to  be  imposed  on  foreign  goods 
imported  by  British  subjects  and  a  surtax  in  addition  to  the  export  duty  on 
Chinese  produce  destined  for  export  abroad  or  coastwise. 

It  is  clearly  understood  that,  after  likin  barriers  and  other  stations  for  tax- 
ing goods  in  transit  have  been  removed,  no  attempt  shall  be  made  to  revive  them 
in  any  form  or  under  any  pretext  whatsoever;  that  in  no  case  shall  the  surtax 
on  foreign  imports  exceed  the  equivalent  of  one  and  a  half  times  the  import 
duty  leviable  in  terms  of  the  Final  Protocol  signed  by  China  and  the  Powers  on 
the  7th  day  of  September,  1901 ;  that  payment  of  the  import  duty  and  surtax 
shall  secure  for  foreign  imports,  whether  in  the  hands  of  Chinese  or  non-Chinese 
subjects,  in  original  packages  or  otherwise,  complete  immunity  from  all  other 
taxation,  examination  or  delay ;  that  the  total  amount  of  taxation  leviable  on 
native  produce  for  export  abroad  shall,  under  no  circumstances,  exceed  7^/4  per 
cent,  ad  valorem. 

Keeping  these  fundamental  principles  steadily  in  view,  the  High  Contracting 
Parties  have  agreed  upon  the  following  methods  of  procedure. 

Section  1. — The  Chinese  Government  undertake  that  all  barriers  of  what- 
soever kind,  collecting  likin  or  such  like  dues  or  duties,  shall  be  permanently 
abolished  on  all  roads,  railways,  and  waterways  in  the  Eighteen  Provinces  of 
China  and  the  Three  Eastern  Provinces.  This  provision  does  not  apply  to  the 
Native  Custom-Houses  at  present  in  existence  on  the  seaboard  or  waterways, 
at  open  ports,  on  land  routes,  and  on  land  frontiers  of  China. 

Sec.  2. — The  British  Government  agree  that  foreign  goods  on  importation, 
in  addition  to  the  effective  5%  import  duty  as  provided  for  in  the  Protocol  of 
1901,  shall  pay  a  special  surtax  equivalent  to  one  and  a  half  times  the  said  duty 
to  compensate  for  the  abolition  of  likin,  of  transit  dues  in  lieu  of  likin,  and  of 
all  other  taxation  on  foreign  goods,  and  in  consideration  of  the  other  reforms 
provided  for  in  this  Article ;  but  this  provision  shall  not  impair  the  right  of 
China  to  tax  salt,  native  opium,  and  native  produce  as  provided  for  in  sections 
3,  5,  6,  and  8. 

The  same  amount  of  surtax  shall  be  levied  on  goods  imported  into  the 
Eighteen  Provinces  of  China  and  the  Three  Eastern  Provinces  across  the  land 
frontiers  as  on  goods  entering  China  by  sea. 

Sec.   3. — All   Native   Custom-Houses  now  existing,   whether  at  the   Open 

t  See  American  treaty  of  1903,  Article  4,  and  Japanese  treaty  of  1903,  Article  1. 

To  the  text  of  this  article,  as  printed  in  British  Treaty  Series,  No.  i?  (JQOS),  is  ap- 
pended the  following  note : 

"  Article  VTII  does  not  come  into  force  until  other  Powers  have  signified  their  acceptance 
of  the  engagements  set  forth  therein  with  regard  to  the  payment  of  surtaxes,  etc." 


346  CHINA  TREATIES  AND  AGREEMENTS 

Ports,  on  the  seaboard,  on  rivers,  inland  waterways,  land  routes  or  land  frontiers, 
as  enumerated  in  the  Hu  Pu  and  Kung  Pu  Tse  Li  (Regulations  of  the  Boards 
of  Revenue  and  Works)  and  Ta  Ch'ing  Hid  Tien  (Dynastic  Institutes),  may 
remain ;  a  list  of  the  same,  with  their  location,  shall  be  furnished  to  the  British 
Government  for  purposes  of  record. 

Wherever  there  are  Imperial  Maritime  Custom-Houses,  or  wherever  such 
may  be  hereafter  placed,  Native  Custom-Houses  may  be  also  established ;  as  well 
as  at  any  points  either  on  the  seaboard  or  land  frontiers. 

The  location  of  Native  Custom-Houses  in  the  Interior  may  be  changed  as 
the  circumstances  of  trade  seem  to  require,  but  any  change  must  be  communicated 
to  the  British  Government,  so  that  the  list  may  be  corrected ;  the  originally  stated 
number  of  them  shall  not,  however,  be  exceeded. 

Goods  carried  by  junks  or  sailing-vessels  trading  to  or  from  Open  Ports 
shall  not  pay  lower  duties  than  the  combined  duties  and  surtax  on  similar  cargo 
carried  by  steamers. 

Native  produce,  when  transported  from  one  place  to  another  in  the  Interior, 
shall,  on  arrival  at  the  first  Native  Custom-House  after  leaving  the  place  of 
production,  pay  duty  equivalent  to  the  export  surtax  mentioned  in  Section  7. 

When  this  duty  has  been  paid,  a  certificate  shall  be  given  which  shall  describe 
the  nature  of  the  goods,  weight,  number  of  packages,  &c.,  amount  of  duty 
paid,  and  intended  destination.  This  certificate,  which  shall  be  valid  for  a  fixed 
period  of  not  less  than  one  year  from  the  date  of  payment  of  duty,  shall  free  the 
goods  from  all  taxation,  examination,  delay,  or  stoppage  at  any  other  Native 
Custom-Houses  passed  en  route. 

If  the  goods  are  taken  to  a  place  not  in  the  foreign  settlements  or  conces- 
sions of  an  Open  Port,  for  local  use,  they  become  there  liable  to  the  Consumption 
Tax  described  in  Section  8. 

If  the  goods  are  shipped  from  an  Open  Port,  the  certificate  is  to  be  accepted 
by  the  Custom-House  concerned,  in  lieu  of  the  export  surtax  mentioned  in  Sec- 
tion 7. 

Junks,  boats,  or  carts  shall  not  be  subjected  to  any  taxation  beyond  a  small 
and  reasonable  charge,  paid  periodically  at  a  fixed  annual  rate.  This  does  not 
exclude  the  right  to  levy,  as  at  present,  tonnage  (Chuan  Chao)  and  port  dues 
(Chuan  Liao)  on  junks. 

Sec.  4. — Foreign  opium  duty  and  present  likin — which  latter  will  now 
become  a  surtax  in  lieu  of  likin — shall  remain  as  provided  for  by  existing 
Treaties. 

Sec.  5. — The  British  Government  have  no  intention  whatever  of  interfering 
with  China's  right  to  tax  native  opium,  but  it  is  essential  to  declare  that,  in  her 
arrangements  for  levying  such  taxation,  China  will  not  subject  other  goods  to 
taxation,  delay,  or  stoppage. 

China  is  free  to  retain  at  important  points  on  the  borders  of  each  province — 
either  on  land  or  water — offices  for  collecting  duty  on  native  opium,  where  duties 
or  contributions  leviable  shall  be  paid  in  one  lump  sum ;  which  payment  shall  cover 
taxation  of  all  kinds  within  that  province.  Each  cake  of  opium  will  have  a  stamp 
affixed  as  evidence  of  duty  payment.    Excise  officers  and  police  may  be  employed 


NUMBER  1902/7:  SEPTEMBER  5,  1902  347 

in  connection  with  these  offices ;  but  no  barriers  or  other  obstructions  are  to  be 
erected,  and  the  Excise  officers  or  poHce  of  these  offices  shall  not  stop  or  molest 
any  other  kind  of  goods,  or  collect  taxes  thereon. 

A  list  of  these  offices  shall  be  drawn  up  and  communicated  to  the  British 
Government  for  record. 

Sec.  6. — Likin  on  salt  is  hereby  abolished  and  the  amount  of  said  likin  and  of 
other  taxes  and  contributions  shall  be  added  to  the  salt  duty,  which  shall  be  col- 
lected at  place  of  production  or  at  first  station  after  entering  the  province  where 
it  is  to  be  consumed. 

The  Chinese  Government  shall  be  at  liberty  to  establish  salt  reporting  offices 
at  which  boats  conveying  salt  which  is  being  moved  under  salt  passes  or  certifi- 
cates may  be  required  to  stop  for  purposes  of  examination  and  to  have  their 
certificates  vise'd,  but  at  such  offices  no  likin  or  transit  taxation  shall  be  levied 
and  no  barriers  or  obstructions  of  any  kind  shall  be  erected. 

Sec.  7. — The  Chinese  Government  may  recast  the  Export  Tariff  with  specific 
duties  as  far  as  practicable,  on  a  scale  not  exceeding  5  per  cent,  ad  valorem;  but 
existing  export  duties  shall  not  be  raised  until  at  least  six  months'  notice  has  been 
given. 

In  cases  where  existing  export  duties  are  above  5  per  cent,  they  shall  be 
reduced  to  not  more  than  that  rate. 

An  additional  special  surtax  of  one  half  the  export  duty  payable  for  the 
time  being,  in  lieu  of  internal  taxation  and  likin,  may  be  levied  at  time  of  export 
on  goods  exported  either  to  foreign  countries  or  coastwise. 

In  the  case  of  silk,  whether  hand  or  filature  reeled,  the  total  export  duty 
shall  not  exceed  a  specific  rate  equivalent  to  not  more  than  5  per  cent,  ad  valorem. 
Half  of  this  specific  duty  may  be  levied  at  the  first  Native  Custom-House  in  the 
interior  which  the  silk  may  pass  and  in  such  case  a  certificate  shall  be  given  as 
provided  for  in  Section  3,  and  will  be  accepted  by  the  Custom-House  concerned 
at  place  of  export  in  lieu  of  half  the  export  duty.  Cocoons  passing  Native 
Custom-Houses  shall  be  liable  to  no  taxation  whatever.  Silk  not  exported  but 
consumed  in  China  is  liable  to  the  Consumption  Tax  mentioned  and  under 
conditions  mentioned  in  Section  8. 

Sec.  8. — The  abolition  of  the  likin  system  in  China  and  the  abandonment 
of  all  other  kinds  of  internal  taxation  on  foreign  imports  and  on  exports  will 
diminish  the  revenue  materially.  The  surtax  on  foreign  imports  and  exports 
and  on  coastwise  exports  is  intended  to  compensate  in  a  measure  for  this  loss  of 
revenue,  but  there  remains  the  loss  of  likin  revenue  on  internal  trade  to  be  met, 
and  it  is  therefore  agreed  that  the  Chinese  Government  are  at  liberty  to  impose  a 
Consumption  Tax  on  articles  of  Chinese  origin  not  intended  for  export. 

This  tax  shall  be  levied  only  at  places  of  consumption  and  not  on  goods 
while  in  transit,  and  the  Chinese  Government  solemnly  undertake  that  the  ar- 
rangements which  they  may  make  for  its  collection  shall  in  no  way  interfere 
with  foreign  goods  or  with  native  goods  for  export.  The  fact  of  goods  being  of 
foreign  origin  shall  of  itself  free  them  from  all  taxation,  delay,  or  stoppage,  after 
having  passed  the  Custom-House. 

Foreign  goods  which  bear  a  similarity  to  native  goods  shall  be  furnished 


348  CHINA  TREATIES  AND  AGREEMENTS 

by  the  Custom-House,  if  required  by  the  owner,  with  a  protective  certificate  for 
each  package,  on  payment  of  import  duty  and  surtax,  to  prevent  the  risk  of  any 
dispute  in  the  interior. 

Native  goods  brought  by  junks  to  Open  Ports,  if  intended  for  local  con- 
sumption— irrespective  of  the  nationality  of  the  owner  of  the  goods — shall  be 
reported  at  the  Native  Custom-House  only,  where  the  Consumption  Tax  may  be 
levied. 

China  is  at  liberty  to  fix  the  amount  of  this  (Consumption)  tax,  which  may 
vary  according  to  the  nature  of  the  merchandise  concerned,  that  is  to  say,  accord- 
ing as  the  articles  are  necessaries  of  life  or  luxuries ;  but  it  shall  be  levied  at  a 
uniform  rate  on  goods  of  the  same  description,  no  matter  whether  carried  by 
junk,  sailing-vessel,  or  steamer.  As  mentioned  in  Section  3,  the  Consumption 
Tax  is  not  to  be  levied  within  foreign  settlements  or  concessions. 

Sec.  9. — An  excise  equivalent  to  double  the  import  duty  as  laid  down  in  the 
Protocol  of  1901  is  to  be  charged  on  all  machine-made  yarn  and  cloth  manu- 
factured in  China,  whether  by  foreigners  at  the  Open  Ports  or  by  Chinese  any- 
where in  China. 

A  rebate  of  the  import  duty  and  two-thirds  of  the  Import  Surtax  is  to  be 
given  on  raw  cotton  imported  from  foreign  countries,  and  of  all  duties,  including 
Consumption  Tax,  paid  on  Chinese  raw  cotton  used  in  mills  in  China. 

Chinese  machine-made  yarn  or  cloth  having  paid  excise  is  to  be  free  of 
Export  Duty,  Export  Surtax,  Coast-Trade  Duty,  and  Consumption  Tax.  This 
Excise  is  to  be  collected  through  the  Imperial  Maritime  Customs. 

The  same  principle  and  procedure  are  to  be  applied  to  all  other  products 
of  foreign  type  turned  out  by  machinery,  whether  by  foreigners  at  the  Open 
Ports  or  by  Chinese  anywhere  in  China. 

This  stipulation  is  not  to  apply  to  the  out-turn  of  the  Hanyang  and  Ta  Yeh 
Iron  Works  in  Hupeh  and  other  similar  existing  Government  works  at  present 
exempt  from  taxation ;  or  to  that  of  Arsenals,  Government  Dockyards,  or  estab- 
lishments of  that  nature  for  Government  purposes  which  may  hereafter  be 
erected. 

Sec.  10. — A  member  or  members  of  the  Imperial  Maritime  Customs  Foreign 
Stafif  shall  be  selected  by  each  of  the  Governors-General  and  Governors,  and 
appointed,  in  consultation  with  the  Inspector-General  of  Imperial  Maritime  Cus- 
toms to  each  province  for  duty  in  connection  with  Native  Customs  Aflfairs,  Con- 
sumption Tax,  Salt  and  Native  Opium  Taxes.  These  officers  shall  exercise  an 
efficient  supervision  of  the  working  of  these  departments,  and  in  the  event  of 
their  reporting  any  case  of  abuse,  illegal  exaction,  obstruction  to  the  movement  of 
goods,  or  other  cause  of  complaint,  the  Governor-General  or  Governor  con- 
cerned will  take  immediate  steps  to  put  an  end  to  same. 

Sec.  11. — Cases  where  illegal  action  as  described  in  this  Article  is  com- 
plained of  shall  be  promptly  investigated  by  an  officer  of  the  Chinese  Govern- 
ment of  sufficiently  high  rank,  in  conjunction  with  a  British  officer  and  an  officer 
of  the  Imperial  Maritime  Customs,  each  of  sufficient  standing;  and  in  the  event 
of  its  being  found  by  a  majority  of  the  investigating  officers  that  the  complaint 
is  well  founded  and  loss  has  been  incurred,  due  compensation  is  to  be  at  once 


NUMBER  1902/7:  SEPTEMBER  5,  1902  349 

paid  from  the  Surtax  funds,  through  the  Imperial  Maritime  Customs  at  the 
nearest  open  port.  The  High  Provincial  Officials  are  to  be  held  responsible  that 
the  officer  guilty  of  the  illegal  action  shall  be  severely  punished  and  removed 
from  his  post. 

If  the  complaint  turns  out  to  be  vi^ithout  foundation  complainant  shall  be 
held  responsible  for  the  expenses  of  the  investigation. 

His  Britannic  Majesty's  Minister  will  have  the  right  to  demand  investiga- 
tion where  from  the  evidence  before  him  he  is  satisfied  that  illegal  exactions  or 
obstructions  have  occurred. 

Sec.    12 — The  Chinese  Governent  agree  to  open  to  foreign  trade,  on  the 
same  footing  as  the  places  opened  to  foreign  trade  by  the  Treaties  of  Nanking 
and  Tientsin,  the  following  places  namely : — 
Ch'angsha  in  Hunan  ;  $ 
Wanhsien  in  Szechuen; 
Nganking  in  Anhui; 

Waichow  (Hui-chow)  in  Kuangtung;  and 
Kongmoon  (Chiang-men)  in  Kuangtung. § 

Foreigners  residing  in  these  Open  Ports  are  to  observe  the  Municipal  and 
Police  Regulations  on  the  same  footing  as  Chinese  residents,  and  they  are  not 
to  be  entitled  to  establish  Municipalities  and  Police  of  their  own  within  the  limits 
of  these  Treaty  ports  except  with  the  consent  of  the  Chinese  authorities. 

If  this  Article  does  not  come  into  operation  the  right  to  demand  under  it 
the  opening  of  these  ports,  with  the  exception  of  Kongmoon,  which  is  provided 
for  in  Article  X,  shall  lapse. 

Sec.  13. — Subject  to  the  provisions  of  Section  14,  the  arrangements  pro- 
vided for  in  this  Article  are  to  come  into  force  on  the  1st  January,  1904. 

By  that  date  all  likin  barriers  should  be  removed  and  officials  employed  in  the 
collection  of  taxes  and  dues  prohibited  by  this  Article  shall  be  removed  from 
their  posts. 

Sec.  14. — The  condition  on  which  the  Chinese  Government  enter  into  the 
present  engagement  is  that  all  Powers  entitled  to  most-favoured-nation  treat- 
ment in  China  enter  into  the  same  engagements  as  Great  Britain  with  regard  to 
the  payment  of  surtaxes  and  other  obligations  imposed  by  this  Article  on  His 
Britannic  Majesty's  Government  and  subjects. 

The  conditions  on  which  His  Britannic  Majesty's  Government  enter  into  the 
present  engagement  are  : — 

(1.)  That  all  Powers  who  are  now  or  who  may  hereafter  become  entitled 
to  most-favoured-nation  treatment  in  China  enter  into  the  same  engagements ; 

(2.)  And  that  their  assent  is  neither  directly  nor  indirectly  made  dependent 
on  the  granting  by  China  of  any  political  concession,  or  of  any  exclusive  com- 
mercial concession. 

Sec.  15. — Should  the  Powers  entitled  to  most-favoured-nation  treatment  by 
China  have  failed  to  agree  to  enter  into  the  engagements  undertaken  by  Great 
Britain  under  this  Article  by  the  1st  January,  1904,  then  the  provisions  of  the 

t  See  Japanese  treaty  of  1903,  Article  10.  §  2. 

§  See  Kongmoon  Customs  Regulations  of  March  25,  1904. 


350  CHINA  TREATIES  AND  AGREEMENTS 

Article  shall  only  come  into  force  when  all  the  Powers  have  signified  their 
acceptance  of  these  engagements. 

Sec.  16. — When  the  abolition  of  likin  and  other  forms  of  internal  taxation 
on  goods  as  provided  for  in  this  Article  has  been  decided  upon  and  sanctioned, 
an  Imperial  Edict  shall  be  published  in  due  form  on  yellow  paper  and  circulated, 
setting  forth  the  abolition  of  all  likin  taxation,  likin  barriers  and  all  descriptions 
of  internal  taxation  on  goods,  except  as  provided  for  in  this  Article. 

The  Edict  shall  state  that  the  Provincial  High  Officials  are  responsible  that 
any  official  disregarding  the  letter  or  spirit  of  its  injunction  shall  be  severely 
punished  and  removed  from  his  post. 

Article  IX. || — The  Chinese  Government,  recognizing  that  it  is  advantageous 
for  the  country  to  develop  its  mineral  resources,  and  that  it  is  desirable  to  attract 
foreign  as  well  as  Chinese  capital  to  embark  in  mining  enterprises,  agree  within 
one  year  from  the  signing  of  this  Treaty  to  initiate  and  conclude  the  revision  of 
the  existing  Mining  Regulations.  China  will,  with  all  expedition  and  earnestness, 
go  into  the  whole  question  of  Mining  Rules  and,  selecting  from  the  Rules  of 
Great  Britain,  India,  and  other  countries,  regulations  which  seem  applicable  to  the 
condition  of  China,  she  will  recast  her  present  Mining  Rules  in  such  a  way  as, 
while  promoting  the  interests  of  Chinese  subjects  and  not  injuring  in  any  way 
the  sovereign  rights  of  China,  shall  oflFer  no  impediment  to  the  attraction  of 
foreign  capital  or  place  foreign  capitalists  at  a  greater  disadvantage  that  they 
would  be  under  generally  accepted  foreign  Regulations. 

Any  mining  concession  granted  after  the  publication  of  these  new  Rules 
shall  be  subject  to  their  provisions. 

Article  X.jf — Whereas  in  the  year  1898  the  Inland  Waters  of  China  were 
opened  to  all  such  steam-vessels,  native  or  foreign,  as  might  be  especially  regis- 
tered for  that  trade  at  the  Treaty  ports,  and  whereas  the  Regulations  dated  the 
28th  July,  1898,  and  Supplementary  Rules  dated  September,  1898,  have  been 
found  in  some  respects  inconvenient  in  working,  it  is  now  mutually  agreed  to 
amend  them  and  to  annex  such  new  Rules  to  this  Treaty.  These  Rules  shall 
remain  in  force  until  altered  by  mutual  consent. 

It  is  further  agreed  that  Kongmoon  shall  be  opened  as  a  Treaty  port,  and 
that,  in  addition  to  the  places  named  in  the  special  Article  of  the  Burmah  Con- 
vention of  the  4th  February,  1897,  British  steamers  shall  be  allowed  to  land  or 
ship  cargo  and  passengers,  under  the  same  regulations  as  apply  to  the  "  Ports  of 
Call  "  on  the  Yang-tsze  River,  at  the  following  "  Ports  of  Call " :  Pak  Tau  Hau 
(Pai-t'u  k'ou),  Lo  Ting  Hau  (Lo-ting  k'ou),  and  Do  Sing  (Tou-ch'eng)  ;  and 
to  land  or  discharge  passengers  at  the  following  ten  passenger  landing  stages  on 
the  West  River: — Yung  Ki  (Jung-chi),  Mah  Ning  (Ma-ning),  Kau  Kong  (Chiu- 
chiang),  Kulow  (Ku-lao),  Wing  On  (Yung-ah),  How  Lik  (Hou-li),  Luk  Pu 
(Lu-pu),  Yuet  Sing  (Yiieh-ch'eng),  Luk  To  (Lu-tu),  and  Fung  Chuen  (Feng- 
ch'uan). 

II  See  American  treaty  of  1903,  Article  7. 

I  See  American  treaty  of  1903,  Article  12,  and  Japanese  treaty  of  1903,  Article  3.  For 
Regulations  and  Supplementary  Rules,  see  No.  1898/17,  ante.  For  Kongmoon  Customs 
Regulations,  March  25,  1904,  see  No.  1904/1,  post.  For  West  River  Regulations,  July  30, 
1904,  see  No.  1904/3,  post. 


NUMBER  1902/7:  SEPTEMBER  5,  1902  351 

Article  XL* — His  Britannic  Majesty's  Government  agree  to  the  prohibition 
of  the  general  importation  of  morphia  into  China,  on  condition,  however,  that 
the  Chinese  Government  will  allow  of  its  importation,  on  payment  of  the  Tariff 
import  duty  and  under  special  permit,  by  duly  qualified  British  medical  prac- 
titioners and  for  the  use  of  hospitals,  or  by  British  chemists  and  druggists  who 
shall  only  be  permitted  to  sell  it  in  small  quantities  and  on  receipt  of  a  requisition 
signed  by  a  duly  qualified  foreign  medical  practitioner. 

The  special  permits  above  referred  to  will  be  granted  to  an  intending  im- 
porter on  his  signing  a  bond  before  a  British  Consul  guaranteeing  the  fulfilment 
of  these  conditions.  Should  an  importer  be  found  guilty  before  a  British  Consul 
of  a  breach  of  his  bond,  he  will  not  be  entitled  to  take  out  another  permit.  Any 
British  subject  importing  morphia  without  a  permit  shall  be  liable  to  have  such 
morphia  confiscated. 

This  Article  will  come  into  operation  on  all  other  Treaty  Powers  agreeing 
to  its  conditions,  but  any  morphia  actually  shipped  before  that  date  will  not  be 
affected  by  this  prohibition. 

The  Chinese  Government,  on  their  side,  undertake  to  adopt  measures  at 
once,  to  prevent  the  manufacture  of  morphia  in  China. 

Article  XII. f — China  having  expressed  a  strong  desire  to  reform  her 
judicial  system  and  to  bring  it  into  accord  with  that  of  Western  nations,  Great 
Britain  agrees  to  give  every  assistance  to  such  reform,  and  she  will  also  be  pre- 
pared to  relinquish  her  extra-territorial  rights  when  she  is  satisfied  that  the  state 
of  the  Chinese  laws,  the  arrangement  for  their  administration,  and  other  con- 
siderations warrant  her  in  so  doing. 

Article  XIII. — The  missionary  question  in  China  being,  in  the  opinion  of 
the  Chinese  Government,  one  requiring  careful  consideration,  so  that,  if  possible, 
troubles  such  as  have  occurred  in  the  past  may  be  averted  in  the  future.  Great 
Britain  agrees  to  join  in  a  Commission  to  investigate  this  question,  and,  if 
possible,  to  devise  means  for  securing  permanent  peace  between  converts  and 
non-converts,  should  such  a  Commission  be  formed  by  China  and  the  Treaty 
Powers  interested. 

Article  XIV. — Whereas  under  Rule  V  appended  to  the  Treaty  of  Tientsin 
of  1858,  British  merchants  are  permitted  to  export  rice  and  all  other  grain  from 
one  port  of  China  to  another  under  the  same  conditions  in  respect  of  security  as 
copper  "  cash,"  it  is  now  agreed  that  in  cases  of  expected  scarcity  or  famine 
from  whatsoever  cause  in  any  district,  the  Chinese  Government  shall,  on  giving 
twenty-one  days'  notice,  be  at  liberty  to  prohibit  the  shipment  of  rice  and  other 
grain  from  such  district. 

Should  any  vessel  specially  chartered  to  load  rice  or  grain  previously  con- 
tracted for,  have  arrived  at  her  loading  port  prior  to  or  on  the  day  when  a  notice 
of  prohibition  to  export  comes  into  force  she  shall  be  allowed  an  extra  week  in 
which  to  ship  her  cargo. 

If,  during  the  existence  of  this  prohibition,  any  shipment  of  rice  or  grain  is 
allowed  by  the  authorities,  the  prohibition  shall,  ipso  facto,  be  considered  can- 
celled and  shall  not  be  reimposed  until  six  weeks'  notice  has  been  given. 

*  See  American  treaty  of  1903,  Article  14. 

t  See  American  treaty  of  1903,  Article  15,  and  Japanese  treaty  of  1903,  Article  11. 


352  CHINA  TREATIES  AND  AGREEMENTS 

When  a  prohibition  is  notified,  it  will  be  stated  whether  the  Government 
have  any  Tribute  or  Army  Rice  which  they  intend  to  ship  during  the  time  of 
prohibition,  and  if  so,  the  quantity  shall  be  named. 

Such  rice  shall  not  be  included  in  the  prohibition,  and  the  Customs  shall 
keep  a  record  of  any  Tribute  or  Army  Rice  so  shipped  or  landed. 

The  Chinese  Government  undertake  that  no  rice,  other  than  Tribute  or 
Army  Rice  belonging  to  the  Government,  shall  be  shipped  during  the  period  of 
prohibition. 

Notifications  of  prohibitions,  and  of  the  quantities  of  Army  or  Tribute  Rice 
for  shipment  shall  be  made  by  the  Governors  of  the  provinces  concerned. 

Similarly,  notifications  of  the  removals  of  prohibitions  shall  be  made  by 
the  same  authorities. 

The  export  of  rice  and  other  grain  to  foreign  countries  remains  prohibited. 

Article  XV.$ — It  is  agreed  that  either  of  the  High  Contracting  Parties  to 
this  Treaty  may  demand  a  revision  of  the  Tariflf  at  the  end  of  ten  years ;  but  if 
no  demand  be  made  on  either  side  within  six  months  after  the  end  of  the  first 
ten  years,  then  the  Tariff  shall  remain  in  force  for  ten  years  more,  reckoned 
from  the  end  of  the  preceding  ten  years;  and  so  it  shall  be  at  the  end  of  each 
successive  ten  years. 

Any  Tariff  concession  which  China  may  hereafter  accord  to  articles  of  the 
produce  or  manufacture  of  any  other  State  shall  immediately  be  extended  to 
similar  articles  of  the  produce  or  manufacture  of  His  Britannic  Majesty's  Do- 
minions by  whomsoever  imported. 

Treaties  already  existing  between  the  United  Kingdom  and  China  shall 
continue  in  force  in  so  far  as  they  are  not  abrogated  or  modified  by  stipulations 
of  the  present  Treaty. 

Article  XVI. — The  English  and  Chinese  texts  of  the  present  Treaty  have 
been  carefully  compared,  but  in  the  event  of  there  being  any  difference  of  mean- 
ing between  them,  the  sense  as  expressed  in  the  English  text  shall  be  held  to  be  the 
correct  sense. 

The  ratifications  of  this  Treaty,  under  the  hand  of  his  Majesty  the  King 
of  Great  Britain  and  Ireland,  and  of  His  Majesty  the  Emperor  of  China  re- 
spectively, shall  be  exchanged  at  Peking  within  a  year  from  this  day  of  signature. § 

In  token  whereof  the  respective  Plenipotentiaries  have  signed  and  sealed 
this  Treaty,  two  copies  in  English  and  two  in  Chinese. 

Done  at  Shanghai  this  5th  day  of  September  in  the  year  of  our  Lord  1902; 
corresponding  with  the  Chinese  date,  the  4th  day  of  the  8th  moon  of  the  28th 
year  of  Kwang  Hsii. 

(L.S.)  Jas.  L.  Mackay. 

(Signature  of  his  Excellency  Lii  Hai-huan.) 
(Signature  of  his  Excellency  Sheng  Hsiian-huai.) 

(Seal  of  the  Chinese  Plenipotentiaries.) 

t  See  American  treaty  of  1903,  Articles  5  and  17,  and  Japanese  treaty  of  1903,  Articles 
1  and  9. 

§  Ratifications  exchanged  at  Peking,  July  28,  1903. 


NUMBER  1902/7:  SEPTEMBER  5,  1902:  ANNEXES  353 

Annex  A  (1). 

(Translation.) 

Lii,  President  of  the  Board  of  Works : 

Sheng,  Junior  Guardian  of  the  Heir-Apparent,  Vice-President  of  the  Board  of  Works; 
Imperial  Chinese  Commissioners,  for  dealing  with  questions  connected  with  the 
Commercial  Treaties,  to 
Sir  James  Alackay,  His  Britannic  IMajesty's  Special  Commissioner  for  the  discussion  of 
'  Treaty  matters. 

Shanghai:  K.  H.  xxviii,  7th  moon,  Wth  day.  {received 
August  15,  1902). 

We  have  the  honour  to  inform  you  that  we  have  received  the  following  telegram  from 
his  Excellency  Liu,  Governor-General  of  the  Liang  Chiang,  on  the  subject  of  clause  2, 
mutually  agreed  upon  by  us  :  • 

"  As  regards  this  clause,  it  is  necessary  to  insert  therein  a  clear  stipulation,  to  the 
effect  that,  no  matter  what  changes  may  take  place  in  the  future,  all  customs  duties  must 
continue  to  be  calculated  on  the  basis  of  the  existing  higher  rate  of  the  Haikwan  Tael 
over  the  Treasury  Tael,  and  that  the  '  touch '  and  weight  of  the  former  must  be  made  good." 

As  we  have  already  arranged  with  j^ou  that  a  declaration  of  this  kind  should  be  em- 
bodied in  an  official  Note,  and  form  an  Annex  to  the  present  Treaty,  for  purposes  of  record, 
we  hereby  do  ourselves  the  honour  to  make  this  communication. 

(Seal  of  the  Imperial  Commissioners  for  dealing  with 
questions  connected  with  Treaty  Revision.) 


Annex  A  (2). 
Gentlemen,  Shanghai,  August  18,  1902. 

I  have  the  honour  to  acknowledge  the  receipt  of  your  despatch  of  the  14th  instant  for- 
warding copy  of  a  telegram  from  his  Excellency  Liu,  Governor-General  of  the  Liang  Chiang, 
on  the  subject  of  Article  II.  of  the  new  Treaty,  and  in  reply  I  have  the  honour  to  state  that 
his  Excellency's  understanding  of  the  Article  is  perfectly  correct. 

I  presume  the  Chinese  Government  will  make  arrangements  for  the  coinage  of  a 
national  silver  coin  of  such  weight  and  touch  as  may  be  decided  upon  by  them.  These 
coins  will  be  made  available  to  the  public  in  return  for  a  quantity  of  silver  bullion  of  equiva- 
lent weight  and  fineness  plus  the  usual  mintage  charge. 

The  coins  which  will  become  the  national  coinage  of  China  will  be  declared  by  the 
Chinese  Government  to  be  legal  tender  in  payment  of  Customs  duty  and  in  discharge  of 
obligations  contracted  in  Haikwan  taels,  but  only  at  their  proportionate  value  to  the  Haikwan 
tael,  whatever  that  may  be. 

I  have,  Src. 
(Signed)  Jas.  L.  Mackay. 

Their  Excellencies 

Lii  Hai-huan  and  Sheng  Hsiian-huai, 
&c.  &c.  &c. 


Annex  B   (1). 

(Translation.) 

Lii,  President  of  the  Board  of  Works; 

Sheng,  Junior  Guardian  of  the  Heir-Apparent,  Vice-President  of  the  Board  of  Works; 
Imperial    Chinese    Commissioners    for    dealing    with    questions    connected    with 
the  Commercial  Treaties,  to 
Sir  James  L.  Mackay,  His  Britannic  Majesty's  Special  Commissioner. 

Shanghai,  September  2,   1902. 
We  have  the  honour  to  inform  you  that  on  the  22nd  August,  we,  in  conjunction  with 
the  Governors-General  of  the  Liang  Chiang  and  the  Hti-kuang  Provinces,  their  Excellencies 
Liu  and  Chang,  addressed  the  following  telegraphic  Memorial  to  the  Throne : — 


354  CHINA  TREATIES  AND  AGREEMENTS 

"  Of  the  revenue  of  the  different  Provinces  derived  from  likin  of  all  kinds,  a  portion 
is  appropriated  for  the  service  of  the  foreign  loans,  a  portion  for  the  Peking  Government, 
and  the  balance  is  reserved  for  the  local  expenditure  of  the  Provinces  concerned. 

"  In  the  negotiations  now  being  conducted  with  Great  Britain  for  the  amendment  of 
the  Commercial  Treaties,  a  mutual  arrangement  has  been  come  to  providing  for  the  impo- 
sition of  additional  taxes,  in  compensation  for  the  abolition  of  all  kinds  of  likin  and  other 
imposts  on  goods,  prohibited  by  Article  VIII.  After  payment  of  interest  and  sinking  fund 
on  the  existing  foreign  loan,  to  the  extent  to  which  likin  is  thereto  pledged,  these  addi- 
tional taxes  shall  be  allocated  to  the  various  Provinces  to  make  up  deficiences  and  replace 
revenue,  in  order  that  no  hardships  may  be  entailed  on  them.  With  a  view  to  preserving 
the  original  intention  underlying  the  proposal  to  increase  the  duties  in  compensation  for 
the  loss  of  revenue  derived  from  likin  and  other  imposts  on  goods,  it  is  further  stipulated 
that  the  surtaxes  shall  not  be  appropriated  for  other  purposes,  shall  not  form  part  of  the 
Imperial  Maritime  Customs  revenue  proper,  and  shall  in  no  case  be  pledged  as  security  for 
any  new  foreign  loan. 

"  It  is  therefore  necessary  to  memoralize  for  the  issue  of  an  Edict,  giving  effect  to  the 
above  stipulations  and  directing  the  Board  of  Revenue  to  find  out  what  proportion  of 
the  provincial  revenues  derived  from  likin  of  all  kinds,  now  about  to  be  abolished,  each 
Province  has  hitherto  had  to  remit,  and  what  proportion  it  has  been  entitled  to  retain,  so 
that,  when  the  Article  comes  into  operation,  due  apportionment  may  be  made  accordingly, 
thus  providing  the  Provinces  with  funds  available  for  local  expenditure,  and  displaying 
equitable  and  just  treatment  towards  all." 

On  the  1st  instant  an  Imperial  Decree  "  Let  action,  as  requested,  be  taken  "  was  issued, 
and  we  now  do  ourselves  the  honour  reverently  to  transcribe  the  same  for  your  information. 

(Seal  of  the  Imperial  Commissioners  for  dealing  with 
questions  connected  with  Treaty  Revision.) 


Annex  B   (2). 

Gentlemen,  Shanghai,  September  5th,   1902. 

I  have  the  honour  to  acknowledge  the  receipt  of  your  despatch  of  the  2nd  instant  for- 
warding the  text  of  the  Memorial  and  Decree  dealing  with  the  disposal  of  the  surtaxes. 

I  understand  that  the  surtaxes  in  addition  to  not  being  pledged  for  any  new  foreign 
loan  are  not  to  be  pledged  to,  or  held  to  be  security  for,  liabilities  already  contracted  by 
China  except  in  so  far  as  likin  revenue  has  already  been  pledged  to  an  existing  loan. 

I  also  understand  from  the  Memorial  that  the  whole  of  the  surtaxes  provided  by  Article 
VIII  of  the  New  Treaty  goes  to  the  Provinces  in  proportions  to  be  agreed  upon  between 
them  and  the  Board  of  Revenue,  but  that  out  of  these  surtaxes  each  Province  is  obliged  to 
remit  to  Peking  the  same  contribution  as  that  which  it  has  hitherto  remitted  out  of  its 
likin  collections,  and  that  the  Provinces  also  provide  as  hitherto  out  of  these  surtax  funds 
whatever  may  be  necessary  for  the  service  of  the  foreign  loan  to  which  likin  is  partly 
pledged. 

I  hope  your  Excellencies  will  send  me  a  reply  to  this  despatch  and  that  you  will  agree 
to  this  correspondence  forming  part  of  the  Treaty  as  an  Annex. 

I   have,  &c. 
(Signed)  Jas.  L.  Mack.w. 

Their  Excellencies 

Lil  Hai-huan  and  Sheng  Hsiian-huai, 
&c.  &c.  &c. 


Annex  B   (3). 

(Translation.) 

Lii,  President  of  the  Board  of  Works; 

Sheng,  Junior  Guardian  of  the  Heir-Apparent,  Vice-President  of  the  Board  of  Works; 
Imperial  Chinese  Commissioners  for  dealing  with  questions  connected  with  the 
Commercial  Treaties,  to 
Sir  James  L.  Mackay,  His  Britannic  IMajesty's  Special  Commissioner. 

Shanghai,  September  5th,   1902. 
We  have  the  honour  to  acknowledge  the  receipt  of  your  communication   of   to-day's 
date  with  regard  to  the  allocation  of  the  surtax   funds  allotted  to  the  Provinces,  and  to 
inform  you  that  the  views  therein  expressed  are  the  same  as  our  own. 


NUMBER  1902/7:  SEPTEMBER  5,  1902:  ANNEXES  355 

We  would,  however,  wish  to  point  out  that,  were  the  whole  amount  of  the  allocation 
due  paid  ov^r  to  the  Provinces,  unnecessary  expense  would  be  incurred  in  the  retransmis- 
sion by  them  of  such  portions  thereof  as  would  have  to  be  remitted  to  Peking  in  place  of 
the  contributions  hitherto  payable  out  of  likin  revenue.  The  amount,  therefore,  of  the 
allocation  due  to  the  Provinces,  arranged  between  them  and  the  Board  of  Revenue,  will 
be  retained  in  the  hands  of  the  Maritime  Customs,  who  will  await  the  instructions  of  the 
Provinces  in  regard  to  the  remittance  of  such  portion  thereof  as  may  be  necessary  to  fulfil 
their  obligations,  and  (on  receipt  of  these  instructions)  will  send  forward  the  amount 
direct.     The  balance  will  be  held  to  the  order  of  the  Provinces. 

In  so  far  as  likin  is  pledged  to  the  service  of  the  1898  Loan,  a  similar  method  of  pro- 
cedure will  be  adopted. 

As  you  request  that  this  correspondence  be  annexed  to  the  Treaty,  we  have  th  honour 
to  state  that  we  see  no  objection  to  this  being  done. 

(Seal  of  the  Imperial  Commissioners  for  dealing  with 
questions  connected  with  Treaty  Revision.) 


Annex  C. 

Inland  Waters   Steam   Navigation. 

Additional  Rules. 

1. — British  steam  ship  owners  are  at  liberty  to  lease  warehouses  and  jetties  on  the 
banks  of  waterways  from  Chinese  subjects  for  a  term  not  exceeding  twenty-five  years, 
with  option  of  renewal  on  terms  to  be  mutually  arranged.  In  cases  where  British  mer- 
chants are  unable  to  secure  warehouses  and  jetties  from  Chinese  subjects  on  satisfactory 
terms,  the  local  officials,  after  consultation  with  the  Minister  of  Commerce,  shall  arrange 
to  provide  these  on  renewable  lease  as  above  mentioned  at  current  equitable  rates. 

2. — Jetties  shall  only  be  erected  in  such  positions  that  they  will  not  obstruct  the  inland 
waterway  or  interfere  with  navigation,  and  with  the  sanction  of  the  nearest  Commissioner 
of  Customs;  such  sanction,  however,  shall  not  be  arbitrarily  withheld. 

3. — British  merchants  shall  pay  taxes  and  contributions  on  these  warehouses  and  jetties 
on  the  same  footing  as  Chinese  proprietors  of  similar  properties  in  the  neighbourhood. 
British  merchants  may  only  employ  Chinese  agents  and  staff  to  reside  in  warehouses  so 
leased  at  places  touched  at  by  steamers  engaged  in  inland  traffic  to  carry  on  their  business ; 
but  British  merchants  may  visit  these  places  from  time  to  time  to  look  after  their  affairs. 
The  existing  rights  of  Chinese  jurisdiction  over  Chinese  subjects  shall  not  by  reason  of 
this  clause  be  diminished  or  interfered  with  in  any  way. 

4. — Steam  vessels  navigating  the  inland  waterways  of  China  shall  be  responsible  for 
loss  caused  to  riparian  proprietors  by  damage  which  they  may  do  to  the  banks  or  works 
on  them  and  for  the  loss  which  may  be  caused  by  such  damage.  In  the  event  of  China 
desiring  to  prohibit  the  use  of  some  particular  shallow  waterway  by  launches,  because 
there  is  reason  to  fear  that  the  use  of  it  by  them  would  be  likely  to  injure  the  banks  and 
cause  damage  to  the  adjoining  country,  the  British  authorities,  when  appealed  to,  shall,  if 
satisfied  of  the  validity  of  the  objection,  prohibit  the  use  of  that  waterway  by  British 
launches,  provided  that  Chinese  launches  are  also  prohibited  from  using  it. 

Both  Foreign  and  Chinese  launches  are  prohibited  from  crossing  dams  and  weirs  at 
present  in  existence  on  inland  waterways  where  they  are  likely  to  cause  injury  to  such 
works,  which  would  be  detrimental  to  the  water  service  of  the  local  people. 

5. — The  main  object  of  the  British  Government  in  desiring  to  see  the  inland  water- 
ways of  China  opened  to  steam  navigation  being  to  afford  facilities  for  the  rapid  transport 
of  both  foreign  and  native  merchandise,  they  undertake  to  offer  no  impediment  to  the 
transfer  to  a  Chinese  Company  and  the  Chinese  flag  of  any  British  Steamer  which  rnay 
now  or  hereafter  be  employed  on  the  inland  waters  of  China,  should  the  owner  be  willing 
to  make  the  transfer. 

In  event  of  a  Chinese  company  registered  under  Chinese  law  being  formed  to  run 
steamers  on  the  inland  waters  of  China  the  fact  of  British  subjects  holding  shares  in  such 
a  company  shall  not  entitle  the  steamers  to  fly  the  British  flag. 

6. — Registered  steamers  and  their  tows  are  forbidden,  just  as  junks  have  always  been 
forbidden,  to  carry  contraband  goods.  Infraction  of  this  rule  will  entail  the  penalties  pre- 
scribed in  the  Treaties  for  such  an  offence,  and  cancellation  of  the  Inland  \Vaters  Navi- 
gation Certificate  carried  by  the  vessels,  which  will  be  prohibited  from  thereafter  plying 
on  inland  waters. 

7. — As  it  is  desirable  that  the  people  living  inland  should  be  disturbed  as  little  as 
possible  by  the  advent  of  steam  vessels  to  which  they  are  not  accustomed,  inland  waters 


356  CHINA  TREATIES  AND  AGREEMENTS 

not  hitherto  frequented  by  steamers  shall  be  opened  as  gradually  as  may  be  convenient 
to  merchants  and  only  as  the  owners  of  steamers  may  see  prospect  of  remunerative  trade. 

In  cases  where  it  is  intended  to  run  steam  vessels  on  waterways  on  which  such  vessels 
have  not  hitherto  run,  intimation  shall  be  made  to  the  Commissioner  of  Customs  at  the 
nearest  open  port  who  shall  report  the  matter  to  the  Ministers  of  Commerce.  The  latter 
in  conjunction  with  the  Governor-General  or  Governor  of  the  Province,  after  careful  con- 
sideration of  all  the  circumstances  of  the  case,  shall  at  once  give  their  approval. 

8. — A  registered  steamer  may  ply  within  the  waters  of  a  port,  or  from  one  open  port 
or  ports  to  another  open  port  or  ports,  or  from  one  open  port  or  ports  to  places  inland, 
and  thence  back  to  such  port  or  ports.  She  may,  on  making  due  report  to  the  Customs, 
land  or  ship  passengers  or  cargo  at  any  recognized  places  of  trade  passed  in  the  course  of 
the  voyage ;  but  may  not  ply  between  inland  places  exclusively  except  with  the  consent  of 
the  Chinese  Government. 

9.— Any  cargo  and  passenger  boats  may  be  towed  by  steamers.  The  helmsman  and 
crew  of  any  boat  towed  shall  be  Chinese.  All  boats,  irrespective  of  ownership,  must  be 
registered  before  they  can  proceed  inland. 

10. — These  Rules  are  supplementary  to  the  Inland  Steam  Navigation  Regulations  of 
July  and  September,  1898.  The  latter,  where  untouched  by  the  present  Rules,  remain  in 
full  force  and  effect:  but  the  present  Rules  hold  in  the  case  of  such  of  the  former  Regula- 
tions as  the  present  Rules  affect.  The  present  Rules,  and  the  Regulations  of  July  and  Sep- 
tember, 1898,  to  which  they  are  supplementary,  are  provisional,  and  may  be  modified,  as 
circumstances  require,  by  mutual  consent. 

Done  at  Shanghai  this  5th  day  of  September  in  the  year  of  our  Lord,  1902;  correspond- 
ing with  the  Chinese  date,  the  4th  day  of  the  8th  moon  of  the  28th  year  of  Kwang  Hsii. 

(L.S.)  Jas.  L.  Mackay. 

(Signature    of    his    Excellency    Lii    Hai-huan.) 
(Signature    of    his    Excellency    Sheng    Hsiian-huai.) 

(Seal  of  the  Chinese  Plenipotentiaries.) 


NUMBER  1902/8. 

RUSSIA  (Russo-Chinese  Bank)   AND  CHINA. 

Loan  Contract  and  Operating  Contract  for  the  Chengtingfn-Taiyuanfu  Railway* 

—October  15,  1902. 

(/) — Loan  Contract. 

Between  the  undersigned : 

(1)  The  Imperial  Chinese  Railway  Company,  represented  by  H.  E.  Sheng 
Hsiian-huai,  its  Director  General,  duly  empowered  by  the  Chinese  Government; 

(2)  The  Russo-Chinese  Bank,  represented  by  Mr.  C.  R.  Wehrung,  one  of 
its  Directors,  with  full  powers,  acting  for  said  Bank; 

It  has  been  agreed  and  settled  as  follows: 

Article  I. — Under  the  terms  of  the  Imperial  Edict  of  July  8,  1897,  and 
May  17.  1898,  i.  e.,  the  9th  day  of  the  6th  moon  of  the  23d  year,  and  the  24th 
day  of  the  3d  moon  of  the  24th  year  of  the  reign  of  Kuang  Hsii,  the  Governor 

♦Translation  from  French  versions,  as  printed  in  Wang,  p^.  187,  211,  of  the  Chinese 
texts.     Extracts  from  the  Loan  Contract  are  printed  in  Rockhill.  p.  313. 

The  terms  of  these  contracts  are,  mutatis  mutandis,  almost  identical  with  those  of  the 
Kaifengfu-Honanfu  Railway  Contracts  of  November  12,  1903  (No.  1903/7,  post). 

The  Chengtingfu-Taiyuanfu  Railway  is  generally  known,  from  the  first  characters  of 
the    names,   as    the    Cheng-Tai    Railway. 


NUMBER  1902/8:  OCTOBER  15,  1902  357 

and  the  Director  of  the  Commercial  Bank  of  Shansi  were  authorized  to  sign  a 
loan  contract  with  the  Russo-Chinese  Bank  for  the  building  of  a  railway  from 
Chengtingfu  to  Taiyuanfu. 

This  line,  having  a  length  of  about  250  kilometers,  forms  a  natural  branch 
of  the  Hankow-Peking  line ;  consequently  the  Governor  of  Shansi,  in  a  report 
dated  June  25,  1902,  i.  e.,  the  18th  day  of  the  5th  moon  of  the  28th  year  of  the 
reign  of  H.  M.  Kuang  Hsii,  proposed  to  the  Chinese  Government  to  instruct  the 
Director  of  the  Imperial  Chinese  Railway  Company  to  personally  take  up  the 
matter. 

The  recommendation  was  approved,  and  H.  E.  Sheng  Hsiian-huai,  Director 
General  of  the  Imperial  Chinese  Railway  Company,  received  instructions  from 
the  Chinese  Government,  in  virtue  of  a  Decree  of  September  7,  1902,  i.  e.,  the 
6th  day  of  the  7th  moon  of  the  28th  year  of  the  reign  of  Kuang  Hsii,  as  a  con- 
sequence of  a  joint  report  presented  by  the  Wai-wu  Pu  and  the  Central  Bureau 
of  Mines  and  Railways,  to  negotiate  a  new  loan  contract  for  said  railway  with 
the  Russo-Chinese  Bank.  Before  signing  the  present  contract,  H.  E.  Sheng 
Hsiian-huai  has  submitted  it  for  ratification  by  the  Chinese  Government  which 
has  ratified  it  by  a  decree  of  October  13,  1902,  i.  e.,  the  14th  day  of  the  9th 
moon  of  the  26th  year  of  the  reign  of  H.  M.  Kuang  Hsii,  of  which  a  copy  is 
annexed  to  the  present  contract  (Annex  No.  1). 

Under  the  terms  of  this  edict,  H.  E.  Sheng  Hsiian-huai  has  decided  to  make 
a  Government  5%  foreign  gold  loan  of  a  nominal  principal  of  40,000,000 
francs. 

This  loan  will  be  known  as  the  Chinese  5%  Loan  of  1902  (i.  e.,  Emprunt 
Chinois  5%,  1902). 

It  is  understood  that  the  present  contract,  upon  its  signature,  will  annul 
all  previous  contracts  concerning  the  railway  from  Chengtingfu  to  Taiyuanfu, 
signed  by  the  Governor  of  Shansi  in  favor  of  the  Russo-Chinese  Bank.f 

Article  II. — This  Loan  will  be  represented  by  80,000  bonds  of  500  francs 
gold. 

These  bonds,  the  text  of  which  is  annexed  (Annex  No.  2)  to  the  present 
contract,  will  be  signed  in  the  name  of  the  Imperial  Chinese  Government  by  the 
Minister  Plenipotentiary  of  China  at  Paris,  under  due  instructions  of  his 
Government. 

They  will  be  issued  in  blocks  (i.e.,  conpures)  of  from  1  to  5  bonds,  in 
such  proportions  as  the  Russo-Chinese  Bank  shall  indicate,  and  will  be  pre- 
pared at  the  latter's  expense. 

They  will  bear  5%  interest  per  annum  on  the  nominal  principal,  payable  in 
gold. 

Interest  will  run  from  the  day  of  payment  of  instalments  (i.  e.,  dit  jour  des 
versements),  and  will  be  payable  September  1st  and  March  1st,  each  year. 

Matured  and  paid  coupons  will  be  classified  in  numerical  order  by  the 
Russo-Chinese  Bank  and  at  its  expense. 

Article  III. — The  Loan  will  be  redeemed  in  twenty  years,  counting  from 
the  tenth  year  of  issue,  by  the  method  of  drawing  lots,  annually,  at  Paris  in  the 

t  See  Note  to  this  document,  post,  p.  367. 


358  CHINA  TREATIES  AND  AGREEMENTS 

offices  of  the  Russo-Chinese  Bank,  in  accordance  with  the  table  annexed  to  the 
present  Contract  (Annex  No.  3). 

The  drawings  of  lots  will  take  place  on  the  second  Tuesday  of  January, 
each  year;  the  first  drawing  will  take  place  on  that  date,  beginning  with  the  tenth 
year  after  the  issue  of  the  Loan. 

The  numbers  of  the  bonds  drawn  will  be  published  in  four  newspapers  at 
the  expense  of  the  Russo-Chinese  Bank. 

Article  IV. — The  bonds  drawn  by  lot  will  be  paid  in  gold  at  their  nominal 
value,  on  the  date  of  the  coupon  falling  due  next  after  the  drawing. 

Bonds  presented  for  repayment  must  have  attached  all  coupons  not  yet  paid, 
and  the  amount  of  missing  coupons  will  be  deducted  from  the  principal  to  be 
repaid. 

Interest  on  bonds  will  cease  to  run  from  the  day  set  for  repayment. 

Paid  bonds  will  be  classified  by  the  Russo-Chinese  Bank  and  at  its 
expense. 

Article  V. — The  Imperial  Chinese  Government  denies  itself  the  right  to 
undertake,  before  September  1,  1911,  an  increase  of  the  rate  of  amortization, 
or  a  repayment  of  the  whole  amount  of  the  Loan,  or  its  conversion.  After 
that  date,  it  will  be  free  to  repay  the  Loan  at  any  time  whatsoever,  before  the 
due  dates,  and  once  the  repayment  is  effected,  the  Contract  will  be  declared 
cancelled. 

Article  VI. — Coupons  and  amortized  bonds  will  be  payable  in  francs,  in 
Paris,  in  the  offices  of  the  Russo-Chinese  Bank  or  of  the  institutions  which  that 
Bank  may  designate. 

Article  VII. — The  payment  of  interest  and  the  repayment  of  bonds  pro- 
vided for  in  the  present  Loan  are  guaranteed  by  the  general  revenues  of  the 
Imperial  Chinese  Government. 

Furthermore,  in  virtue  of  the  authorization  already  given  by  the  Chinese 
Government,  and  by  agreement  with  it,  the  Imperial  Chinese  Railway  Company 
declares  that  it  makes  a  special  preferential  assignment  for  the  payment  of 
interest  and  principal  of  the  present  Loan,  and  consequently  grants  and  assigns 
in  favor  of  the  said  obligations  all  the  net  revenue  of  the  line  from  Chengtingfu 
to  Taiyuanfu,  after  the  regular  payment  of  all  expenses  of  management  and 
operation,  in  full,  as  is  elsewhere  indicated  in  an  Operating  Agreement  con- 
cluded between  the  Imperial  Chinese  Railway  Company  and  the  Russo-Chinese 
Bank,  which  Agreement  is  annexed  hereto  and  forms  an  integral  part  of  the 
Contract. 

This  assignment  is  made  exclusively  and  irrevocably  until  the  complete 
redemption  of  the  bonds  of  the  present  Loan. 

Article  VIII. — After  having  noted  the  amount  of  the  net  receipts,  the 
Imperial  Chinese  Railway  Company  will  direct  the  Russo-Chinese  Bank  to  con- 
vert into  gold,  to  the  best  advantage  of  the  Imperial  Chinese  Railway  Company, 
up  to  the  amount  necessary  to  assure  the  service  of  the  Loan  at  the  next  semi- 
annual due-date,  the  funds  derived  from  the  net  revenues  from  operation. 

Transfers  to  the  branch  of  the  Russo-Chinese  Bank  in  Paris  will  continue 
until  the  amount  necessary  for  the  entire  service  of  the  Loan  at  the  following 


NUMBER  1902/8:  OCTOBER  15,  1902  359 

semi-annual  due-date  has  been  realized  in  gold,  and  in  such  manner  that  that 
service  is  assured  at  least  three  months  before  that  semi-annual  due-date. 

The  depositaries  will  make  use  of  these  sums  in  the  manner  most  advan- 
tageous to  the  interests  of  the  Imperial  Chinese  Railway  Company. 

The  account  into  which  these  sums  are  paid  will  be  debited,  twenty  days 
before  the  semi-annual  due-date,  with  the  amount  necessary  for  the  service  of 
the  Loan,  interest,  amortization,  transfer  charges  and  commissions,  as  contem- 
plated by  the  present  Contract. 

Article  IX. — The  bank  which  has  received  the  loan  funds  on  deposit  will 
have  the  right,  without  further  authorization,  to  draw  upon  the  funds  on  deposit 
for  the  amount  of  coupons  payable  during  the  period  of  construction.  Only,  it 
will  have  to  give  notice  thereof  to  the  Director  General  of  the  Imperial  Chinese 
Railway  Company. 

Article  X. — To  insure  the  guarantee  just  given  to  the  bonds  of  the  present 
Contract,  the  Imperial  Chinese  Railway  Company  grants  these  bonds  a  special 
first  mortgage  (i.  e.,  iDie  garantie  speciale  de  premier  rang)  on  the  railway 
from  Chengtingfu  to  Taiyuanfu,  on  its  fixed  and  rolling  stock  and  on  its 
receipts. 

This  special  assignment  is  accepted  in  the  name  of  the  bondholders  by  the 
Russo-Chinese  Bank.  In  case  of  the  non-fulfilment  of  the  obligations  assumed 
by  the  Imperial  Chinese  Railways  in  the  present  Contract,  the  Russo-Chinese 
Bank  will  have  full  power  to  take  such  action  against  the  said  property  as  may 
result  from  this  special  assignment. 

Article  XI. — The  foregoing  stipulations  do  not  constitute  an  obstacle  to 
the  direct  responsibility  of  the  Imperial  Chinese  Government  in  relation  to  the 
present  Loan,  as  that  responsibility  is  specified  in  Article  VII. 

The  Imperial  Chinese  Government  consequently  undertakes  to  make  up  the 
sum  necessary  for  the  service  of  the  loan,  in  gold,  in  case  the  sums  derived  from 
the  net  revenues  of  the  line  from  Chengtingfu  to  Taiyuanfu  and  paid  over  by 
the  Imperial  Chinese  Railway  Company,  should  not  have  produced,  after  con- 
version into  gold,  at  least  three  months  before  the  next  semi-annual  due-date, 
an  amount  sufficient  to  assure  that  service. 

In  that  case,  upon  a  demand  addressed  to  it,  the  Imperial  Chinese  Govern- 
ment must  place  at  the  disposal  of  the  Russo-Chinese  Bank,  sixty  days  before 
the  next  semi-annual  due-date,  in  gold  or  in  securities  deemed  sufficient  to  pro- 
duce it  in  gold,  the  amount  that  shall  have  been  indicated  to  it  as  being  neces- 
sary to  make  up  that  service. 

Article  XII. — From  the  sums  derived  from  these  deposits  by  the  Imperial 
Chinese  Railway  Company,  or  from  the  payments  by  the  Imperial  Chinese  Gov- 
ernment, the  Russo-Chinese  Bank  will  in  due  season  draw  for  the  amounts 
necessary  for  the  service  of  the  Loan,  in  accordance  with  the  needs  as  deter- 
mined during  the  preceding  half-year. 

Article  XIII. — The  Imperial  Chinese  Government  will  pay  to  the  branch 
of  the  Russo-Chinese  Bank  in  Paris,  or  to  the  firms  or  institutions  charged  with 
the  service  of  the  Loan,  a  commission  of  %%,  that  is,  25  francs  per  10,000 
francs,  on  the  amount  of  the  coupons  paid,  and  a  commission  of  }i%  on  the 


360  CHINA  TREATIES  AND  AGREEMENTS 

amount  of  the  bonds  drawn  by  lot  or  amortized  in  consequence  of  anticipated 
repayments.  The  amount  of  this  allowance  will  be  drawn  each  half-year  from 
the  balance  of  available  revenues  from  operation,  and  in  case  of  insufficiency  it 
will  be  paid  immediately  by  the  Chinese  Government. 

Article  XIV. — The  Imperial  Chinese  Government  binds  itself  to  respect, 
and  cause  to  be  respected,  the  privilege  stipulated  in  favor  of  the  bonds  by 
Article  IX  of  the  present  convention,  and  to  hold  free  and  exempt  from  all 
taxation (  i.e.,  a  maintenir  quittes,  litres  et  affranchis  de  tout  impot  quelconque) 
the  bonds  and  coupons  and  all  operations  whatsoever  connected  with  the  service 
of  the  Loan. 

Article  XV. — Coupons  which  have  not  been  presented  for  payment  within 
five  years  after  their  due-date  will  be  prescribed  in  favor  of  the  Imperial  Chinese 
Government :  the  time-limit  shall  be  thirty  years  in  the  case  of  amortized  bonds. 

Upon  the  death  of  any  bondholder  of  the  present  Loan,  the  bonds  shall  be 
transferred  and  shall  belong  to  his  heirs,  in  conformity  with  the  inheritance  laws 
in  force  in  the  country  of  which  the  bondholder  was  a  subject. 

The  payment  of  coupons  and  the  repayment  of  bonds  will  be  made  to  the 
holders,  in  time  of  war  as  in  time  of  peace,  without  distinction  whether  they  be 
subjects  of  friendly  States  or  of  Enemy  States. 

In  case  of  loss,  theft  or  destruction  of  bonds  of  the  present  Loan,  the 
Imperial  Chinese  Government  authorizes  the  Russo-Chinese  Bank  to  replace  the 
bonds  at  its  own  expense,  after  what  is  deemed  sufficient  proof  shall  have  been 
furnished  it  of  the  loss  of  the  bonds  and  title-deeds  of  the  claimants. 

Article  XVI. — The  Imperial  Chinese  Government,  through  its  representa- 
tives in  Europe,  will  at  once  take  the  necessary  steps  and  furnish  the  documents 
to  obtain  the  admission  of  the  present  Loan  to  official  quotation  upon  the 
Bourses  of  St.  Petersburg  and  Paris. 

Article  XVII. — Of  the  whole  amount  of  the  present  Loan,  amounting  to 
a  nominal  principal  of  40,000,000  francs,  the  Russo-Chinese  Bank  buys  outright 
22,000,000  francs  of  nominal  principal,  or  44,000  bonds  of  500  francs,  delivery 
to  date  from  payment  to  the  Branch  of  the  Russo-Chinese  Bank  in  Paris,  at 
the  price  of  90%,  that  is  to  say,  for  the  total  sum  of  19,800,000  francs. 

Article  XVIII. — The  proceeds  of  this  purchase,  in  conformity  with  the 
estimates  of  expense  as  calculated  by  the  Russo-Chinese  Bank,  will,  by  agree- 
ment with  the  Imperial  Chinese  Railway  Company,  be  either  deposited  by  the 
said  Bank  with  its  Paris  branch,  or  sent  to  its  Shanghai  branch,  for  the  require- 
ments of  the  Imperial  Chinese  Railway  Company. 

It  is  understood  that  the  Russo-Chinese  Bank  will  be  bound  to  turn  over 
these  amounts  only  upon  the  conditions  and  under  the  reservations  indicated  in 
Article  XX  hereafter. 

It  is  furthermore  understood  that  a  portion  of  the  proceeds  of  the  bonds — 
at  least  one-fifth — will  be  deposited,  after  conversion  into  silver,  in  the  Imperial 
Bank  of  China. 

This  deposit  will  serve  to  meet  the  requirements  of  construction  at  such 
time  as  a  conversion  of  the  funds  might  be  too  prejudicial  to  the  interests  of 
the  Company. 


NUMBER  1902/8:  OCTOBER  15,  1902  361 

This  deposit  will  be  made  on  the  conditions  and  under  the  reservations  pro- 
vided for  in  Article  XX. 

The  balance  of  the  funds,  after  the  completion  of  construction  and  after 
the  equipment  of  the  line,  will  be  paid  over  to  the  Chinese  Government  through 
the  Imperial  Chinese  Railway  Company. 

Article  XIX. — After  the  signature  of  the  present  contract,  the  Imperial 
Chinese  Railway  Company  entrusts  to  the  Russo-Chinese  Bank  the  choosing  of 
an  Engineer-in-Chief,  experienced  in  construction  work,  whose  duty  it  will  be 
to  direct  the  construction  of  the  line  and  to  devise  the  projects  of  survey,  plans, 
route,  and  entire  system  of  the  line.  This  will  all  be  subject  to  the  approval  of 
the  Director  General  of  the  Imperial  Chinese  Railway  Company. 

This  Engineer  will  be  appointed,  upon  recommendation  by  the  Russo- 
Chinese  Bank,  by  the  Director  General  of  the  Imperial  Chinese  Railway  Com- 
pany, to  whom  he  will  be  directly  subordinate. 

The  Director  General  of  the  Imperial  Chinese  Railway  Company  will  fix 
the  amount  of  the  salary  of  the  Engineer-in-Chief,  after  coming  to  an  agree- 
ment with  the  Russo-Chinese  Bank. 

The  Engineer-in-Chief  will  prepare  a  tabulated  plan  of  organization  of  the 
European  staff  required  for  the  construction  of  the  line,  and  will  submit  it  for 
the  approval  of  the  Director  General  of  the  Imperial  Chinese  Railways.  This 
staff  will  be  engaged  by  the  Russo-Chinese  Bank,  which  will  place  it  under  the 
orders  of  the  Engineer-in-Chief. 

As  regards  the  Chinese  staff,  technical  or  other,  the  Director  General  of 
the  Imperial  Chinese  Railway  Company  reserves  the  right  to  choose  it  and  to 
turn  it  over  to  the  Engineer-in-Chief.  No  Chinese  employee  may  be  engaged 
without  the  consent  of  the  Director  General  of  the  Imperial  Chinese  Railway 
Company. 

It  is  understood  that  Chinese  subjects  who  have  made  special  studies  or 
have  acquired  sufficient  practical  knowledge  may  be  employed  on  the  work  on 
the  suggestion  of  the  Director  General  of  the  Imperial  Chinese  Railway  Company. 

As  regards  the  technical  seryice.  both  the  Chinese  and  the  foreign  staff 
shall  be  under  the  authority  of  the  Engineer-in-Chief ;  but  the  Director  General 
of  the  Imperial  Chinese  Railway  Company  reserves  the  right  to  ask  for  the  dis- 
missal of  any  agent  who  may  have  been  guilty  of  misconduct,  insubordination,  or 
disrespect  for  the  Chinese  authorities,  whatever  his  nationality. 

The  Director  General  of  the  Imperial  Chinese  Railway  Company  likewise 
reserves  the  right  to  delegate  upon  the  works  a  Special  Representative  with  full 
powers.  The  salary  of  this  Representative,  as  also  the  running  expenses  of  the 
head  office  at  Shanghai,  will  devolve  upon  the  Shansi  Railway  project  as  in 
the  case  of  the  Peking-Hankow  Railway. 

Orders  for  materials,  tools  and  rolling-stock  necessary  for  the  construction 
of  the  line  and  for  its  regular  operation  must  be  presented  in  advance  through 
the  Enginer-in-Chief  for  the  approval  of  the  Director  General  of  the  Imperial 
Chinese  Railway  Company.  Orders  and  local  tests  of  the  work  must  be  arranged 
jointly  by  the  Engineer-in-Chief  and  the  Special  Representative  of  the  Director 
General  of  the  Imperial  Chinese  Railway  Company. 


362  CHINA  TREATIES  AND  AGREEMENTS 

Statements  of  the  amounts  paid  for  the  supply  of  materials  and  for 
expenses  of  all  kinds  settled  in  Europe  must  be  sent  every  three  months  to  the 
Imperial  Chinese  Railway  Company. 

Every  month,  the  Engineer-in-Chief,  in  agreement  with  the  Director  General 
of  the  Imperial  Chinese  Railway  Company,  will  ask  the  Russo-Chinese  Bank  to 
pay  over,  through  its  Peking  branch,  the  amounts  necessary  for  the  general 
expenses  of  the  undertaking  for  the  following  month,  into  the  hands  of  an 
agent  of  the  Director  General  of  the  Imperial  Chinese  Railway  Company.  This 
agent  may  only  surrender  the  funds  against  the  joint  signature  of  the  Engineer- 
in-Chief  and  the  Representative  of  the  Director  General  of  the  Imperial  Chinese 
Railway  Company. 

The  Russo-Chinese  Bank  shall  not  therefore  have  to  meet  any  of  the 
expenses  in  connection  with  construction  or  operation. 

It  will  endeavor  to  complete  the  work  on  the  line  within  a  period  of  three 
years. 

Article  XX. — On  the  various  sections  between  Chengtingfu  and  Tai- 
yuanfu,  the  Russo-Chinese  Bank  will  pay  over  each  month  to  the  Imperial  Chinese 
Railway  Company,  from  the  available  funds  in  its  hands,  the  amounts  necessary 
to  make  the  payments  for  the  following  month,  in  conformity  with  the  estimates 
drawn  up  by  the  Engineer-in-Chief. 

The  price  paid  for  the  above-mentioned  bonds  being  destined  exclusively 
for  the  construction  of  the  line  from  Chengtingfu  to  Taiyuanfu,  the  Russo- 
Chinese  Bank  will  have  the  right  not  to  surrender  these  funds  in  the  event 
that  any  of  the  payments  should  not  have  been  applied  as  provided  for,  as  also 
in  the  event  that  the  Russo-Chinese  Bank  should  not  have  been  enabled  to 
continue  the  direction  of  the  work  of  construction  with  which  that  Bank  is 
exclusively  entrusted. 

Article  XXI. — The  Chinese  Government  gives  the  Russo-Chinese  Bank 
an  option  to  December  31st,  1905,  to  purchase  the  balance  of  the  loan,  or 
18,000,000  francs,  at  the  price  of  90%  of  par  value. 

Said  option  may  be  availed  of  at  one  or  several  times,  regardless  of  the 
amortizations  made.  Delivery  of  the  bonds  taken  on  the  options  will  be  made 
at  the  Russo-Chinese  Bank  in  Paris,  which  will  only  surrender  them  under  the 
conditions  and  terms  provided  for  in  the  above  Article  XX. 

Article  XXII. — If  the  Russo-Chinese  Bank  should  avail  itself  of  the 
right  given  it  to  purchase  all  or  a  portion  of  the  securities  for  which  it  has  an 
option  granted  it,  it  shall  come  to  an  agreement  in  each  case  with  the  Imperial 
Chinese  Railway  Company  to  determine  the  sections  (of  line)  to  be  built  with 
the  new  funds. 

Article  XXIII. — Surveys  for  the  line,  dating  from  the  signing  of  the 
present  contract,  are  at  the  expense  of  the  Imperial  Chinese  Railway  Com- 
pany. The  whole  line  shall  be  divided  into  two  principal  sections :  The 
first  from  Chengtingfu  to  Ping-ting  on  the  left  bank  of  the  Weishui 
River,  to  the  north  of  Ping-ting  Chou,  and  the  second  from  that  point  to 
Taiyuanfu. 

It  is  henceforth  to  be  understood  that  the  section  to  be  built  with  the  funds 


NUMBER  1902/8:  OCTOBER  15,  1902  363 

derived  from  the  first  option,  will  be  that  from  Chengtingfu  to  Ping-ting  and 
that  surveys  for  it  will  begin  the  first  year. 

Within  two  months  from  the  date  of  ratification  of  the  present  contract, 
the  Russo-Chinese  Bank  will  place  at  the  disposal  of  the  Director  General  of 
the  Imperial  Chinese  Railway  Company  a  sum  of  1,000,000  francs  as  an  advance 
on  the  proceeds  of  the  loan. 

This  sum,  it  is  understood,  can  only  be  applied  to  surveys  and  construction 
work  on  the  Shansi  railway.  The  rate  of  interest  on  this  advance  is  fixed  at 
6%  annually,  regardless  of  the  price  of  issue. 

The  first  option  must  be  taken  up  within  eleven  months  from  the  date  of 
signing  the  present  contract. 

The  proceeds  of  said  option  shall  be  applied  in  the  first  instance  to  refund- 
ing the  above-mentioned  advance. 

Article  XXIV. — The  Russo-Chinese  Bank  reserves  the  right  to  make  one 
or  more  issues,  by  public  subscription  or  otherwise,  of  the  whole  or  a  part  of  the 
bonds  bought  outright,  or  forming  a  part  of  the  option ;  the  expense  of  such 
issues  to  be  borne,  of  course,  by  the  Russo-Chinese  Bank. 

Article  XXV. — The  entire  quantity  of  materials  and  supplies  necessary 
for  the  construction  and  operation  of  the  railway  from  Chengtingfu  to  Taiyuanfu 
will  be  ordered  by  the  Russo-Chinese  Bank,  which  will  execute  these  orders  con- 
scientiously and  on  the  best  terms. 

It  is  agreed  that,  upon  equal  terms,  such  materials  and  supplies  as  can  be 
produced  in  China  will  not  be  ordered  abroad.  The  mines  and  factories  under 
the  control  of  His  Excellency  Sheng  Hsiian-huai  must,  more  particularly,  profit 
by  this  preference  in  case  terms  and  price  (including  freight  and  insurance 
charges)  are  such  as  though  these  materials  and  supplies  had  been  ordered  from 
abroad. 

Orders  given  will  be  freed  from  all  customs  and  likin  dues  upon  entry  and 
in  transit  through  Chinese  territory. 

If  proof  of  the  granting  of  this  privilege  is  not  furnished  to  it  before  the 
lapse  of  the  month  following  the  date  on  which  the  Russian  Government  has 
advised  the  Russo-Chinese  Bank  of  its  having  received  the  notifications  pro- 
vided for  in  Article  XXVIII,  the  latter  reserves  the  right  not  to  consider  itself 
bound. 

It  reserves  the  same  right,  within  the  same  time-limit,  in  the  event  of  the 
occurrence  of  extraordinary  events,  such  as  a  war,  or  the  falling  below  par  of 
the  French  rente. 

If  the  Russo-Chinese  Bank  should,  for  its  part,  not  fulfil  the  obligations 
which  it  has  assumed  under  the  present  Contract,  this  would  be  cancelled;  the 
Imperial  Chinese  Railway  Company  would  be  free  to  contract  with  whomsoever 
else  it  desired,  and  forego  the  services  of  the  Russo-Chinese  Bank. 

Article  XXVI. — In  case  of  conflict  or  difiference  of  views  between  the 
Russo-Chinese  Bank  or  its  delegates,  and  the  Imperial  Chinese  Government 
or  th£  Imperial  Chinese  Railway  Company,  these  conflicts  or  differences  of  views 
will  be  submitted  to  the  judgment  of  a  member  of  the  Ministry  for  Foreign 
Affairs  of  the  Chinese  Government,  and  of  the  Minister  of  Russia  in  Peking. 


354  CHINA  TREATIES  AND  AGREEMENTS 

In  case  of  disagreement  between  the  latter,  the  Minister  for  Foreign 
Affairs  of  the  Chinese  Government  and  the  Minister  of  Russia  will  designate 
an  arbitrator  who  shall  make  a  final  decision. 

Article  XXVII. — Should  the  Russo-Chinese  Bank  so  request  the  Min- 
istry for  Foreign  Affairs,  the  latter  would  be  bound  to  give  cognizance  of  the 
title  (i.  e.,  notifier  le  titre)  to  the  Minister  of  the  foreign  country  that  it 
might  designate  to  him  as  subscribing  to  the  issue  (of  Bonds). 

Article  XXVIII. — The  present  Contract  is  drawn  up  in  duplicate,  one 
copy  for  the  Imperial  Chinese  Railway  Company,  and  one  for  the  Russo-Chinese 
Bank.  In  case  of  doubt  or  of  disagreement,  the  French  text  alone  will  be  authori- 
tative in  interpreting  the  present  Contract. 

The  present  Contract  must  be  submitted  through  the  proper  channel  for 
the  Imperial  sanction,  and  when  that  sanction  has  been  obtained,  the  Minister 
for  Foreign  Affairs  of  the  Chinese  Government  must  give  notice  thereof  by 
official  dispatch  to  the  Minister  of  Russia  in  Peking,  and  in  case  of  necessity, 
at  the  latter's  request,  to  the  representative  in  Peking  of  the  foreign  country 
to  whom  the  title  is  to  be  notified. 

These  formalities  will  be  carried  out  within  a  period  of  one  month  after 
the  signature  of  the  Contract. 

Done  at  Shanghai,  October  2/15,  1902,  that  is,  the  14th  day  of  the  9th 
moon  of  the  28th  year  of  the  Reign  of  H.  M.  Kuang  Hsii. 

The  Director  General  of  the  Imperial  Chinese  Railway  Company, 

(Sgd.)  Sheng  Hsuan-Huai. 

The  Manager  of  the  Russo-Chinese  Bank  in  China. 

(Sgd.)  C.  R.  Wehrung. 

(//) — Operating  Contract. 

Between  the  undersigned : 

(1)  The  Imperial  Chinese  Railway  Company,  represented  by  its  Director 
General,  His  Excellency  Sheng  Hsiian-huai,  duly  authorized  by  the  Imperial 
Government ; 

(2)  The  Russo-Chinese  Bank,  represented  by  Mr.  C.  R.  Wehrung,  one  of 
its  Directors; 

It  has  been  agreed  as  follows : 

Article  I. — The  Imperial  Chinese  Railway  Company,  in  agreement  with 
the  Chinese  Government,  entrusts  the  Russo-Chinese  Bank,  which  will  appoint 
delegates  for  the  purpose,  with  the  directing,  managing  and  operating  of  the 
line  from  Chengtingfu  to  Taiyuanfu,  for  which  the  Imperial  Chinese  Railway 
Company  holds  the  concession  under  the  Edict  of  His  Majesty  the  Emperor 
of  China  dated  October  13,  1902,  that  is,  the  14th  day  of  the  9th  moon  of  the 
28th  year  of  the  Reign  of  His  Majesty  Kuang  Hsii,  a  copy  of  which  is  annexed 
to  the  Loan  Contract. 

Article  II. — The  Russo-Chinese  Bank  will  undertake  the  operation  of  the 
line  upon  the  completion  of  the  several  sections,  after  their  definite  acceptance 
by  the  Director  General  of  the  Imperial  Chinese  Railway  Company,  each  section 


NUMBER  1902/8:  OCTOBER  15,  1902  365 

having  to  be  completely  equipped  and  supplied  in  advance  with  all  material  neces- 
sary for  its  operation,  as  well  as  with  supplies,  tools,  and  rolling-stock;  the 
Russo-Chinese  Bank  or  the  delegates  it  may  have  appointed  in  accordance  with 
the  provisions  of  Article  I  will  organize  the  service,  will  engage  the  staff — over 
which  it  will  have  an  absolute  right  of  discharge  or  dismissal,  and  whose  salaries 
it  will  fix  according  to  a  tabulated  plan  of  organization  previously  submitted  to 
the  Director  General  of  the  Imperial  Chinese  Railway  Company, — will  order 
whatever  is  necessary  for  the  operation  and  upkeep  or  for  the  repair  of  the 
line,  will  fix  the  tariffs  within  the  terms  of  the  contracts  for  the  concession,  will 
receive  the  revenues  of  all  kinds,  and  will  make  the  payments  for  the  expenses 
of  operation  and  the  management  of  the  Imperial  Chinese  Railway  Company  in 
connection  with  the  Shansi  Railway. 

The  foregoing  steps  to  be  taken  in  respect  to  the  operation  of  the  line  will 
be  submitted  by  the  Russo-Chinese  Bank  or  by  the  engineers  appointed  by  it  to 
the  Imperial  Chinese  Railway  Company,  as  a  matter  of  consultation  (i.  e., 
a  titre  consultatif). 

The  Director  General  of  the  Imperial  Chinese  Railway  Company  will  have 
the  most  extensive  control  over  revenues  and  expenditures.  He  will  appoint  a 
Representative,  a  cashier,  an  accountant,  and  an  interpreter,  who  will  be 
attached  to  the  European  staff  in  order  to  exercise  the  effective  control  con- 
templated above.  The  Representative  and  his  assistants,  mentioned  above,  will 
be  paid  by  the  Shansi  Railway  enterprise. 

This  Representative  will  countersign  all  documents  of  account. 

As  stipulated  in  the  Loan  Contract,  the  Director  General  of  the  Imperial 
Chinese  Railway  Company  reserves  the  right  of  requiring  the  dismissal  of  any 
agent,  of  whatsoever  nationality,  who  may  have  been  guilty  of  misconduct, 
insubordination,  or  disrespect  towards  the  Chinese  authorities. 

The  Chinese  staff  will  be  chosen  by  the  Representative  of  the  Director 
General  of  the  Imperial  Chinese  Railway  Company,  who  will  place  them  under 
the  exclusive  orders  of  the  Engineer-in-Chief. 

The  acquisition  of  all  new  material,  and  new  work  of  improvement  or  up- 
keep of  the  line  or  of  the  stations,  which  may  be  necessary  after  the  opening  of 
each  section  to  traffic,  will  be  entirely  at  the  expense  of  the  Shansi  Railway  enter- 
prise. In  so  far  as  possible,  the  orders  required  for  the  upkeep  and  repair  of 
the  line  will  be  given  to  the  factories  and  mines  of  China.  It  is  understood  that 
the  mines  and  factories  under  the  control  of  His  Excellency  Sheng  Hsiian-huai 
will  enjoy  a  right  of  preference  over  foreign  mines  and  factories  in  the  purchase 
of  all  the  above-mentioned  materials,  upon  terms  and  prices  (including  freight 
and  insurance  charges)  such  as  if  the  materials  had  been  purchased  abroad. 

Article  III. — In  case  of  war  or  of  revolution  in  China,  the  transportation 
of  troops,  munitions  and  provisions  for  the  Chinese  Army  will  have  precedence 
over  all  commercial  traffic.  This  transportation  will  be  charged  for  at  a  reduc- 
tion of  50%  from  the  tariff ;  it  will  be  conducted  in  accordance  with  the  orders 
of  the  Director  General  of  the  Imperial  Chinese  Railway  Company ;  and  it  will 
moreover  be  forbidden  to  transport  anything  which  might  be  of  a  character  to 
injure  the  Chinese  Government. 


366  CHINA  TREATIES  AND  AGREEMENTS 

Special  service  for  the  local  authorities  and  for  the  members  of  the  Imperial 
Chinese  Government  will  be  arranged  by  the  operating  management,  upon  an 
understanding  with  the  Representative  of  the  Director  General  of  the  Imperial 
Chinese  Railway  Company.  The  same  will  be  the  case  in  regard  to  free  tickets, 
which  must  be  countersigned  by  the  Director  General  of  the  Imperial  Chinese 
Railway  Company. 

Article  IV. — From  the  operating  revenues  remaining  available  after  the 
payment  of  all  expenses,  the  Russo-Chinese  Bank  will  retain  such  amounts  as 
are  necessary  to  assure  each  half-year,  at  least  three  months  before  due-date, 
the  service  of  the  loan  of  40,000,000  francs  contracted  by  the  Imperial  Chinese 
Government. 

This  retention  will  be  made  so  long  as  the  said  loan  shall  not  have  been 
wholly  repaid. 

The  proceeds  of  this  retention  will  be  paid  over  each  month  into  the  hands 
of  the  Russo-Chinese  Bank  or  into  the  hands  of  the  firm  that  the  latter  may 
have  designated.  The  latter  will  convert  into  gold,  to  the  best  advantage  of  the 
Imperial  Chinese  Railway  Company,  the  amounts  paid  over  to  it,  in  order  to 
use  them  for  the  service  of  the  Loan. 

Whenever  the  service  in  gold  of  the  Loan  may  have  been  assured  through 
the  sums  thus  paid  over,  the  Russo-Chinese  Bank  will  set  aside  10%  of  the 
surplus,  which  will  be  devoted  to  the  establishment  of  a  reserve  fund  for  extraor- 
dinary rebuilding  or  repairs  to  assure  operation. 

It  will  thereafter  pay  over  to  the  Imperial  Chinese  Railway  Company  such 
balance  as  remains  available  out  of  the  operating  revenues. 

In  the  event  of  the  repayment  contemplated  in  the  following  article,  the 
Russo-Chinese  Bank  or  its  delegates  will  hand  over  to  the  Representative  of  the 
Director  General  of  the  Imperial  Chinese  Railway  Company  the  line,  its  fixed 
material  and  rolling-stock,  and  all  its  appurtenances,  in  good  state  of  upkeep 
and  in  normal  operation. 

Article  V. — The  term  of  the  present  Operating  Contract  is  fixed  at  thirty 
years,  reckoning  from  the  date  of  the  signature  of  the  Contract. 

This  term,  however,  would  be  prolonged  as  of  course  (i.  e.,  de  plein  droit) 
in  the  event  that  the  loan  of  40,000,000  francs  should  not  at  that  time  have 
been  completely  amortized :  and  that  prolongation  would  continue  so  long  as 
complete  amortization  had  not  been  efifected. 

But  if  the  repayment  of  the  loan  were  to  be  efifected  before  the  due  period, 
the  present  Operating  Contract  would  be  cancelled  as  from  the  date  of  the  full 
repayment  of  the  Loan. 

Article  VI. — During  the  whole  period  of  the  operation  of  the  line  by  the 
Russo-Chinese  Bank,  the  Imperial  Chinese  Railway  Company  grants  to  it  a 
participation  of  20%  in  the  net  profits  of  the  railway  from  Chengtingfu  to 
Taiyuanfu,  as  determined  by  mutual  agreement  after  each  accounting  period, 
allowing,  however,  for  the  amounts  necessary  to  meet  the  service  of  interest  and 
amortization  of  the  Loan. 

Article  VII. — In  case  of  conflict  or  difference  of  views  between  the  Impe- 
rial Chinese  Railway  Company,  or  the  Imperial  Chinese  Government,  and  the 


NUMBER  1902/8:  OCTOBER  15,  1902:  NOTE  367 

Russo-Chinese  Bank,  these  conflicts  or  differences  of  views  will  be  adjusted  as 
provided  in  Article  XXVI  of  the  Loan  Contract. 

Article  VIII. — If  the  operating  revenues  should  not  be  sufficient  to  cover 
the  costs,  the  Imperial  Chinese  Railway  Company  would  have  to  furnish  the 
funds  necessary  to  insure  the  regular  operating  service  under  normal  conditions. 

The  funds  so  furnished  will  be  considered  as  an  advance,  repayable  to  the 
Imperial  Chinese  Railway  Company  so  soon  as  the  revenues  come  to  exceed  the 
expenses. 

Article  IX. — All  materials  and  all  supplies  that  the  Russo-Chinese  Bank 
may  need  for  the  operation  and  for  the  upkeep  and  repair  of  the  line  will,  when 
they  come  from  abroad,  be  exempted  from  all  customs  or  likin  dues. 

Article  X. — The  present  Contract  is  drawn  up  in  duplicate,  one  copy  for 
the  Imperial  Chinese  Railway  Company  and  one  for  the  Russo-Chinese  Bank. 

In  case  of  doubt  or  difference,  the  French  text  alone  will  be  authoritative 
for  the  interpretation  of  the  Contract. 

The  present  Contract  will  be  submitted  through  the  proper  channel  for  the 
Imperial  sanction,  and  when  that  sanction  has  been  obtained,  the  Minister  for 
Foreign  Affairs  of  the  Chinese  Government  must  give  notice  thereof  by  official 
despatch  to  the  Minister  of  Russia  in  Peking,  and  in  case  of  necessity,  at  the 
latter's  request,  to  the  representative  in  Peking  of  the  foreign  country  to  whom 
the  title  is  to  be  notified. 

Done  at  Shanghai,  October  2/15,  1902,  that  is,  the  14th  day  of  the  9th  moon 
of  the  28th  year  of  the  Reign  of  His  Majesty  Kuang  Hsii. 

The  Director  General  of  the  Imperial  Chinese  Railway  Company, 

(Sgd.)  H.  E.  Sheng  Kung  Pag. 

The  Manager  of  the  Russo-Chinese  Bank  in  China, 

(Sgd.)  Ch.  R.  Wehrung. 


Note. 

In  Rockhill,  p.  309,  appears  the  following  translation  of  a  "  Draft  of  Agreement 
between  Fang,  Superintendent  of  the  Liu-lin-Tai-yuan  Railway  Co.  (understood  to  be 
acting  under  authority  from  the  Governor  of  Shansi),  and  Pokotilow,  Director  of  the 
Russo-Chinese  Bank,"  dated  1898: 

Preliminary  Loan  Agreement  for  Chengtingfu-Taiyuanfu  Railway. — 1898. 

"  The  line  is  to  run  from  Chengting  to  the  coal  mines  on  the  Weishui  river  to  the 
north  of  Pingting,  and  thence  to  Taiyuan.  The  cost — including  'official  profits'  (kuan-li) 
— is  estimated  at  Tls.  6,800,000.  As  it  is  impossible  to  raise  this  amount  in  China,  Fang 
agrees  to  accept  a  temporary  advance  from  the  Russo-Chinese  Bank  on  the  following 
terms : — 

"  1. — A  Company  will  be  formed  to  construct  the  railway,  and  the  Company  will 
borrow  Tls.  6,800,000  necessary  from  the  Bank.  Interest  6  per  cent,  from  the  date  of 
advance. 

"  2. — The  exact  amount  required  will  be  determined  after  the  completion  of  the  surveys 
and  estimates. 

"  Until  the  railway  is  opened  to  traffic  the  interest  will  accrue,  and  be  added  to  the 
principal  of  the  loan.  Should  the  traffic  receipts  during  the  two  years  following  the  open- 
ing be  insufficient  to  pay  the  interest  the  deficiency  will  also  be  added  to  the  loan  capitaL 


368  CHINA  TREATIES  AND  AGREEMENTS 

At  the  close  of  these  two  years,  all  the  moneys  owing  to  the  bank  by  the  Company  on 
principal  and  interest  must  be  reckoned  up  and  interest  paid  on  the  full  amount  at  6  per 
cent,  per  annum.  All  surplus  profits,  excluding  'official  profits'  {kuan-li)  made  within 
five  years  from  the  opening  of  the  railway  to  be  deposited  in  the  Bank,  the  amount  to  go 
to  the  redemption  of  the  loan  at  the  end  of  the  five  years.  The  Bank  to  pay  4  per  cent, 
on  the  amounts  so  deposited. 

"  Dating  from  the  sixth  year  after  the  opening  of  the  line  the  Company  agree  to  pay 
off  the  interest  and  principal  due  to  the  Batik  by  quarterly  instalments,  extending  over 
25  years :  such  instalments  to  be  paid  in  gold  at  current  rates. 

"  3. — The  Company  may  at  will  redeem  the  loan  before  the  limit  of  the  time  specified. 

"  The  Company  may  issue  share  certificates  to  the  amount  of  the  loan,  which  are  to  be 
deposited  with  the  Bank  as  security.  Within  the  25  years'  limit  certificates  to  the  amounts 
redeemed  from  year  to  year  will  be  handed  over  to  the  Company  by  the  Bank.  If,  before 
the  loan  is  redeemed,  the  Chinese  public  consider  these  shares  a  good  investment,  the  Com- 
pany may  purchase  them  from  the  Bank  and  issue  them  at  a  premium  of  20  per  cent. 

"  Should  the  Company  redeem  the  debt  due  to  the  Bank  in  either  of  the  two  ways 
stated  above,  the  Bank  will  have  no  further  concern  with  the  railway. 

"4. — The  Bank  will  decide  in  consultation  with  the  Company  all  questions  of  route, 
gauge,  position  of  stations,  amount  of  rolling  stock,  etc.  All  the  construction  and  works 
will  be  executed  under  the  supervision  of  the  Company. 

"  The  Bank  engages  to  use  local  materials  and  labour  as  far  as  possible,  and  in  any 
case  to  spend  the  greater  part  of  the  loan  on  the  spot.  As  little  material  as  possible  is  to 
be  procured  from  abroad,  but  whatever  is  thus  obtained  must  come  from  Russian  or  French 
territory.  All  such  materials  are  to  be  purchased  by  the  Bank  at  the  most  reasonable 
prices,  and  questions  as  to  the  reasonableness  of  the  prices  are  to  be  settled  by  reference 
by  the  Company  to  the  Chinese  Ministers  in  Russia  and  France. 

"  5. — During  the  whole  30  years  and/or  while  the  loan  is  unredeemed,  the  high  authori- 
ties of  Shansi  shall,  at  the  request  of  the  Company,  interdict  the  construction  of  another 
railway  or  other  mechanical  means  of  transport  between  Liu-lin  and  Taiyuan-fu,  as  such 
would  be  detrimental  to  the  interests  of  this  railway. 

"  6. — The  Company  will  see  to  the  acquisition  of  the  land  required  for  the  railway 
in  accordance  with  the  provisions  of  Chinese  law.  The  regulations  for  the  purchase  of  the 
land  will  be  drawn  up  by  the  Company  and  approved  by  the  Governor  of  Shansi  who  will 
be  requested  to  instruct  the  local  authorities  to  surrender  or  let  whatever  Government 
land  is  required  for  the  railway  line.  As  to  private  ground,  graves,  bridges,  rivers,  and 
roads,  the  regulations  of  the  Tientsin  railways  will  be  followed,  and  reasonable  compensa- 
tion will  be  awarded.  The  local  officials  are  to  lend  every  assistance  and  to  check  disorder. 
In  other  matters  the  established  piecedents  ruling  in  the  railways  already  opened  to  traffic 
in  Chihli  are  to  be  followed. 

"  The  price  of  the  ground  will  be  arranged  by  the  Company  with  the  owner,  and  the 
money  handed  over  in  the  presence  of  a  representative  at  the  Bank  specially  appointed  for 
that  purpose.    This  will  prevent  irregularities. 

"  The  Bank  will  prepare  detailed  plans  of  the  railway  and  send  them  to  the  Company, 
and  the  Coinpany  are  given  six  months  from  the  date  of  receipt  of  the  plans  within  which 
to  secure  the  land  required  for  the  track. 

''7. — The  Governor  of  Shansi  will  be  moved  to  exempt  from  likin  charges  all  railway 
material.  Import  and  transit  dues  paid  to  the  Imperial  Maritime  Customs  are  not  included 
in  this  exemption. 

"  8. — The  administration  of  the  railway  will  rest  with  the  Company.  Mr.  Fang  will 
procure  the  assistance  he  needs,  and  from  the  date  of  the  approval  of  this  agreement  Tls. 
10,000  a  year  will  be  advanced  to  him  to  cover  the  salaries  of  himself  and  assistants. 

"  Before  the  opening  of  the  railway  and  traffic  these  salaries  will  be  advanced  by  the 
Bank  and  the  amounts  will  be  added  to  the  loan  accounts.  After  the  opening  they  will 
be  paid  out  of  receipts  by  the  Company.  If  there  is  a  surplus  after  the  payment  of  all 
expenses  out  of  the  receipts,  it  will  rest  with  the  Company  to  decide  whether  the  remunera- 
tion above  mentioned  shall  be  increased.  The  Foreign  Agent  of  the  Bank  will  be  present 
at  all  meetings  of  the  Managing  Officers,  and  will  exercise  supervision  over  all  matters  of 
accounts,  machinery,  etc. 

"  9.— The  Foreign  Agent  will  be  specially  appointed  by  the  Bank  after  the  completion 
of  the  railway  to  inspect  the  accounts,  receipts,  and  expenditure.  The  accounts  will  be 
kept  after  foreign  methods.  He  will  also  inspect  the  permanent  way,  machinery,  stations, 
etc.,  and  see  that  they  are  kept  in  good  working  order,  and  free  from  dilapidations.  He 
will  have  foreign  assistants,  but  their  number  will  be  kept  as  low  as  possible.  The  salaries 
of  the  Agent  and  his  staff,  which  are  not  to  exceed  100,000  francs  or  say  Tls  30.000  a  year 
will  be  paid  by  the  Company.  With  these  exceptions  the  personnel  will  be  Chinese.  As 
a  temporary  arrangement,  however,  China  not  possessing,  capable  machinists,  foreign 
artificers  will  be  engaged  by  the  Bank  to  work  the  machinery,  but  as  soon  as  Chinese  are 
available  for  this  purpose  the  foreigners  will  be  sent  home.  It  is  fully  expected  that 
Chinese  will  be  employed  as  machinists  before  many  years  are  over,  and  to  attain  this  end 


NUMBER  1902/8:  OCTOBER  15,  1902:  NOTE  369 

the  Superintendent  is  at  liberty  to  establish  engineering  and  mining  schools  near  at  hand, 
and  to  engage  foreign  instructors  to  teach  10  to  20  selected  Chinese  youths  of  capacity 
who  may  also  be  sent  abroad  to  complete  their  knowledge. 

"  The  Board  will  assist  the  Company  as  far  as  possible  in  its  efforts  to  dispense  with 
foreign  assistance  and  to  secure  capable  Chinese  machinists  without  delay. 

"  10. — After  the  completion  of  the  railway  the  yearly  surplus,  if  any,  left  after  pay- 
ment of  working  expenses  and  'official  profits,'  is  to  be  dealt  with  as  follows: — 

"  5-lOths  to  the  Company.  Should  this  5-lOths  amount  to  30,000  taels  or  over,  the 
Superintendent's  salary  will  be  paid  out  of  it;  if  the  5-lOths  do  not  amount  to  Tls.  30,000 
the  salary  will  form  part  of  the  working  expenses. 

"2-lOths  to  the  State. 

"  1-lOth  to  the  Trade  Bureau  to  be  used  for  public  purposes,  and 

"2-lOths  to  the  Bank — this  payment  to  cease  at  the  end  of  30  years  from  the  opening 
of  the  line.  Should  the  Company  be  able  to  redeem  the  loan  before  this  limit  of  time  as 
provided  for  under  Article  3,  the  Bank's  2-lOths  will  cease  with  such  redemption. 

"  11. — The  Bank  will  first  undertake  the  construction  of  the  first  section  to  the  coal 
mines  of  Ping-ting;  this  to  be  completed  within  3  years  from  the  acquisition  of  the  ground 
required,  according  to  the  plans.  Ihis  section  finished,  the  Bank  engages  to  begin  work  on 
the  2nd  section  from  the  coal  mines  to  Taiyuan  Fu  within  two  years.  If  it  fails  to  do 
so  the  Company  is  free  to  discharge  the  Bank  from  the  contract  and  hand  the  work  over 
to  others  to  undertake.  The  Bank,  in  this  case,  is  to  hand  over  the  surveys,  estimates, 
and  other  documents  relating  to  the  2nd  section  to  the  Company  without  payment  therefor 
and  without  objection  to  the  Company's  action. 

"  12. — In  case  of  default  in  the  payment  of  principal  and  interest,  the  administration 
of  the  railway  will  pass  temporarily  into  the  hands  of  the  Bank,  but  the  Company  will  con- 
tinue its  supervision.  The  Superintendent,  etc.,  will  continue  to  meet  and  consult  as  before 
and  the  salaries  will  continue  to  be  advanced  in  the  manner  stated  in  Article  8.  The 
Bank  will  not  under  these  circumstances  be  considered  as  entering  into  possession  of  the 
railway ;  it  will  simply  administer  on  behalf  of  the  Company  until  the  loan  and  interest 
are  paid  in  full,  when  the  administration  will  be  returned  to  the  Company. 

"  13. — Superintendent  Fang  will  move  the  local  authorities  to  permit  the  Company, 
through  the  Trade  Bureau,  to  select  a  few  coal  and  iron  mines  in  the  country  adjoining 
the  railways ;  places  granted  to  other  persons  being  excluded  from  the  selection. 

■'  Within  a  year  from  the  approval  of  this  agreement  the  Bank  will  indicate  a  few 
coal  and  iron  mines  which  it  will  be  able  to  work  as  soon  as  the  necessary  authorisation 
is  received  from  the  Governor  of  Shansi  through  the  Trade  Bureau.  But  the  number  of 
mines  thus  selected  must  not  exceed  four  or  five. 

"  Superintendent  Fang  will  also  be  authorised  to  choose  a  convenient  site  for  glass 
works,  the  funds  for  the  establishment  of  which  will  be  provided  by  the  Bank. 

"  The  financial  terms  relating  to  the  mines  and  glass  works  will  follow  the  same  lines 
as  those  relating  to  the  railway;  2-lOths  of  the  surplus  after  payment  of  working  expenses 
and  '  official  profits  '  will  go  to  the  Bank  in  payment  of  principal  and  interest.  In  case  of 
default  the  management  of  all  the  mines  and  the  glassworks  will  revert  to  the  Bank  who 
will  retain  it  until  the  loans  and  interest  are  redeemed. 

"  14. — This  loan  being  a  commercial  arrangement  made  between  Russian  and  Chinese 
merchants,  it  is  understood  that  the  Governments  of  China  and  Russia  are  in  no  way 
concerned. 

"15. — This  instrument  is  only  preliminary.  When  it  has  been  approved  by  the  Gov- 
ernor of  Shansi  and  authorised  by  the  Emperor,  it  will  as  it  stands  become  definitive." 

In  the  Memorandum  on  Railway  and  IMining  Concessions  secured  by  France  and 
French  Companies  in  China,  printed  in  Doc.  Dipl.,  Chine,  Jiiin-Octobre,  1900,  p.  23,  appears 
the  following  statement  in   regard  to  the  concession   for  the  Chengting-Taiyuan  Railway : 

"The  concession  for  this  line  was  provided  for  by  a  contract  between  the  Bureau  of 
Commerce  of  the  province  of  Shan-hsi  and  the  Russo-Chinese  Bank,  said  contract  being 
approved  by  the  Chinese  Government  May  21,  1898. 

"  The  length  of  the  line  is  246  kilometers  from  Tai-yuan-Fu  to  Cheng-ting-Fu  where 
it  will  join  the  railway  from  Peking  to  Hankow.  The  line  will  open  the  very  rich  coal 
field  of  Ping-ting,  and  its  exploitation  should  be  remunerative.  The  concession  contemplates 
the  extension  of  the  Tai-yuan-Fu  line  to  the  southwest.  The  system  as  above  will  measure 
from  500  to  600  kilometers  and  will  be  worth  about  60  millions. 

"  The  French  group  in  the  Russo-Chinese  Bank  is  entrusted  with  working  this  con- 
cession." 


370  CHINA  TREATIES  AND  AGREEMENTS 

NUMBER  1902/9. 

PORTUGAL  AND  CHINA. 

Supplementary  Commercial  Convention* — October  15,  1902. 

His  Most  Faithful  Majesty  the  King  of  Portugal  and  of  the  Algarves,  and 
His  Majesty  the  Emperor  of  China,  desiring  to  facilitate  the  commercial  rela- 
tions between  Portugal  and  China,  have  decided  to  introduce  certain  modifica- 
tions into  the  Treaty  of  friendship  and  commerce  which  at  present  governs  the 
relations  between  the  two  countries:  for  this  purpose  they  have  named  their 
plenipotentiaries,  to  wit : 

His  Most  Faithful  Majesty  the  King  of  Portugal  and  of  the  Algarves,  Jose 
d'Azevedo  Castello  Branco,  his  Envoy  Extraordinary  and  Minister  Plenipotenti- 
ary on  Special  Mission  near  His  Majesty  the  Emperor  of  China,  of  the  Council 
of  His  Majesty,  Peer  of  the  Realm,  Grand  Cross  of  the  Military  Order  of  Notre 
Dame  de  la  Conception  de  Villa-Vigosa,  Commander  of  the  Order  of  St. -Jacques 
de  I'Epee  of  Scientific,  Artistic  and  Literary  Merit,  Grand  Cross  of  the  Order  of 
Military  Merit  in  Spain,  and  Grand  Bibliotecaire ; 

His  Majesty  the  Emperor  of  China,  His  Highness  Ch'ing,  Prince  of  the  First 
Rank,  President  of  the  Ministry  for  Foreign  AflFairs,  Envoy  Extraordinary  and 
Minister  Plenipotentiary,  etc.,  etc.; 

Who,  having  exchanged  their  full  powers,  which  they  have  found  in  good 
and  due  form,  have  come  to  an  agreement  upon  the  following  articles : 

Article  L — The  Treaty  of  friendship  and  commerce  between  Portugal  and 
China,  dated  December  1,  1887,t  continues  to  be  in  force  with  the  alterations 
and  additions  resulting  from  the  present  Treaty. 

Article  H. — Portugal  accepts  the  increase  of  the  import  tariffs  stipulated 
by  Article  VI  of  the  Peking  Protocol  of  September  7,  1901 ;  ij:  and  from  the  time 
of  the  ratification  of  the  present  Treaty,  and  so  long  as  the  Treaty  of  friendship 
and  commerce  between  Portugal  and  China,  now  in  force,  shall  not  have  been 
revised,  Portugal  will  enjoy  the  treatment  of  the  most  favored  nation,  and  in  no 
case  will  there  be  required  from  Portuguese  subjects  duties  more  or  less  high 
than  those  which  may  be  required  from  the  subjects  of  any  nation  what- 
soever. 

This  article  annuls  Article  XII  of  the  Treaty  of  1887. 

Article  HI. — In  order  to  make  effectitve  the  cooperation  of  Portugal  for 
the  control  and  the  levying  of  duties  upon  opium  imported  into  Macao  and  ex- 
ported from  Macao  to  Chinese  ports,  there  will  be,  in  a  location  chosen  by  agree- 
ment between  the  Government  of  the  Colony  of  Macao  and  the  Administration  of 
the  Chinese  Imperial  Maritime  Customs,  a  branch  office  of  those  Customs. 

♦Translation  from  the  French  text  as  printed  in  Customs,  Vol.  II,  p.  303.     See  Note 
to  this  document,  post,  p.  371. 
t  See  Hertslct,  p.  423. 
t  No.  1901/3,  ante. 


NUMBER  1902/9:  OCTOBER  15,  1902:  NOTE  371 

Article  IV. — The  branch  office  will  control  the  entry  and  the  shipment  of 
opium  at  Macao,  and  will  collect  all  the  duties  due  to  China. 

Article  V. — This  branch  office  will  accord  to  all  vessels  sailing  from  Macao 
the  same  privileges,  and  will  apply  to  them  the  same  regulations,  as  if  this 
branch  office  were  a  Maritime  Customs  office  of  a  treaty  port. 

Article  VI. — Regulations,  established  by  agreement  between  the  two  High 
Contracting  Parties,  will  govern  the  working  of  this  branch  office  of  the  Chinese 
Imperial  Maritime  Customs,  in  such  manner  as  to  safeguard  the  legitimate 
interests  of  the  two  countries. 

Article  VII. — In  order  to  avoid  discussions  which  might  result,  this  Treaty 
will  be  written  in  three  languages — Portuguese,  Chinese  and  French — and  will 
be  signed  in  six  copies,  two  in  each  language. 

All  these  versions  have  exactly  the  same  sense ;  but  if  by  chance  doubts 
should  arise  as  to  the  interpretation  of  the  Portuguese  and  Chinese  versions,  the 
French  text  will  serve  for  the  decision  of  these  doubts. 

Article  VIII. — The  present  Treaty  will  be  ratified  by  His  Most  Faithful 
Majesty  the  King  of  Portugal  and  of  the  Algarves,  and  by  His  Majesty  the 
Emperor  of  China. §  Until  it  shall  have  been  ratified,  the  Treaty  of  1887  and 
the  annexed  Conventions  will  continue  in  force,  and  the  subjects  of  the  two 
countries  will  enjoy  the  rights  and  privileges  that  have  been  accorded  them  by 
the  said  Treaty. 

Article  IX. — After  the  exchange  of  ratifications,  which  will  take  place  as 
soon  as  possible,  the  present  Treaty  will  be  published  in  order  that  the  officials 
and  subjects  of  the  two  countries  may  take  note  of  its  stipulations  and  observe 
them.  In  faith  of  which,  the  plenipotentiaries  have  signed  the  present  Treaty 
and  have  affixed  their  seals  thereto. 

Done  at  Peking,  October  15,  1902. 

(Sgd.)         J.  d'Azevedo  Castello  Branco. 
(L.S.) 


Note. 

In  connection  with  this  convention  see,  in  special  reference  to  Articles  3-6,  the  Addi- 
tional Convention  regarding  the  establishment  of  a  Customs  House  at  Macao,  January  21, 
1903  (No.  1903/1,  post)  :  see  also  the  Sino-Portuguese  Treaty  of  commerce,  signed  Novem- 
ber 11,  1904,  but  never  ratified,  of  which  the  text  is  as  follows: 

(Unratified)   Treaty  of  Commerce  between  China  and  Portugal. — November  ii,  1904. 

"  Article  I. — The  Treaty  of  Amity  and  Commerce  between  China  and  Portugal,  dated 
the  1st  December,  1887  (17th  day,  10th  moon,  13th  year  of  Kuang-Hsii),  together  with  the 
Special  Opium  Convention  attached  thereto,  continues  in  force,  except  in  so  far  as  modi- 
fied by  the  present  Treaty. 

"  Article  II. — Portugal  accepts  the  increase  in  the  import  duties  stipulated  for  in 
Article  VI  of  the  Peking  Protocol  of  7th  September  1901.  Portugal  will  enjoy  the  privi- 
leges of  the  most  favoured  nation,  and  in  no  case  shall  Portuguese  subjects  pay  higher  or 
lower  duties  than  those  paid  by  the  subjects  of  any  other  foreign  nation. 

§  Ratified  by  China,  October  17,  1902. 


372  CHINA  TREATIES  AND  AGREEMENTS 

"  Article  XIII  of  the  Treaty  of  1st  December  1887  is  therefore  rendered  null  and  void. 

"Article  111. — The  Government  of  His  Most  Faithful  Majesty  agrees  to  continue  as 
heretofore  to  cooperate  with  the  Government  of  his  Imperial  Chinese  IMajesty  in  the  col- 
lection of  the  duty  and  likiii  on  opium  exported  from  Macao  to  China,  and  also  to  cooperate 
in  the  repression  of  smuggling  in  accordance  with  the  Treaty  and  Special  Opium  Convention 
of  1st  December  1887. 

"  In  order  to  render  this  cooperation  effective,  it  is  clearly  stipulated  that  all  opium 
imported  into  Macao  shall  on  arrival  be  registered  at  the  special  Portuguese  Government 
Bureau  provided  for  this  purpose,  and  the  Portuguese  Government  will  take  the  necessary 
steps  in  order  to  have  all  this  opium  stored  under  its  exclusive  control  in  one  Depot,  from 
which  it  will  be  removed  as  required  by  the  demands  of  trade. 

"  The  quantity  of  opium  required  for  consumption  in  the  territory  of  Macao  will  be 
fixed  annually  by  the  Government  of  Macao  in  agreement  with  the  Commissioner  of  the 
Imperial  Maritime  Customs  referred  to  in  Article  11  of  the  above-mentioned  Convention, 
and  under  no  pretext  will  removal  from  the  Portuguese  Government  Depot  be  permitted 
of  any  quantity  of  opium  for  local  consumption  in  excess  of  that  fixed  by  the  said  Agree- 
ment. 

"  Necessary  measures  will  be  taken  to  prevent  opium  removed  from  the  Depot  for  re- 
export to  any  port  other  than  a  port  in  China  being  sent  fraudulently  into  Chinese  territory. 

"  The  rules  for  the  carrying  out  of  this  Article  shall  be  arranged  by  the  two  High  Con- 
tracting Parties. 

"  The  Portuguese  Government  will  enact  without  delay  a  law  providing  penalties  for 
infraction  of  the  regulations  agreed  upon  between  the  two  High   Contracting  Parties. 

"  Article  IV. — Such  steps  as  are  necessary  for  the  repression  of  smuggling  in  the  ter- 
ritory and  waters  of  Macao  shall  be  taken  by  the  local  Portuguese  Government  in  concert 
with  the  Commissioner  of  the  Kung  Pei  Kuan  Customs,  and  similar  steps  in  the  Chinese 
territory  and  waters  near  iMacao  shall  be  taken  by  the  said  Commissioner  of  Customs  in 
concert  with  the  Government  of  Macao.  This  cooperation  is  intended  to  render  such 
steps  effective  on  all  points  in  respect  of  which  cooperation  is  needed  and  to  avoid  at  the 
same  time  any  injury  to  the  sovereign  rights  of  either  of  the  High  Contracting  Parties. 

"  Special  delegates  from  the  local  Government  of  Macao  and  the  Imperial  Maritime  Cus- 
toms shall  proceed  to  fix  the  respective  spheres  of  preventive  measures,  and  shall  devise  prac- 
tical means  for  the  repression  of  smuggling. 

"  Article  V. — With  a  view  to  the  development  of  steam  traffic  between  Macao  and 
neighbouring  ports  in  the  Kwangtung  province,  the  High  Contracting  Parties  have  agreed 
as  follows : — 

"  1.  Portuguese  steamers  desirous  of  conveying  goods  or  passengers  from  Macao  to  any 
of  the  Ports  of  Call  and  Passenger  Stages  on  the  West  River  enumerated  in  the  Special 
Article  of  the  Burmah  Convention  of  1897  and  in  Article  X  of  the  British  Treaty  of  Com- 
merce of  1902  shall  be  permitted  to  do  so,  provided  they  comply  with  the  special  regulations 
to  be  framed  for  this  purpose  by  the  two  High  Contracting  Parties. 

"2.  Steamers  specially  registered  for  traffic  under  the  Inland  Waters  Steam  Navigation 
Rules  shall  be  permitted  to  ply  between  jMacao  and  ports  in  the  department  of  Kwang- 
chow-fu,  other  than  those  mentioned  in  Section  1,  provided  they  report  to  the  Kung  Pei 
Kuan  Customs  for  examination  of  cargo  and  payment  of  duties  in  accordance  with  the 
special  regulations  to  be  framed  for  this  purpose  by  the  two  High  Contracting  Parties. 

"  3.  Such  vessels  may  engage  in  all  lawful  trade,  including  the  towing  of  junks  and  the 
conveyance  of  passengers  and  cargo,  subject  to  the  regulations  for  the  time  being  in  force. 

"  4.  The  privileges  hereby  granted  are  granted  on  the  express  understanding  that  special 
regulations  shall  be  framed  defining  in  detail  the  conditions  under  which  such  traffic  may  be 
carried  on.  Until  the  said  regulations  have  been  agreed  upon  and  published,  this  Article 
shall  not  become  operative,  and,  subsequently,  shall  remain  so  only  so  long  as  the  said  regula- 
tions are  complied  with. 

"  5.  The  Portuguese  Government  will  enact  without  delay  a  law  providing  penalties  for 
infraction  of  the  regulations  agreed  upon  between  the  two  High  Contracting  Parties. 

"  Article  VI. — Portugal  having  the  right  of  most  favoured  nation  treatment,  it  is 
clearly  stipulated  that  any  advantages  China  may  think  fit  to  grant  to  the  products  of  any 
other  nation  shall  be  extended  to  similar  goods  of  Portuguese  origin  on  exactly  the  same 
conditions. 

"  It  is  also  clearly  understood  that  Portuguese  wines  of  all  kinds,  proved  by  means  of 
Portuguese  certificates  of  origin,  vises  by  Portuguese  Consuls,  to  have  been  imported  directly 
or  indirectly  from  Portugal,  shall  when  their  alcoholic  strength  exceeds  14°  pay  the  duty 
leviable  according  to  the  annexed  Tariff  on  wines  exceeding  14°  of  alcoholic  strength. 
Wines  passed  through  the  Chinese  Customs  under  the  designation  *  Port  Wine '  shall  not 
be  entitled  to  the  benefit  of  this  Article  unless  accompanied  by  a  certificate  of  origin  as  above. 

"  Conversely,  Chinese  subjects  shall  enjoy  in  respect  of  their  imports  into  and  exports 
from  Portugal  all  privileges  and  immunities  granted  to  the  subjects  of  the  most  favoured 
nation. 

"  Article  VII. — Portuguese  subjects  may  frequent,  reside  at,  and  carry  on  trade,  in- 


NUMBER  1902/9:  OCTOBER  15,  1902:  XOTE  373 

dustries,  and  manufactures,  and  pursue  any  other  lawful  avocation  in  all  the  ports  and 
localities  in  China  wiiich  have  already  been  or  may  hereafter  be  opened  to  foreign  resi- 
dence and  trade ;  and  wherever  in  any  such  ports  or  localities  a  special  area  has  been  or 
may  hereafter  be  set  apart  for  the  use  and  occupation  of  foreigners,  Portuguese  subjects 
may  therein  lease  land,  erect  buildings,  and  in  all  respects  enjoy  the  same  privileges  and 
immunities  as  are  granted  to  subjects  of  the  most  favoured  nalion. 

"Article  Vlll. — Whereas  the  Chinese  Government  has  expressed  a  desire  that  the  pro- 
visions of  the  Portuguese  Civil  Law,  which  grants  Portuguese  nationality  to  sons  of  aliens 
born  in  Portuguese  territory,  should  be  modified  in  the  case  of  Chinese  born  in  the  territory 
of  Macao;  Portugal  agrees  to  take  this  matter  into  careful  consideration  as  soon  as  possible, 
and  to  regulate,  by  a  special  law  if  necessary,  the  conditions  under  which  Portuguese 
nationality  shall  be  granted  in   future  to  Chinese  born   in   Portuguese  territory. 

"  The  conditions  in  question  shall  be  so  framed  as  to  prevent  Chinese  to  whom  Portu- 
guese nationality  has  been  granted — 

"  1.  From  improperly  arrogating  to  themselves  privileges  which  are  reserved  for  Chinese 
subjects,  such  as  the  right  of  residence  for  purposes  of  trade  in  the  interior  or  at  ports  not 
open  to   foreign  trade;  and 

"  2.  From  entering,  while  residing  in  a  Treaty  port,  into  agreements  with  Chinese  while 
themselves  posing  as  Chinese  subjects,  and  afterwards  repudiating  their  responsibilities  by 
claiming  Portuguese  nationality  and  taking  advantage  of  such  Portuguese  laws  as  are  con- 
trary to  the  obligations  involved  in  the  said  agreements. 

"Article  IX. — Whereas  China,  with  the  object  of  reforming  its  fiscal  system,  pro- 
poses to  levy  a  surtax  in  addition  to  the  Tariff  duties  on  all  goods  passing  through  the 
Custom  Houses,  whether  maritime  or  inland  and  frontier,  in  order  to  make  good  the  loss 
incurred  by  the  complete  abolition  of  likin,  the  Portuguese  Government  agrees  that  foreign 
goods  imported  into  China  by  Portuguese  subjects  shall  on  entry  pay  an  import  surtax 
equivalent  to  one  and  a  half  times  the  duty  fixed  by  the  Import  Tariff  as  now  revised,  and 
that  Chinese  produce  exported  abroad  by  Portuguese  subjects  shall  pay  export  duties, 
inclusive  of  the  Tariff  export  duty,  not  exceeding  seven  and  a  half  per  cent  ad  valorem, 
provided  always  that  such  import  surtax  and  export  duties  have  been  accepted  by  all  the 
Powers  having  Treaties  with  China.  With  regard  to  the  production  tax,  consumption  tax, 
and  excise,  as  well  as  the  duties  on  native  opium  and  salt,  leviable  by  China,  Portugal 
further  agrees  to  accept  the  same  arrangeinent  as  shall  be  agreed  upon  between  all  the 
Treaty  Powers  and  China.  It  is,  however,  understood  that  the  commerce,  rights,  and  privi- 
leges of  Portugal  shall  not,  in  consequence  of  this  undertaking,  be  placed  in  any  way  at  a 
disadvantage  as  compared  with  the  commerce,  rights,  and  privileges  of  any  other   Power, 

"  Article  X. — Drawback  Certificates  for  the  return  of  duties  shall  be  issued  by  the 
Imperial  Maritime  Customs  to  Portuguese  subjects  within  twenty-one  days  from  the  date 
of  presentation  to  the  Customs  of  the  papers  entitling  the  applicant  to  receive  such  Draw- 
back Certificates. 

"  These  Certificates  will  be  accepted  at  their  face  value  by  the  Customs  authorities  at 
the  port  of  issue  in  payment  of  duties  of  all  kinds,  tonnage  dues  excepted;  or  shall,  in  the 
case  of  drawbacks  for  duty  paid  on  foreign  goods  re-exported  abroad  within  three  years 
from  the  date  of  importation,  be  redeemable  in  full  in  ready  money  by  the  Imperial  Mari- 
time Customs  at  the  port  of  issue,  at  the  option  of  the  holders  thereof. 

"  But  if,  in  connection  with  any  application  for  a  Drawback  Certificate,  the  Customs 
authorities  discover  an  attempt  on  the  part  of  a  Portuguese  subject  to  defraud  the  revenue, 
he  shall  be  liable  to  a  fine  not  exceeding  five  times  the  amount  of  the  duty  whereof  he 
attempted  to  defraud  the  Customs,  or  to  a  confiscation  of  the  goods.  In  case  the  goods 
have  been  removed  from  Chinese  territory,  then  the  Consul  shall  inflict  on  the  guilty 
party  a  suitable  fine  to  be  paid  to  the  Chinese  Government. 

"Article  XI. — China  agrees  to  herself  establish  a  system  of  uniform  national  coinage 
and  provide  for  a  uniform  national  currency  which  shall  be  freely  used  as  legal  tender 
in  payment  of  all  duties,  taxes,  and  other  obligations  by  Portuguese  subjects  as  well  as  by 
Chinese  subjects  in  the  Chinese  Empire.  It  is  understood,  however,  that  all  Customs  duties 
shall  continue  to  be  calculated  and  paid  on  the  basis  of  the  Haikwan  tael. 

"Article  XII. — The  Government  of  His  ^lost  Faithful  Majesty  agrees  to  the  pro- 
hibition by  the  Chinese  Government  of  the  importation  into  China  of  morphia  and  of 
instruments  for  its  injection,  on  condition,  however,  that  the  Chinese  Government  will  allow 
the  importation  of  morphia  and  of  instruments  for  its  injection  for  medical  purposes 
by  Portuguese  doctors,  chemists,  and  druggists,  on  payment  of  the  prescribed  duty  and 
under  special  permit  which  will  only  be  granted  to  an  intending  importer  upon  his  signing 
at  the  Portuguese  Consulate  a  suitable  bond  undertaking  not  to  sell  morphia  except  in 
small  quantities  and  on  receipt  of  a  requisition  signed  by  a  duly  qualified  foreign  medical 
practitioner. 

"  If  fraud  in  connection  with  such  importation  be  discovered  by  the  Customs  authorities, 
the  morphia  and  instruments  for  its  injection  will  be  seized  and  confiscated,  and  the  im- 
porter will  be  denied  the  right  to  import  these  articles  thereafter. 

"  Article  XIII. — The  Chinese  Government,  recognizing  that  it  is  advantageous  for  the 


374  CHINA  TREATIES  AND  AGREEMENTS 

country  to  develop  its  mineral  resources  and  that  it  is  desirable  to  attract  foreign  as  well  as 
Chinese  capital  to  embark  in  mining  enterprise,  agrees  to  revise  its  existing  mining  regula- 
tions in  such  manner,  by  the  selection  of  those  rules  in  force  in  other  nations  which  seem 
applicable  to  conditions  in  China,  that  the  revision,  while  promoting  the  interests  of  Chinese 
subjects  and  in  no  way  prejudicing  the  sovereign  rights  of  China,  will  offer  no  impediment 
to  the  employment  of  foreign  capital  nor  place  foreign  capitalists  at  a  greater  disadvantage 
than  they  would  be  under  generally  accepted  foreign  regulations,  and  will  permit  Portuguese 
subjects  to  carry  on  in  Chinese  territory  mining  operations  and  other  necessary  business 
relating  thereto,  provided  they  comply  with  the  new  regulations  and  conditions  which  will 
be  imposed  by  China  on  its  subjects  and  foreigners  alike,  relating  to  the  opening  of  mines, 
the  renting  of  mineral  land,  and  the  payment  of  royalty,  and  provided  they  apply  for  per- 
mits, the  provisions  of  which  in  regard  to  necessary  business  relating  to  such  operations  shall 
be  observed.  The  residence  of  Portuguese  subjects  in  connection  with  such  mining  opera- 
tions shall  be  subject  to  such  regulations  as  shall  be  agreed  upon  between  Portugal  and 
China. 

"Any  mining  concession  granted  after  the  publication  of  such  new  rules  shall  be  subject 
to  their  provisions. 

"  Article  XIV. — It  being  only  right  that  the  shareholders  of  any  Joint  Stock  Company 
or  the  partners  in  any  commercial  undertaking  should  all  be  on  a  footing  of  equality  as 
regards  division  of  profits  and  payment  of  obligations,  according  to  the  partnership  agree- 
ment or  memorandum  and  articles  of  association,  the  Chinese  Government  agrees  that 
Chinese  subjects  joining  with  Portuguese  subjects  in  the  organization  of  a  Portuguese 
Joint  Stock  Company  or  commercial  undertaking,  legally  constituted,  shall  be  liable  to  the 
fulfilment  of  the  obligations  imposed  by  the  said  agreement  or  memorandum  and  articles 
of  association,  and  that  Chinese  Courts  will  enforce  fulfilment  of  such  obligations  in 
accordance  with  Chinese  commercial  law,  if  a  suit  to  that  effect  be  entered,  provided  always 
that  their  liability  shall  not  be  other  or  greater  than  that  of  Portuguese  shareholders  or 
partners  in  the  same  company  or  partnership. 

"  Similarly,  Portuguese  subjects  who  invest  their  capital  in  Chinese  enterprises  shall  be 
bound  to  fulfil  the  obligations  imposed  by  the  partnership  agreement  or  memorandum  and 
articles  of  association,  and  the  Portuguese  Courts  will  enforce  fulfilment  of  such  obliga- 
tions in  accordance  with  Portuguese  commercial  law,  if  a  suit  to  that  effect  be  entered, 
provided  always  that  the  liability  of  such  Portuguese  subjects  shall  be  the  same  as  that  of 
the  Chinese  subjects  engaged  in  the  same  undertaking. 

"  But  as  existing  Treaty  stipulations  do  not  permit  foreign  merchants  to  reside  in  the 
interior  of  China  for  purposes  of  trade,  such  Joint  Stock  Companies  and  commercial  under- 
takings may  not  be  established  in  the  interior  by  Portuguese  and  Chinese  subjects  conjointly. 

"  Article  XV. — As  Portugal  affords  protection  to  trade  marks  used  by  subjects  of 
any  other  nationality  provided  a  like  protection  is  reciprocated  for  trade  marks  used  by 
Portuguese  subjects,  China,  in  order  to  obtain  this  protection  for  its  subjects  in  Portuguese 
territory,  agrees  to  grant  protection  to  Portuguese  trade  marks  against  unlawful  use, 
falsification,  or  imitation  by  Chinese  subjects.  To  this  end  the  Chinese  Government  will 
enact  the  necessary  laws  and  regulations,  and  will  establish  Registration  Offices  at  which 
foreign  trade  marks  may  be  registered  on  payment  of  reasonable  fees. 

'■  Further,  the  Chinese  Government  agrees  that,  as  soon  as  a  Patent  Office  has  been  estab- 
lished and  special  laws  with  regard  to  inventions  have  been  adopted,  it  will,  after  payment 
of  the  prescribed  fees,  issue  certificates,  valid  for  a  fixed  term  of  years,  to  Portuguese  in- 
ventors extending  to  their  inventions  the  same  protection  as  shall  be  given  to  Chinese  patents 
in  Portugal,  provided  that  such  inventions  do  not  infringe  on  previous  inventions  by  subjects 
of  China. 

"  Article  XVI. — The  Government  of  China  having  expressed  a  strong  desire  to  re- 
form its  judicial  system  and  to  bring-  it  into  accord  with  that  of  Western  nations,  Portugal 
agrees  to  give  every  assistance  to  such  reform,  and  will  also  be  prepared  to  relinquish 
extra-territorial  rights  when  satisfied  that  the  state  of  the  Chinese  laws,  the  arrangements 
for  their  administration,  and  other  considerations  warrant  it  in  so  doing. 

"  Article  XVII. — The  missionary  question  in  China  demands  in  the  opinion  of  the 
Chinese  Government  careful  consideration,  so  as  to  avert  in  the  future  the  troubles  which 
have  occurred  in  the  past.  Portugal,  as  a  nation  especially  interested  in  the  protection  of  its 
Catholic  missions  in  Chinese  territory,  agrees  to  join  in  a  Commission  to  investigate  this 
question,  and,  if  possible,  to  devise  means  for  securng  permanent  peace  between  converts 
and  non-converts,  should  such  a  commission  be  formed  by  China  and  the  Treaty  Powers 
interested. 

"  No  person,  whether  Portuguese  subject  or  Chinese  convert,  who,  according  to  the  tenets 
of  Christianity,  peaceably  teaches  or  practises  the  principles  of  that  religion,  which  aims 
at  teaching  men  to  do  good,  shall  be  persecuted  or  harassed  on  account  of  his  faith.  But 
converts  and  non-converts,  being  alike  subjects  of  China,  shall  conform  to  her  laws,  and 
shall  pay  due  respect  to  those  in  authority,  living  together  in  peace  and  amity ;  and  the 
fact  of  his  being  a  convert  shall  protect  no  one  from  the  consequences  of  any  offence  he 
may  have  committed  before  or  may  commit  after  his  admission  into  the  church  or  exempt 


NUMBER  1902/10:  OCTOBER  22,  1902  375 

him  from  paying  legal  taxes  levied  on  Chinese  subjects  generally,  except  taxes  and  con- 
tributions levied  for  the  support  of  religious  customs  and  practices  contrary  to  his  faith. 
Missionaries  shall  not  interfere  with  the  exercise  by  the  native  authorities  of  their  juris- 
diction over  Chinese  subjects,  nor  shall  the  native  authorities  make  any  distinction  between 
converts  and  non-converts,  but  shall  administer  the  law  without  partiality,  so  that  both 
classes  may  live  together  in  peace. 

"  Portuguese  missions  shall  be  permitted  to  rent  and  lease  in  perpetuity,  as  the  property 
of  the  mission,  buildings  or  lands  in  all  parts  of  the  Empire  foi  mission  purposes  and, 
after  the  title-deeds  have  been  found  in  order  and  duly  stamped  by  the  local  authorities,  to 
erect  such  suitable  buildings  as  may  be  required  for  carrying  on  their  good  work. 

"  Article  XVIII. — The  present  Treaty  shall  remain  in  force  for  a  period  of  ten  years 
beginning  with  the  date  of  the  exchange  of  ratifications  and  until  a  revision  is  effected  as 
hereinafter  provided. 

"  It  is  further  agreed  that  either  of  the  High  Contracting  Parties  may  demand  revision 
of  the  Tariff  and  the  Articles  of  this  Treaty  six  months  before  the  end  of  ten  years  from 
the  date  of  the  exchange  of  ratifications  thereof.  If  no  revision  is  demanded  before  the 
end  of  the  first  term  of  ten  years,  then  these  Articles  in  their  present  form  shall  remain  in 
full  force  for  a  further  term  of  ten  years  reckoned  from  the  end  of  the  first  term,  and  so  on 
for  successive  periods  of  ten  years. 

"  Article  XIX. — In  order  to  prevent  in  the  future  any  discussion,  this  Treaty  is  written 
in  Portuguese,  Chinese,  and  English,  and  signed  in  six  copies,  two  in  each  language. 

"  All  these  versions  have  the  same  sense  and  meaning,  but  if  there  should  happen  to  be 
any  divergence  in  the  interpretation  of  the  Portuguese  and  Chinese  versions,  the  English 
text  will  be  made  use  of  to  resolve  the  doubts  that  may  have  arisen. 

"Article  XX. — The  present  treaty  shall  be  ratified  by  His  Most  Faithful  Majesty  the 
King  of  Portugal  and  Algarves  and  His  Imperial  Majesty  the  Emperor  of  China. 

"  The  exchange  of  the  ratifications  shall  be  made  at  Peking  within  the  shortest  possible 
time,  and  the  Treaty  will  be  printed  and  published  in  order  that  the  functionaries  and 
subjects  of  the  respective  countries  may  have  full  knowledge  of  its  stipulations  and  may 
fulfil  them. 

"  In  faith  whereof  the  respective  Plenipotentiaries  have  signed  the  present  Treaty  and 
have  affixed  their  seals  thereto. 

"  (Sgd.)  Jose  d'Azevedo  Castello  Branco. 

"  (Sgd.)  Lu   Hai-huan. 

"  (Sgd.)  Sheng  Hsuan-huai." 


NUMBER  1902/10. 

DENMARK  (Great  Northern  Telegraph  Company,  Ltd.)  AND  CHINA. 
Agreement  concerning  the  Taku-Kiakhta  Telegraph  Line.'* — October  22,  1902. 

Inasmuch  as  the  Administration  has  constructed  at  great  expense  a  land- 
line  between  Peking  and  Mai-mai-chen,  and  inasmuch  as  the  purpose  of  joining 
the  cable  between  Shanghai  and  Taku  with  the  Administration's  land-line  between 
Taku  and  Mai-mai-chen  is  to  provide  an  efficient  route  for  telegraphic  corre- 
spondence exchanged  with  Russia  and  Europe  and  the  countries  beyond,  the 
following  stipulations  have  been  drawn  up  between  the  Administration  and  the 
Company,  and  signed,  on  the  date  mentioned  below,  by  the  Administration,  repre- 
sented by  the  Manager  and  the  Assistant  Manager  of  its  Head  Office  at  Shang- 
hai, Mr.  Chu-pau-fay  and  Mr.  Chow-wen-peng.  jointly,  and  by  the  Great  North- 
ern Telegraph  Company,  Ltd.   (i.e.,  la  Grande  Compagnie  des  Telegraphes  du 

*  Translation  from  the  French  text  as  printed  in  Recueil,  p.  637.  See  Note  to  this 
document,  post,  p.  379. 


376  CHINA  TREATIES  AND  AGREEMENTS 

Nord,  societe  anonyme),  of  Copenhagen,  represented  by  its  Manager  in  China, 
Mr.  I.  Berner,  the  two  parties  having  full  powers  to  that  effect. 

Article  I. — The  Administration  will  place  at  the  exclusive  disposal  of  the 
Company,  free  of  all  payment,  a  special  wire  of  its  line  between  Taku  and  Mai- 
mai-chen  or  Kiakhta,  with  intermediate  stations  at  Tientsin  and  Peking. 

If,  according  to  the  Administration's  and  the  Company's  judgment,  the 
amount  of  traffic  should  require  it,  the  Administration  is  bound  to  place  at  the 
disposal  of  the  Company,  on  the  conditions  provided  in  the  present  Arrangement 
for  the  above-mentioned  wire,  one  more  wire  of  the  same  line. 

The  wires  should  be  of  galvanized  iron,  and  in  conformity  with  the  con- 
ditions laid  down  in  the  service  regulations  of  the  International  Telegraph  Con- 
vention. 

The  Company  will  if  necessary  have  the  right  to  establish  at  Udde,  or  an- 
other station  intermediate  between  Peking  and  Kiakhta,  an  automatic  trans- 
former  (i.e.,  translation  automatique),  and  to  install  its  overseer  there. 

The  Administration  undertakes  to  maintain  in  good  order,  and  in  case 
of  interruption  to  repair  without  delay,  the  wire  placed  at  the  disposal  of  the 
Company. 

If  the  repairs  should  not  be  effected  owing  to  any  negligence  or  default 
of  the  x\dministration,  the  Company  has  the  right  to  make  representations  to 
the  Administration. 

If  these  representations  should  not  result  favorably  within  a  reasonable 
time,  the  Company  would  be  entitled  to  effect  the  necessary  repairs  itself 
at  the  cost  of  the  Administration. 

In  case  of  interruption  of  the  wire  placed  at  the  disposal  of  the  Company, 
while  the  Administration's  wires  on  the  same  poles  remain  in  good  order,  the 
Administration  will,  if  possible,  allow  the  Company  to  make  use  of  its 
wires  until  the  wire  placed  at  the  disposal  of  the  Company  shall  have  been 
repaired. 

On  the  other  hand,  in  case  of  interruption  of  the  Administration's  wires, 
while  the  wire  placed  at  the  disposal  of  the  Company  remains  in  good  order,  the 
latter  undertakes  to  transmit  by  its  wire  all  such  messages  as  may  be  handed  to  it 
by  the  Administration. 

The  Company  shall  have  no  direct  dealings  with  the  public ;  but  if  any 
other  company  or  foreign  administration  should  receive  that  privilege,  it  would 
also  be  granted  to  the  Great  Northern  Telegraph  Company. 

Article  II. — The  Administration  is  obliged  to  furnish  to  the  Company,  free 
of  charge,  at  its  stations  in  Tientsin,  Peking,  Mai-mai-chen  (or  Kiakhta)  and 
Taku  (if  the  line  is  also  operated  from  that  point),  two  rooms  devoted  to  the 
exclusive  use  of  the  Company,  separate  from  those  containing  the  Administra- 
tion's instruments,  and  will  pay  all  the  expenses  in  connection  with  the  working 
of  the  wire  placed  at  the  disposal  of  the  Company  by  the  Administration.  The 
Company,  on  its  part,  will  pay  the  European  staff  employed  at  the  aforenamed 
stations. 

The  Chinese  employed  for  the  working  of  the  wire  placed  at  the  disposal 
of  the  Company  will  be  engaged  and  paid  by  the  Company,  and  placed  under 


NUiMBER  1902/10:  OCTOBER  22,  1902  3/7 

the  control  of  the  agents  of  the  Company  at  the  respective  stations ;  the  Adminis- 
tration will  reimburse  the  Company  for  these  expenses. 

The  Administration  will  reimburse  the  Company  for  its  expenses,  under 
Articles  I  and  II,  at  the  end  of  each  European  calendar  month. 

Article  III. — The  Administration  will  hand  over  to  the  Company  at  the 
aforenamed  stations  all  international  telegrams  destined  to  be  transmitted  by 
way  of  Kiakhta  or  by  the  Taku-Shanghai  cable. 

The  Administration  will  also  hand  over  to  the  Company,  in  all  cities  in 
China  (including  Hongkong)  where  there  may  be  cables,  all  international  tele- 
grams destined  to  be  transmitted  by  the  cables  and  by  way  of  Kiakhta. 

The-  Company  will  have  the  right  to  send  by  the  land-lines  as  service  tele- 
grams, free  of  charge,  messages  in  connection  with  its  business. 

Article  IV. — The  wire  placed  at  the  disposal  of  the  Company  shall  never- 
theless be  considered  as  belonging  to  the  Administration,  and  this  stipulation 
cannot  be  abrogated  by  any  other  Convention  which  may  be  entered  into  by 
the  Administration  with  any  cable  company  or  administration  whatsoever. 

Article  V. — The  Company  has  the  right  to  install  its  controllers  at  the 
Chinese  control  stations  along  the  wire  placed  at  its  disposal.  The  controllers 
of  no  other  Administration  or  Company  are  to  be  admitted. 

Article  VI. — Should  it  be  desired  by  the  Russian  Telegraph  Administra- 
tion, the  working  of  the  wire  placed  at  the  disposal  of  the  Company  may  be 
connected  with  that  of  the  Russian  telegraphic  system  directly, — that  is,  without 
the  intermediation  of 'the  Chinese  Administration  in  the  transmission  of  tele- 
grams by  the  above-named  wire  to  the  Russian  system  and  vice  versa.  In  that 
case,  the  accounts  resulting  from  the  exchange  of  all  telegrams  transmitted  over 
the  above-mentioned  wire  by  way  of  Kiakhta  will  be  drawn  up  and  settled 
directly  between  the  Russian  Telegraph  Administration  and  the  Company ;  but 
the  Chinese  Administration  will  have  the  right  to  install  its  controllers,  of  Chi- 
nese or  Danish  nationality,  at  the  control  offices  of  the  Company  along  the  above- 
mentioned  wire  within  Chinese  territory.  The  controllers  of  no  other  adminis- 
tration or  company  are  to  be  admitted. 

Article  VII. — The  total  revenue  of  the  Administration  derived  from  termi- 
nal exchange,  over  the  wire  placed  at  the  disposal  of  the  Company,  of  all  tele- 
grams between  China  and  Russia,  is  to  be  shared  in  accordance  with  the  Joint 
Purse  Arrangement  of  May  1/13,  1897.t 

The  total  revenue  of  the  Administration  derived  from  the  terminal  exchange, 
over  the  same  wire,  of  all  telegrams  between  China  (excepting  Hongkong)  and 
Europe  (excepting  Russia)  and  countries  beyond  Europe  is  to  be  shared  in 
accordance  with  the  Joint  Purse  Agreement  of  June  29/July  11,  1896.$ 

The  total  revenue  of  the  Administration  derived  from  the  exchange  of  termi- 
nal telegrams  from  Russia  transiting  China,  whatever  be  the  route  followed  (in- 
cluding the  wire  above  mentioned),  and  the  total  revenue  of  the  Administration 
derived  from  the  exchange  of  all  other  telegraphic  traffic  (including  telegrams 
to  and  from  Hongkong)  transiting  China,  whatever  be  the  route  followed  (includ- 

tNo.  1897/3,  ante. 
t  No.  1896/3,  ante. 


378  CHINA  TREATIES  AND  AGREEMENTS 

ing  the  wire  above  mentioned),  is  to  be  shared  in  accordance  with  the  two  Ar- 
rangements cited  above. 

Article  VIII. — The  new  Hne  from  Shanghai  to  Chefoo,  Taku,  Peking  and 
Kiakhta,  being  intended  to  serve  as  an  alternative  route  to  that  of  Vladivostok, 
the  total  charges  will  so  far  as  possible  be  equalized  by  those  two  routes. 

Article  IX. — The  present  Arrangement  will  remain  in  force  until  Decem- 
ber 31,  1925,  but  the  Administration  has  the  right  to  extend  it  to  December  31st, 
1930,  in  which  case  the  Administration  should  give  notice,  at  least  two  years  in 
advance,  to  the  Minister  of  Russia  and  Denmark  at  Peking,  and  to  the  Company. 
It  is  understood  that  if  the  Arrangement  between  the  Administration  and  the 
Eastern  Extension,  Australasia  and  China  Telegraph  Company,  Ltd.,  dated 
October  22nd,  1902,  and  annexed  hereto,  should  be  extended,  the  present  Ar- 
rangement would  likewise,  with  the  consent  of  the  Government  of  Russia,  be 
extended  to  the  same  date. 

Article  X. — In  all  that  is  not  contemplated  by  the  present  Arrangement, 
the  provisions  remain  in  force  of :  ( 1 )  the  International  Telegraph  Convention 
and  the  Service  Regulations  pertaining  thereto,  and  (2)  the  Russo-Chinese  Tele- 
graph Convention  concluded  August  13/25,  1892,  and  the  Supplementary  Declara- 
tions §  pertaining  thereto. 

Article  XL — Notwithstanding  the  provisions  of  Articles  III  and  V,  the 
Administration  may  place  at  the  disposal  of  the  Eastern  Extension,  Australasia 
and  China  Telegraph  Company,  Ltd., — but  of  no  other  company  or  administra- 
tion— a  special  wire  of  its  line  between  Peking  and  Taku  for  the  transmission  of 
international  telegrams  directed  by  the  senders  for  transmission  by  the  tele- 
graph system  of  that  Company,  and  admit  its  controllers  as  provided  in  the 
above-mentioned  Arrangement  concluded  between  that  Company  and  the 
Administration. 

Article  XII. — The  present  Arrangement  is  to  be  ratified  by  the  Wai-wu  Pu 
and  by  the  Minister  of  Russia  and  of  Denmark  at  Peking. 

In  faith  of  which  the  undersigned,  duly  authorized  to  that  effect,  have  signed 
the  present  Arrangement. 

Done  at  Shanghai  in  the  Chinese,  French  and  English  languages.    Triplicate 
copies,  duly  compared  and  found  to  agree,  have  been  signed  in  each  of  these  three 
languages,  the  22nd  day  of  the  month  of  October,  1902,  corresponding  to  the 
21st  day  of  the  9th  moon  of  the  28th  year  of  the  Reign  of  Kuang  Hsii. 
For  the  Imperial  Telegraph  Administration  of  China : 
The  Manager  of  the  Head  Office  in  Shanghai, 

(Sgd.)  Chu  Pau-fay, 

The  Assistant  Manager  of  the  Head  Office  in  Shanghai, 

(Sgd.)  Chow  Wen-peng. 

For  the  Great  Northern  Telegraph  Company,  Ltd. : 
Its  Manager  in  China, 

(Sgd.)  I.  Berner. 

Seen  and  approved : 

The  Minister  of  Russia  and  Denmark, 
(L.S.)  Paul  Lessar. 

§  For  the  text  of  Supplementary  Declarations,  sec  No.  1902/11,  post. 


NUMBER  1902/10:  OCTOBER  22,  1902:  NOTE  379 


Note. 

The  text  of  an  Agreement  between  the  Eastern  Extension  Telegraph  Company  and 
the  Chinese  Telegraph  Administration,  of  the  same  date,  concerning  the  Taku-Peking  Line,  is 
given  in  Rccueil,  p.  646,  as  follows : 

Agreement  between  Eastern  Extension  Telegraph  Company  and  Chinese  Telegraph 
Administration  regarding  Taku-Peking  Line. — October  22,  1902. 

"  Whereas,  by  an  Agreement  dated  the  26  October  1900  and  made  between  the  Ad- 
ministration, of  the  one  part,  and  the  Great  Northern  Telegraph  Company  Limited,  of 
Copenhagen,  (hereinafter  called  'The  Great  Northern  Company'),  of  the  other  part,  the 
Administration  agreed  to  tend  to  the  Great  Northern  Company  a  wire  on  the  Adminis- 
tration's line  between  Ta-ku  and  Mai-ma-tchin  or  Kiachta,  and  to  hand  over  to  the  Great 
Northern  Company  at  the  stations  at  Tien-tsin  and  Peking  and  Mai-ma-tchin  or  Kiachta 
all  international  telegrams  intended  for  transmission  via  Kiachta  or  via  the  Ta-ku — Shang- 
hai cable ; 

"  and  whereas,  the  Administration  and  the  Great  Northern  Company  subsequently 
agreed  to  make  certain  modifications  in  the  said  Agreement,  it  has  been  replaced  by 
another  Agreement  (hereinafter  referred  to  as  Agreement  III)  made  between  the  said 
parties  on  the  twenty-second  October  1902,  which  will  be  submitted  for  confirmation  by 
the  Wai-wu-pu  simultaneously  with  this  Agreement ; 

"  and  whereas  it  has  been  arranged  for  the  Administration  to  place  at  the  disposal 
of  the  Eastern  Extension  Australasia  and  China  Telegraph  Company,  Limited,  a  wire 
on  their  line  between  Peking  and  Ta-ku  for  transmission  of  traffic  to  and  from  Peking 
and  Tien-tsin,  directed  via  the  Eastern  Extension  Australasia  and  China  Telegraph  Com- 
pany's system,  together  with  office  accommodation,  on  the  same  terms  and  conditions 
as  the  wire  and  office  accommodation  granted  to  the  Great  Northern  Company, 
the  following  stipulations  have  been  agreed  on  between  the  Administration  and  the  Com- 
pany, and,  under  date  below  given,  signed  by  the  Administration,  represented  by  the 
manager  and  the  assistant  manager  of  its.  head  office  at  Shang-hai,  jointly,  viz:  Mr. 
Chu-pau-fay  and  Mr.  Chow-wen-peng,  and  by  the  Eastern  Extension  Australasia  and  China 
Telegraph  Company,  Limited,  represented  by  Mr.  William  Bullard  both  parties  duly  fur- 
nished with  full  and  special  powers  for  this  purpose. 

"Article  L — The  Administration  will,  as  from  the  confirmation  of  this  Agreement, 
place  at  the  Company's  disposal,  free  of  all  payment,  a  special  wire  of  the  Administra- 
tion's landline  between  Ta-ku  and  Peking  with  an  intermediate  station  at  Tien-tsin.  If, 
according  to  the  Company's  and  the  Administration's  judgment  the  amount  of  traffic  should 
render  it  necessary,  the  Administration  undertakes  to  place  one  more  wire  at  the  disposal 
of  the  Company,  on  the  said  line,  on  the  same  conditions  as  stipulated  for  the  above 
mentioned  wire  by  the  present  Agreement.  These  wires  should  be  of  galvanized  iron, 
fulfilling  the  conditions  laid  down  in  the  service  regulations  of  the  International  Telegraph 
Convention. 

"  The  Administration  undertakes  to  maintan  in  good  working  order,  and  to  repair 
immediately  in  case  of  interruption,  the  wire  or  wires  placed  at  the  disposal  of  the  Company 
by  the  Administration. 

"If  the  repairs  should  not  be  effected  owing  to  any  negligence  or  default  of  the 
Administration,  the  Company  will  make  representations  to  the  Administration. 

"If  these  should  prove  of  no  avail  within  a  reasonable  time,  the  Company  shall  be  en- 
titled to  effect  the  repairs  themselves ;  and  charge  the  Administration  the  actual  cost. 

"  Should  the  wire  or  wires  placed  at  the  disposal  of  the  Company  by  the  Administra- 
tion be  interrupted  whilst  the  Administration's  wires  on  the  same  poles  are  in  working 
order,  the  Administration  will,  if  possible,  give  the  Company  the  use  of  such  wires  until 
the  wire  or  wires  placed  at  the  disposal  of  the  Company  by  the  Administration  shall  have 
been  repaired. 

"  Should  the  Administration's  wires  be  interrupted  whilst  the  wire  or  wires  placed  at 
the  disposal  of  the  Company  by  the  Administration  be  in  working  order,  the  Company  will 
transmit,  by  this  wire  or  wires  all  traffic  handed  to  them  by  the  Administration. 

"  The  Company  shall  have  no  direct  dealings  with  the  public.  If  however  such  privi- 
lege be  granted  to  any  other  foreign  company  or  administration,  it  shall  also  be  granted 
to  the  Eastern  Extension  Australasia  and  China  Telegraph  Company,  Limited. 

"  Article  II. — The  Administration  undertakes  to  furnish  the  Company  with  two  rooms 
for  office  accommodation  in  each  of  their  stations  at  Tien-tsin  and  Peking,  which  rooms 
shall  be  for  the  exclusive  use  of  the  Company,  and  separate  from  the  Administration's 
instrument  room,  and  to  pay  all  expenses  in  connection  with  the  working  of  the  wire  or 
wires  placed  at  the  disposal  of  the  Company  by  the  Administration. 

"  The  Company  shall  appoint  and  pay  the  European  staff  employed  at  the  aforenamed 
stations. 

"  The   Chinese  clerks  employed   for  the   working  of  the   wire  or   wires  placed  at  the 


380  CHINA  TREATIES  AND  AGREEMENTS 

disposal  of  the  Company  by  the  Administration  shall  be  selected  and  paid  by  the  Com- 
pany and  shall  be  under  the  complete  control  of  the  Company's  controllers  at  the  re- 
spective stations,  the  Administration  reimbursing  the  Company  their  expenses  in  this  con- 
nection. 

"  All  payments  due  to  the  Company  under  this  Article  I,  shall  be  made  by  the  Adminis- 
tration at  the  end  of  each  European  calendar  month. 

"  Article  III. — The  Administration  will  hand  to  the  Company  at  the  aforenamed 
stations  all  British  international  telegrams  which  may  be  directed  by  the  sender  via 
Eastern  Extension,  as  well  as  other  international  telegrams  so  directed. 

"  The  Administration  shall  likewise  hand  over  to  the  Company  in  all  towns  in  China 
where  there  may  be  cables,  (Hong-kong  included)  all  international  telegrams  which  are 
directed  by  the  sender  to  be  transmitted  by  the   Company's   system. 

"  The  Company  shall  have  the  right  to  send  as  service  telegrams  free  of  charge  over  the 
line  messages  in  connection  with  the  Company's  business. 

"  Article  IV. — The  wire  or  wires  placed  at  the  disposal  of  the  Company  by  the  Ad- 
ministration shall  be  considered  as  the  Administration's  wire  or  wires,  and  this  stipu- 
lation cannot  be  abrogated  by  any  other  Convention  which  may  be  entered  into  by  the 
Administration  with  any  submarine  cable  company  or  administration  whatsoever. 

"  Article  V. — The  Administration's  total  revenue  of  all  traffic  (except  Russian  termi- 
nal traffic  but  including  traffic  to  and  from  Hong-kong)  transiting  China,  whichever  be 
the  route  followed,  including  the  above  mentioned  wire  or  wires,  shall  be  carried  to  the 
joint  purse  account  of  the  Agreement  dated  eleventh  of  July  eighteen  hundred  and  ninety 
six,    and    shall    be    divided    accordingly. 

"  Article  VI. — The  Agreement  shall  continue  in  force  until  thirty  first  of  December 
nineteen'  hundred  and  twenty  five,  the  Administration  having  the  option  of  continuing 
the  same  unaltered  until  thirty  first  of  December  nineteen  hundred  and  thirty  by  giv- 
ing the  British  ^linister  at  Peking  at  least  two  years  previous  notice,  provided  always 
that  if  the  Agreement  made  between  the  Administration  and  the  Great  Northern  Tele- 
graph Company,  Limited,  of  Copenhagen,  dated  the  twenty-second  October,  1902,  and 
to  which  this  Agreement  is  annexed,  be  continued  this  Agreement  is  likewise  to  be  con- 
tinued to  the  same  date. 

"  Article  VII. — 'The  present  Agreement  shall  be  confirmed  at  Peking  by  the  British 
and    Chinese   Governments    within    six    months    of    this    date   of    signature. 

"  In  witness  whereof  the  undersigned,  duly  authorized  to  this  efi'ect,  have  signed  the 
present  Agreement, 

"  Done  at  Shang-hai  in  the  Chinese  language  and  in  the  English  language.  Three 
expeditions  duly  compared  and  found  to  be  in  agreement  have  been  signed  in  both  lan- 
guages on  the  twenty  second  day  of  the  month  of  October  nineten  hundred  and  two, 
corresponding  with  the  twenty  first  day  of  the  ninth  moon  of  the  twenty  eighth  year  of 
the  reign  of  Kwang-hsu. 

"  For  the  Imperial  Chinese  Telegraph  Administration — the  manager  of  its  head  office 
at  Shang-hai : 

"  (Signed)     Chu-pau-fay. 

"  The  assistant  manager  of  its  head  office  at  Shang-hai : 

"  (Signed)     Chow-wen-peng. 

"  For  the  Eastern  Extension  Australasia  and  China  Telegraph  Company,  Limited : 

"  (Signed)     William  Bullard." 

In  connection  with  these  agreements,  see  also  that  of  October  26,  1900  (No.  1900/6,  ante). 


NUMBER  1902/11:  NOVEMBER  27,  1902  381 

NUMBER  1902/11. 

RUSSIA  AND  CHINA. 

Supplementary  Declaration  in  regard  to  connections  betzveen  the  Russian  and 
Chinese  Telegraph  Lines* — November  27,  1902. 

The  Imperial  Government  of  Russia  and  the  Imperial  Government  of  China, 
having  found  it  advisable  to  prolong  the  term  of  the  Convention  concluded 
August  13/25,  1896  [sic:  should  be  1892? — Editor],  and  of  the  Supplementary 
Declarations  of  July  18/30,  1896,  and  August  25/September  6,  1897,  in  regard 
to  connections  between  the  Russian  and  Chinese  telegraph  lines,f  have  agreed 
upon  the  following. 

I. — The  Convention  and  the  two  Declarations  cited  above  remain  in  force 
during  the  whole  period  of  the  Arrangement  concluded  between  the  Imperial 
Telegraph  xA.dministration  of  China  and  the  Great  Northern  Telegraph  Company 
(i.e.,  Grande  Compagnie  Anonyme  des  Telegraphes  du  Nord)  of  Copenhagen,^ 
that  is,  until  December  21,  1925,  or  until  December  31,  1930,  in  case  that  Ar- 
rangement is  prolonged  to  that  date. 

II. — The  rates  established  by  the  Declaration  of  August  25/September  6, 
1897,  remain  for  the  present  without  change,  but  will  subsequently  be  modified 
by  an  understanding  between  the  two  Contracting  Parties  §  in  conformity  with 
the  provisions  which  will  be  drawn  up  by  the  International  Conference  which  is 
to  meet  at  London  in  1903. 

III. — The  terminal  charges  levied  in  Russia  and  in  China  for  telegrams 
exchanged  exclusively  between  the  two  countries  will  be  simultaneously  reduced, 
and  the  exact  amount  of  this  reduction  will  be  determined  by  the  two  Contract- 
ing Parties  after  the  London  Conference  of  1903. 

IV. — Should  it  be  desired  by  the  Russian  Telegraph  Administration,  the 
service  placed  at  the  disposal  of  the  Great  Danish  Company  may  be  connected 
with  that  of  the  Russian  telegraph  system  directly,  that  is,  without  the  intermedia- 
tion of  the  Chinese  Telegraph  Administration  in  the  transmission  of  telegrams 
over  the  above-mentioned  wire  to  the  Russian  Administration,  and  vice  versa. 
In  that  case,  the  accounts  incident  to  the  exchange  of  all  telegrams  transmitted 
over  the  above-mentioned  wire  by  way  of  Kiakhta  will  be  drawn  up  and  settled 
directly  between  the  Russian  Administration  and  the  Company ;  but  the  Chinese 
Administration  will  have  the  right  to  install  its  controllers  at  the  control  offices 
of  the  Company  along  the  above-mentioned  wire  in  Chinese  territory.  The 
controllers  of  no  other  Administration  or  Company  will  be  allowed  there.     It 

*  Translation  from  French  text  as  printed  in  Recueil,  p.  654. 

The  text  of  the  Convention  of  August  13/25,  1892,  to  which  this  declaration  is  a  sup- 
plement, is  not  available. 

t  See  Note  1  to  this  document,  post,  p.  382. 

t  See  Article  9  of  the  arrangement  of  October  9/22,  1902,  between  the  Chinese  Imperial 
Telegraph  Administration  and  the  Great  Northern  Telegraph  Company  (No.  1902/10,  ante). 

§  See  Note  2  to  this  document,  post,  p.  383. 


382  CHINA  TREATIES  AND  AGREEMENTS 

is  clearly  understood  that  the  provisions  of  the  Convention  of  August  13/25, 
1892,  and  of  the  two  Complementary  Declarations  of  July  18/30,  1896,  and  August 
25/September  6,  1897,  not  modified  by  the  present  Declaration,  remain  in  full 
force. 

Done  at  Peking  the  14/27  of  November,  1902,  and  according  to  the  Chinese 
calendar,  the  28th  day  of  the  10th  moon  of  the  28th  year  of  Kuang  Hsii. 
(L.  S.)  (Sgd.)  Paul  Lessar. 


Note  1. 

The  Supplementary  Declaration  of  July  18/30,  1896,  reads  (in  translation  from  the 
French  text  printed  in  Rccneil,  p.  181)  as  follows: 

Supplementary  Declaration  regarding  Russo-Chinese  Telegraph  Connections. — 

July  30,  1896. 

"  In  view  of  the  fact  that  the  provisions  contained  in  Article  IX  of  the  Convention 
concluded  August  13/25,  1892,  in  regard  to  the  connecting  of  the  Russian  and  Chinese  land 
telegraph  lines,  stipulate  for  the  settlement  of  accounts  and  the  levying  of  charges  at  a 
rate  for  silver  which  does  not  correspond  with  the  present  actual  value  of  silver,  and  for 
the  purpose  of  avoiding  the  inconveniences  thereby  caused  to  the  two  contracting  Govern- 
ments in  their  accounts  with  the  Telegraph  Administrations  of  other  Governments  for 
international  correspondence  exchanged  among  them,  the  Imperial  Government  of  Russia 
and  the  Imperial  Government  of  China  have  agreed  to  replace  the  provision  cited,  in  Article 
IX  of  the  Convention  referred  to  above,  by  the  following  provision : 

"'The  levying  of  the  rates,  fixed  by  Article  VII  of  the  present  Convention  in  gold 
francs,  as  also  the  mutual  accounting,  will  be  done  in  silver  money  in  accordance  with  the 
actual  rate  of  exchange  of  silver. 

"  '  To  that  end,  the  Russian  and  the  Chinese  Telegraph  Administrations  will  determine 
annually,  at  the  end  of  the  year  as  reckoned  by  the  European  calendar,  the  average  value 
of  the  Mexican  dollar  in  francs, — which  value  will  be  used  as  the  rate  of  exchange  during 
the  following  year  for  the  levy  of  charges  at  all  stations  of  the  Telegraph  Administration 
in  China  and  at  Hongkong,  as  also  for  the  settlement  of  accounts,  which  is  to  be  done  in 
Hong-ping  taels,  reckoning  100  Mexican  dollars  as  equivalent  to  70  Hong-ping  taels.' 

"  The  present  provision  will  come  into  force  as  from  July  20/ August  1,  1896. 

"  The  two  contracting  Governments  are  nevertheless  agreed  that,  until  the  coming  into 
force  of  the  rates  which  may  be  fixed  by  the  International  Conference  of  1896,  meeting  at 
Budapest,  the  rate  for  the  levy  of  charges,  as  well  as  for  the  settlement  of  accounts,  will 
be  fixed  in  the  following  manner :  francs  8.50  are  considered  as  equivalent  to  2.75  Mexican 
dollars. 

"  Peking,  July  18/30,  1896,  or  according  to  the  Chinese  calendar,  the  20th  day  of  the 
6th  moon  of  the  22nd  year  of  the  Reign  of  Kuang  Hsii. 

"  (L.  S.)  (Sgd.)    _        Count  C.'\ssini. 

"  (L.  S.  of  the  Tsung-li  Yamen.)  " 

The  following  is  a  translation  of  the  French  text  (as  printed  in  Rccucil,  p.  264)  of 
the  Supplementary  Declaration  of  August  25/September  6,  1897 : 

Supplementary  Declaration   regarding   Russo-Chinese  Telegraph    Connections. — Sep- 
tember 6,  1897. 

"  The  Imperial  Government  of  Russia  and  the  Imperial  Government  of  China,  having 
found  it  advisable  to  modify  certain  articles  of  the  Convention,  concluded  August  13/25, 
1892,  for  the  connecting  of  the  Russian  and  Chinese  land  telegraph  lines,  have  agreed  upon 
the  following: 

"  I. — The  provision  of  §3  of  Article  III  of  the  Convention  will  be  replaced  by  the 
following  provision: 

"  '  The  junction  at  Kiakhta  must  be  made  whenever  the  Chinese  Telegraph  Administra- 
tion has  completed  the  construction  of  the  line  between  Peking  and  Kiakhta,  but  in  any 
case  before  the  end  of  the  year  1898.  The  work  of  construction  upon  this  line  must  be 
begun  during  the  summer  of  the  year  1897,  and  must  be  finished,  between  Peking  and 
Kalgan,  before  the  end  of  the  same  year.' 

"  II.— The  first  part  of  Article  VI  of  the  Convention  will  be  cancelled  as  being  super- 
fluous, in  view  of  the  fact  that  the  amended  version  of  Article  VII  embraces  and  defines 


NUMBER  1902/11:  XOVEAIBER  11,  1902:  XOTES  383 

all  charges  payable  to  each  of  the  Contracting  Parties  for  the  transmission  of  all  telegrams 
over  their  lines  up  to  the  frontiers. 

"  III. — The  first  part  of  Article  VII  of  the  Convention,  as  far  as  the  words,  "  The 
general  charge  for  telegrams  exchanged  between  Europe  (excepting  Russia),"  etc.,  will  be 
replaced  by  the  following  provision  : 

"  'Russia  : 

"'A — Terminal  charges. —  (l)For  telegrams  exchanged  between  any  part  of  China,  and 
Hongkong,  on  the  one  hand,  and  Asiatic  Russia  east  of  the  meridian  of  Verkhneudinsk,  on 
the  other  hand, — francs  0.70  per  word;  (2)  for  telegrams  exchanged  between  any  part  of 
China,  and  Hongkong,  on  the  one  hand,  and  Asiatic  Russia  west  of  the  meridian  of 
Verkhneudinsk,  on  the  other  hand, — francs  1.00  per  word;  (3)  for  telegrams  exchanged 
between  any  part  of  China,  and  Hongkong,  on  the  one  hand,  and  European  Russia  (includ- 
ing the  Caucasus),  on  the  other  hand, — francs  1.50  per  word. 

'"  B — Transit  charges — (t)     For  all  telegrams,  francs  2.25  per  word. 

"'China: 

"'A — Terminal  charges. —  (1)  For  telegrams  exchanged  between  any  part  of  China,  and 
Hongkong,  on  the  one  hand,  and  any  part  of  Russia  (including  the  Caucasus  and  Asiatic 
Russia),  on  the  other  hand,  francs  1.50;  (2)  for  telegrams  exchanged  between  any  part 
of  China,  and  Hongkong,  on  the  one  hand,  and  Europe  (excepting  Russia)  and  countries 
situated  beyond,  on  the  other  hand, — francs  4.75;    (3)    for  all  other  telegrams,  francs  1.50. 

"'B — Transit  charges. —  (1)  For  telegrams  exchanged  between  Europe  (excepting 
Russia)  and  countries  beyond  Europe,  on  the  one  hand,  and  all  other  countries,  on  the 
other  hand,  francs  4.75;  (2)  for  all  other  telegrams,  including  those  exchanged  with 
European  Russia,  the  Caucasus  and  Asiatic  Russia, — francs  2.00. 

"'Of  the  francs  4.75  mentioned  above  (under  headings  A  and  B),  China  must  pay 
to  the  several  countries  of  Europe  rates  in  the  proportion  determined  by  the  International 
Telegraphic  Regulations  in  force,  and  by  the  tariffs. 

" '  The  charges  established  by  the  present  article  will  come  into  force  from  June 
19/July  1,  1897,  and  can  be  modified  only  by  agreement  between  the  two  Contracting  Parties. 
The  two  Governments  are  agreed,  however,  that  the  Chinese  charge  of  francs  1.50  men- 
tioned above,  under  heading  A,  1  and  3,  will  come  into  force  only  from  a  date  to  be  fixed 
hereafter  by  joint  agreement  among  the  two  Governments  and  the  Great  Northern  Tele- 
graph (Tompany  of  Copenhagen  ;  until  that  date,  the  Chinese  charge  for  the  telegrams  above 
mentioned  will  remain  at  francs  2.00.' 

"  IV. — The  provision  of  §2  of  Article  VIII  of  the  Convention  will  be  replaced  by  the 
following  provision : 

"'The  settlement  of  accounts  will  take  place  at  the  expiration  of  each  month,  and  the 
balance  will  be  paid  at  Shanghai  during  the  twenty-one  days  following  the  month  to  which 
the  balance  belongs.  The  payment  must  be  made  in  IMexican  dollars  at  the  rate  fixed  for 
♦  he  year  according  to  the  provisions  of  the  Supplementary  Declaration  of  July  18/30,  1896.' 

"  It  is  clearly  understood  that  the  provisions  of  the  Convention  of  August  13/25,  1892, 
and  of  the  Supplementary  Declaration  of  July  18/30,  1896,  not  modified  by  the  present 
Declaration,  remain  in  full  force. 

"  Peking,  August  25/September  6,  and  according  to  the  Chinese  calendar,  the  10th  day 
of  the  8th  moon  of  the  23rd  year  of  the  Reign  of  Kuang  Hsu. 

"  (L.  5".)  (Sgd.)  A.  Pavlow, 

Charge  d'Affaires  of  Russia. 
"  (L.  5".  of  the  Tsung-li  Yamen.)  " 


Note  2. 

The  understanding  thus  contemplated  was  embodied  in  the  Supplernentary  Declaration 
of  January  2/15th,  1905,  the  translation  of  which  (from  the  French  text  as  printed  in 
Recueil,  724)  is  as  follows : — 

Supplementary  Declaration  regarding  Russo-Chinese  Telegraph  Connections. — 

January  15,  1905. 

"  Inasmuch  as  the  provisions  of  Articles  II  and  III  of  the  Supplementary  Declaration 
of  November  14/27,  1902,  stipulate  that  the  rates  established  by  the  Declaration  of  August 
25/September  6,  1897,  are  to  be  modified  upon  an  understanding  between  the  two  Contract- 
ing Parties  in  conformity  with  the  provisions  which  will  be  drawn  up  by  the  London  Inter- 
national Conference  of  1903,  the  Imperial  Government  of  China  and  the  Imperial  Govern- 
ment of  Russia  have  agreed  upon  the  following: 

"I.— Article  VII  of  the  Telegraph  Convention  of  August  13/25,  1892,  and  Article  III 


384  CHINA  TREATIES  AND  AGREEMENTS 

of  the  Supplementary  Declaration  of  August  25/September  6,  1897,  will  be  replaced  by  the 
following  provision : 

"'Telegrams  exchanged  by  the  junctions  contemplated  by  Article  II  of  the  Convention 
of  August  13/25,  1892,  will  be  subject  to  the  following  charges: 

" '  Russia: 

"'A — Terminal  Charges. —  (1)  European  Russia,  francs  1.00  per  word;  (2)  Asiatic 
Russia,  francs  0.50  per  word. 

"'B — Transit  Charges. —  (1)  For  telegrams  exchanged  between  America,  on  the  one 
hand,  and  China  and  countries  beyond  China,  on  the  other  hand,  francs  2.25  per  word; 
(2)  for  telegrams  exchanged  with  Bokhara,  francs  1.50  per  word;  (3)  for  all  other  tele- 
grams, francs  1.75  per  word. 

'' '  China   (including  Hongkong)  : 

"'A — Terminal  Charges. —  (l)For  telegrams  exchanged  wiih  Europe  (excepting  Russia) 
and  countries  beyond  Europe  (excepting  America),  francs  3.75  per  word;  (2)  for  telegrams 
exchanged  with  America,  francs  4.75  per  word;  (3)  for  all  other  telegrams,  including  those 
exchanged  with  Russia,  francs  1.00  per  word. 

"'B — Transit  Charges. —  (1)  For  telegrams  exchanged  between  Europe  (excepting  Rus- 
sia) and  countries  beyond'' Europe  (excepting  America)  on  the  one  hand,  and  all  countries 
beyond  China,  on  the  other  hand,  francs  3.75  per  word ;  (2)  for  telegrams  exchanged 
between  America,  on  the  one  hand  and  all  countries  beyond  China,  on  the  other  hand, 
francs  4.75  per  word;  (3)  for  telegrams  exchanged  between  European  Russia  and  Japan, 
francs  2.00  per  word;   (4)   for  all  other  telegrams,  francs  1.50  per  word. 

"  '  Of  the  charges  mentioned  above,  under  the  headings  China,  A,  1  and  2,  and  B, 
1  and  2  (francs  3.75  and  francs  4.75,  respectively),  China  must  pay  the  quotas  due  to  the 
several  countries  of  Europe  in  conformity  with  the  International  Telegraph  Regulations  in 
force,  and  the  international  tariffs. 

" '  China  furthermore  undertakes  to  arrange  with  the  Great  Northern  Telegraph  Com- 
pany so  that  the  total  charge  per  word  for  telegrams  transiting  China  and  forwarded  by 
the  Russo-Chinese  junctions  shall  not  exceed  that  of  the  same  telegrams  going  by  way  of 
Vladivostok ;  to  that  end,  China  must  pay,  of  the  charges  mentioned  under  the  heading 
China,  B,  \,  2,  3  and  4,  as  the  case  may  be,  the  quotas  reserved  to  that  company  for  the 
cables  laid  between  Shanghai  and  Nagasaki,  and  between  Shanghai  and  Hongkong,  in  the 
proportions  fixed  by  a  mutual  understanding  between  China  and  the  Company. 

"  '  All  the  charges  mentioned  in  the  present  article  will  come  into  force  from  July  1, 
1904  (New  Style),  and  can  be  modified  only  by  mutual  agreement  by  the  contracting  parties. 
But  the  two  Governments  are  agreed  that  the  charges  indicated  above,  under  the  headings 
Russia,  B,  3  (namely,  francs  1.75),  and  China,  A,  1,  and  B,  1  (namely,  francs  3.75),  less 
the  portion  for  Europe,  arc  applicable,  so  far  as  concerns  telegrams  sent  by  the  wires  oper- 
ated by  the  Great  Northern  Telegraph  Company  on  the  Chinese  telegraph  line  from  Mai- 
mai-chen  to  Peking  and  Taku,  from  the  date  of  the  opening  of  that  line  to  traffic  for  tele- 
grams transiting  Russia." 

"  Article  II. — As  the  establishment  of  a  rate  of  exchange,  for  the  period  of  a  year, 
of  the  Mexican  dollar,  for  the  levy  of  charges  and  the  settlement  of  accounts,  involves 
great  disadvantages  in  view  of  the  frequent  fluctuations  in  the  price  of  silver.  Article  IX 
of  the  Convention  of  1892,  and  the  Supplementary  Declaration  of  1896,  are  replaced  by  the 
following  provision : 

"  '  The  levying  of  charges  at  all  the  stations  of  the  Telegraph  Administration  of  China 
(including  Hongkong),  in  accordance  with  the  tariffs  established  by  Article  VII  of  the 
Convention  of  August  13/25,  1892,  in  francs,  as  also  the  settlement  of  mutual  accounts,  will 
be  done  in  ^Mexican  dollars  in  conformity  with  the  actual  rate  of  exchange  for  the  con- 
version of  that  money  into  francs.  This  rate  of  exchange  will  be  established  by  mutual 
agreement  between  the  Telegraph  Administrations  of  the  Contracting  Governments,  during 
the  course  of  the  month  preceding  each  four-month  period  of  the  year,  on  the  basis  of 
the  average  rate  of  exchange  for  the  three  months  preceding  that  of  the  establishment  of 
the  rate.' 

"  It  is  clearly  understood  that  the  provisions  of  the  Convention  of  August  13/25,  1892, 
and  of  the  Supplementary  Declarations  of  July  18/30,  1896,  August  25/September  6,  1897, 
and  November  14/27,  1902,  not  modified  by  the  present  Declaration,  remain  in   full   force. 

"  Done  at  Peking,  the  10th  day  of  the  12th  moon  of  the  30th  year  of  the  Reign  of 
Kuang  Hsij,  and  according  to  the  Russian  calendar,  January  2,  1905. 

"  (L.  S.)  (Sgd.)  Paul  Lessar. 

"  (L.  S.)    of   the    Tsung-li    Yanien 

(Sgd.)  Prince  Ch'ing." 

This  arrangement  was  subsequently  modified  by  a  further  Supplementary  Declaration, 
under  date  of  December  22,  1905/January  4,  1906,  of  which  the  translation  (from  the 
French  text  printed  in  Recueil,  p.  763)   is  as  follows: 


NUMBER  1903/1 :  JANUARY  27,  1903  385 

Supplementary  Declaration  regarding  Russo-Chinese  Telegraph  Connections. — Janu- 
ary 4,  1906. 

"  In  consequence  of  the  assimilation  of  Bokhara  to  Asiatic  Russia  in  respect  to  tele- 
graph charges,  the  Imperial  Government  of  China  and  the  Imperial  Government  of 
Russia  have  agreed  to  modify  as  follows  the  Supplementary  Declaration  of  January 
2/15.1905: 

"'The  words,  for  telegrams  exchanged  -with  Bokhara, — francs  1.50  per  -word,  which 
appear  under  the  heading  Russia,  B,  2,  of  Article  I  of  the  Supplementary  Declaration  of 
January  2/15,  1905,  will  be  considered  as  struck  out  from  that  Declaration  as  from  June  1st 
of  the  European  calendar.' 

"  It  is  clearly  understood  that  all  other  provisions  of  the  Supplementary  Declaration 
of  January  2/15,  not  modified  by  the  present  Declaration,  remain  in   full   force. 

"  Done  at  Peking,  the  10th  day  of  the  12th  moon  of  the  31st  year  of  the  Reign  of 
Kuang  Hsii,  according  to  the  Chinese  calendar,  and  the  22nd  of  December,  1905  (January 
4,  1906)  •". 


NUMBER  1903/1. 

PORTUGAL  AND  CHINA. 

Additional  Convention  regarding  the  establishment  of  a  ciistouis  house  at 
Macao* — January  27 ,  1903. 

Since,  as  is  contemplated  in  Article  VI  of  the  Convention  of  1902  between 
Portugal  and  China,  there  is  occasion  to  draw  up  regulations  for  the  establish- 
ment of  a  Customs  House  in  Macao,  the  Inspector  General  of  Customs,  Sir 
Robert  Hart,  and  the  Charge  d'Affaires  of  Portugal,  Gabriel  de  Almeida  Santos, 
both  duly  authorized  and  furnished  with  the  necessary  instructions,  have  agreed 
upon  regulations,  in  eleven  articles,  drawn  up  as  follows : 

Article  I. — Buildings  situated  upon  the  inner  port  and  suitable  for  use  as 
offices  and  warehouse  for  the  Customs  will  be  placed  at  the  disposition  of  the 
Imperial  Customs. 

Article  II. — The  Customs  House  will  be  placed  under  the  control  of  a 
Commissioner  of  Imperial  Maritime  Customs. 

Article  III. — Vessels  or  commercial  junks  will  be  met  and  visited  on  arrival 
by  officers  of  the  Customs  House. 

Article  IV. — On  entering  and  on  sailing,  every  vessel  or  commercial  junk 
must  be  reported  at  the  Customs  House  before  crossing  certain  designated  limits 
of  the  port,  and  the  loading  and  unloading  of  cargo  can  only  take  place  at 
designated  places  and  under  the  supervision  of  the  Customs  House. 

A  special  anchorage  will  be  reserved  for  loaded  commercial  junks:  they 
will  not  leave  this  anchorage  until  after  having  received  a  permit  for  unloading 
or  for  departure,  delivered  by  the  Customs  House. 

Article  V. — No  merchandise  may  be  loaded  or  unloaded  except  upon  per- 
mission from  the  Customs  House  and  upon  payment  of  duties  in  accordance 
with  the  treaty  tariff. 

*  Translation  from  the  French  text  as  printed  in  Customs,  Vol.  II,  p.  307. 
In  connection  with  this  convention  see  also  the  supplementary  commercial  convention 
between  Portugal  and  China,  October  15,  1902  (No.  1902/9,  ante). 


386  CHINA  TREATIES  AND  AGREEMENTS 

Products  being  exported,  originating  in  Macao,  as  also  those  being  imported, 
of  foreign  origin  or  destined  for  the  sustenance  of  Macao  and  of  its  inhabitants, 
will  be  exempt  from  duty.  Any  product  of  foreign  origin,  exempted  from  duty 
upon  importation,  will  pay  duty  in  case  it  leaves  Macao  in  order  to  enter  China 
by  land  or  by  sea. 

Article  VI. — Opium  will  invariably  pay  duty  and  likin,  whether  upon 
entry  or  upon  being  taken  out  from  the  warehouse,  and  a  certificate  of  payment 
will  be  affixed  to  each  ball  of  opium,  whether  or  not  it  is  destined  for  despatch 
into  the  interior ;  but  the  duties  and  the  likin  levied  upon  the  quantities  of  opium 
fixed  annually  for  local  consumption  will  be  repaid  monthly  by  means  of  a 
drawback  certificate. 

Article  VII. — Boats  belonging  to  the  office  of  the  Captain  of  the  Port  of 
Macao  will  be  placed  at  the  disposal  of  the  Customs  House  for  the  service  of 
meeting  and  visiting  boats  or  junks  upon  arrival,  but  it  will  be  optional  for  the 
Customs  House  to  make  use  of  its  own  boats  in  order  to  meet  the  needs  of  the 
service. 

Article  VIII. — The  service  of  Maritime  Police  will  be  governed  in  accord- 
ance with  an  understanding  between  the  Imperial  Customs  and  the  Government 
of  the  Colony.  A  portion  of  the  cost  of  this  service  will  be  at  the  expense  of 
the  Customs  House,  and  the  amount  that  it  is  to  pay  is  to  be  determined  annually. 
For  the  purposes  of  control  of  the  Maritime  Service,  an  officer  of  the  Portuguese 
Navy,  delegated  by  the  Captain  of  the  Port,  will  be  attached  to  the  staff  of  the 
Imperial  Customs  House. 

Article  IX. — The  repressive  measures  to  be  adopted  against  smuggling  in 
the  waters  and  on  the  territory  of  Macao  will  be  taken  by  the  Government  of 
Macao  in  accord  with  the  Commissioner  of  Customs,  and  in  the  neighboring 
waters  and  Chinese  territory,  by  the  Customs  House  in  accord  with  the  Govern- 
ment of  Macao,  in  order  that  these  measures  may,  on  the  one  hand,  be  effective 
at  all  points  where  co-operation  is  necessary,  and  that,  on  the  other  hand,  they 
may  in  no  way  infringe  upon  the  sovereign  rights  of  one  or  the  other  party. 

Article  X. — So  soon  as  the  Imperial  Customs  House  is  established  in 
Macao,  the  Customs  stations  of  Ma-liu-chou  and  Ch'ien-shan  will  be  closed; 
but  the  posts  established  at  different  points  on  Chinese  waters  and  territory  for 
the  prevention  of  contraband  will  be  maintained  so  long  as  China  deems  neces- 
sary for  the  protection  of  its  revenue. 

Article  XI. — The  present  Convention  will  remain  in  force  as  long  as  the 
Treaty  of  1887 :  the  denunciation  of  the  Treaty  would  carry  with  it  that  of  this 
Convention.  Regulations  for  the  procedure  to  be  followed  in  Customs  matters 
in  Macao  will  be  drawn  up  by  agreement  between  the  Government  of  the  Colony 
and  the  Commissioner  of  Customs.  Those  regulations  will  be  experimental  and 
provisional,  and  may,  if  necessary,  be  modified  in  conformity  with  the  circum- 
stances and  with  a  view  to  facility  in  operation. 

In  faith  of  which,  the  present  agreement,  drawn  up  in  Portuguese,  Chinese 
and  French,  has  been  signed  in  duplicate  at  Peking,  the  twenty-seventh  day  of 
January,  1903.  (Sgd.)  Robert  Hart. 

(Sgd.)  Gabriel  de  Almeida  Santos. 


NUMBER  1903/2:  JULY  9,  1903  387 

NUMBER  1903/2. 

GREAT  BRITAIN    (British  and  Chinese  Corporation,  Ltd.)    AND   CHINA. 

Agreement  for  a   loan   for   the  construction  of  a  raihvay   from  Shanghai   to 

Nanking.''— July  9,  1903. 

This  agreement  is  made  the  15th  day  of  the  Intercalary  5th  month  of  the 
29th  year  of  Kwang-Hsii,  corresponding  to  the  9th  day  of  July  1903,  at  Shanghai, 
and  the  Contracting  Parties  are : 

The  Director-General  of  the  Imperial  Railway  Administration  Sheng  Kung- 
Pao  (to  be  called  hereafter  Director-General),  acting  under  authority  of  an  Impe- 
rial Decree,  of  the  one  part,  and  Messrs.  Jardine,  Matheson  &  Company,  and  the 
Hongkong  and  Shanghai  Banking  Corporation,  representing  as  Joint  Agents  the 
British  and  Chinese  Corporation  Limited  (hereinafter  called  the  Corporation), 
of  the  other  part. 

Whereas,  on  the  twenty-third  day  of  the  Intercalary  third  month  of  the 
twenty-fourth  year  of  Kwang-Hsu,  being  the  thirteenth  day  of  May  1898,  a 
preliminary  Agreement  f  was  signed  at  Shanghai  between  the  Director-General 
of  the  Chinese  Imperial  Railway  Administration,  Sheng,  acting  under  the  instruc- 
tions from  the  Tsungli  Yamen,  and  the  British  firm  of  Jardine,  Matheson  & 
Company,  for  themselves  and  on  behalf  of  the  Hongkong  and  Shanghai  Banking 
Corporation,  representing  as  Joints  Agents  a  British  Syndicate,  and 

Whereas,  on  the  12th  day  of  December  1902,  an  Imperial  Decree  was 
issued  in  the  following  terms :  "  In  view  of  the  important  considerations  con- 
nected with  construction  of  railways  in  various  parts  a  decree  has  already  been 
issued  apportioning  the  responsibility  for  the  duties  connected  therewith.  Here- 
after the  accounts  of  receipts  and  disbursements  are  to  be  prepared  by  Sheng 
Hsuan  Huai,  and  communicated  by  him  for  the  examination  of  the  High  Authori- 
ties of  the  Provinces  through  which  the  railways  pass,  and  subsequently  for 
submission  in  a  joint  memorial  to  the  Throne.  When  a  line  of  railway  has 
been  surveyed,  before  the  work  may  be  begun,  plans  and  specifications  must  be 
communicated  to  the  High  Authorities  above-mentioned,  who  will  depute  an 
official  to  ascertain  that  there  are  no  objections.  Should  Sheng  Hsuan  Huai 
enter  into  an  agreement  with  a  foreign  syndicate  he  must  before  signing  such 
agreement  obtain  the  assent  of  the  High  Provincial  Authorities,  and  a  copy  of 
such  agreement  must  be  submitted  to  the  Throne  in  a  joint  memorial  "  and 

Whereas,  on  further  consideration  it  has  been  found  necessary  to  make  cer- 
tain alteration  in  the  aforesaid  preliminary  agreement,  now  therefore  it  is  agreed 
that  this  final  Agreement  shall  be  substituted  for  the  preliminary  agreement  above 
referred  to. 

Article  1. — The  Corporation  agrees  to  issue  on  behalf  of  the  Railway  Ad- 
ministration, a  sterling  loan  (hereinafter  referred  to  as  the  loan)  for  an  amount 

*  Text  as  printed  in  Wang,  p.  221.     Printed  also  in  RockhiU,  p.  286. 
t  Note  1  to  this  document,  post,  p.  402. 


388  CHINA  TREATIES  AND  AGREEMENTS 

«ot  exceeding  £3,250,000  sterling  on  the  terms  and  conditions  hereinafter  con- 
tained. Imperial  Chinese  Government  bonds  are  to  be  issued  for  the  entire  sum, 
similar  to  the  bonds  of  the  Imperial  Railways  of  North  China,  with  the  Railway 
as  first  mortgage  security  therefor.  The  loan  shall  be  issued  in  two  or  more  parts, 
and  each  series  is  to  be  in  such  amount  as  the  Engineer-in-Chief  may  determine 
under  direction  of  the  Director-General  and  the  Corporation,  in  accordance  with 
the  extent  of  the  work  to  be  undertaken,  so  as  to  prevent  the  Chinese  Govern- 
ment from  suffering  undue  loss  of  Interest.  The  price  agreed  upon  for  the 
loan  is  90  per  cent,  of  the  nominal  value,  and  any  loss  or  profit  in  selling  these 
bonds  to  the  public  shall  be  borne  by  or  go  to  the  Corporation.  The  interest 
on  the  bonds  shall  be  at  the  rate  of  5  per  cent,  per  annum  on  their  nominal  value, 
and  be  payable  half-yearly. 

The  duration  of  the  loan  is  fixed  at  fifty  years,  commencing  from  the  date 
of  ratification  of  this  Agreement,  but  no  interest  will  be  paid  on  any  bonds  which 
may  be  redeemed  or  cancelled  under  the  terms  hereinafter  mentioned  after  the 
redemption  or  cancellation  thereof. 

On  the  face  of  each  of  these  bonds  shall  be  expressed  the  value  thereof 
in  the  sum  of  £100,  or  in  such  different  amounts  as  the  Chinese  Minister  in 
London  in  consultation  with  the  Corporation  may  sanction. 

If  any  of  the  bonds  or  net  profit  certificates  hereinafter  mentioned  are  lost 
or  destroyed  a  re-issue  of  any  thereof  is  to  be  made  in  the  amounts  respectively 
called  for  by  such  lost  or  destroyed  bonds  or  certificates  but  proper  proof  of 
the  loss  or  destruction  must  be  given  in  the  usual  form  to  the  Corporation  and 
the  Chinese  Minister  in  London  for  examination  and  record,  and  the  requisite 
guarantee  is  to  be  obtained  by  the  Corporation  from  the  respective  claimants 
concerned. 

Article  2. — The  proceeds  of  the  loan  are  to  be  used  in  the  construction  and 
equipment  of  the  railway,  and  in  paying  interest  on  the  loan  during  the  course 
of  construction. 

The  Corporation  shall  build  and  equip  as  economically  as  possible  in  accord- 
ance with  the  best  modern  system,  the  line  from  Shanghai  to  Nanking,  it  being 
hereby  agreed  that  the  Chinese  Administration  shall  secure  the  necessary  land 
for  a  double  line  of  railway  for  the  whole  distance,  as  well  as  other  facilities  for 
the  purposes  of  the  construction  and  working  of  the  line. 

When  the  line  is  completed  if  there  is  a  surplus  from  the  sale  of  bonds  the 
said  surplus  shall  be  at  the  disposal  of  the  Chinese  Government  for  redeeming 
the  bonds,  or  to  be  placed  through  the  Director-General  in  a  bank  on  deposit 
for  the  purpose  of  paying  interest  on  the  loan  or  for  developing  business  bene- 
ficial to  the  Shanghai-Nanking  Railway,  all  to  be  arranged  at  the  proper  time 
between  the  Director-General  and  the  Corporation.  Should  Chinese  themselves 
build  branch  lines  to  act  as  feeders  to  this  railway,  it  is  understood  that  the 
system  of  construction  and  equipment  thereof  shall  be  adopted  by  such  branch 
lines  in  order  to  facilitate  through  connection. 

In  all  matters  relating  to  the  construction  and  administration  of  the  Railway 
by  the  officials  of  the  British  and  Chinese  Corporation  it  is  expressly  agreed 
that  particular  heed  shall  be  paid  to  the  opinions,  habits,  and  ideas  of  the  Chinese 


NUMBER  1903/2:  JULY  9,  1903  389 

people  and  that  when  practicable  Chinese  shall  be  employed  as  far  as  possible 
by  the  Board  of  Commissioners  in  positions  of  trust  and  responsibility  in  connec- 
tion with  the  railway. 

In  regard  to  the  earthwork  or  such  other  work  as  Chinese  are  competent  to 
perform,  contracts  shall  be  entered  into  for  such  work  with  Chinese  under  the 
sanction  of  the  Director-General  or  his  deputy,  said  work  itself  to  be  in  accord- 
ance with  plans  and  specifications  of  the  Engineer-in-Chief  and  under  his  super- 
vision. 

In  the  further  and  final  survey,  detailed  plans  and  estimates  of  cost,  whether 
of  the  respective  sections  of  the  main  line  or  of  any  extensions,  branches,  or 
alterations  of  the  same,  are  to  be  submitted  to  the  Board  of  Commissioners  for 
the  approval  of  the  Director-General. 

Article  3. — The  loan  shall  be  secured  by  mortgage  now  entered  into  in 
equity,  and  shall  as  soon  as  possible  hereafter  be  secured  by  a  specific  and  legal 
first  mortgage  in  favor  of  the  Corporation  upon  the  railway  not  completed 
between  Woosung  and  Shanghai,  and  also  on  all  lands,  materials,  rolling-stock, 
buildings,  property,  and  premises  of  every  description  purchased  or  to  be  pur- 
chased by  the  railways  herein  referred  to,  and  on  the  last-mentioned  railways 
themselves  as  and  when  constructed  and  on  the  revenue  of  all  descriptions  deriv- 
able therefrom. 

The  provisions  of  this  article  in  respect  of  the  mortgage  are  to  be  construed 
and  treated  as  of  the  same  purport  and  effect  as  a  mortgage  customarily  executed 
and  delivered  in  England  to  a  trustee  for  the  purpose  of  securing  loans  and  bond 
issues  upon  railway  properties. 

Article  4. — According  to  Article  1  of  this  Agreement  it  is  provided  that 
the  loan  is  to  be  paid  in  instalments  from  time  to  time  as  the  work  proceeds. 
It  is  hereby  agreed  that  within  eight  months  after  this  Agreement  is  officially 
signed  and  ratified  the  Corporation  shall  pay  the  first  instalment  to  meet  the 
requirements  for  the  work,  whether  the  proceeds  come  from  the  sale  or  hypothe- 
cation of  the  bonds  or  from  advances  made,  provided  the  appropriate  series  of 
bonds  for  the  required  instalment  of  such  loan  shall  have  been  executed  and 
delivered.  If  after  the  expiration  of  twelve  months  from  the  date  of  the  ratifi- 
cation hereof  the  work  of  construction  shall  not  have  been  begun  on  the  main 
line,  this  Agreement  is  to  become  null  and  void. 

Of  the  proceeds  realised  from  the  sale  of  the  bonds,  after  deducting  so 
much  of  them  as  may  be  required  to  be  kept  in  England  for  the  purchase  of 
materials  and  payments  of  contracts  there,  such  amounts  as  may  be  estimated 
and  certified  to  by  the  Engineer-in-Chief  to  the  Board  of  Commissioners  here- 
after mentioned  as  being  actually  required  for  the  construction  of  any  particular 
section  of  the  main  line  shall  be  ordered  by  the  Board  of  Commissioners  after 
consideration  to  be  transferred  to  Shanghai  to  be  kept  in  the  Hongkong  and 
Shanghai  Bank,  or  such  bank  or  banks  as  may  be  mutually  agreed  upon,  and 
placed  to  the  credit  of  the  construction  account  of  the  Railway  Administration 
for  the  exclusive  purpose  of  building  such  section  or  sections  of  the  railway 
herein  provided  for  under  the  supervision  of  the  Board  of  Commissioners. 

On  such  occasion  of  a  remittance  being  made  to  China  the  amount  realised 


390  CHINA  TREATIES  AND  AGREEMENTS 

in  sycee  will  be  reported  to  the  Director-General,  and  any  portion  which  may  not 
be  required  shall  be  placed  at  interest.  Similarly  the  balance  in  England  shall 
be  placed  at  interest. 

The  accounts  of  the  money  spent  from  time  to  time  in  England,  and  of  the 
money  transferred  to  the  credit  of  the  construction  and  other  accounts  for  use 
in  China,  are  to  be  submitted  quarterly  to  the  Board  of  Commissioners  for 
examination  and  for  report  to  the  Director-General  for  the  information  of  the 
Wai-Wu-Pu,  and  for  his  further  report  to  the  Board  of  Revenue  and  the  Bureau 
of  Mines  for  record  therein,  after  such  accounts  have  been  approved  and  signed 
by  him. 

Article  5. — The  dates  of  the  bonds  mentioned  in  Article  1,  and  of  the 
certificates  mentioned  in  Article  12  of  this  Agreement  shall  be  of  even  date 
with  this  Agreement.  Interest  shall  begin  to  run  upon  the  bonds  only  from  the 
date  of  their  respective  sales  and  deliveries  to  the  public,  and  due  adjustment  of 
such  interest  will  then  be  made  with  respective  purchasers  for  any  fractional 
period  of  time  thereafter  covered  by  the  coupon  next  maturing.  For  the  purpose 
of  such  adjustment  the  then  correct  interest  may  be  reckoned  from  the  nearest 
first  or  fifteenth  day  of  the  month  in  which  the  sale  and  delivery  occur  as  the 
case  may  be. 

Coupons  which  have  theretofore  matured  are  to  be  cancelled  and  delivered 
to  the  Chinese  Minister  in  London  for  transmission  to  the  Railway  Admin- 
istration. 

As  to  the  form  of  bond,  it  is  to  be  agreed  upon  by  the  Director-General 
or  by  the  Chinese  Minister  in  London  and  the  British  and  Chinese  Corporation 
at  the  same  time  as  this  Agreement  is  signed,  but  if  hereafter  the  money  markets 
in  London  or  other  countries  require  the  modification  of  the  form  of  the  bond, 
except  in  any  thing  that  affects  the  amount  of  the  loan,  the  rate  of  interest,  the 
period  of  the  loan,  and  the  liability  of  the  Chinese  Government,  which  are  not 
to  be  touched  at  all,  such  slight  modifications  may  be  made  to  meet  the  views 
of  the  money  markets  by  the  Corporation  in  consultation  with  the  Chinese  Min- 
ister in  London. 

Any  modifications  are  to  be  reported  at  once  by  the  Corporation  to  the 
Director-General  for  the  approval  of  the  Wai-Wu-Pu. 

The  bonds  and  the  net  profit  certificates  referred  to  in  Article  12  are  to  be 
engraved  entirely  in  the  English  language,  and  shall  bear  the  fac-simile  of  the 
signature  of  the  Director-General  and  of  his  seal  of  office,  in  order  to  dispense 
with  the  necessity  of  signing  them  all  in  person.  But  the  Chinese  Minister 
in  London  is  to  sign  each  of  the  bonds  and  certificates  and  put  his  seal  thereon 
as  required,  as  a  proof  that  the  issue  and  sale  of  these  bonds  as  well  as  the  certifi- 
cates are  duly  authorized  and  binding  upon  the  Chinese  Government. 

Such  bonds  or  net  profit  certificates  are  to  be  numbered  consecutively,  and 
as  many  bonds  or  certificates  as  may  be  needed  are  to  be  properly  engraved 
under  the  supervision  of  the  Corporation. 

The  loan  bonds  herein  referred  to,  as  soon  as  they  are  engraved  and  signed 
and  sealed  by  the  Chinese  Minister  in  London  as  hereinbefore  provided,  are  to 
be  countersigned  by  the  Corporation. 


NUMBER  1903/2:  JULY  9,  1903  391 

The  Chinese  Minister  in  London  and  the  Corporation  are  to  agree  upon  the 
selection  of  a  proper  safe  deposit  in  London  to  keep  these  bonds,  subject  to  the 
needs  and  requirements  of  the  Corporation,  so  as  to  enable  it  during  the  progress 
of  the  Construction  to  sell  these  bonds  after  having  been  signed  and  sealed  by 
the  Chinese  Minister  in  London  in  separate  lots  from  time  to  time,  or  hypothe- 
cate the  same  in  order  to  raise  money  to  pay  for  the  construction  of  the  rail- 
way or  any  of  the  branch  lines  as  may  have  been  approved  by  the  Director- 
General. 

When  the  second  and  subsequent  issues  are  about  to  be  made,  if  the  Cor- 
poration receives  sufficient  notice  from  the  Director-General  that  subjects  of 
China  vi^ish  to  take  up  a  portion  of  the  issue,  the  necessary  amount  of  bonds 
will  be  set  aside  for  Chinese  subscribers,  to  whom  the  bonds  will  be  sold  at  the 
same  price,  and  on  the  same  conditions  as  those  sold  to  the  public  in  London. 
If  possible,  arrangements  will  be  made  for  issuing  these  bonds  and  paying  the 
interest  thereon,  in  China,  at  the  current  rate  of  the  day. 

The  amount  of  the  loan  is  fixed  at  £3,250,000  for  the  purpose  of  constructing 
and  equipping  the  main  line  of  the  Shanghai-Nanking  Railway,  in  accordance 
with  the  survey  and  estimates  of  the  Engineer-in-Chief  as  approved  by  the 
Director-General. 

The  first  issue  of  bonds  shall  be  made  in  London  in  such  amount  as  may 
seem  necessary  for  the  work  to  be  undertaken,  but  before  the  second  or  subsequent 
issues  are  made  the  Corporation  shall  give  sufficient  notice  to  the  Chinese  Minister 
in  London,  in  order  that  if  the  Chinese  Government  has  funds  at  its  disposal  at 
the  time  it  may  place  such  funds  to  the  credit  of  the  construction  account  of  the 
Chinese  Railway  Administration,  to  be  used  in  the  same  manner  as  the  proceeds 
of  the  loan,  and  in  that  event  the  total  amount  of  the  loan  of  £3,250,000  shall 
be  reduced  by  the  amount  thus  supplied  by  the  Chinese  Government. 

It  is  also  agreed  that  the  moderate  charge  for  the  safe  deposit  of  the  bonds 
is  to  be  paid  from  the  general  accounts  of  the  railway.  Beyond  this  all  expense 
for  the  engraving  and  the  sale  of  the  bonds  and  such  like  are  to  be  borne  by 
the  Corporation.  On  withdrawal  or  deliveries  of  bonds  the  Safe  Deposit  Com- 
pany shall  notify  the  Chinese  Minister  in  London. 

Article  6.$ — When  the  work  of  construction  is  ready  to  begin  the  Director- 
General  shall  appoint  a  Board  for  supervising  the  construction  and  operation  of 
the  railway,  to  be  called  the  Board  of  Commissioners,  whose  head  office  shall 
be  at  Shanghai.  The  members  thereof  shall  be  five,  of  whom  two  are  to  be 
Chinese,  one  to  be  appointed  by  the  Director-General  and  one  by  the  Director- 
General  in  consultation  with  the  High  Authorities  of  the  Province  through  which 
the  line  passes,  and  besides  the  Engineer-in-Chief  there  shall  be  two  British 
members  selected  and  appointed  by  the  Corporation.  The  salaries  of  these  five 
members  are  to  be  fixed  by  the  Director-General  and  the  Corporation,  and  to 
be  paid  from  the  general  accounts  of  the  railway.  The  regulations  for  the  guid- 
ance of  the  Board  of  Commissioners  shall  be  subsequently  drawn  up  by  the 
Director-General  in  consultation  with  the  Agent  of  the  British  and  Chinese 
Corporation.     In  case   of   disagreement  between   the  Chinese  and  the   British 

t  See  Note  2  to  this  document,  post,  p.  404. 


392  CHINA  TREATIES  AND  AGREEMENTS 

members  the  matter  shall  be  referred  to  the  Director-General  and  the  Agent  of 
the  Corporation  resident  in  China  for  adjustment  in  an  amicable  way. 

The  appointments  and  functions  of  all  the  employees  of  the  railway,  Chinese 
and  foreigners,  with  the  exception  of  the  Engineer-in-Chief,  who  shall  be  nom- 
inated by  the  Corporation  and  approved  by  the  Director-General,  as  well  as 
their  salaries,  including  those  of  the  officials  of  high  rank  referred  to  in  the 
following  paragraphs,  are  to  be  made  and  fixed  by  the  Board  of  Commissioners 
and  reported  to  the  Director-General.  In  the  case  of  important  appointments 
the  same  shall  be  first  reported  to  the  Director-General  by  the  Chinese  members 
of  the  Board. 

In  addition  to  the  Board  of  Commissioners,  the  Viceroy  (the  Superintendent 
of  Southern  Trade)  may  also  appoint  an  official  of  equal  rank  with  the  above- 
mentioned  two  Chinese  officials,  whose  duty  will  be  to  make  report  for  the  in- 
formation of  the  High  Provincial  Authorities  on  the  state  of  the  railway  ac- 
counts, the  progress  of  the  work,  and  the  management  of  the  railway.  To  this 
end  he  will  be  granted  every  facility  by  the  Board  of  Commissioners,  who  will 
always  give  him  access  to  the  records  of  the  head  office  at  Shanghai.  But  this 
official  shall  not  in  any  way  interfere  with  the  Board  in  the  performance  of  its 
duties.  The  salary  of  this  officer  shall  be  the  same  as  that  of  the  two  Chinese 
members  of  the  Board,  and  be  paid  out  of  the  railway  account. 

The  functions  of  the  Engineer-in-Chief,  who  will  at  all  times  give  courteous 
consideration  to  the  wishes  of  the  High  Provincial  Authorities  and  the  Director- 
General,  shall  be  limited  to  the  construction  and  operation  of  the  line,  and  the 
management  of  affairs  connected  with  the  railway.  No  foreigners  employed 
in  the  railway  shall  be  allowed  to  treat  Chinese  officials  with  disrespect,  or  inter- 
fere in  local  affairs,  or  usurp  the  authority  of  local  officials ;  and  should  any  such 
be  guilty  of  riotous  conduct,  or  of  wounding  and  maiming  Chinese,  the  same  shall 
be  dismissed  on  complaint  being  made  by  the  Director-General. 

As  the  progress  of  construction  reaches  any  particular  province  the  appoint- 
ment, under  the  Imperial  sanction,  of  a  Chinese  official  of  high  rank  shall  be 
made  in  such  province  by  the  Director-General  for  facilitating  the  settlement  of 
any  local  matter  with  the  Provincial  Government  concerned. 

For  the  service  of  the  railway  any  Chinese  of  official  rank  and  competent 
for  the  work  may  be  recommended  by  the  Board  of  Commissioners  to  the 
Director-General  for  employment,  under  the  formality  of  a  letter  of  appoint- 
ment. 

For  the  important  offices  of  the  railway  foreigners  of  ability  and  experience 
shall  be  employed.  In  the  engineering  and  traffic  departments  competent  Chinese 
may  also  be  employed  and  all  employees,  whether  Chinese  or  foreigners,  if 
incompetent  in  their  work  or  unsatisfactory  in  their  behaviour,  may  be  dismissed 
at  any  time  by  the  Board  of  Commissioners,  and  the  dismissal  shall  be  reported 
to  the  Director-General.  The  Chinese  and  British  members  of  the  Board  when 
ill  or  absent  may  be  represented  at  the  Board  by  available  substitutes.  In  the  case 
of  the  Chinese  members  the  substitutes  must  be  approved  by  the  Director-General, 
and  in  case  of  the  British  members  by  the  Corporation. 

When  deemed  necessary  a  school  for  the  education  of  Chinese  in  the  con- 


NUMBER  1903/2 :  JULY  9,  1903  393 

struction  and  working  of  railways  shall  be  undertaken  by  the  Board  of  Commis- 
sioners, subject  to  report  to  and  approval  by  the  Director-General. 

The  accounts  of  the  receipts  and  disbursements  of  the  railway  are  to  be 
kept  by  a  Chief  Accountant,  whose  records  and  books  are  at  all  times  open  to 
the  inspection  and  examination  of  the  Board  of  Commissioners.  All  the  accounts 
of  the  railway  construction  and  operation  are  to  be  kept  in  Shanghai  currency 
in  the  English  and  Chinese  languages,  with  the  combined  signature  of  a  Chinese 
and  British  official.  The  staff  of  the  Chief  Accountant's  department  shall  be 
composed  of  Chinese  and  foreigners,  who  must  be  satisfactory  and  reliable 
men. 

Article  7.§ — Under  the  provisions  of  Article  3  of  this  Agreement  the  prop- 
erties covered  by  the  first  mortgage  security  hereby  created  include  the  railway, 
its  property  and  equipment,  said  mortgage  to  be  executed  by  a  deed  in  the  usual 
form  as  contemplated  by  the  said  Article.  But  subject  to  the  guarantee  and 
mortgage  thus  given  by  the  Chinese  Government,  it  is  hereby  declared  that  this 
railway  is  in  fact  a  Chinese  property. 

All  the  lands  that  may  be  required  for  a  double  line  of  railway  from  Shanghai 
to  Nanking  and  for  the  double  track-sidings,  stations,  repairing  shops  and  car- 
sheds  to  be  provided  for  in  accordance  with  the  detailed  plans  now  made  or 
hereafter  to  be  made  by  the  Engineer-in-Chief,  and  approved  by  the  Director- 
General,  shall  be  acquired  by  the  Railway  Administration,  whether  in  whole  or 
in  part,  according  to  the  means  at  its  disposal  at  the  actual  cost  price  of  the  land. 
The  cost  of  such  land  is  not  to  exceed  £150,000. 

The  titles  to  the  land  for  the  line  and  of  all  other  lands  shall  be  free  from 
all  encumbrances  or  entanglements,  and  shall  from  time  to  time  as  soon  as  secured 
be  registered  in  the  name  of  the  railway. 

For  such  money  as  may  be  provided  by  the  Railway  Administration  for 
the  purchase  of  land  there  shall  be  allowed  yearly  interest  at  the  rate  of  6  per 
cent.,  to  be  paid  by  the  railway  after  the  fixed  charges  and  maintenance  and 
interest  of  5  per  cent,  on  the  bonds  shall  have  been  met. 

Notices  of  such  purchases  (together  with  corresponding  title-deeds)  are  to 
be  transmitted  by  the  Railway  Administration  under  the  direction  of  the  Director- 
General  to  the  local  agent  of  the  Corporation  for  record  and  preservation  in 
its  office  in  Shanghai,  and  for  the  purpose  of  establishing  the  first  mortgage 
security  (and  thereafter  for  the  return  to  the  Railway  Administration)  as  herein- 
after in  this  article  provided  in  respect  of  railway  lands  and  properties.  When 
the  term  of  this  Agreement  expires  all  the  title-deeds  shall  be  surrendered  and 
returned  to  the  Railway  Administration. 

The  amount  to  be  advanced  to  the  Chinese  Railway  Administration  for  any 
land  within  the  survey  limits  shall  altogether  not  exceed  the  sum  of  £150,000, 
for  which  yearly  interest  at  the  rate  of  6  per  cent,  shall  be  allowed  from  the 
receipts  of  the  railway.  It  is  understood  that  any  land  bought  by  the  Chinese 
Railway  Administration  with  their  own  money  outside  of  the  survey  limits, 
but  needed  for  future  requirements,  shall  be  on  the  Chinese  Administration's 
own  account,  and  no  interest  shall  be  allowed  on  the  price  thereof. 

§  See  Note  3  to  this  document,  post,  p.  408. 


394  CHINA  TREATIES  AND  AGREEMENTS 

It  is  further  agreed  that  if  the  British  and  Chinese  Corporation  is  called 
upon  to  provide  means  for  the  acquisition  of  the  lands,  whether  by  the  sale  of 
bonds  or  by  advances  from  other  sources,  the  Chinese  Government  guarantees 
to  procure  and  protect  all  the  lands  that  are  required  for  the  line  of  railway. 

All  lands  the  title-deeds  of  which  are  lodged  with  the  Corporation  as  part 
of  the  first  mortgage  security  of  the  loan  shall  not  be  disposed  of  in  any  way 
by  hire,  lease,  or  sale  to  any  party  for  any  purpose  whatever  without  the  written 
consent  of  the  Chinese  Administration. 

It  is  also  agreed  that  the  lands  thus  bought,  whether  from  Chinese  or  British 
advances,  shall  be  free  from  all  entanglements  arising  from  the  removal  of 
graves  or  from  prejudices  of  "  fengshui,"  and  shall  be  conveyed  by  full  and 
sufficient  deeds  of  assignment  according  to  Chinese  law,  all  of  which  are  to 
be  kept  and  recorded  in  the  Shanghai  office  of  the  British  and  Chinese  Corpora- 
tion, and  to  be  held  by  it  as  a  first  mortgage  security  for  the  bonds  under  the 
provisions  of  this  Agreement  until  such  time  as  principal  and  interest  of  the  bonds, 
together  with  all  indebtedness,  shall  have  been  paid  off,  when  the  same  shall 
then  be  returned  to  the  Chinese  Railway  Administration. 

For  the  proper  protection  of  the  first  mortgage  security  the  Chinese  Government 
undertakes  that  until  the  bonds  shall  have  been  redeemed,  and  the  net  profits 
on  the  net  profit  certificates  shall  have  been  paid,  no  part  of  the  lands  comprised 
in  the  mortgage  security  or  the  railway  with  its  appurtenances  shall  be  transferred 
or  given  to  another  party,  or  shall  be  injured,  or  that  the  rights  of  the  first  mort- 
gage shall  be  in  any  way  impaired. 

It  is  likewise  agreed  that  until  the  interest  and  principal  of  the  loan  and 
all  indebtedness  shall  have  been  paid  off,  or  unless  with  the  express  consent  in 
writing  of  the  Corporation,  the  Chinese  Government  or  the  Chinese  Railway 
Administration  shall  not  again  mortgage  the  above  properties  to  another  party, 
whether  Chinese  or  foreign. 

During  the  period  of  this  agreement  no  special  taxes  shall  be  levied  by  the 
Chinese  Government  on  the  railway,  its  appurtenances  or  earnings ;  but  all  taxes 
at  present  payable,  such  as  land  tax,  as  well  as  any  taxes  which  the  Chinese 
Government  may  hereafter  institute,  such  as  stamp  duty,  etc.,  and  which  may 
be  applicable  generally  to  all  commercial  transactions  in  China,  shall  also  apply 
in  the  case  of  the  railway  and  its  operations. 

The  first  expense  in  railway  construction  being  the  purchase  of  land  it  is 
agreed  that  as  soon  as  the  survey  is  made  the  Corporation  shall  advance  to  the 
Railway  Administration  sums  as  required  to  pay  for  the  land  purchased.  For 
such  advance  the  Woosung  railway,  with  all  its  property,  shall  be  given  as  first 
mortgage  security,  and  interest  at  the  rate  of  6  per  cent,  per  annum  shall  be 
allowed  until  the  first  portion  of  the  loan  has  been  floated,  when  such  advances 
shall  be  repaid  from  the  first  proceeds  of  the  loan. 

As  owing  to  the  unwillingness  of  owners  to  sever  their  land  it  may  become 
necessary  for  the  Railway  Administration  to  acquire  more  land  than  is  actually 
necessary  for  railway  purposes,  the  Railway  Administration  may  do  so  in  view 
of  future  requirements,  but  it  is  understood  that  any  land  bought  from  funds 
so  advanced,  out  of  the  survey  limits,  shall  be  on  the  Chinese  Administration's 


NUMBER  1903/2:  JULY  9,  1903  395 

own  account.  When  the  purchase  of  all  the  land  is  completed,  and  the  total 
amount  thus  expended  is  ascertained,  an  additional  issue  of  bonds  for  an  amount 
not  exceeding  £250,000,  including  the  £150,000  referred  to  in  this  article,  shall 
be  made  in  order  to  repay  the  sums  spent  in  the  purchase  of  land. 

Such  bonds  shall  be  similar  to  the  bonds  mentioned  in  Article  1  of  this 
Agreement,  and  shall  have  the  same  guarantee  and  same  mortgage  security  and 
same  treatment,  with,  however,  this  difference,  that  they  shall  be  redeemable 
at  par  at  any  time  on  giving  six  months'  notice,  and  that  the  rate  of  interest 
shall  be  6  per  cent,  per  annum.  The  interest  on  such  portions  of  this  loan  as  is 
applied  to  the  purchase  of  land  outside  of  the  Engineer-in-Chief's  survey  shall 
in  the  first  place  be  paid  ovit  of  the  Chinese  share  of  the  net  profits  of  the 
railway,  and  failing  this  then  out  of  the  earnings  of  the  railway. 

As  the  object  which  the  Railway  Administration  has  in  view  is  that  all 
railway  lands  should  be  Chinese  property,  the  additional  loan  of  £250.000  shall 
be  paid  off  as  soon  as  practicable.  Nevertheless,  although  such  bonds  may  be 
redeemed,  the  land  occupied  by  the  railway  within  the  survey  limits  shall  continue 
as  mortgage  security  under  the  terms  of  this  Agreement. 

Article  8. — It  is  agreed  that  if  the  half-yearly  interest  of  the  bonds  is  not 
paid  on  any  due  date  thereof,  or  if  the  principal  of  the  loan  remains  unpaid  at 
maturity  of  the  same,  the  whole  railway  with  all  its  appurtenances  herein  mort- 
gaged to  the  British  and  Chinese  Corporation  for  the  bondholders  shall  be 
handed  over  to  the  Corporation  to  be  dealt  with  by  it  according  to  law,  in  such 
manner  as  will  insure  the  proper  protection  of  the  interests  of  the  bondholders. 
When  the  whole  loan  and  the  interest  due  thereon  and  all  indebtedness  shall  have 
been  paid  off,  the  railway,  with  all  its  appurtenances,  in  good  working  condition 
shall  revert  to  the  possession  and  management  of  the  Chinese,  according  to  the 
provisions  of  this  Agreement. 

Article  9. — As  remuneration  for  superintendence  and  services  the  Corpora- 
tion shall  receive  5  per  cent.,  on  the  entire  cost  of  all  materials  purchased  for 
the  Railway. 

It  is  agreed  that  all  materials  required  for  the  railway  shall  be  purchased 
in  the  open  market  at  the  lowest  price  obtainable,  but  it  is  understood  that  all 
such  materials  shall  be  of  good  and  satisfactory  quality.  Invoice  and  inspector's 
certificates  are  to  be  submitted  to  the  Chinese  Administration. 

With  a  view  to  encouraging  Chinese  industries  Chinese  materials  are  to  be 
preferred,  as  also  the  products  of  the  Han-yang  Iron  Works,  provided  price  and 
quality  are  suitable. 

No  commission  will  be  allowed  to  the  Corporation  on  the  purchase  of  mate- 
rials except  as  herein  provided.  All  trade  discounts  or  rebates,  if  any,  are  to 
go  to  the  construction  account. 

Article  10. — In  the  construction  of  the  line,  in  the  working  of  the  railway, 
and  in  the  performance  of  the  different  kinds  of  business  connected  with  the 
railway,  no  interference  or  obstruction  by  Chinese  or  foreigners  wnll  be  permitted. 
The  Chinese  Government  will  provide  protection  for  the  line  while  in  construc- 
tion or  when  in  operation,  and  all  the  properties  of  the  railway,  the  combined 
enterprise  of  the  Chinese  Administration  and  British  and  Chinese  Corporation, 


396  CHINA  TREATIES  AND  AGREEMENTS 

as  well  as  all  foreigners  and  Chinese  employed  therein,  are  to  enjoy  the  utmost 
protection  from  the  local  officials,  civil  and  military,  in  the  provinces  through 
which  the  railway  passes,  particularly  on  occasions  of  local  disturbance  or  of 
obstruction  by  natives. 

The  Board  of  Commissioners  are  authorised  to  maintain  a  railway  police 
of  Chinese  with  Chinese  officers  for  the  protection  of  the  line.  Their  wages 
and  maintenance  are  to  be  wholly  defrayed  by  the  railway.  In  the  event  of 
the  railway  requiring  further  protection  by  the  military  forces  of  the  Imperial 
or  Provincial  Government  the  same  will  be  duly  applied  for  by  the  Director- 
General  and  promptly  afforded,  it  being  understood  that  such  military  forces, 
although  transported  free  by  the  railway,  are  to  be  maintained  at  the  expense  of 
the  Government  or  the  Provinces,  as  the  case  may  be. 

The  railway  police  may  not  interfere  with  matters  outside  the  railway. 

Article  11. — In  connection  with  the  railway  there  shall  be  established  and 
maintained  a  proper  signaling  service,  which  shall  include.. such  telephone  and 
telegraph  conveniences  as  may  be  found  necessary  to  use  along  the  line  of  the 
railway  and  its  branches  for  the  exclusive  purpose  of  regulating  the  movement 
of  trains  and  other  incidental  business  of  the  railway,  and  such  telephones  and 
telegraphs  shall  not  be  used  in  or  interfere  with  the  rights  and  privileges  of 
the  Telegraph  Administration. 

It  is  further  agreed  that  the  Corporation  may,  in  consultation  with  the 
Director-General,  also  establish  and  maintain  in  connection  with  such  railway 
or  its  branches  such  other  necessary  adjuncts  of  modern  railway  operation 
as  it  may  find  expedient  for  the  support  of  the  railway,  such  as  repair  and  manu- 
facturing shops,  docks,  steamers,  ferries,  storage  warehouses,  etc. 

Article  12. — It  is  agreed  that  after  deducting  from  the  income  of  the 
railway  the  working  and  other  expenses  as  described  below,  the  Corporation  shall 
receive  20  per  cent,  of  the  net  profits,  to  be  represented  by  and  in  form  of 
certificates  to  an  amount  equal  to  one-fifth  of  the  cost  of  the  line.  These  certifi- 
cates carrying  no  interest,  they  are  to  have  a  term  of  fifty  years  and  declared 
face  value  of  ilOO  each,  and  are  to  be  issued  to  the  Corporation  at  the  same  time 
as  the  loan  bonds,  and  in  amount  proportionate  to  the  respective  series  of  such 
bonds  to  the  amount  of  one-fifth  of  the  aggregate  thereof.  And  it  is  understood 
that  if  there  is  an  issue  of  the  loan  bonds  in  excess  of  the  requirements  of  the 
railway,  and  such  excess  is  retired  or  cancelled,  a  like  proportion  of  these  certifi- 
cates shall  likewise  be  subject  to  retirement. 

Before  the  expiration  of  the  term  of  fifty  years  the  Chinese  Administration 
shall  have  the  right  at  any  time  to  redeem  these  certificates  at  their  face  value. 
After  the  expiration  of  fifty  years  the  certificates  shall  be  null  and  void  and 
need  not  be  redeeemed,  but  if  any  net  profits  shall  have  accrued  on  such  certifi- 
cates prior  to  their  redemption  or  maturity,  said  accrued  net  profits  must  be 
paid  before  the  same  are  cancelled. 

The  Chinese  Railway  Administration  is  entitled  to  issue  and  receive  like 
net  profit  certificates  (to  be  in  form  appropriate  for  use  in  China  and  unlimited 
in  their  term,  as  also  without  redemption  features)  to  an  amount  equal  to  the 
remaining  four-fifths  of  the  loan.     These  Chinese  certificates  may  be  issued  in 


NUMBER  1903/2:  JULY  9,  1903  397 

whole  or  in  part  whenever  desired  by  the  Director-General,  but  the  net  profits 
will  be  retained  and  used  by  the  Railway  Administration  for  the  purpose  of 
accumulating  a  fund  to  be  derived  from  such  share  of  net  profits  as  may  accrue 
thereon  wherewith  to  pay  off  any  loan  bonds  which  may  from  time  to  time  be 
redeemed  under  the  provisions  of  this  Agreement,  or  for  generally  reducing  or 
ultimately  discharging  railway  loan  obligations  whenever  or  wherever  desirable 
by  means  of  the  profits  of  the  railway.  But  such  Chinese  certificates  may,  how- 
ever, be  used  in  part  by  the  Railway  Administration  if  necessary  in  payment  of 
lands  which-  are  essential  to  the  railway,  and  which  cannot  otherwise  be  con- 
veniently acquired  by  it. 

The  yearly  income  of  the  railway  shall  be  subject  to  a  deduction  of  all 
working  expenses,  cost  of  maintaining  and  repairing  the  railway,  renovating  or 
replenishment  of  engines  and  rolling-stock,  and  all  expenditure  connected  with 
the  business  of  the  railway,  and  subject  to  the  payment  of  interest  on  the  bonds 
at  5  per  cent,  per  annum  (and  of  interest  of  6  per  cent,  per  annum  on  the  cost 
of  the  land  provided  by  the  Chinese  Administration,  or  provided  by  an  advance 
from  the  British  and  Chinese  Corporation),  whatever  is  left  of  the  gross  income 
is  considered  to  be  net  profits,  of  which  one-fifth  is  to  be  given  to  the  Corpora- 
tion for  disposal  as  it  may  see  fit.  If  the  loan  bonds  shall  have  been  all  redeemed 
according  to  the  provisions  of  this  Agreement  before  the  net  profit  certificates 
issued  to  the  Corporation  have  been  redeemed,  or  shall  have  lapsed  by  effluxion 
of  time,  the  Corporation  shall  be  permitted  to  have  a  representative  in  the  railway 
office  (whose  salary  is  to  be  paid  by  the  Railway  Administration)  to  inspect  the 
accounts  of  the  railway. 

The  duties  of  this  officer  are  those  of  an  accountant  who  is  to  protect  the 
interests  of  the  foreign  holders  of  net  profit  certificates  until  such  time  as  these 
certificates  shall  have  all  been  redeemed  or  lapsed  by  effluxion  of  time,  when 
the  services  of  such  accountant  shall  be  dispensed  with. 

Article  13. — The  British  and  Chinese  Corporation  are  hereby  appointed 
trustees  for  the  bondholders  and  holders  of  net  profit  certificates,  and  in  any 
future  negotiations  respecting  these  loans  or  matters  arising  in  connection 
therewith,  which  may  take  place  between  the  Railway  Administration  and  the 
Corporation,  the  latter  Corporation  shall  be  taken  as  representing  the  bond- 
holders and  holders  of  the  net  profit  certificates,  and  as  empowered  to  act  on 
their  behalf. 

Article  14. — All  materials  of  any  kind  that  are  required  for  the  construc- 
tion of  the  main  line  or  branch  lines,  whether  imported  from  abroad  or  from 
the  provinces  to  the  scene  of  the  work,  shall  (following  the  precedent  of  the 
Northern  Railway)  be  exempted  from  Customs  duty  and  likin.  The  bonds  of 
this  loan  together  with  their  coupons,  the  net  profit  certificates  and  the  income 
of  the  railway,  shall  be  free  from  imposts  of  any  kind  by  the  Government  of 
China. 

As  to  the  likin  for  goods  or  passengers  which. may  be  transported  over  the 
lines  from  to  or  through  the  different  provinces,  the  Director-General  will  confer 
with  the  Government  Bureau  of  Mines  and  Railways  and  the  Board  of  Revenue 
with  a  view  to  devising  means  to  protect  the  traffic  of  the  railway,  and  those 


398  CHINA  TREATIES  AND  AGREEMENTS 

who  may  use  the  railway  for  the  transport  of  their  goods,  from  illegal  impositions 
and  other  abuses. 

If  the  arrangements  for  the  levy  of  likin  over  other  railway  lines  is  found 
to  be  more  advantageous  than  that  of  the  railways  mentioned  in  this  Agreement, 
the  same  advantages  shall  be  extended  to  and  enjoyed  by  the  Shanghai-Nanking 
Railway,  and  by  those  who  make  use  of  the  same. 

Article  15. — It  is  agreed  that  during  the  time  of  the  construction  of  the 
line  the  yearly  5  per  cent,  interest  on  the  bonds  and  6  per  cent,  interest  on  the 
amount  spent  in  the  purchase  of  the  land  are  to  be  paid  from  the  proceeds  of 
the  loan.  The  accruing  interest  from  any  proceeds  of  the  loan  not  used  during 
the  period  of  construction,  and  the  earnings  from  the  working  of  any  sections 
as  they  are  built,  are  to  be  used  to  make  up  the  amount  required  for  the  payment 
of  the  said  interest,  and  if  any  deficiency  remains  it  is  to  be  met  from  the  proceeds 
of  the  loan. 

When  the  construction  of  the  line  is  wholly  completed  the  interest  on 
the  bonds  and  on  moneys  spent  in  purchasing  the  land  are  to  be  paid  from  the 
earnings  of  the  line  every  half-year  on  the  first  day  of  June  and  first  day  of 
December. 

It  is  hereby  agreed  that  the  amount  required  for  the  payment  of  interest  and 
repayment  of  principal,  together  with  a  sum  of  one-quarter  of  1  per  cent,  on 
such  amounts  to  cover  commission  to  the  Hongkong  and  Shanghai  Banking  Cor- 
poration, who  are  hereby  appointed  agents  for  the  service  of  repaying  the  loan, 
shall  be  paid  to  them  in  Shanghai  fourteen  days  before  the  due  dates,  in 
Shanghai  sycee  sufficient  to  meet  such  payments  in  sterling  in  London, 
exchange  for  which  shall  be  settled  with  the  Hongkong  and  Shanghai  Banking 
Corporation  on  the  said  date  of  payment  at  the  rate  fixed  at  the  time  of 
settlement. 

The  Chinese  Government  undertakes  and  hereby  promises  to  pay  the  principal 
of  the  loans  and  the  interest  on  the  loans  on  the  due  date  fixed  therefor.  If  at 
any  time  the  earnings  of  the  railway  and  proceeds  of  the  loan  are  not  sufficient 
to  pay  the  interest  of  the  bonds  the  Railway  Administration  is  to  devise  means 
for  supplying  the  deficiency ;  and  should  its  inability  to  do  so  appear  probable 
the  Director-General  will  memorialize  the  Government  to  take  measures  to  make 
up  the  deficiency  from  other  sources,  and  thus  be  ready  to  pay  off  the  indebted- 
ness, so  that  the  required  amount  may  be  placed  in  each  case  at  least  fourteen 
days  previous  to  the  due  date  of  such  interest  in  the  hands  of  the  Hongkong  and 
Shanghai  Banking  Corporation  in  Shanghai. 

Article  16. — In  places  along  the  line  of  railway  where  the  Hongkong  and 
Shanghai  Banking  Corporation  has  no  agencies,  and  where  it  does  not  intend 
to  establish  any  agencies,  business  relations  are  to  be  cultivated  with  the  Chinese 
Imperial  Bank  and  its  local  agencies,  it  being  the  intention  of  the  British  and 
Chinese  Corporation  to  utilise  the  Imperial  Bank  as  much  as  practicable  for 
facilitating  the  movement  of  funds. 

Article  17. — The  Corporation  may,  subject  to  all  its  obligations,  transfer 
or  delegate  all  or  any  of  its  rights,  powers,  and  discretions  to  their  successors 


NUMBER  1903/2:  JULY  9,  1903  399 

or  assigns,  but  the  Corporation,  which  is  a  Corporation  formed  under  English 
law,  shall  not  transfer  its  rights  under  this  Agreement  or  the  management  of 
the  railway  to  other  nations  or  people  of  any  nationality  except  British  or 
Chinese.  Similarly  the  Railway  Administration  shall  not  transfer  any  of  its 
rights  under  this  Agreement  to  persons  of  other  nationality. 

It  is  further  agreed  that  without  the  express  consent  in  writing  of  the 
Director-General  and  the  British  and  Chinese  Corporation  no  other  rival  railway 
detrimental  to  the  business  of  the  same  is  to  be  permitted,  and  no  parallel  line 
to  the  Shanghai-Nanking  Railway  is  to  be  allowed  to  the  injury  of  the  latter's 
interest  within  the  area  served  by  the  Shanghai-Nanking  main  line  or  branch 
lines. 

Article  18. — If  on  account  of  contingencies  beyond  the  control  of  the 
Corporation,  such  as  war  or  very  great  political  changes  in  China  or  elsewhere, 
occurring  before  the  publication  of  the  prospectus  of  the  issue  of  an  important 
series  of  bonds  of  the  loan  hereby  concerned,  the  foreign  money  markets  are 
affected,  or  the  construction  of  the  railway  is  so  obstructed  that  work  cannot 
be  carried  on,  the  Corporation  will  be  allowed  a  reasonable  extension  of  time  for 
floating  such  loan  or  the  bond  issues  thereof,  or  for  the  commencement  or  com- 
pletion of  the  construction  of  the  railway.  But  if  bonds  have  already  been  issued 
and  interest  already  become  payable  thereon,  then  the  work  cannot  be  suspended 
or  postponed  unless  subject  to  the  exceptions  mentioned  in  the  preceding  para- 
graphs. 

When  the  Agreement  has  been  ratified  the  work  shall  be  begun  as  soon 
as  possible,  and  if  the  Chinese  Railway  Administration  desire,  each  section 
will  be  pushed  on  as  rapidly  as  practicable.  From  the  date  of  ratification  a 
limit  of  five  years  shall  be  allowed  for  the  completion  of  the  whole  line,  subject 
to  the  preceding  exceptions  mentioned  in  this  Article,  and  if  this  period  is  ex- 
ceeded, unless  with  the  consent  of  the  Chinese  Administration,  the  Corporation 
shall  forfeit  its  one-fifth  share  of  net  profits  already  earned  during  the  previous 
five  years,  and  shall  not  begin  to  participate  in  such  net  profits  until  the  line  has 
been  completed. 

Article  19. — In  the  working  of  the  railway  the  tariff  for  fares  and  freights 
is  to  be  prepared  by  the  General  Traffic  Manager,  and  submitted  to  the  Board 
of  Commissioners,  who  shall,  after  due  consideration  of  existing  tariffs  of  other 
railways  in  China,  approve  an  economical  rate. 

The  General  Traffic  Manager  is  likewise  authorized  to  make  arrangements, 
subject  to  the  approval  of  the  Board  of  Commissioners,  with  connecting  railways 
of  other  companies  for  through  rates  of  fare  and  freight. 

In  case  of  military  operations,  whether  on  account  of  foreign  war  or  internal 
insurrection,  the  movement  of  troops,  ammunition,  and  stores  by  the  Chinese 
Government,  and  in  case  of  famine  or  other  great  public  calamity  the  dispatch 
of  relief,  shall,  on  the  requisition  of  the  Director-General,  have  preference  over 
the  line  at  half  of  the  tariff  rates. 

Nothing  to  the  injury  of  China  shall  be  allowed  to  be  carried  over  the  line, 
neither  shall  the  line  be  used  to  the  detriment  of  China. 


400  CHINA  TREATIES  AND  AGREEMENTS 

Article  20. — In  the  Preliminary  Agreement,  dated  13th  May,  1898  (23rd 
day  of  intercalary  third  month  of  the  twenty-fourth  year  of  Kwang-Hsii),  it  is 
stipulated  that  the  Railway  Administration  has  the  right  to  redeem  the  loan  at 
102%  per  cent,  after  twelve  and  a  half  years,  and  at  par  after  twenty-five  years. 
It  is  now  agreed  that  if  at  any  time  after  the  laose  of  twelve  and  a  half  years 
from  the  date  of  the  issue  of  the  bonds  the  Chinese  Railwav  Administration  re- 
ceives instructions  from  the  Chinese  Government  to  cancel  any  of  the  bonds  or 
any  of  the  net  profit  certificates,  the  Director-General  shall,  not  less  than  six 
months  previous  to  the  proposed  redemption,  notify  in  writing  the  Agent  of  the 
Corporation  in  Shanghai  declaring  the  number  of  bonds  or  the  number  of  net 
profit  certificates  so  required  to  be  redeemed  and  cancelled. 

The  Agent  of  the  Corporation  shall  immediately  on  the  receipt  of  such 
notice  in  writing,  proceed  to  make  arrangements  for  the  desired  redemption  by 
drawing  lots,  and  taking  other  proper  steps  in  the  way  customary  in  London, 
of  the  number  of  bonds  or  net  profit  certificates  in  such  quantity  as  may  be 
required.  And  as  soon  as  the  Railway  Administration,  under  instructions  from 
the  Chinese  Government,  shall  remit  the  proper  amount  according  to  the  redemp- 
tion price  of  the  bonds  or  the  redemption  price  of  the  net  profit  certificates, 
together  with  the  interest  due  on  the  bonds,  or  the  net  profits  due  on  the  certifi- 
cates, a  notice  shall  be  published  in  two  of  the  most  prominent  papers  in  London, 
and  in  such  other  financial  centres  as  may  be  agreed  upon  with  the  Chinese 
Minister  for  four  weeks.  At  the  expi/ation  of  the  four  weeks,  and  on  the  day 
fixed  for  the  redemption,  the  Corporation  shall  cause  the  usual  lots  to  be  drawn 
for  the  redemption  of  the  bonds  or  certificates,  and  shall  pay  over  the  respective 
prices  of  the  same  to  their  respective  holders,  and  shall  thus  redeem  the  bonds 
or  net  profit  certificates  and  cancel  them,  and  thereupon  the  same  are  to  be  deliv- 
ered to  the  Director-General,  or  the  Chinese  Minister  in  London,  for  return  to 
the  Director-General. 

All  the  loan  bonds,  and  the  net.  profit  certificates  shall  express  that  they 
are  redeemable  at  any  time  on  the  conditions  mentioned  in  the  preceding  para- 
graph, and  shall  state  that  the  payment  of  any  interest  for  the  bonds,  and  the 
participation  of  any  of  the  net  profits  by  the  certificates  so  drawn  by  lot,  entirely 
cease  from  the  date  mentioned  by  the  published  notice  of  the  Corporation.  The 
amount  required  for  the  redemption  shall,  however,  have  to  be  got  ready  and 
placed  in  the  hands  of  the  Hongkong  and  Shanghai  Banking  Corporation  before 
such  redemption  is  carried  out. 

The  loan  bonds,  if  redeemed  before  twenty-five  years  from  the  date  they 
were  originally  issued,  shall  be  paid  for  with  a  premium  of  2^^  per  cent,  over 
their  face  value  {i.e.,  £102,  10s.  will  be  required  to  pay  for  £100),  but  after 
twenty-five  years  from  the  date  of  issue  to  the  expiry  of  the  term  of  the  loan 
the  bonds  may  be  redeemed  without  payment  of  any  premium.  If  any  interest 
is  still  due  on  any  of  the  bonds  at  the  time  of  redemption,  such  interest  shall 
have  thereupon  to  be  paid  in  full.  As  to  the  net  profit  certificates,  if  they  are 
redeemed  within  the  term  of  their  duration  they  are  to  be  paid  for  according  to 
their  face  value,  and  if  such  certificates  run  to  the  end  of  their  term  they  become 


NUiMBER  1903/2 :  JULY  9,  1903  401 

null  and  void  and  no  price  need  be  paid  on  them,  nor  need  they  be  redeemed, 
but  any  net  profits  still  due  on  them  shall  have  to  be  fully  paid  up  according  to 
their  amounts  before  the  same  are  cancelled. 

Article  21. — If  any  proceeds  of  the  sale  of  bonds  are  lying  unused  and 
bearing  interest  on  their  deposit  whilst  the  construction  of  the  railway  is  going 
on,  such  interest  is  to  go  to  the  general  account  of  the  Chhiese  Railway  Admin- 
istration, in  order  that  the  Railway  Administration  may  enjoy  the  full  advantage 
thereof. 

It  is  also  agreed  that  if  the  Corporation  shall  find  it  necessary,  before  the 
sale  of  any  of  the  bonds,  to  advance  any  money  for  the  work,  the  expense  of 
effecting  such  advances,  together  with  the  interest  thereon,  not  exceeding  a  charge 
of  6  per  cent,  per  annum  shall  be  deducted  from  the  interest  derived  from  the 
above-mentioned  unused  proceeds  of  the  sale  of  the  bonds,  or  otherwise  to  be 
provided  for  in  the  construction  accounts.  It  is  further  agreed  that  the  proceeds 
of  the  first  sale  of  the  bonds  immediately  following  any  such  advance  shall  be 
used  to  pay  off  the  said  advances,  so  as  to  save  the  cost  of  the  aforesaid 
charge. 

Article  22. — If  any  of  the  bonds  still  remain  unredeemed,  when  the  fifty 
years  of  the  term  of  the  loan  are  about  to  expire,  the  Director-General  will, 
within  two  years  preceding  the  expiry  of  the  said  term,  negotiate  by  writing 
with  the  Corporation  for  an  extension  of  the  term  of  the  loan;  and  if  six 
months  shall  have  expired  after  such  negotiations  in  writing  and  no  definite 
arrangements  shall  have  been  come  to,  the  Chinese  Government  shall  be  at  liberty 
to  take  steps  to  devise  means  for  procuring  elsewhere  funds  to  pay  off  the  loan. 
and  to  redeem  the  bonds  and  cancel  the  mortgage. 

Article  23. — The  existing  Shanghai-Woosung  Line  (as  soon  as  the  price 
agreed  upon  is  ready  to  be  handed  over  to  the  Railway  Administration)  shall 
be  taken  over  as  part  of  the  Shanghai-Nanking  system,  and  the  earnings  and 
administration  of  this  section  shall  be  treated  in  like  manner  as  the  Shanghai- 
Nanking  line.  The  price  of  the  Shanghai-Woosung  Line  shall  be  taken  at  taels 
1,000,000  and  this  amount  shall  be  paid  to  the  Chinese  Railway  Administration 
out  of  the  proceeds  of  the  loan. 

Article  24. — Immediately  after  the  signature  of  the  Agreement,  and  before 
the  issue  of  any  prospectus  of  the  loan  to  the  public,  the  Director-General  shall 
memorialize  the  Throne  and  obtain  an  Imperial  Edict  confirming  and  sanctioning 
the  provisions  of  this  Agreement.  The  Imperial  Edict  so  received  shall  then  be 
officially  communicated  without  delay  to  the  British  Minister  in  Peking  by  the 
Wai-Wu-Pu. 

Article  25. — This  Agreement  is  executed  in  quintuplicate  in  English  and 
Chinese,  one  copy  to  be  retained  by  the  Railway  Administration,  one  by  the 
Wai-Wu-Pu,  one  by  the  Bureau  of  Railways  and  Mines  at  Peking,  one  by  the 
British  Minister  in  Peking,  and  one  by  the  Corporation,  and  should  any  doubt 
arise  as  to  the  interpretation  of  the  Agreement  the  English  text  shall  be  accepted 
as  the  standard. 

Signed  at  Shanghai  by  the  Contracting  Parties  this  fifteenth  day  of  the 


402  CHINA  TREATIES  AND  AGREEMENTS 

intercalary  fifth  month  of  the  twenty-ninth  year  of  the  Emperor  Kwang-Hsu, 
being  the  ninth  day  of  July  nineteen  hundred  and  three  of  the  Western  Calendar. 

JARDINE,  MATHESON  &  CO., 

(Signed)  David   Landale. 

For  the  HONGKONG  &  SHANGHAI  BANK, 

(Signed)  H.  M.  Bevis,  Manager. 

The  British  &  Chinese  Corporation,  Ltd. 
Witness  to  the  Signatures  of  David  Landale  and  H.  M.  Bevis 

Byron  Brenan. 


Note  L 

The  text  of  the  Preliminary  Agreement  of  May,  1898,  is  thus  given  in  Rockhill,  p.  281 : 

Preliminary  Agreement  for  Shanghai-Nanking  Railway. — May  13,  1898. 

"This  preliminary  agreement  is  made  between  Sheng  Tajen  Director  General  of  the 
Chinese  Imperial  Railway  Administration  acting  under  authority  of  the  Imperial  Chinese 
Government' of  the  one  part  and  the  British  Firm  of  Jardine,  Matheson  &  Company  for 
themselves  and  on  behalf  of  the  Hongkong  and  Shanghai  Banking  Corporation  represent- 
ing as  joint  Agents  a  British  Syndicate  hereinafter  called  The  Syndicate. 

"  It  is  agreed  as  follows : 

"  1. — The  said  Director  General  of  the  Chinese  Railway  Administration  authorises  the 
Syndicate  to  issue  a  sterling  loan  for  an  amount  not  exceeding  three  million  sterling  in 
such  manner  and  on  such  terms  as  the  -Syndicate  may  decide,  but  on  terms  and  condi- 
tions as  between  the  Syndicate  and  the  said  Director  General  of  the  Chinese  Railway 
Administration  as  are  hereinafter  detailed. 

"  The  loan  shall  be  issued  as  soon  as  possible  after  the  signing  of  a  final  agreement 
and  is  designed  to  raise  the  capital  for  building  [?  the  railway. — Editor.]  which  the  said 
Sheng  Tajen  is  authorised  by  Chinese  Imperial  Edict  to  construct  from  Shanghai  to  Nanking. 

"2. — The  building  capital  thus  provided  for  is  to  include  interest  on  itself  during  the 
period  of  construction  and  the  said  Chinese  Railway  Administration  undertakes  to  buy 
and  pay  for  the  land  required  for  the  sections  now  referred  to  i.  e.  Shanghai  to  Nanking 
in  accordance  with  plans  and  surveys  to  be  approved  by  the  Agents  of  the  aforesaid 
Syndicate  and  the  said  Director  General. 

"3. — The  rate  of  interest  for  the  loan  shall  be  414%  (four  and  one-half  per  cent)  on 
the  nominal  principal  issued  by  the  Syndicate  and  shall  be  paid  by  the  Syndicate  out  of 
the  monies  so  raised  for  three  years  from  date  of  issue  or  up  to  such  nearer  date  as  that 
on  which  the  lines  referred  to  are  completed.  After  the  said  three  years  the  said  interest 
shall  be  provided  by  the  said  Railway  Administration  in  Shanghai  in  accordance  with  the 
amounts  and  dates  of  a  schedule  to  be.  drawn  up. 

"  4. — The  terms  of  loan  shall  be  fifty  years  and  commencing  two  years  after  com- 
pletion of  the  lines  referred  to  or  in  any  case  five  years  after  payment  of  loan  in  whole 
or  in  part  repayment  of  principal  shall  be  made  by  a  sinking  fund  which  shall  be  paid 
by  the  said  Chinese  Railway  Administration  in  half  yearly  instalments  in  accordance  with 
the  amounts  and  dates  of  the  said  schedule  and  the  amortization  shall  not  be  increased 
nor  reduced  nor  shall  the  loan  be  converted  or  redeemed  by  the  Chinese  Railway  Admin- 
istration or  in  any  other  manner  without  the  assent  of  the  said  Syndicate  provided  always 
that  on  twelve  months  notice  being  given  by  the  said  Railway  Administration  they  have 
the  right  to  redeem  the  whole  loan  still  outstanding  at  par  at  the  end  of  twenty  five  years 
from  date  of  the  Final  Agreement  or  at  102J/2  after  12yo  years. 

"  5. — The  total  half  yearly  payment  due  for  amortization  and  interest  shall  be  paid  as 
aforesaid  to  the  Agents  of  the  said  Syndicate  in  Shanghai  fourteen  days  before  the  due 
dates  mentioned  in  the  aforesaid  schedule  in  Shanghai  Sycee  sufficient  to  meet  such  pay- 
ments in  sterling  in  London  the  rate  of  exchange  for  which  shall  be  settled  with  the 
Hongkong  and  Shanghai  Bank  on  the  said  date  of  payment. 

"  6. — To  provide  for  the  possibility  of  the  revenue  of  the  aforesaid  railway  at  any 
time  being  insufficient  to  cover  the  sums  so  due  for  interest  and  amortization  a  clause  is 
to  be  mutually  agreed  to  as  to  satisfactory  security  before  signature  of  the  Final 
Agreement. 

"  7.— The  Syndicate  shall  issue  and  is  hereby  authorised  to  issue  to  subscribers  to  the 
loan  now  contracted  Bonds  for  the  total  amount  of  the  loan  in  pounds  sterling  in  such 
and   for  such   respective  amounts  as  may  appear  advisable  to  the   Syndicate   which   shall 


NUMBER  1903/2:  JULY  9,  1903:  NOTES  403 

arrange  the  wording  in  agreement  with  the  Director  General  of  the  Chinese  Imperial 
Railway  Administration  and  these  Bonds  shall  be  sealed  or  signed  by  the  Minister  for 
China  in  London  and  the  Director  General  of  Chinese  Railway  Administration  sybject  to 
Final  Agreement. 

"  8. — This  loan  shall  be  secured  by  mortgage  now  entered  into  in  equity  and  to  be  here- 
after entered  into  specifically  on  the  railway  now  being  completed  between  Woosung  and 
Shanghai  and  also  on  all  lands  material  rolling  stock  buildings  and  property  and  premises 
of  every  description  purchased  and  to  be  purchased  by  the  said  Railway  Administration 
for  the  railways  herein  referred  to  and  on  the  revenue  of  all  descriptions  derivable  there- 
from and  the  Chinese  Imperial  Railway  Administration  hereby  order  and  guarantee  that 
no  further  mortgage  or  loan  shall_  be  created  or  permitted  on  the  said  lines  and  other 
securities  without  the  written  sanction  of  the  aforesaid  Syndicate. 

"  9.— The  Deed  of  Agreement  shall  be  executed  in  quadruplicate  and  confirmed  by 
Chinese  Imperial  Edict ;  one  copy  to  be  retained  by  the  Railway  Administration  one  by 
the  Tsungli  yamen  one  by  the  British  Minister  in  Peking  and  one  by  the  Syndicate  and 
should  any  doubt  arise  as  to  the  interpretation  of  this  agreement  the  English  text  is  to 
be  accepted. 

"  10. — All  Bonds  and  Coupons  and  payments  made  and  received  with  the  service  of  this 
loan  shall  be  exempt  from  Chinese  taxes  and  imposts  of  all  or  every  description  for  ever 
and  all  material  of  every  kind  or  description  also  to  be  imported  into  China  or  to  be 
brought  from  the  Provinces  of  China  to  the  scene  of  work  free  from  taxation  of  every 
nature  whether  Imperial  Provincial  or  Municipal  during  the  currency  of  this  loan,  and 
further  it  is  agreed  by  the  Imperial  Chinese  Government  that  no  tax  or  impost  of  any 
kind  shall  be  enacted  or  levied  on  the  revenue  of  the  said  Railway  Administration  or  on 
passenger  tickets  or  freight  notes  thereby. 

"  All  details  necessary  for  the  prospectus  and  connected  with  the  service  of  the  Bond- 
holders anent  interest  or  amortization  of  this  loan  not  herein  explicitly  provided  for  shall 
be  left  for  arrangement  by  the  Syndicate  who  at  its  own  expense  shall  issue  and  are  hereby 
authorised  to  issue  a  prospectus  of  the  loan  as  soon  as  possible  after  the  signing  of  a 
Final  Agreement.  The  Tsungli  yamen  will  instruct  the  Minister  for  China  in  London  to 
give  the  Syndicate  all  assistance  in  any  matters  where  his  cooperation  may  be  deemed 
helpful. 

"  11. — In  order  to  provide  for  final  authority  in  matters  of  construction  or  administra- 
tion it  is  agreed  that  before  the  Final  Agreement  is  made  a  clause  is  to  be  drafted  mutually 
acceptable  to  the  Agents  of  the  Syndicate  and  to  the  Director  General  of  the  Chinese 
Imperial  Railway  Administration  providing  for  a  '  Board  of  Control '  to  be  composed  of 
the  Director  General  of  the  Chinese  Imperial  Railway  Administration  as  Chairman  and 
a  nominee  of  his  together  with  the  representative  of  the  Agents  of  the  Syndicate  and 
the  chief  Engineer  and  Secretary  hereinafter  mentioned. 

"  12. — The  Railway  Administration  shall  during  the  continuance  of  the  loan  maintain 
the  railway  buildings  works  rolling  stocks  and  dependencies  in  good  order  and  condition 
and  shall  increase  the  rolling  stock  to  such  extent  as  the  Board  of  Control  during  the 
period  of  the  aforesaid  sterling  loan  may  find  necessary  for  the  requirements  of  the 
traffic. 

"  13. — The  residue  of  the  net  profits  in  each  year  after  paying  the  sum  annually  due 
for  interest  and  redemption  of  the  loan  and  all  other  sums  which  may  for  whatsoever 
cause  be  due  to  the  Syndicate  shall  be  divided  into  five  shares  one  to  be  paid  to  or  retained 
by  the  said  Syndicate  and  the  others  to  be  paid  or  retained  by  the  Railway  Administration 
but  after  completion  of  the  lines  now  provided  for  and  on  their  revenue  proving  sufficient 
to  meet  the  interest  and  redemption  of  loan,  there  is  to  be  deducted  before  division  of 
profits  interest  at  the  rate  of  6%  per  annum  on  the  value  of  land  purchased  by  the  Chinese 
Railway  Administration  and  entered  in  a  Land  Register  Book  and  in  consideration  of  this 
the  earnings  and  administration  of  the  Woosung  and  Shanghai  line  are  to  be  treated  in 
like  manner  as  the  Nanking  section  and  thus  go  to  the  general  profit  and  loss  account  and 
the  Syndicate  are  to  participate  therein  as  in  the  Nanking  section,  subject  however  to  a 
charge  of  6%  interest  on  about  Taels  500,000  being  cost  of  the  Woosung  line.  The 
title  deeds  for  land  already  or  subsequently  acquired  and  hypothecated  to  this  Syndicate 
shall  be  delivered  to  the  Agents  after  entry  in  the  Land  Register  Book  which  is  to  be  kept 
by  the  account ;  the  book  shall  also  contain  exact  entries  of  the  sums  paid  for  such  land 
thus  showing  the  aggregate  sum  so  expended. 

"  14. — The  accounts  of  the  Railway  Administration  shall  be  kept  in  Shanghai  currency. 

"  15. — The  Chief  Engineer  taking  charge  of  the  construction  and  the  working  of  the 
railway  shall  be  nominated  by  the  Agents  for  the  Syndicate  with  the  concurrence  of  the 
said  Director  General  and  shall  be  paid  by  the  Railway  Administration.  In  like  manner  a 
European  Secretary  and  Accountant  shall  also  be  appointed  and  paid ;  and  the  Chief 
Engineer  will  subject  to  the  assent  of  the  Board  of  the  Control  nominate  the  entire  staff 
of  Railway  Officials. 

"  16. — The  Syndicate  will  on  completion  of  a  survey  report  map  and  estimate  (to  be 
approved  by  the  said   Director   General)    now  to  be  commenced   by   Engineers   nominated 


404  CHINA  TREATIES  AND  AGREEMENTS 

by  them  name  a  definite  price  at  which  they  engage  to  take  the  said  loan ;  it  will  be  based 
on  a  current  quotation  of  82  dated  24th  April  but  it  is  necessarily  subject  to  the  state  of 
London  money  market  at  date  of  final  agreement;  due  advantage  also  being  given  to  the 
Railway  Administration  in  case  of  improvement.  In  the  event  of  the  price  named  not  being 
acceptable  to  the  Railway  Administration  the  cost  of  the  survey  will  be  borne  by  the  Syndi- 
cate but  otherwise  will  form  part  of  the  rail  construction  charges. 

"  17. — The  books  of  the  Administration  shall  be  kept  both  in  English  and  Chinese  and 
all  monies  provided  by  the  Syndicate  shall  be  dealt  with  through  an  account  to  be  kept  in 
Shanghai  with  the  Hongkong  &  Shanghai  Bank;  this  account  will  be  disbursed  for  the 
construction  of  the  lines  and  for  expenses  consequent  thereon  upon  the  Chief  Engineer's 
certificate.  The  whole  accounts  of  the  Railway  Administration  shall  be  subject  to  the  inspec- 
tion of  the  Syndicate  and  it  is  further  agreed  that  the  revenue  or  earnings  of  the  railway 
shall  be  paid  into  the  said  account  with  the  Hongkong  &  Shanghai  Bank  for  final  treat- 
ment but  at  places  where  the  Hongkong  &  Shanghai  Bank  has  no  Agency  and  the  Imperial 
Bank  of  China  is  established  disbursements  and  receipts  will  be  dealt  with  through  the 
latter  in  accordance  with  the  final  agreement. 

"  18. — The  Agents  for  the  Syndicate  will  during  the  currency  of  this  loan  be  entitled 
to  deduct  a  commission  at  the  rate  of  J4%  on  all  remittances  for  interest  or  redemption 
of  the  aforesaid  loan. 

"  19. — To  provide  for  the  possibility  of  the  whole  amount  of  the  instalments  of  the 
loan  with  accrued  interest  paid  by  the  Syndicate  not  being  sufficient  for  the  complete  con- 
struction of  the  lines  now  undertaken  by  the  Railway  Administration,  a  clause  giving  satis- 
factory security  is  to  be  mutually  agreed  to  before  signature  of  the  final  agreement. 

"20. — The  provisions  of  a  final  agreement  shall  immediately  after  signature  and  before 
the  issue  of  any  prospectus  of  the  loan  be  confirmed  and  sanctioned  by  an  Imperial  noti- 
fication which  shall  be  officially  communicated  to  the  British  Minister  by  the  Tsungli  yamen. 

"21. — It  is  further  agreed  between  the  parties  to  this  agreement  and  accepted  by  the 
said  Railway  Administration  that  material  from  Hupeh  Works  when  certified  by  the  Chief 
Engineer  to  be  equally  suitable  shall  have  preference,  defects  in  samples  rendered  being 
pointed  out  by  the  Chief  Engineer  in  order  that  suitable  material  may  on  the  next  occa- 
sion be  produced ;  and  with  regard  to  material  to  be  imported  either  for  the  construction 
of  the  line  or  in  rolling  stock  that  where  specified  by  the  Chief  Engineer  the  name  of 
maker  so  specified  is  to  be  accepted  provided  the  Board  of  Control  concur  as  to  prices,  that 
in  cases  where  no  maker  is  specified  one  half  is  at  the  option  of  the  Syndicate  and  the 
other  to  be  by  tender;  this  clause  is  subject  to  redrafting  for  final  agreement. 

"22. — It  is  agreed  that  if  at  any  time  the  Chinese  Imperial  Railway  Administration 
wish  to  extend  their  lines  that  the  Syndicate  shall  have  the  option  of  undertaking  exten- 
sions on  like  terms  for  Railways  designed  to  run  in  connection  with  those  herein  mentioned 
subject  to  Imperial  Edict  being  obtained  for  such  extensions  or  branches  by  Memorial 
of  the  said  Railway  Administration  and  the  respective  Viceroys  and  Governors. 

"  23. — Pending  completion  of  the  aforesaid  survey  and  the  subsequent  naming  of  a 
definite  price  of  loan  the  said  Imperial  Chinese  Railway  Administration  undertake  to  com- 
mence or  continue  no  negotiations  with  other  parties  for  the  purposes  referred  to  in  this 
agreement  and  the  Syndicate  by  their  Agents  undertake  to  use  promptitude  and  every 
exertion  to  carry  out  the  terms  of  this  preliminary  arrangement. 

"24. — The  Syndicate  being  desirous  to  take  up  the  extension  of  the  said  Railways  (as 
mentioned  in  the  above  clause)  and  it  being  intended  to  run  a  line  starting  from  Poo- 
Kow  on  the  shore  opposite  to  Nanking  and  ending  near  Sin  Yang  Chow  where  the  exten- 
sion would  join  the  trunk  line  from  Hankow  to  Peking  the  Imperial  Chinese  Railway 
Administration  agrees  to  memorialize  the  Throne  for  permission  to  allow  the  Syndicate 
to  carry  out  the  extension.  The  Syndicate  will  at  once  send  an  Engineer  to  make  the 
necessary  survey  and  on  the  estimate  being  given  will  make  the  loan  in  accordance  with 
the  conditions  as  agreed  upon  in  the  above  agreement. 

"25. — This  preliminary  agreement  is  signed  by  the  Director  General  of  the  Imperial 
Chinese  Railway  Administration  who  will  in  case  there  should  arise  local  difficulties  con- 
sult with  the  Viceroy  of  Nanking  and  the  Governors  will  in  conjunction  with  the  Director 
General  Memorialize  the  Throne  before  the  Final  Agreement  is  signed. 

"  Signed  by  the  contracting  parties  this  twenty  third  day  of  the  intercalary  third 
month  of  the  twenty  fourth  vear  of  the  Emperor  Kuang  Hsu  being  the  thirteenth  day  of 
May,  1898  of  the  Western  Calendar." 


Note  2. 

See,  in  connection  with  the  system  of  control  provided  by  Article  6,  the  Working 
Agreement  of  April  13,  1908,  and  the  arrangement  in  connection  with  the  modification  of 
the  system  of  control,  of  the  same  date,  thus  given  in  Wang,  pp.  263  and  271: 


NUMBER  1903/2:  JULY  9,  1903:  NOTES  405 

"  IVorking  Agreement. 

"  Whereas  it  has  been  agreed  between  the  parties  to  the  Loan  Agreement  that  for 
more  convenient  carrying  out  of  the  duties  imposed  on  the  Board  of  Commissioners  of 
supervising  the  matters  referred  to  in  article  6  of  the  said  Agreement  the  Board  of  Com- 
munications shall  from  time  to  time  nominate  a  Chinese  official  of  suitable  rank  and  quali- 
fications as  a  Chinese  member  of  the  Board  of  Commissioners  to  be  elected  (after  accept- 
ance by  the  Corporation)  as  the  Chairman  of  the  last  mentioned  Board  and  under  the 
same  Board  to  supervise  the  construction  and  operation  of  the  Railway  with  the  title  of 
Managing  Director  and  Whereas  it  is  expedient  that  the  position  of  such  Managing 
Director  both  in  relation  to  the  Board  of  Commissioners  and  to  the  Engineer-in-Chief  and 
the  Departmental  Heads  of  the  Railway  Staff  should  be  clearly  defined  so  that  questions 
may  not  arise  in  future. 

"Resolved. 

"  1. — That  Mr.  Chung  Mun  Yew  who  has  been  duly  nominated  by  the  Board  of  Com- 
munications and  accepted  by  the  Corporation  be  elected  Chairman  of  this  Board  with  the 
title  of  Managing  Director. 

"  2. — The  Managing  Director  shall  on  behalf  of  the  Board  of  Commissioners  exercise 
the  authority  of  the  Board  in  the  matter  of  general  supervision  of  the  working  of  the  Rail- 
way and  general  control  of  all  employees  and  otherwise  discharge  the  duties  and  functions 
of  the  said  Board  in  accordance  with  the  terms  of  the  Loan  Agreement. 

"  3. — ^The  Engineer-in-Chief  shall  be  the  General  Manager  of  the  Railway  and  shall 
be  responsible  to  the  Managing  Director,  as  the  representative  of  the  Board's  authority, 
for  the  details  of  the  Railway  Management  including  general  control  of  the  various 
Departments  and  the  appointment  of  subordinate  employees  of  the  rank  of  foremen  and 
under.  With  regard  to  the  performance  of  his  duties  the  General  Manager  shall  in  all 
respects  regard  the  Managing  Director  as  the  Representative  of  the  Board's  authority  and 
consult  him  in  all  matters  pertaining  to  the  appointment  and  dismissal  of  all  employees 
excepting  those  below  the  rank  of  foreman  and/or  Assistant  Station  ]Master. 

"  With  the  written  sanction  first  obtained  of  the  Board  the  General  Manager  may 
delegate  to  any  Head  of  a  Department  such  powers  as  may  be  reasonably  necessary  for 
the  effective  control  of  his  Department. 

"  4. — The  following  shall  rank  as  Heads  of  Departments : — 

The  Traffic  Manager  (Mr.  Pope) 

The  Secretary  and  Assistant  General  Manager 

The  Senior  Engineer  of  the  Engineering  Department 

The  Chief  Accountant 

The  Locomotive  Superintendent 

The  Chief  Storekeeper 

The  Medical  Officer 

"  All  Heads  of  Departments  shall  furnish  monthly  reports  to  the  Managing  Director 
and  in  particular  the  Chief  Accountant  shall  furnish  a  monthly  report  and  statement  of 
accounts  in  which  Capital  and  Revenue  Accounts  shall  be  clearly  distinguished  and  in 
which  all  items  of  income  and  expenditure  shall  be  properly  allocated  under  various  head- 
ings. Heads  of  Departments  shall  furnish  to  the  Managing  Director,  through  the  General 
Manager,  whenever  required,  such  special  information  as  he  may  call  for  in  regard  to  the 
condition  and  working  of  the  various  offices  or  Departments,  it  being  understood  that 
the  Accountant's  Department  reports  direct  to  the  Managing  Director. 

"  5. — The  Managing  Director  shall  cause  the  monthly  reports  of  the  Heads  of  Depart- 
ments to  be  circulated  with  as  little  delay  as  possible  by  the  Secretary  to  all  the  members 
of  the  Board  of  Commissioners. 

"  6. — All  indents  for  materials  and  goods  of  foreign  origin  whether  purchased  locally 
or  from  abroad  shall  be  signed  by  the  Managing  Director  and  countersigned  by  the  Chief 
Accountant.  In  case  of  special  emergency  where  goods  or  materials  are  required  to  be 
purchased  locally,  such  purchase  shall  immediately  be  reported  for  the  information  and 
approval  of  the  Managing  Director.  The  Managing  Director  shall  cause  a  monthly  state- 
ment of  such  indents  to  be  circulated  to  all  the  members  of  the  Board  of  Commissioners. 
It  is  understood  that  Commission  is  chargeable  by  the  Corporation  as  Agents  of  the  Rail- 
way on  all  purchases  of  materials  of  foreign  origin  except  urgent  local  purchases  involv- 
ing an  expenditure  of  not  more  than  $2,500  for  any  one  order,  it  being  understood  that 
such  local  purchases  shall  always  be  economically  advantageous  to  the  Railway  and  that 
for  amounts  exceeding  $2,500  tenders  shall  always  be  called  for  through  the  Agency  of 
the  Corporation. 

"7. — All  cheques  shall  be  signed  by  the  Managing  Director  and  countersigned  by  the 
Chief  Accountant. 

"  8. — All  transfers  of  Loan  funds  from  London  shall  be  made  in  accordance  with  exist- 
ing procedures,   that   is   to   say,   that  the   requisition    for  transfer   shall   be   signed   by   the 


406  CHINA  TREATIES  AND  AGREEMENTS 

Managing  Director  or  in  his  absence  by  the  other  Chinese  member  of  the  Board  of  Com- 
missioners, and  by  one  foreign  member. 

"  9. — The  Managing  Director  shall  whenever  necessary  consult  the  general  Manager 
with  regard  to  the  affairs  of  the  Railway  and  the  Heads  of  Departments  with  regard  to 
matters  concerning  their  Departments ;  and  the  General  Manager  shall  keep  the  Manag- 
ing Director  fully  posted  regarding  the  working  of  the  Railway,  supplying  him  with  dupli- 
cate copies,  if  required  by  him,  of  all  reports  sent  in  to  him  [the  General  Manager]  from 
all  the  Stations,  shops,  or  offices,  excepting  such  reports  as  relate  purely  to  the  technical 
working  of  the  several  Departments. 

"  10. — The  General  Manager  shall  at  such  time  or  times  as  may  be  mutually  agreed 
submit  to  the  Managing  Director  a  budget  showing  proposed  expenditure  (for  new  work, 
alteration,  repairs,  etc.^.  Such  budget  shall  ordinarily  cover  a  period  of  6  months  or 
one  year  whichever  period  shall  be  found  to  be  most  convenient.  The  Managing  Director 
shall  as  soon  as  possible  after  receipt  of  the  Budget  consider  and  approve  the  same  with 
such  alterations  as  he  shall  think  proper.  No  item  shall  be  added  to  or  omitted  from  the 
Budget  by  the  Managing  Director  except  after  full  discussion  with  the  General  Manager. 
It  will  be  the  duty  of  the  General  Manager  to  see  that  the  Budget  as  approved  by  the 
Managing  Director  is  strictly  adhered  to  and  that  no  additional  expenditure  is  made  or 
liability  incurred  without  the  authority  of  the  Managing  Director. 

"  11. — The  Board  of  Commissioners  shall  ordinarily  meet  once  in  each  calendar  year. 
Such  meeting  shall  take  place  as  soon  as  possible  after  the  conclusion  of  each  financial  year 
and  the  Board  shall  then  receive  and  consider  the  Report  and  accounts  for  such  year. 
Any  member  may  call  a  special  meeting  of  the  Board  Provided  that  the  object  of  such 
meeting  is  notified  to  the  members  of  the  Board  at  least  one  week  in  advance  and  the 
consent  of  two  members  obtained  for  calling  such  meeting.  The  Board  may  at  any  time 
call  upon  the  Managing  Director  to  report  to  them  on  the  affairs  of  the  Railway. 

"  12. — Accounts  to  be  annually  audited  and  report  and  accounts  to  be  published  in 
English  and  Chinese. 

"  13. — These  provisions  are  to  be  construed  with  Article  6  of  the  Loan  Agreement  and 
are  only  effective  so  far  as  they  are  consistent  therewith.  Should  they  not  prove  satis- 
factory in  securing  the  efficient  control  of  the  Railway,  they  shall  be  subject  to  revision 
and  amendment  hereafter. 

"  April  13th,  1908." 

"  Arrangement  in  connection  with  the  modification  of  the  system  of  control  as  agreed 
upon  in  consultation  between  the  Deputy  Director  General  (Mr.  Chung  Mun  Yew) 
and  Mr.  J.  O.  Bland,  Representative  of  the  British  and  Chinese  Corporation. 

"  In  pursuance  of  the  Resolutions  adopted  by  the  Board  of  Commissioners  at  their 
meeting  held  on  April  13th,  1908,  whereby  the  control  and  supervision  of  the  working  of 
the  Railway  becomes  delegated  by  the  Board  to  its  Chairman,  Mr.  Chung  Mun  Yew,  with 
the  title  of  Managing  Director,  it  has  been  agreed  that  Mr.  ,A.  W.  U.  Pope,  as  Engineer- 
in-Chief  and  General  Manager  shall  be  immediately  responsible  to  the  Managing  Director 
(as  representative  of  the  Board's  authority)  for  the  details  of  the  Railway's  technical  and 
General  management ;  as  the  principal  officer  of  the  Railway  Staff,  he  shall  be  responsible 
for  the  efficiency  and  general  working  of  the  Railway  administration,  and  shall  perform 
his  duties  under  the  direction  of  the  Managing  Director,  in  accordance  with  the  arrange- 
ments hereby  laid  down  and  approved  by  the  Board  of  Commissioners.  For  the  purpose 
of  effective  management  of  the  Railway,  certain  powers  and  discretions  are  delegated  to 
the  General  Manager,  and  thereafter  in  turn  to  Heads  of  Departments,  as  hereunder  speci- 
fied, subject  to  modification  or  rescindment  hereafter  in  case  of  need,  by  the  Managing 
Director  and/or  the  Board  of  Corqmissioners. 

"The  Heads  of  Departments  of  Railway  Administration  are  as  follows: — 

The  Secretary  and   Assistant   General   Manager. 

The  Engineer  in  Charge  of  Maintenance. 

The  Chief  Accountant. 

The  Locomotive  Superintendent. 

The  Traffic  Superintendent. 

The  Medical  Officer. 

The  Chief  Storekeeper. 

"  The  Heads  of  Departments  shall  prepare  monthly  Reports  on  the  Working  of  their 
respective  offices.  These  Reports,  with  the  exception  of  the  Chief  Accountant's  shall  be 
forwarded  to  the  General  Manager  for  transmission  to  the  Managing  Director,  who  will 
cause  copies  to  be  forwarded  without  delay  by  the  Secretary  to  the  members  of  the  Board 
of  Commissioners. 

"  In  addition  to  these  regular  monthly  Reports,  Heads  of  Departments  shall  furnish 
special  reports  or  information  on  the  working  of  their  offices  whenever  called  for  by  the 
Managing  Director. 


NUMBER  1903/2 :  JULY  9,  1903 :  NOTES  407 

"  The  Chief  Accountant's  monthly  Report  shall  contain  a  clear  and  complete  statement 
of  the  Railway's  accounts,  in  which  Capital  and  Revenue  accounts  shall  be  clearly  distin- 
guished and  in  which  all  items  of  income  and  expenditure  shall  be  properly  allocated  under 
their  various  headings;  this  report  shall  be  transmitted  through  the  Secretary  for  the 
information  of  the  Managing  Director,  the  Board  of  Commissioners,  and  the  General 
Manager. 

"  As  a  matter  of  general  practice  the  instructions  of  the  Managing  Director  (as  rep- 
resentative of  the  Board  of  Commissioners)  will  be  transmitted  to  the  Heads  of  Depart- 
ments (excepting  the  Chief  Accountant)  through  the  General  Manager,  who  will  forward 
all  important  orders  to  be  recorded  and  circulated  by  the  Secretary  in  a  general  Order 
book. 

"  The  General  Rules  of  the  Railway  Administration  in  regard  to  leave  of  absence,  medi- 
cal assistance,  free  passes  etc.,  will  be  determined  by  the  Managing  Director  and  General 
Manager  in  consultation,  and  subject  to  modification  in  case  of  need.  Whenever  employees 
of  the  Railway  have  any  complaint  or  other  official  communication  to  make,  they  shall 
submit  the  same  in  writing  to  the  Head  of  the  Department  concerned,  by  whom  it  shall 
be  forwarded,  with  all  necessary  information  to  the  General  Manager,  for  reference  to 
the  Managing  Director  and  (in  case  of  need)  to  the  Board  of  Commissioners. 

"No  Head  of  Department  shall  incur  any  expenditure  on  Railway  account  except  such 
as  is  warranted  by  a  standing  authority,  it  will  be  the  duty  of  the  General  Manager  to  see 
that  all  details  of  work  sanctioned  in  the  Annual  Estimates  are  carried  out  by  the  various 
executive  Department  in  a  proper  and  efficient  manner,  and  that  the  Estimates  are  not  ex- 
ceeded, under  their  general  headings,  without  the  authority  of  the  Managing  Director. 

"  Heads  of  Departments  are  authorised  to  appoint,  promote,  dismiss  and  reduce  subordi- 
nates of  the  staff  of  their  respective  offices  whose  salaries  do  not  exceed  $50  per  mensem, 
subject  always  to  the  financial  exigencies  of  che  Estimates,  and  the  standing  Rules  of  the 
Railway,  as  from  time  to  time  authorised.  All  appointments,  promotions,  dismissals,  and 
reductions  of  employees  drawing  over  $25  per  mensem  must  be  recorded  in  the  Depart- 
ment's monthly  Report.  In  the  case  of  important  Stations,  the  appointment,  promotion, 
reduction  or  transfer  of  Station  Master  are  to  be  made  after  consultation  with  the  Managing 
Director  and  in  accordance  with  the  latter  portion  of  Article  9  of  the  Board's  Resolutions 
of  April  13th,  1908. 

"  Heads  of  Departments  are  authorised  to  grant  short  leave  of  .absence  to  aM  subordinate 
employees  in  their  respective  Departments  subject  to  the  leave  regulations  of  the  Railway, 
recording  in  the  monthly  Report  all  leave  granted  to  employees  drawing  over  $25  per 
mensem. 

"  Heads  of  Departments  are  authorised  to  issue  cheque  passes  to  all  employees  of  their 
respective  Departments  and  to  their  families  in  accordance  with  the  Free  Pass  Regulations 
actually  in  force. 

"  Heads  of  Departments  may  draw  stores  required  for  the  use  of  their  offices  etc., 
up  to  limits  sanctioned  in  working  Estimates,  but  no  stores  may  be  ordered  or  purchased 
by  any  Department  unless  specially  authorised. 

"The  special  duties  of  Heads  of  Departments  as  at  present  approved  and  subject  to 
modification  hereafter  by  the  Managing  Director  and/or  Board  of  Commissioners  are  as 
follows  : — 

"  1.    Duties  of  Secretary  and  Assistant  General  Manager. 

"  He  shall  conduct  the  general  correspondence  of  the  Railway  Head  Office,  keep  minutes 
and  records  of  the  official  meeting  of  the  Railway  Administration  :  transmit  the  Chief  Ac- 
countant's monthly  Report  and  other  Statements  to  the  Managing  Director  and  Board  of 
Commissioners  and  General  Manager. 

"  He  shall  keep  in  constant  communication  with  the  General  Manager  and  shall  assist 
him  in  promoting  the  mutual  dependence  inter-communication  and  harmonious  working  of 
the  various  Departments  of  the  Railway.  He  shall  act  for  the  General  Manager  in  his 
absence. 

"Duties  of  Engineer  in  Charge  of  Maintenance. 

"  In  matters  of  general  administration  and  policy,  the  Engineer  in  Charge  of  IMain- 
tenance  will  receive  the  instructions  of  the  Managing  Director  through  the  General  Manager. 
He  shall  report  through  the  General  Manager  in  writing  whenever  necessary,  on  all  matters 
affecting  the  proper  maintenance  of  the  Railway  and  shall  be  responsible  for  the  same 
and  for  the  discip^ne  and  eff^ective  organisation  of  the  work  of  his  Department.  He  shall 
certify  annually  in  the  Railway's  Published  Statement  of  Accounts  as  to  the  upkeep  and 
condition  of  the  line. 

"Duties  of  Chief  Accountant. 
"  The  Chief  Accountant's  duties  involving  dual  responsibility  to  the  Chinese  Govern- 
ment and  to  the  holders  of  the  Railway's  bonds  and  profit  certificates,  it  shall  be  open  to  him, 
while  showing  all  due  deference  to  the  wishes  of  the  Managing  Director  and  giving  effect 
to  the  latter's  financial  policy  as  laid  down  in  the  Annual  Estimates,  to  report  officially  to 


408  CHINA  TREATIES  AND  AGREEMENTS 

the  ^Managing  Director  and  to  the  Board  of  Commissioners  in  all  cases  where  he  considers 
that  the  action  taken  or  policy  contemplated  may  prejudice  the  rights  and  the  interests  of  the 
holders  of  bonds  and  profit  certificates. 

"  He  shall  countersign  all  cheques  for  expenditure  on  Railway  account,  as  well  as  all 
indents  for  materials  of  foreign  origin,  whether  purchased  locally  or  from  abroad,  and  shall 
be  responsible  for  the  monthly  statement  of  such  indents,  to  be  circulated  by  the  Secre- 
tary to  the  Board  of  Commissioners. 

"  He  shall  prepare  for  audit  and  publication  the  Annual  Report  of  the  Railway's  receipts 
and  expenditure,  and  be  responsible  for  the  accuracy  of  the  same. 

"  The   Duties   of   Medical   Officer,    Traffic   Superintendent   and    Chief   Storekeeper 
"  Will  be  decided  upon  in  due  course  by  the  Managing  Director  in  consultation  with 
the  General  Manager,  and  submitted  for  the  information  of  the  Board  of  Commissioners." 


Note  3. 

In  connection  with  the  purchase  of  lands  under  the  provisions  of  this  Article,  see  the 
following  letter  of  agreement,  addressed  by  the  British  and  Chinese  Corporation  to  the 
Minister  of  Communications,  and  accepted  by  the  latter,  October  30,  1913,  as  printed  in 
Wang,  p.  279 : 

Letter  of  Agreement  regarding  Purchase  of  Lands  for  Shanghai-Nanking  Railway, — 

October  30,  1913. 

"  Peking,  30th  October,  1913. 
"  The  Honourable, 

"  Mr.  Chou  Tzu  Chi, 

"  Minister  of  Communications, 
"  Peking. 
•'  Sir, 

"  Whereas,  by  the  Shanghai-Nanking  Railway  Loan  Agreement  of  July  9th  1903  it 
was  provided,  in  respect  to  the  purchase  of  land,  under  Article  7,  that  the  cost  of  the  land 
required  in  accordance  with  the  plans  of  the  Engineer-in-Chief  and  approved  by  the 
Director-General,  should  not  exceed  £150,000; 

"  and  whereas  it  was  further  provided  that  an  additional  issue  of  bonds  should  be 
made  in  order  to  repay  the  sums  spent  in  the  purchase  of  land  and  that  such  bonds  should 
be  similar  to  the  bonds  of  the  Shanghai-Nanking  Railway  and  have  the  same  guarantee  and 
same  mortgage   security   and   same  treatment ; 

"  and  whereas  the  land  purchased  within  the  Engineer-in-Chief's  survey  was  paid  for 
from  construction  account,  and  it  is  now  desired  to  refund  to  construction  account  the  sum 
thus  expended  by  the  issue  of  land  bonds ; 

"  I  now  have  the  honour  to  state  the  arrangements  and  conditions  which  have  been 
agreed  upon  as  follows : — 

"  1. — The  Ministry  of  Communications  (hereinafter  called  'the  Ministry')  acting  on 
behalf  of  the  Chinese  Government,  authorises  the  British  and  Chinese  Corporation  Limited 
(hereinafter  called  'the  Corporation')  to  prepare  Shanghai-Nanking  Railway  Land  Bonds 
to  a  total  nominal  value  of  £150,000  in  such  form  and  for  such  amounts  as  the  Corporation 
may  decide  in  consultation  with  the  Chinese  Minister  in  London,  by  whom  the  bonds  shall  be 
signed  and  sealed  in  the  usual  manner  as  a  proof  that  their  sale  is  duly  authorised  by  and 
binding  upon  the   Chinese   Government. 

'■  2. — The  Corporation  undertakes  to  purchase  the  aforesaid  Land  Bonds  at  the  price 
of  £92  for  each  £100  bond. 

"  3. — The  security  for  the  land  bonds  shall  in  every  respect  be  the  same  as  for  the 
Shanghai-Nanking  Railway  Loan  Bonds,  as  provided  in  the  Loan  Agreement  of  July  9th  1903. 

"4. — Interest  on  the  land  bonds  shall  be  at  the  rate  of  six  per  cent  (6%)  per  annum 
payable  half  yearly  on  the  dates  on  which  the  service  of  the  Shanghai-Nanking  Railway  Loan 
is  met,  and  in  the  same  manner. 

"  5. — The  bonds  shall  be  redeemable  at  par  at  any  time  on  giving  six  months  notice,  as 
provided  in  the  Shanghai-Nanking  Railway  Loan  Agreement,  and  subject  to  this  provision 
shall  at  the  latest  be  redeemed  at  par  by  the  Ministry  in  five  equal  annual  instalments  com- 
mencing at  the  end  of  the  sixth  annual  period,  namely  December  1st  1919,  the  amount  re- 
quired to  be  provided  14  days  before  the  due  date  in  accordance  with  Article  15  of  the  said 
Loan   Agreement. 

"6. — In  the  event  of  any  bond  or  bonds  being  lost  stolen  or  destroyed  the  procedure 
as  laid  down  in  the  final  paragraph  of  Article  1  of  the  Shanghai-Nanking  Railway  Loan 
Agreement  shall  be  followed. 

"  7. — The  funds  furnished  by  the  Corporation  against  these  bonds  shall  be  placed  to  the 


NUMBER  1903/3:  AUGUST  7,  1903  409 

credit  of  '  the  Shanghai-Nanking  Railway  Improvements  Account '  at  the  Hongkong  and 
Shanghai  Banking  Corporation  London  and  shall  thereupon  be  available  to  be  drawn  upon  as 
required  by  the  administration  of  the  railway  for  the  purchase  of  additional  rolling-stock  and 
for  defraying  the  cost  of  such  other  improvements  to  the  railway  as  may  be  decided  upon 
by  the  Administration,  under  the  approval  of  the  Ministry,  in  order  to  increase  the  earning 
capacity  of  the  line.  Interest  at  the  rate  of  three  per  cent  (3%)  per  annum  will  be  allowed 
by  the  Hongkong  and  Shanghai  Banking  Corporation  London  on  the  credit  balance  of  the 
said  account. 

"  8. — The  Ministry  undertakes  to  make  all  necessary  arrangements  for  authorizing  the 
Chinese  Minister  in  London  to  seal  the  bonds  without  delay,  and  will  transmit  a  copy  of  this 
letter  of  agreement  to  the  Ministry  of  Foreign  Affairs  for  communication  to  the  Minister  for 
Great  Britain  in  Peking. 

"  9.— This  Letter  of  Agreement  is  in  duplicate  in  English  and  Chinese  and  it  is  under- 
stood that  in  case  of  any  doubt  arising  regarding  the  interpretation  of  its  terms  the  English 
text  shall  rule. 

"  I  have  the  honour  to  request  that  you  will  be  good  enough  to  signify  your  accept- 
ance and  confirmation  of  the  arrangements  and  conditions  herein  contained  by  affixing 
your  signature  to  the  statement  to  this  effect  below,  retaining  one  copy  of  the  letter  so 
executed  for  your  files  and  returning  the  other  to  the  undersigned. 

"  I  have  the  honour  to  be, 
"  Sir, 
"  Your  obedient  servant, 

"  (Signed)     S.  F.  IMavers, 
"  For  the   British  and    Chinese   Corporation    Limited. 
"I  hereby  accept  and  confirm  on  behalf  of  the  Chinese  Government  the  arrangements 
and   conditions    herein    contained. 

"  (Signed)     Chou  Tzu  Chi, 

"Minister  of  Communications." 


NUMBER  1903/3. 

GREAT  BRITAIN  AND  ITALY. 

Exchange   of  Notes   respecting   the   Reciprocal   Protection    of    Trademarks   in 

China^— August  7,  1903. 

(1). — M.  Carignani  to  the  Marquess  of  Lansdowne. 

(Translation.) 

, ,    T  Italian  Embassy,  London,  July  30,  1903. 

My  Lord,  -  >       .^      ' 

The  Government  of  His  Majesty  the  King,  my  august  Sovereign,  being 

desirous  of  coming  to  an  arrangement  with  the  other  Governments,  with  a  view 

to  secure  the  reciprocal  protection  of  trade-marks  in  China,  have  now  instructed 

me  to  bring  the  following  to  the  knowledge  of  your  Lordship : — 

1.  In  virtue  of  the  civil  and  penal  jurisdiction  which  is  intrusted  to  the  Con- 
suls and  Consular  Tribunals  of  His  Majesty  the  King  of  Italy,  and  which  they 
exercise  in  China,  they  are  competent  to  take  cognizance  of  all  claims  which  may 
be  presented  to  them  respecting  the  counterfeiting  of  trade-marks  by  Italian 
subjects. 

2.  So  any  claim  which  English  manufacturers  may  have  to  present  to  them 

*  Translation  and  text,  as  printed  in  Hertslet,  p.  599. 


410  CHINA  TREATIES  AND  AGREEMENTS 

in  order  to  obtain  protection  for  trade-marks,  duly  registered  in  the  Kingdom 
of  Italy,  as  against  Italian  subjects,  shall  henceforward  be  adjudicated,  in  the 
first  instance,  by  the  Consular  Tribunal,  and,  in  the  last  instance,  by  the  Court 
of  Appeal  at  Ancona. 

3.  The  right  of  property  in  trade-marks  is  regulated  in  Italy  by  the  Law  of 
the  30th  August,  1868. 

I  have  the  honour  to  request  your  Lordship  to  be  good  enough  to  take  note 
of  this  declaration,  and  to  inform  me  whether  Italian  subjects  will  be  able  to  in- 
voke the  same  legal  protection  in  China,  on  the  part  of  the  English  Consular 
authorities,  in  all  that  concerns  their  property  in  trade-marks  duly  registered  in 
Great  Britain. 

I  have,  &c., 

Carignani. 


(2). — The  Marquess  of  Lansdowne  to  M.  Carignani. 

Foreign  Office,  August  7,  1903. 
oIR, 

I  have  the  honour  to  acknowledge  the  receipt  of  your  note  of  the  30th 
ultimo,  informing  me  of  the  desire  of  the  Italian  Government  to  come  to  an 
arrangement  with  His  Majesty's  Government  for  the  mutual  protection  of 
British  and  Italian  trade-marks  in  China,  and  stating  that  any  claim  which  Eng- 
lish manufacturers  may  have  to  present  to  His  Italian  Majesty's  Consuls  and 
Consular  Tribunals  in  China,  in  order  to  obtain  protection  for  trade-marks, 
duly  registered  in  the  Kingdom  of  Italy,  as  against  Italian  subjects,  will  hence- 
forward be  adjudicated,  in  the  first  instance,  by  the  Consular  Tribunals,  and,  in 
the  last  instance,  by  the  Court  of  Appeal  at  Ancona. 

In  reply  to  your  inquiry  whether  Italian  subjects  will  be  able  to  invoke 
the  same  legal  protection  in  China,  on  the  part  of  the  English  Consular  authori- 
ties, in  all  that  concerns  their  property  in  trade-marks  duly  registered  in  Great 
Britain,  I  have  the  honour  to  state  that  under  the  Order  in  Council  of  the  2nd 
February,  1899,t  it  is  open  to  an  Italian  whose  trade-mark  has  been  infringed 
by  a  British  subject  in  China  to  take  proceedings  against  the  latter  in  the  British 
Court,  provided  that  the  consent  in  writing  of  His  Majesty's  Minister  or  the 
Charge  d'Affaires  be  obtained  to  the  prosecution.  Such  consent,  however,  may 
be  withheld  if  His  Majesty's  Minister  or  Charge  d'Affaires  is  not  satisfied  that 
effectual  provision  exists  for  the  punishment  in  the  Italian  Consular  Court  of 
Italian  subjects  infringing  British  trade-marks. 

A  copy  of  your  note  will  be  sent  to  His  Majesty's  Charge  d'Affaires  at 
Peking,  and  Mr.  Townley's  attention  will  be  called  to  the  statements  contained 
in  it  as  to  the  competence  in  such  matters  of  the  Italian  Consular  Courts. 

I  have,  &c., 
Lansdowne. 

fFor  the  relevant  articles  of  the  Order  in  Council  of  February  11,  1907,  replacing  the 
provisions  of  the  Order  in  Council  here  cited,  see  note  to  the  Anglo-American  Arrangement 
concerning  trade-marks  in  China  (No.  1905/4),  at  page  505,  post. 


NUMBER  1903/4:  OCTOBER  8,  1903  411 

NUMBER  1903/4. 

JAPAN  AND  CHINA. 

Supplementary  Treaty  of  commerce  and  navigation   (ztith  annexes).'^ — 

October  8,  1903. 

His  Majesty  the  Emperor  of  Japan  and  His  Majesty  the  Emperor  of  China, 
in  order  to  give  full  effect  to  the  provisions  of  Article  XI  of  the  Final  Protocol 
signed  at  Peking  on  the  seventh  day  of  the  ninth  month  of  the  thirty-fourth  year 
of  Meiji,  corresponding  to  the  twenty-fifth  day  of  the  seventh  moon  of  the 
twenty-seventh  year  of  Kuang-hsu,  have  resolved  to  conclude  a  Supplementary 
Treaty  of  Commerce  and  Navigation,  designed  to  facilitate  and  promote  the  com- 
mercial relations  between  Japan  and  China,  and  have  for  that  purpose  named  as 
Their  Plenipotentiaries,  that  is  to  say: 

His  Majesty  the  Emperor  of  Japan,  Hioki  Eki,  Jugoi,  Fifth  Class  of  the 
Imperial  Order  of  the  Rising  Sun,  First  Secretary  of  Legation,  and  Odagiri 
Masnoske,  Shorokui,  Fifth  Class  of  the  Imperial  Order  of  the  Rising  Sun, 
Consul-General ; 

And  His  Majesty  the  Emperor  of  China,  Lii  Hai-huan,  President  of  the 
Board  of  Public  Works,  Sheng  Hsuan-huai,  Junior  Guardian  of  the  Heir  Appar- 
ent, formerly  Senior  Vice-President  of  the  Board  of  Public  Works,  and  Wu  T'ing- 
fang.  Senior  Vice-President  of  the  Board  of  Commerce: 

Who,  after  having  communicated  to  each  other  their  Full  Powers  found  to  be 
in  good  and  due  form,  have  agreed  upon  and  concluded  the  following  Articles : — 

Article  I.f — Japan  agrees  to  surtax  on  tariff  duties,  production,  consump- 
tion, and  excise  taxes,  when  accepted  by  all  other  Powers. — Whereas  China, 
with  the  object  of  reforming  its  fiscal  system,  proposes  to  levy  a  surtax  in  excess 
of  the  tariff  rates  on  all  goods  passing  through  the  Custom  Houses,  whether 
maritime  or  inland  and  frontier,  in  order  to  compensate  in  a  measure  for  the 
loss  incurred  by  the  complete  abolition  of  likin,  Japan  consents  to  pay  the  same 
surtax  as  is  agreed  upon  between  China  and  all  the  Treaty  Powers.  With  regard 
to  the  production  tax,  consumption  tax  and  excise,  and  the  taxes  on  native  opium 
and  salt,  leviable  by  China,  Japan  also  consents  to  accept  the  same  arrangements 
as  are  agreed  upon  between  all  the  Treaty  Powers  and  China.  It  is  understood 
however  that  the  commerce,  rights  and  privileges  of  Japan  shall  not,  on  account 
of  the  above,  be  placed  at  any  disadvantage  as  compared  with  the  commerce,  rights 
and  privileges  of  other  Powers. 

Article  11.% — Improvement  of  navigation  on  upper  Yang-tze  River. — The 

*Text  as  printed  in  Rockhill,  p.  121.  Printed  also  in  Customs,  Vol.  II,  p.  617;  Traites 
et  Conventions,  p.  147;  Hertslct,  p.  383;  Recueil,  p.  683. 

In  connection  with  this  treaty,  see  Japanese  treaty  of  July  21,  1896  (No.  1896/4,  ante), 
and  protocol  of  October  19,  1896  (No.  1896/6,  ante)  :  see  also  British  commercial  treaty 
of  September  5,  1902  (No.  1902/7,  ante),  and  American  commercial  treaty  of  October  8, 
1903  (No.  1903/5,  post). 

t  See  British  Treaty  of  1902,  Art.  VIII,  and  U.  S.  Treaty  of  1903,  Art.  IV. 

t  See  British  Treaty  of  1902,  Art.  V,  par.  2. 


412  CHINA  TREATIES  AND  AGREEMENTS 

Chinese  Government  agree  to  permit  Japanese  steamship-owners  to  erect,  at 
their  own  expense,  apphances  for  hauling  through  the  rapids  of  that  part  of  the 
Yang-tze-kiang  between  Ichang  and  Chungking.  But  as  the  interests  of  the 
population  of  the  provinces  of  Szechuen,  Hunan  and  Hupeh  are  involved,  it  is 
therefore  necessary  that  the  approval  of  the  Imperial  Maritime  Customs  be 
obtained  before  such  appliances  may  be  so  erected. 

These  appliances,  which  shall  be  at  the  disposal  of  all  vessels  both  steamers 
and  junks,  shall  not  obstruct  the  waterway  nor  interfere  with  the  free  passage  of 
junks  or  of  persons  on  the  banks  of  the  river.  Such  appliances  shall  be  subject 
to  special  regulations  to  be  drawn  up  by  the  Imperial  Maritime  Customs. 

Article  III.§ — Navigation  of  inland  waters. — The  Chinese  Government 
agree  that  any  Japanese  steamer  capable  of  navigating  the  inland  waterways,  upon 
reporting  at  the  Imperial  Maritime  Customs,  may  proceed  for  the  purpose  of 
trade  from  a  treaty  port  to  places  inland,  so  reported,  on  complying  with  the 
Original  and  Supplementary  Regulations  for  Steam  Navigation  Inland. 

Article  IV. || — Partnerships  of  Chinese  and  Japanese.  Liabilities. — In 
case  Chinese  subjects  conjointly  with  Japanese  subjects  organize  a  partnership 
or  company  for  a  legitimate  purpose,  they  shall  equitably  share  the  profits  and 
losses  with  all  the  members  according  to  the  termb  of  the  agreement  or  memo- 
randum and  articles  of  association  and  the  regulations  framed  thereunder,  and  they 
shall  be  liable  to  the  fulfilment  of  the  obligations  imposed  by  the  said  agreement  or 
memorandum  and  articles  of  association  and  the  regulations  framed  thereunder 
as  accepted  by  them  and  as  interpreted  by  Japanese  Courts.  Should  they  fail  to 
fulfil  the  obligations  so  imposed  and  legal  action  be  taken  against  them  in  conse- 
quence, Chinese  Courts  shall  at  once  enforce  fulfilment  of  such  obligations. 

It  is  understood  that  in  case  Japanese  subjects  conjointly  with  Chinese 
subjects  organize  a  partnership  or  company,  they  shall  also  equitably  share  the 
profits  and  losses  with  all  the  members  ^iccording  to  the  terms  of  the  agreement 
or  memorandum  and  articles  of  association  and  the  regulations  framed  there- 
under. Should  such  Japanese  subjects  fail  to  fulfil  any  of  the  obligations  imposed 
by  the  said  agreement  or  memorandum  and  articles  of  association  or  by  the  regu- 
lations framed  thereunder,  Japanese  Courts  shall  in  like  manner  at  once  enforce 
fulfilment  of  such  obligations  by  them. 

Article  V.^ — Protection  of  trade-marks. — The  Chinese  Government  agree 
to  make  and  faithfully  enforce  such  regulations  as  are  necessary  for  preventing 
Chinese  subjects  from  infringing  registered  trade-marks  held  by  Japanese  subjects. 

Protection  of  copyrights. — The  Chinese  Government  likewise  agree  to  make 
such  regulations  as  are  necessary  for  affording  protection  to  registered  copyrights 
held  by  Japanese  subjects  in  the  books,  pamphlets,  maps  and  charts  written  in 
the  Chinese  language  and  specially  prepared  for  the  use  of  Chinese  people. 

Registration  of  trade-marks  and  copyrights. — It  is  further  agreed  that  the 
Chinese  Government  shall  establish  registration  offices  where  foreign  trade-marks 
and  copyrights,  upon  application  for  the  protection  of  the  Chinese  Government, 

§  See  British  Treaty  of  1902,  Art.  X,  par.  1. 

II  See  British  Treaty  of  1902,  Art.  IV. 

If  See  British  Treaty  of  1902,  Art.  VII,  and  U.  S.  Treaty  of  1903,  Art.  IX,  and  Art.  XI. 


NUMBER  1903/4:  OCTOBER  8,  1903  413 

shall  be  registered  in  accordance  with  the  provisions  of  the  regulations  to  be 
hereafter  framed  by  the  Chinese  Government  for  the  purpose  of  protecting  trade- 
marks and  copyrights. 

It  is  understood  that  Chinese  trade-marks  and  copyrights  properly  registered 
according  to  the  provisions  of  the  laws  and  regulations  of  Japan  will  receive 
similar  protection  against  infringement  in  Japan. 

This  Article  shall  not  be  held  to  protect  against  due  process  of  law  any 
Japanese  or  Chinese  subject  who  may  be  the  author,  proprietor  or  seller  of  any 
publication  calculated  to  injure  the  well-being  of  China. 

Article  VI.* — National  coinage  in  China. — China  agrees  to  establish  itself, 
as  soon  as  possible,  a  system  of  uniform  national  coinage  and  provide  for  a  uni- 
form national  currency  which  shall  be  freely  used  as  legal  tender  in  payment  of 
all  duties,  taxes  and  other  obligations  by  Japanese  subjects  as  well  as  by  Chinese 
subjects  in  the  Chinese  Empire.  It  is  understood,  however,  that  all  Customs 
duties  shall  continue  to  be  calculated  and  paid  on  the  basis  of  the  Haikwan  tael. 

Article  VII.— Uniform  standard  of  weights  and  measures  in  China. — As 
the  weights  and  measures  used  by  the  mercantile  and  other  classes  for  general 
and  commercial  purposes  in  the  different  provinces  of  China  vary  and  do  not 
accord  with  the  standards  fixed  by  the  Imperial  Government  Boards,  thus  result- 
ing in  detriment  to  the  trade  of  Chinese  and  foreigners,  the  Governors  General 
and  Governors  of  all  the  provinces,  after  careful  inquiry  into  existing  conditions, 
shall  consult  together  and  fix  upon  uniform  standards  which,  after  a  Memorial 
to  the  Throne  for  sanction,  shall  be  adopted  and  used  in  all  transactions  by  officials 
and  people  throughout  all  the  Empire.  These  standards  shall  be  first  used  in  the 
places  opened  to  foreign  trade  and  gradually  extended  to  inland  places.  Any 
differences  resulting  from  divergence  between  the  new  weights  and  measures 
and  those  now  in  vogue  shall  be  equitably  settled,  whether  by  way  of  increase 
or  decrease,  according  to  the  amount  of  such  difference. 

Article  VIILf — Regulations  for  steam  navigation  inland  amended. — The 
Regulations  for  Steam  Navigation  Inland  of  the  fifth  moon  of  the  twenty-fourth 
year  of  Kuang-hsii  and  the  Supplementary  Rules  of  the  seventh  moon  of  the 
same  year  having  been  found  in  some  respects  inconvenient  in  working,  the 
Chinese  Government  hereby  agree  to  amend  them  and  to  annex  such  new  Rules 
to  this  Treaty. 

These  Rules  shall  remain  in  force  until  altered  by  mutual  consent. 

Article  IX. — Confirming  all  treaties  not  hereby  modified.  Most-favored- 
nation  treatment. — The  provisions  of  all  treaties  and  engagements  now  subsisting 
between  Japan  and  China,  in  so  far  as  they  are  not  modified  or  repealed  by  this 
Act,  are  hereby  confirmed ;  and  it  is  hereby  expressly  stipulated  in  addition  that 
the  Japanese  Government,  Officers.  Subjects.  Commerce,  Navigation,  Shipping, 
Industries  and  Property  of  all  kinds  shall  be  allowed  free  and  full  participation 
in  all  privileges,  immunities  and  advantages  which  have  been  or  may  hereafter  be 
granted  by  His  Majesty  the  Emperor  of  China  or  by  the  Chinese  Government  or 
by  the  Provincial  or  Local  Administrations  of  China  to  the  Government,  Officers, 

*  See  British  Treaty  of  1902,  Art.  II,  and  U.  S.  Treaty  of  1903,  Art.  XIII. 
t  See  British  Treaty  of  1902,  Art.  X,  and  U.  S.  Treaty  of  1903,  Art  XII. 


414  CHINA  TREATIES  AND  AGREEMENTS 

Subjects,  Commerce,  Navigation,  Shipping,  Industries  or  Property  of  any  other 
nation. 

The  Japanese  Government  will  do  its  utmost  to  secure  to  Chinese  Officers 
and  Subjects  resident  in  Japan  the  most  favourable  treatment  compatible  with  the 
laws  and  regulations  of  the  Empire. 

Article  X4 — Peking  to  be  opened  to  international  residence  and  trade. — 
The  High  Contracting  Parties  hereto  agree  that,  in  case  of  and  after  the  complete 
withdrawal  of  the  foreign  troops  stationed  in  the  province  of  Chihli  and  of  the 
Legation  guards,  a  place  of  international  residence  and  trade  in  Peking  will  be 
forthwith  opened  by  China  itself.  The  detailed  regulations  relating  thereto  shall 
be  settled  in  due  time  after  consultation. 

Ch'ang-sha  to  be  opened  to  foreign  trade. — The  Chinese  Government  agree 
to  open  to  foreign  trade,  within  six  months  from  the  exchange  of  the  Ratifications 
of  this  Treaty,  Ch'angsha-fu  in  the  province  of  Hunan  on  the  same  footing  as  the 
ports  already  opened  to  foreign  trade.  Foreigners  residing  in  this  open  port  are 
to  observe  the  Municipal  and  Police  Regulations  on  the  same  footing  as  Chinese 
residents,  and  they  are  not  to  be  entitled  to  establish  a  Municipality  and  Police 
of  their  own  within  the  limits  of  this  treaty  port,  except  with  the  consent  of  the 
Chinese  authorities. 

Mukden  and  Tatungkow  opened  to  foreign  trade. — The  Chinese  Govern- 
ment agree  that,  upon  the  exchange  of  the  Ratifications  of  this  Treaty,  Mukden 
and  Tatungkow,  both  in  the  province  of  Shengking,  will  be  opened  by  China 
itself  as  places  of  international  residence  and  trade.  The  selection  of  suitable 
localities  to  be  set  apart  for  international  use  and  occupation  and  the  regulations 
for  these  places  set  apart  for  foreign  residence  and  trade  shall  be  agreed  upon 
by  the  Governments  of  Japan  and  China  after  consultation  together. 

Article  XI. § — Reform  of  judicial  system  of  China.  Exterritoriality  to 
terminate. — The  Government  of  China  having  expressed  a  strong  desire  to  reform 
its  judicial  system  and  to  bring  it  into  accord  with  that  of  Japan  and  Western 
nations,  Japan  agrees  to  give  every  assistance  to  such  reform,  and  will  also  be 
prepared  to  relinquish  its  extra-territorial  rights  when  satisfied  that  the  state 
of  the  Chinese  laws,  the  arrangements  for  their  administration  and  other  con- 
siderations warrant  it  in  so  doing. 

Article  XII. — English  text  authoritative. — The  present  Treaty  is  signed 
in  the  Japanese,  Chinese  and  English  languages.  In  order,  however,  to  prevent 
future  discussions,  the  Plenipotentiaries  of  the  High  Contracting  Parties  have 
agreed  that  in  case  of  any  divergence  in  the  interpretation  between  the  Japanese 
and  Chinese  Texts  of  the  Treaty,  the  difference  shall  be  settled  by  reference  to 
the  English  Text. 

Article  XIII. — The  present  Treaty  shall  be  ratified  by  His  Majesty  the 

Emperor  of  Japan  and  His  Majesty  the  Emperor  of  China,  and  the  Ratifications 

thereof  shall  be  exchanged  at  Peking  as  soon  as  possible  and  not  later  than  six 

months  from  the  present  date.|| 

i  See  British  Treaty  of  1902,  Art.  VIII,  sec.  12,  and  U.  S.  Treaty  of  1903,  Art.  XII, 
par.  3.     On  first  paragraph,  see  Annex  6  of  present  treaty. 

§  See  British  Treaty  of  1902,  Art.  XII,  and  U.  S.  Treaty  of  1903,  Art.  XV. 
II  Ratifications  were  exchanged  on  January  11,  1904. 


NUMBER  1903/4:  OCTOBER  8,  1903:  ANNEXES  415 

In  witness  whereof  the  respective  Plenipotentiaries  have  signed  the  same  and 
have  affixed  thereto  the  seals  of  their  arms. 

Done  at  Shanghai  this  eighth  day  of  the  tenth  month  of  the  thirty-six  year 
of  Meiji,  corresponding  to  the  eighteenth  day  of  the  eighth  moon  of  the  twenty- 
ninth  year  of  Kuang-hsii.  [l.  s.]     Hioki  Eki. 

[l.  s.]     Odagiri  Masnoske. 
(Signature   of   His   Excellency  Lii   Hai-huan.) 
(Signature  of  His  Excellency  Sheng  Hsuan-huai.) 
(Signature  of  His  Excellency  Wu  T'ing-fang.) 


Annex  1 

INLAND  WATERS  STEAM  NAVIGATION. 

Additional  Rules. 

1. — Japanese  steamship-owners  are  at  liberty  to  lease  warehouses  and  jetties 
on  the  banks  of  waterways  from  Chinese  subjects  for  a  term  not  exceeding 
twenty-five  years,  with  option  of  renewal  on  terms  to  be  mutually  arranged. 
In  cases  where  Japanese  merchants  are  unable  to  secure  warehouses  and  jetties 
from  Chinese  subjects  on  satisfactory  terms,  the  local  officials,  after  consultation 
with  the  Governor  or  Governor  General  or  Minister  of  Commerce,  shall  arrange 
to  provide  these  on  renewable  lease,  as  above  mentioned,  at  current  equitable 
rates. 

2. — Jetties  shall  only  be  erected  in  such  positions  that  they  will  not  obstruct 
the  inland  waterway  or  interfere  with  navigation,  and  with  the  sanction  of  the 
nearest  Commissioner  of  Customs ;  such  sanction,  however,  shall  not  be  arbitrarily 
withheld. 

3. — Japanese  merchants  shall  pay  taxes  and  contributions  on  these  ware- 
houses and  jetties  on  the  same  footing  as  Chinese  proprietors  of  similar  properties 
in  the  neighbourhood.  Japanese  merchants  may  only  employ  Chinese  agents 
and  staff  to  reside  in  warehouses  so  leased  at  places  touched  at  by  steamers  en- 
gaged in  inland  traffic  to  carry  on  their  business ;  but  Japanese  merchants  may 
visit  these  places  from  time  to  time  to  look  after  their  affairs.  The  existing 
rights  of  Chinese  jurisdiction  over  Chinese  subjects  shall  not  by  reason  of  this 
clause  be  diminished  or  interfered  with  in  any  way. 

4. — Steam  vessels  navigating  the  inland  waterways  of  China  shall  be  re- 
sponsible for  loss  caused  to  riparian  proprietors  by  damage  which  they  may  do  to 
the  banks  or  works  on  them,  and  for  the  loss  which  may  be  caused  by  such 
damage. 

In  the  event  of  China  desiring  to  prohibit  the  use  of  some  particular  shallow 
waterway  by  launches,  because  there  is  reason  to  fear  that  the  use  of  it  by  them 
would  be  likely  to  injure  the  banks  and  cause  damage  to  the  adjoining  country, 
the  Japanese  authorities,  when  appealed  to,  shall,  if  satisfied  of  the  validity  of  the 
objection,  prohibit  the  use  of  that  waterway  by  Japanese  launches,  provided  that 
Chinese  launches  are  also  prohibited  from  using  it. 


416  CHINA  TREATIES  AND  AGREEMENTS 

Both  Foreign  and  Chinese  launches  are  prohibited  from  crossing  dams  and 
weirs  at  present  in  existence  on  inland  waterways  where  they  are  likely  to  cause 
injury  to  such  works,  which  would  be  detrimental  to  the  water  service  of  the 
local  people. 

5. — The  main  object  of  the  Japanese  Government  in  desiring  to  see  the 
inland  waterways  of  China  opened  to  steam  navigation  being  to  afford  facilities 
for  the  rapid  transport  of  both  foreign  and  native  merchandise,  they  undertake 
to  offer  no  impediment  to  the  transfer  to  a  Chinese  company  and  the  Chinese 
flag  of  any  Japanese  steamer  which  may  now  or  hereafter  be  employed  on  the 
inland  waters  of  China,  should  the  owner  be  willing  to  make  the  transfer. 

In  the  event  of  a  Chinese  company  registered  under  Chinese  law  being 
formed  to  run  steamers  on  the  inland  waters  of  China,  the  fact  of  Japanese 
subjects  holding  shares  in  such  a  company  shall  not  entitle  the  steamers  to  fly 
the  Japanese  flag. 

6. — Registered  steamers  and  their  tows  are  forbidden,  just  as  junks  have 
always  been  forbidden,  to  carry  contraband  goods.  Infraction  of  this  rule  will 
entail  the  penalties  prescribed  in  the  treaties  for  such  an  offence,  and  cancellation 
of  the  Inland  Waters  Navigation  Certificate  carried  by  the  vessels,  which  will 
be  prohibited  from  thereafter  plying  on  inland  waters. 

7. — As  it  is  desirable  that  the  people  living  inland  should  be  disturbed  as 
little  as  possible  by  the  advent  of  steam  vessels  to  which  they  are  not  accustomed, 
inland  waters  not  hitherto  frequented  by  steamers  shall  be  opened  as  gradually  as 
may  be  convenient  to  merchants  and  only  as  the  owners  of  steamers  may  see 
prospect  of  remunerative  trade. 

In  cases  where  it  is  intended  to  run  steam  vessels  on  waterways  on  which 
such  vessels  have  not  hitherto  run,  intimation  shall  be  made  to  the  Commissioner 
of  Customs  at  the  nearest  open  port,  who  shall  report  the  matter  to  the  Ministers 
of  Commerce.  The  latter,  in  conjunction  with  the  Governor  General  or  Governor 
of  the  province,  after  careful  consideration  of  all  the  circumstances  of  the  case, 
shall  at  once  give  their  approval. 

8. — A  registered  steamer  may  ply  within  the  waters  of  a  port,  or  from  one 
open  port  or  ports  to  another  open  port  or  ports,  or  from  one  open  port  or  ports 
to  places  inland,  and  thence  back  to  such  port  or  ports.  She  may,  on  making  due 
report  to  the  Customs,  land  or  ship  passengers  or  cargo  at  any  recognized  places 
of  trade  passed  in  the  course  of  the  voyage ;  but  may  not  ply  between  inland 
places  exclusively  except  with  the  consent  of  the  Chinese  Government. 

9. — Any  cargo  and  passenger  boats  may  be  towed  by  steamers.  The  helms- 
man and  crew  of  any  boat  towed  shall  be  Chinese.  All  boats,  irrespective  of 
ownership,  must  be  registered  before  they  can  proceed  inland. 

10. — The  above  Rules  are  supplementary  to  the  Regulations  published  in 
the  fifth  and  seventh  moons  of  the  twenty-fourth  year  of  Kuang-hsii,  which 
remain  in  full  force  and  effect  in  so  far  as  they  are  not  modified  by  the  Rules 
now  agreed  upon. 

The  present  Rules  and  the  Regulations  of  the  fifth  and  seventh  moons  of  the 
twenty-fourth  year  of  Kuang-hsii  may  hereafter  be  modified,  as  circumstances 
require,  by  mutual  consent. 


NUMBER  1903/4:  OCTOBER  8,  1903:  ANNEXES  417 

Done  at  Shanghai  this  eighth  day  of  the  tenth  month  of  the  thirty-sixth 
year  of  Meiji,  corresponding  to  the  eighteenth  day  of  the  eighth  moon  of  the 
twenty-ninth  year  of  Kuang-hsu. 

[l.  s.]  Hioki  Eki. 

[l.  s.]  Odagiri  Masnoske. 

(Signature  of  His  Excellency  Lii  Hai-huan.) 

(Signature  of  His  Excellency  Sheng  Hsuan-huai.> 

(Signature  of  His  Excellency  Wu  T'ing-fang.) 


Annex  2. 


Imperial  Japanese  Commissioners  for  Treaty  Revision 

to 
Imperial  Chinese  Commissioners  for  Treaty  Revision. 

Shanghai,  the  8th  Day  of  the  10th 
Month  of  the  36th  Year  of  Meiji. 
Gentlemen, 

According  to  Article  III  of  the  present  Treaty  the  Chinese  Government  agree 
that  any  Japanese  steamer  capable  of  navigating  the  Inland  Waterways,  upon 
reporting  at  the  Imperial  Maritime  Customs,  may  proceed  for  the  purpose  of 
trade  from  a  treaty  port  to  places  inland,  so  reported,  on  complying  with  the 
Original  and  Supplementary  Regulations  for  Steam  Navigation  Inland. 

It  is  understood  that  all  classes  of  Japanese  steamers,  whatever  their  size, 
provided  they  are  capable  of  navigating  the  Inland  Waterways,  may  on  complying 
with  the  Regulations  receive  an  Inland  Waters  Certificate  and  carry  on  trade 
with  inland  places,  and  the  Chinese  Government  will  in  no  case  raise  difficulties 
and  stop  such  steamers  from  plying  to  and  from  inland  places. 

We  have  the  honour,  in  order  to  prevent  future  misunderstandings,  to 
address  this  despatch  to  Your  Excellencies  and  to  request  that  instructions  be  sent 
to  the  Inspector  General  of  Maritime  Customs  to  act  in  accordance  with  this 
understanding.  We  have  further  the  honour  to  request  a  reply  from  Your 
Excellencies. 

We  have  the  honour  to  be,  gentlemen, 
Your  obedient  Servants, 

(Signed)  Hioki  Eki. 

(Signed)  Odagiri   Masnoske. 

Their  Excellencies 
Lu  Hai-huan, 
Sheng  Hsuan-huai, 

Wu    T'lXG-FANG, 

His  Imperial  Chinese  Majesty's 

Commissioners  for  Treaty  Revision. 


418  CHINA  TREATIES  AND  AGREEMENTS 

Annex  3. 

Imperial  Chinese  Commissioners  for  Treaty  Revision 

to 
Imperial  Japanese  Commissioners  for  Treaty  Revision, 

Shanghai,  the  18th  day  of  the  8th  Moon 

of  the  29th  Year  of  Kuang-hsu. 
Gentlemen, 

We  have  the  honour  to  acknowledge  the  receipt  of  Your  Excellencies' 
despatch  of  this  date,  written  with  a  view  of  preventing  future  misunderstandings, 
to  the  effect  that,  in  accordance  with  the  provisions  of  Article  III  of  the  present 
Treaty,  all  classes  of  Japanese  steamers,  whatever  their  size,  provided  they  are 
capable  of  navigating  the  Inland  Waterways,  may  on  complying  with  the  Regula- 
tions receive  an  Inland  Waters  Certificate  and  ply  to  and  from  inland  places,  and 
that  the  Chinese  Government  will  in  no  case  raise  difficulties  and  stop  them. 

During  the  negotiations  of  this  Article,  we  received  a  list  from  Your 
Excellencies  of  the  Japanese  steamers — viz. :  Sanyo  Maru,  Setagawa  Maru, 
Hiuga  Maru,  Urato  Maru,  Neisei  Maru,  Heian  Maru,  Taiko  Maru,  Yoshino 
Maru,  Meiko  Maru,  Fukuju  Maru,  Hijikawa  Maru,  Nagata  Maru,  Kyodo  Maru, 
Horai  Maru,  Kwanko  Maru,  Keiko  Maru,  Kinriu  Maru,  Zensho  Maru  and 
Kohei  Maru,  ranging  from  one  hundred  and  twenty-one  tons  to  four  hundred  and 
ten  tons  register — plying  from  Chefoo  to  inland  places  in  Manchuria,  under 
Inland  Waters  Certificate  and  in  accordance  with  the  Regulations  for  Steam 
Navigation  Inland,  which  vessels  have  not  been  prevented  from  doing  so  on 
account  of  their  class. 

At  that  time  we  instructed  the  Deputy  Inspector  General  of  Customs  to 
make  inquiries  into  the  records  of  the  Custom  Houses  and  he  reported  that  the 
circumstances  were  in  accordance  with  Your  Excellencies'  statement. 

In  consequence  of  the  receipt  of  Your  Excellencies'  despatch  we  shall 
communicate  with  the  Wai-wu  Pu  and  request  that  instructions  be  sent  to  the 
Inspector  General  of  Customs  to  take  these  circumstances  into  consideration 
and  to  act  accordingly,  and  we  have  the  honour  to  write  this  despatch  for  purposes 
of  record. 

We  have  the  honour  to  be.  Gentlemen, 
Your  obedient  Servants, 

(Signature  of  His  Excellency  Lii  Hai-huan.) 
(Signature  of  His  Excellency  Sheng  Hsuan-huai.) 
(Signature  of  His  Excellency  Wu  T'ing-fang.) 
Their  Excellencies 
HiOKi  Eki, 
Odagiri  Masnoske, 

His  Imperial  Japanese  Majesty's 

Commissioners  for  Treaty  Revision. 


NUMBER  1903/4:  OCTOBER  8,  1903:  ANNEXES  419 


Annex  4. 

Imperial  Japanese  Commissioners  for  Treaty  Revision 

to 
Imperial  Chinese  Commissioners  for  Treaty  Revision. 

Shanghai,  the  8th  day  of  the  10th  Month 
of  the  36th  Year  of  Meiji. 
Gentlemen, 

The  provision  contained  in  No.  9  of  the  Supplementary  Rules  governing 
steam  navigation  on  Inland  Waters  published  in  the  seventh  moon  of  the  twenty- 
fourth  year  of  Kuang-hsii,  regarding  the  appointment  of  an  officer  to  collect 
dues  and  duties,  not  having  in  all  cases  been  given  efTect  to,  we  have  the  honour 
to  request  that  Your  Excellencies'  Government  will  again  issue  instructions  to 
all  provinces  to  give  strict  efifect  to  this  provision,  as  it  is  a  matter  of  importance. 
We  trust  that  Your  Excellencies  will  comply  with  the  request  contained  in 
this  despatch  and  that  you  will  favour  us  with  a  reply. 
We  have  the  honour  to  be.  Gentlemen, 

Your  obedient  Servants, 
(Signed)  Hioki  Eki. 

(Signed)  Odagiri   Masnoske. 

Their  Excellencies 

Uj  Hai-huan, 
Sheng  Hsuan-huai, 
Wu  T'ing-fang, 

His  Imperial  Chinese  Majesty's 

Commissioners  for  Treaty  Revision. 


Annex  5. 


Imperial  Chinese  Commissioners  for  Treaty  Revision 

to 
Imperial  Japanese  Commissioners  for  Treaty  Revision. 

Shanghai,  the  18th  Day  of  the  8th  Moon 

of  the  29th  Year  of  Kuang-hsii. 
Gentlemen, 

We  have  the  honour  to  acknowledge  the  receipt  of  Your  Excellencies' 
despatch  of  this  date  to  the  efifect  that,  the  provision  contained  in  No.  9  of  the 
Supplementary  Rules  governing  steam  navigation  on  Inland  Waters  published 
in  the  seventh  moon  of  the  twenty-fourth  year  of  Kuang-hsu,  regarding  the 
appointment  of  an  officer  to  collect  dues  and  duties,  not  having  in  all  cases  been 
given  efifect  to,  you  request  that  instructions  be  again  issued  to  all  provinces  to 
give  strict  efifect  to  this  provision,  as  it  is  a  matter  of  importance. 


420  CHINA  TREATIES  AND  AGREEMENTS 

We  have  noted  the  above  and  have  communicated  with  proper  authorities  in 
order  that  action  may  be  taken,  and  have  now  the  honour  to  write  this  reply  for 
Your  Excellencies'  information. 

We  have  the  honour  to  be,  Gentlemen, 
Your  obedient  Servants, 

(Signature  of  His  Excellency  Lii  Hai-huan.) 
(Signature  of  His  Excellency  Sheng  Hsuan-huai.) 
(Signature  of  His  Excellency  Wu  T'ing-fang.) 
Their  Excellencies 
HiOKi  Eki, 
Odagiri  Masnoske, 

His  Imperial  Japanese  Majesty's 

Commissioners  for  Treaty  Revision. 


Annex  6. 


Imperial  Chinese  Commissioners  for  Treaty  Revision 

to 
Imperial  Japanese  Commissioners  for  Treaty  Revision. 

Shanghai,  the  18th  Day  of  the  8th  Moon 

of  the  29th  Year  of  Kuang-hsii. 
Gentlemen, 

According  to  the  provision  of  Article  X  of  this  Treaty,  regarding  the 
establishment  in  Peking  of  a  place  of  international  residence  and  trade,  it  is 
agreed  that  in  case  of  and  after  the  complete  withdrawal  of  the  foreign 
troops,  now  guarding  the  Legations  and  Communications,  a  place  in  Peking 
outside  the  Inner  City,  convenient  to  both  parties  and  free  from  objections,  shall 
be  selected  and  set  apart  as  a  place  where  merchants  of  all  nationalities  may 
reside  and  carry  on  trade.  Within  the  limits  of  this  place  merchants  of  all 
nationalities  shall  be  at  liberty  to  lease  land,  build  houses  and  warehouses,  and 
establish  places  of  business ;  but  as  to  the  leasing  of  houses  and  land  belonging  to 
Chinese  private  individuals,  there  must  be  willingness  on  the  part  of  the  owners 
and  the  terms  thereof  must  be  equitably  arranged  without  any  force  or  com- 
pulsion. All  roads  and  bridges  in  this  place  will  be  under  the  jurisdiction  and 
control  of  China.  Foreigners  residing  in  this  place  are  to  observe  the  Municipal 
and  Police  Regulations  on  the  same  footing  as  Chinese  residents,  and  they  are 
not  to  be  entitled  to  establish  a  Municipality  and  Police  of  their  own  within  its 
limits  except  with  the  consent  of  the  Chinese  authorities.  When  such  place  of 
international  residence  and  trade  shall  have  been  opened  and  its  limits  properly 
defined,  the  foreigners  who  have  been  residing  scattered  both  within  and  without 
the  city  walls,  shall  all  be  required  to  remove  their  residence  thereto  and  they 
shall  not  be  allowed  to  remain  in  separate  places  and  thereby  cause  inconvenience 
in  the  necessary  supervision  by  the  Chinese  authorities.  The  value  of  the  land 
and  buildings  held  by  such  foreigners  shall  be  agreed  upon  equitably  and  due 


NUMBER  1903/4:  OCTOBER  8,  1903:  ANNEXES  421 

compensation  therefor  shall  be  paid.  The  period  for  such  removal  shall  be 
determined  in  due  time,  and  those  who  do  not  remove  before  the  expiry  of  this 
period  shall  not  be  entitled  to  compensation. 

We  have  considered  it  to  be  to  our  mutual  advantage  to  come  to  the  present 
basis  of  understanding  in  order  to  avoid  future  unnecessary  negotiations,  and  we 
beg  that  Your  Excellencies  will  consider  and  agree  to  it  and  will  favour  us  with  a 
reply. 

We  have  the  honour  to  be,  Gentlemen, 
Your  obedient   Servants. 

(Signature  of  His  Excellency  Lii  Hai-huan.) 
(Signature  of  His  Excellency  Sheng  Hsuan-huai.) 
(Signature  of  His  Excellency  Wu  T'ing-fang.) 
Their  Excellencies 
HiOKi  Eki, 
Odagiri  Masnoske, 

His  Imperial  Japanese  Majesty's 

Commissioners  for  Treaty  Revision. 


Annex  7. 


Imperial  Japanese  Commissioners  for  Treaty  Revision 

to 
Imperial  Chinese  Commissioners  for  Treaty  Revision 

Shanghai,  the  8th  Day  of  the  10th  Month  of 

the  36th  Year  of  Meiji. 
Gentlemen, 

We   have   the   honour  to   acknowledge  the   receipt   of   Your   Excellencies' 
despatch  of  this  date  in  which  you  state  that — 

"  According  to  the  provision  of  Article  X  of  this  Treaty,  regarding  the 
establishment  in  Peking  of  a  place  of  international  residence  and  trade,  it 
is  agreed  that  in  case  of  and  after  the  complete  withdrawal  of  the  foreign 
troops,  now  guarding  the  Legations  and  Communications,  a  place  in  Peking 
outside  the  Inner  City,  convenient  to  both  parties  and  free  from  objections, 
shall  be  selected  and  set  apart  as  a  place  where  merchants  of  all  nationalities 
may  reside  and  carry  on  trade.  Within  the  limits  of  this  place  merchants  of 
all  nationalities  shall  be  at  liberty  to  lease  land,  build  houses  and  warehouses, 
and  establish  places  of  business ;  but  as  to  the  leasing  of  houses  and 
land  belonging  to  Chinese  private  individuals,  there  must  be  willingness  on 
the  part  of  the  owners  and  the  terms  thereof  must  be  equitably  arranged 
without  any  force  or  compulsion.  All  roads  and  bridges  in  this  place  will 
be  under  the  jurisdiction  and  control  of  China.  Foreigners  residing  in  this 
place  are  to  observe  the  Municipal  and  Police  Regulations  on  the  same 
footing  as  Chinese  residents,  and  they  are  not  to  be  entitled  to  establish  a 


422  CHINA  TREATIES  AND  AGREEMENTS 

Municipality  and  Police  of  their  own  within  its  limits  except  with  the 
consent  of  the  Chinese  authorities.  When  such  place  of  international 
residence  and  trade  shall  have  been  opened  and  its  limits  properly  defined, 
the  foreigners  who  have  been  residing  scattered  both  within  and  without 
the  city  walls,  shall  all  be  required  to  remove  their  residence  thereto  and 
they  shall  not  be  allowed  to  remain  in  separate  places  and  thereby  cause 
inconvenience  in  the  necessary  supervision  by  the  Chinese  authorities.  The 
value  of  the  land  and  buildings  held  by  such  foreigners  shall  be  agreed  upon 
equitably  and  due  compensation  therefor  shall  be  paid.  The  period  for 
such  removal  shall  be  determined  in  due  time,  and  those  who  do  not  remove 
before  the  expiry  of  this  period  shall  not  be  entitled  to  compensation. 

"  We  have  considered  it  to  be  to  our  mutual  advantage  to  come  to  the 
present  basis  of  understanding  in  order  to  avoid  future  unnecessary  negotia- 
tions, and  we  beg  that  Your  Excellencies  will  consider  and  agree  to  it  and 
will  favour  us  with  a  reply." 

In  reply  we  beg  to  inform  you  that  we  agree  generally  to  all  the  terms 
contained  in  the  despatch  under  acknowledgement.  As  to  the  detailed  regulations, 
these  shall  in  due  time  be  considered  and  satisfactorily  settled  in  accordance  with 
Article  X  of  this  Treaty ;  but  it  is  understood  that  such  regulations  shall  not 
differ  in  any  respect  to  our  prejudice  from  those  which  may  be  agreed  upon 
between  China  and  other  Powers.  We  have  the  honour  to  send  Your  Excellencies 
this  communication  in  reply  and  for  your  information. 
We  have  the  honour  to  be,  Gentlemen, 
Your  obedient  Servants, 

(Signed)  Higki  Eki. 

(Signed)  Odagiri   Masnoske. 

Their  Excellencies 

Lu  Hai-huan, 
Sheng  Hsuan-huai, 

WU    T'iNG-FANG, 

His  Imperial  Chinese  Majesty's 

Commissioners  for  Treaty  Revision. 


NUMBER  1903/5 :  OCTOBER  8,  1903  423 

NUMBER  1903/5. 

UNITED  STATES  AND  CHINA. 

Treaty  for  the  extension  of  the  commercial  relations  between  them* — October 

8,  1903. 

The  United  States  of  America  and  His  Majesty  the  Emperor  of  China, 
being  animated  by  an  earnest  desire  to  extend  further  the  commercial  relations 
between  them  and  otherwise  to  promote  the  interests  of  the  peoples  of  the  two 
countries,  in  view  of  the  provisions  of  the  first  paragraph  of  Article  XI  of  the 
final  Protocol  signed  at  Peking  on  the  seventh  day  of  September,  A.  D.  1901, 
whereby  the  Chinese  Government  agreed  to  negotiate  the  amendments  deemed 
necessary  by  the  foreign  Governments  to  the  treaties  of  commerce  and  naviga- 
tion and  other  subjects  concerning  commercial  relations,  with  the  object  of 
facilitating  them,  have  for  that  purpose  named  as  their  Plenipotentiaries : — 
The  United  States  of  America — 

Edwin  H.  Conger,  Envoy  Extraordinary  and  Minister  Plenipotentiary 

of  the  United  States  of  America  to  China — 
John  Goodnow,  Consul-General  of  the  United  States  of  America  at 

Shanghai — 
John  F.  Seaman,  a  Citizen  of  the  United  States  of  America  resident  at 
Shanghai — 
And  His  Majesty  the  Emperor  of  China — 

Lu  Hai-huan,  President  of  the  Board  of  Public  Works — 
Sheng  HsiJAN-HUAi,  Junior  Guardian  of  the  Heir  Apparent.  Formerly 
Senior  Vice-President  of  the  Board  of  Public  Works — 
who,  having  met  and  duly  exchanged  their  full  powers  which  were  found  to  be  in 
proper  form,  have  agreed  upon  the  following  amendments  to  existing  treaties  of 
commerce  and  navigation  formerly  concluded  between  the  two  countries,  and  upon 
the  subjects  hereinafter  expressed  connected  with  commercial  relations,  with  the 
object  of  facilitating  them. 

Article  I.f— Diplomatic  representatives;  rights  and  privileges. — In  ac- 
cordance with  international  usage,  and  as  the  diplomatic  representative  of  China 
has  the  right  to  reside  in  the  capital  of  the  United  States,  and  to  enjoy  there  the 
same  prerogatives,  privileges  and  immunities  as  are  enjoyed  by  the  similar  repre- 
sentative of  the  most  favored  nation,  the  diplomatic  representative  of  the  United 

*Text  as  printed  in  U.  S.  Treafv  S^eries  (No  Number).  Printed  also  in  Rockhill. 
p.  135 ;  Customs,  Vol.  I,  p.  475 ;  Hertslet,  p.  566 ;  Malloy,  p.  261 ;  Recueil.  p.  657. 

In  connection  with  this  treaty  see  also  the  British  commercial  treaty  of  September  5, 
1902  (No.  1902/7,  ante),  and  the  Japanese  treaty  of  October  8,  19()3  (No.  1903/4,  ante): 
see  also  the  international  agreement  relating  to  the  revised  import  tariff  of  1902  (No.  1902/6, 
ante),  and  the  revised  import  tariff  and  rules  of  December  19,   1918   (No.   1918/18,  post). 

t  See  U.  S.  Treaty  with  China  of  1858,  Art.  IV  and  V,  also  Final  Protocol  of  Sept.  7, 
1901,  Annex  No.  19.     (No.  1901/3,  ante.) 


424  CHINA  TREATIES  AND  AGREEMENTS 

States  shall  have  the  right  to  reside  at  the  capital  of  His  Majesty  the  Emperor  of 
China.  He  shall  be  given  audience  of  His  Majesty  the  Emperor  whenever  neces- 
sary to  present  his  letters  of  credence  or  any  communication  from  the  President  of 
the  United  States.  At  all  such  times  he  shall  be  received  in  a  place  and  in  a  man- 
ner befitting  his  high  position,  and  on  all  such  occasions  the  ceremonial  observed 
toward  him  shall  be  that  observed  toward  the  representatives  of  nations  on  a 
footing  of  equality,  with  no  loss  of  prestige  on  the  part  of  either. 

The  diplomatic  representatives  of  the  United  States  shall  enjoy  all  the 
prerogatives,  privileges  and  immunities  accorded  by  international  usage  to  such 
representatives,  and  shall  in  all  respects  be  entitled  to  the  treatment  extended  to 
similar  representatives  of  the  most  favored  nation. 

English  text  authoritative. — The  English  text  of  all  notes  or  dispatches  from 
United  States  officials  to  Chinese  officials,  and  the  Chinese  text  of  all  from  Chinese 
officials  to  United  States  officials  shall  be  authoritative. 

Article  n4 — Consular  officers;  rights  and  privileges. — As  China  may 
appoint  consular  officers  to  reside  in  the  United  States  and  to  enjoy  there  the  same 
attributes,  privileges  and  immunities  as  are  enjoyed  by  consular  officers  of  other 
nations,  the  United  States  may  appoint,  as  its  interests  may  require,  consular 
officers  to  reside  at  the  places  in  the  Empire  of  China  that  are  now  or  that  may 
hereafter  be  opened  to  foreign  residence  and  trade.  They  shall  hold  direct  official 
intercourse  and  correspondence  with  the  local  officers  of  the  Chinese  Government 
within  their  consular  districts,  either  personally  or  in  writing  as  the  case  may 
require,  on  terms  of  equality  and  reciprocal  respect.  These  officers  shall  be 
treated  with  due  respect  by  all  Chinese  authorities,  and  they  shall  enjoy  all  the 
attributes,  privileges  and  immunities,  and  exercise  all  the  jurisdiction  over  their 
nationals  which  are  or  may  hereafter  be  extended  to  similar  officers  of  the  nation 
the  most  favored  in  these  respects. §  H  the  officers  of  either  government  are 
disrespectfully  treated  or  aggrieved  in  any  way  by  the  authorities  of  the  other, 
they  shall  have  the  right  to  make  representation  of  the  same  to  the  superior  officers 
of  their  own  government  who  shall  see  that  full  inquiry  and  strict  justice  be  had 
in  the  premises.  And  the  said  consular  officers  of  either  nation  shall  carefully 
avoid  all  acts  of  offense  to  the  officers  and  people  of  the  other  nation. 

On  the  arrival  of  a  consul  duly  accredited  at  any  place  in  China  opened  to 
foreign  trade  it  shall  be  the  duty  of  the  Minister  of  the  United  States  to  inform 
the  Board  of  Foreign  Affairs,  which  shall,  in  accordance  with  international  usage, 
forthwith  cause  the  proper  recognition  of  the  said  consul  and  grant  him  authority 
to  act. 

Article  ni.|| — American  citizens  in  China;  their  rights. — Citizens  of  the 
United  States  may  frequent,  reside  and  carry  on  trade,  industries  and  manufac- 
tures, or  pursue  any  lawful  avocation,  in  all  the  ports  or  localities  of  China  which 
are  now  open  or  may  hereafter  be  opened  to  foreign  residence  and  trade ;  and, 
within  the  suitable  localities  at  those  places  which  have  been  or  may  be  set  apart  for 
the  use  and  occupation  of  foreigners,  they  may  rent  or  purchase  houses,  places  of 
business  and  other  buildings,  and  rent  or  lease  in  perpetuity  land  and  build  there- 

t  See  U.  S.  Treaty  of  1858,  Art.  X. 

§  See  Note  1  to  this  document,  post,  p.  450. 

II  See  U.  S.  Treaty  of  1858,  Art.  XI. 


NUMBER  1903/5 :  OCTOBER  8,  1903  425 

on.  They  shall  generally  enjoy  as  to  their  persons  and  property  all  such  rights, 
privileges  and  immunities  as  are  or  may  hereafter  be  granted  to  the  subjects  or 
citizens  of  the  nation  the  most  favored  in  these  respects. 

Article  IV.^ — Likin  and  other  transit  dues  to  be  totally  abolished. — The 
Chinese  Government,  recognizing  that  the  existing  system  of  levying  dues  on 
goods  in  transit,  and  especially  the  system  of  taxation  known  as  likin,  impedes  the 
free  circulation  of  commodities  to  the  general  injury  of  trade,  hereby  undertakes 
to  abandon  the  levy  of  likin  and  all  other  transit  dues  throughout  the  Empire  and 
to  abolish  the  offices,  stations  and  barriers  maintained  for  their  collection  and  not 
to  establish  other  offices  for  levying  dues  on  goods  in  transit.  It  is  clearly  under- 
stood that,  after  the  offices,  stations  and  barriers  for  taxing  goods  in  transit  have 
been  abolished,  no  attempt  shall  be  made  to  re-establish  them  in  any  form  or 
under  any  pretext  whatsoever. 

Surtax  on  tariff  rates  granted  in  compensation. — The  Government  of  the 
United  States,  in  return,  consents  to  allow  a  surtax,  in  excess  of  the  tariff  rates 
for  the  time  being  in  force,  to  be  imposed  on  foreign  goods  imported  by  citizens 
of  the  United  States  and  on  Chinese  produce  destined  for  export  abroad  or  coast- 
wise. It  is  clearly  understood  that  in  no  case  shall  the  surtax  on  foreign  imports 
exceed  one  and  one-half  times  the  import  duty  leviable  in  terms  of  the  final 
Protocol  signed  by  China  and  the  Powers  on  the  seventh  day  of  September,  A.D. 
1901 ;  that  the  payment  of  the  import  duty  and  surtax  shall  secure  for  foreign 
imports,  whether  in  the  hands  of  Chinese  or  foreigners,  in  original  packages  or 
otherwise,  complete  immunity  from  all  other  taxation,  examination  or  delay ;  that 
the  total  amount  of  taxation,  inclusive  of  the  tariff  export  duty,  leviable  on  native 
produce  for  export  abroad  shall,  under  no  circumstances,  exceed  seven  and  one- 
half  per  centum  ad  valorem. 

China's  right  to  levy  taxes. — Nothing  in  this  article  is  intended  to  interfere 
with  the  inherent  right  of  China  to  levy  such  other  taxes  as  are  not  in  conflict  with 
its  provisions.* 

Keeping  these  fundamental  principles  in  view,  the  High  Contracting  Parties 
have  agreed  upon  the  following  method  of  procedure. 

Likin  barriers  to  be  abolished.  Native  customs  offices  to  be  retained  in 
certain  localities. — The  Chinese  Government  undertakes  that  all  offices,  stations 
and  barriers  of  whatsoever  kind  for  collecting  likin,  duties,  or  such  like  dues  on 
goods  in  transit,  shall  be  permanently  abolished  on  all  roads,  railways  and  water- 
ways in  the  nineteen  Provinces  of  China  and  the  three  Eastern  Provinces.  This 
provision  does  not  apply  to  the  native  Customs  offices  at  present  in  existence  on 
the  seaboard,  at  open  ports  where  there  are  offices  of  the  Imperial  IMaritime  Cus- 
toms, and  on  the  land  frontiers  of  China  embracing  the  nineteen  Provinces  and 
the  three  Eastern  Provinces. 

Wherever  there  are  offices  of  the  Imperial  Maritime  Customs,  or  wherever 
such  may  be  hereafter  placed,  native  Customs  offices  may  also  be  established,  as 
well  as  at  any  point  either  on  the  seaboard  or  land  frontiers. 

Surtax  on  duties  on  foreign  imports. — The  Government  of  the  United  States 

*  See  Note  2  to  this  document,  post,  p.  451. 

USee  British  Treaty  of  1902,  Art.  VIII;  also  Japanese  Treaty  of  1903,  Art.  I. 


426  CHINA  TREATIES  AND  AGREEMENTS 

agrees  that  foreign  goods  on  importation,  in  addition  to  the  effective  five  per 
centum  import  duty  as  provided  for  in  the  Protocol  of  1901,  shall  pay  a  special 
surtax  of  one  and  one-half  times  the  amount  of  the  said  duty  to  compensate  for 
the  abolition  of  likin,  of  other  transit  dues  besides  likin,  and  of  all  other  taxation 
on  foreign  goods,  and  in  consideration  of  the  other  reforms  provided  for  in  this 
article. 

Revision  of  foreign  export  tariff. — The  Chinese  Government  may  recast  the 
foreign  export  tariff  with  specific  duties,  as  far  as  practicable,  on  a  scale  not 
exceeding  five  per  centum  ad  valorem;  but  existing  export  duties  shall  not  be 
raised  until  at  least  six  months'  notice  has  been  given.  In  cases  where  existing 
export  duties  are  above  five  per  centum,  they  shall  be  reducd  to  not  more  than 
that  rate. 

Surtax  on  exports;  how  levied.— An  additional  special  surtax  of  one- 
half  the  export  duty  payable  for  the  time  being,  in  lieu  of  internal  taxation 
of  all  kinds,  may  be  levied  at  the  place  of  original  shipment  or  at  the  time  of 
export  on  goods  exported  either  to  foreign  countries  or  coastwise. 

Certificate  of  origin. — Foreign  goods  which  bear  a  similarity  to  native  goods 
shall  be  furnished  by  the  Customs  officers,  if  required  by  the  owner,  with  a  pro- 
tective certificate  for  each  package,  on  the  payment  of  import  duty  and  surtax,  to 
prevent  the  risk  of  any  dispute  in  the  interior. 

Junk-borne  goods. — Native  goods  brought  by  junks  to  open  ports,  if  intended 
for  local  consumption,  irrespective  of  the  nationality  of  the  owner  of  the  goods, 
shall  be  reported  at  the  native  Customs  offices  only,  to  be  dealt  with  according  to 
the  fiscal  regulations  of  the  Chinese  Government. 

Machine-made  goods  in  China;  treatment  of. — Machine-made  cotton  yarn 
and  cloth  manufactured  in  China,  whether  by  foreigners  at  the  open  ports  or  by 
Chinese  anywhere  in  China,  shall  as  regards  taxation  be  on  a  footing  of  perfect 
equality.  Such  goods  upon  payment  of  the  taxes  thereon  shall  be  granted  a  rebate 
of  the  import  duty  and  of  two-thirds  of  the  import  surtax  paid  on  the  cotton  used 
in  their  manufacture,  if  it  has  been  imported  from  abroad,  and  of  all  duties  paid 
thereon  if  it  be  Chinese  grown  cotton.  They  shall  also  be  free  of  export  duty, 
coast-trade  duty  and  export  surtax.  The  same  principle  and  procedure  shall 
be  applied  to  all  other  products  of  foreign  type  turned  out  by  machinery  in 
China. 

Maritime  Customs  to  oversee  native  customs  affairs. — A  member  or  mem- 
bers of  the  Imperial  Maritime  Customs  foreign  staff  shall  be  selected  by  the 
Governors-General  and  Governors  of  each  of  the  various  provinces  of  the  Empire 
for  their  respective  provinces,  and  appointed  in  consultation  with  the  Inspector 
General  of  Imperial  Maritime  Customs,  for  duty  in  connection  with  native  Customs 
affairs  to  have  a  general  supervision  of  their  working. 

Complaints ;  how  investigated.  Responsibility  for  enforcement  of  provi- 
sions of  treaty. — Cases  where  illegal  action  is  complained  of  by  citizens  of  the 
United  States  shall  be  promptly  investigated  by  an  offfcer  of  the  Chinese  Govern- 
ment of  sufficiently  high  rank,  in  conjunction  with  an  officer  of  the  United  States 
Government,  and  an  officer  of  the  Imperial  Maritime  Customs,  each  of  sufficient 
standing ;  and,  in  the  event  of  it  being  found  by  the  investigating  officers  that  the 
complaint  is  well  founded  and  loss  has  been  incurred,  due  compensation  shall  be 


NUMBER  1903/5 :  OCTOBER  8,  1903  427 

paid  through  the  Imperial  Maritime  Customs.  The  high  provincial  officials  shall 
be  held  responsible  that  the  officer  guilty  of  the  illegal  action  shall  be  severely- 
punished  and  removed  from  his  post.  If  the  complaint  is  shown  to  be  frivolous 
or  malicious,  the  complainant  shall  be  held  responsible  for  the  expenses  of  the 
investigation. 

Edict  to  be  published  when  article  becomes  operative. — When  the  ratifica- 
tions of  this  Treaty  shall  have  been  exchanged  by  the  High  Contracting  Parties 
hereto,  and  the  provisions  of  this  Article  shall  have  been  accepted  by  the  Powers 
having  treaties  with  China,  then  a  date  shall  be  agreed  upon  when  the  provisions 
of  this  Article  shall  take  effect  and  an  Imperial  Edict  shall  be  published  in  due 
form  on  yellow  paper  and  circulated  throughout  the  Empire  of  China  setting  forth 
the  abolition  of  all  likin  taxation,  duties  on  goods  in  transit,  offices,  stations  and 
barriers  for  collecting  the  same,  and  of  all  descriptions  of  internal  taxation  on 
foreign  goods,  and  the  imposition  of  the  surtax  on  the  import  of  foreign  goods 
and  on  the  export  of  native  goods,  and  the  other  fiscal  changes  and  reforms  pro- 
vided for  in  this  Article,  all  of  which  shall  take  effect  from  the  said  date.  The 
Edict  shall  state  that  the  provincial  high  officials  are  responsible  that  any  official 
disregarding  the  letter  or  the  spirit  of  its  injunction  shall  be  severely  punished  and 
removed  from  his  post. 

Article  V.f — Tariff  on  American  imports.  Most  favored  nation  treatment. 
— The  tariff  duties  to  be  paid  by  citizens  of  the  United  States  on  goods  imported 
into  China  shall  be  as  set  forth  in  the  schedule  annexed  hereto  and  made  part  of 
this  Treaty,  subject  only  to  such  amendments  and  changes  as  are  authorized  by 
Article  IV  of  the  present  convention  or  as  may  hereafter  be  agreed  upon  by  the 
High  Contracting  Parties  hereto.  It  is  expressly  agreed,  however,  that  citizens  of 
the  United  States  shall  at  no  time  pay  other  or  higher  duties  than  those  paid  by  the 
citizens  or  subjects  of  the  most  favored  nation. 

Conversely,  Chinese  subjects  shall  not  pay  higher  duties  on  their  imports  into 
the  United  States  than  those  paid  by  the  citizens  or  subjects  of  the  most  favored 
nation. 

Article  VI.$ — Bonded  warehouses. — The  Government  of  China  agrees  to 
the  establishment  by  citizens  of  the  United  States  of  warehouses  approved  by 
the  proper  Chinese  authorities  as  bonded  warehouses  at  the  several  open  Ports 
of  China,  for  storage,  re-packing,  or  preparation  for  shipment  of  lawful  goods, 
subject  to  such  necessary  regulations  for  the  protection  of  the  revenue  of  China, 
including  a  reasonable  scale  of  fees  according  to  commodities,  distance  from  the 
custom  house  and  hours  of  working,  as  shall  be  made  from  time  to  time  by  the 
proper  officers  of  the  Government  of  China. 

Article  VII. § — Mining  regulations  to  be  revised  and  operations 
encouraged. — The  Chinese  Government,  recognizing  that  it  is  advantageous  for 
the  country  to  develop  its  mineral  resources,  and  that  it  is  desirable  to  attract  for- 
eign as  well  as  Chinese  capital  to  embark  in  mining  enterprises,  agrees,  within 
one  year  from  the  signing  of  this  Treaty,  to  initiate  and  conclude  the  revision  of 
the  existing  mining  regulations.    To  this  end  China  will,  with  all  expedition  and 

t  See  British  Treaty  of  1902,  Art.  XV;  also  Japanese  Treaty  of  1903.  Art.  I. 
t  See  British  Treaty  of  1902,  Art.  VT. 
§  See  British  Treaty  of  1902,  Art.  IX. 


428  CHINA  TREATIES  AND  AGREEMENTS 

earnestness,  go  into  the  whole  question  of  mining  rules;  and,  selecting  from  the 
rules  of  the  United  States  and  other  countries  regulations  which  seem  applicable 
to  the  condition  of  China,  will  recast  its  present  mining  rules  in  such  a  way  as, 
while  promoting  the  interests  of  Chinese  subjects  and  not  injuring  in  any  way 
the  sovereign  rights  of  China,  will  offer  no  impediment  to  the  attraction  of 
foreign  capital  nor  place  foreign  capitalists  at  a  greater  disadvantage  than  they 
would  be  under  generally  accepted  foreign  regulations;  and  will  permit  citizens 
of  the  United  States  to  carry  on  in  Chinese  territory  mining  operations  and  other 
necessary  business  relating  thereto  provided  they  comply  with  the  new  regulations 
and  conditions  which  will  be  imposed  by  China  on  its  subjects  and  foreigners 
alike,  relating  to  the  opening  of  mines,  the  renting  of  mineral  land,  and  the  pay- 
ment of  royalty,  and  provided  they  apply  for  permits,  the  provisions  of  which  in 
regard  to  necessary  business  relating  to  such  operations  shall  be  observed.  The 
residence  of  citizens  of  the  United  States  in  connection  with  such  mining  opera- 
tions shall  be  subject  to  such  regulations  as  shall  be  agreed  upon  by  and  between 
the  United  States  and  China. 

Any  mining  concession  granted  after  the  publication  of  such  new  rules  shall 
be  subject  to  their  provisions. 

Article  VIII. || — Drawback  certificates. — Drawback  certificates  for  the 
return  of  duties  shall  be  issued  by  the  Imperial  Maritime  Customs  to  citizens  of 
the  United  States  within  three  weeks  of  the  presentation  to  the  Customs  of  the 
papers  entitling  the  applicant  to  receive  such  drawback  certificates,  and  they  shall 
be  receivable  at  their  face  value  in  payment  of  duties  of  all  kinds  (tonnage  dues 
excepted)  at  the  port  of  issue;  or  shall,  in  the  case  of  drawbacks  on  foreign  goods 
re-exported  within  three  years  from  the  date  of  importation,  be  redeemable  by 
the  Imperial  Maritime  Customs  in  full  in  ready  money  at  the  port  of  issue,  at  the 
option  of  the  holders  thereof.  But  if,  in  connection  with  any  application  for  a 
drawback  certificate,  the  Customs  authorities  discover  an  attempt  to  defraud  the 
revenue,  the  applicant  shall  be  dealt  with  and  punished  in  accordance  with  the 
stipulations  provided  in  the  Treaty  of  Tientsin,  Article  XXI,  in  the  case  of 
detected  frauds  on  the  revenue.  In  case  the  goods  have  been  removed  from 
Chinese  territory,  then  the  consul  shall  inflict  on  the  guilty  party  a  suitable  fine 
to  be  paid  to  the  Chinese  Government. 

Article  IX. ^ — Protection  of  trade-marks. — Whereas  the  United  States 
undertakes  to  protect  the  citizens  of  any  country  in  the  exclusive  use  within  the 
United  States  of  any  lawful  trade-marks,  provided  that  such  country  agrees  by 
treaty  or  convention  to  give  like  protection  to  citizens  of  the  United  States : — 

Therefore  the  Government  of  China,  in  order  to  secure  such  protection  in  the 
United  States  for  its  subjects,  now  agrees  to  fully  protect  any  citizen,  firm  or 
corporation  of  the  United  States  in  the  exclusive  use  in  the  Empire  of  China  of 

II  See  British  Treaty  of  1902,  Art,  I. 

If  See  British  Treaty  of  1902,  Art.  VII ;  also  Japanese  Treaty  of  1903,  Art.  V.  Agree- 
ments for  the  reciprocal  protection  of  their  trade-marks  against  infringement  by  each  other's 
citizens  or  subjects  have  been  concluded  by  the  United  States  with  other  nations  as  follows: 

Great  Britain,  June  28,  1905  (No.  1905/4,  post)  ;  France,  October  3,  1905   (No.  1905/12, 


NUMBER  1903/5 :  OCTOBER  8,  1903  429 

any  lawful  trade-mark  to  the  exclusive  use  of  which  in  the  United  States  they  are 
entitled,  or  which  they  have  adopted  and  used,  or  intend  to  adopt  and  use  as  soon 
as  registered,  for  exclusive  use  within  the  Empire  of  China.  To  this  end  the 
Chinese  Government  agrees  to  issue  by  its  proper  authorities  proclamations, 
having  the  force  of  law,  forbidding  all  subjects  of  China  from  infringing  on, 
imitating,  colorably  imitating,  or  knowingly  passing  off  an  imitation  of  trade- 
marks belonging  to  citizens  of  the  United  States,  which  shall  have  been  regis- 
tered by  the  proper  authorities  of  the  United  States  at  such  offices  as  the  Chinese 
Government  will  establish  for  such  purpose,  on  payment  of  a  reasonable  fee,  after 
due  investigation  by  the  Chinese  authorities,  and  in  compliance  with  reasonable 
regulations. 

Article  X.— Protection  of  patents. — The  United  States  Government  allows 
subjects  of  China  to  patent  their  inventions  in  the  United  States  and  protects 
them  in  the  use  and  ownership  of  such  patents.  The  Government  of  China  now 
agrees  that  it  will  establish  a  Patent  Office.  After  this  office  has  been  established 
and  special  laws  with  regard  to  inventions  have  been  adopted  it  will  thereupon, 
after  the  payment  of  the  prescribed  fees,  issue  certificates  of  protection,  valid  for 
a  fixed  term  of  years,  to  citizens  of  the  United  States  on  all  their  patents  issued 
by  the  United  States,  in  respect  of  articles  the  sale  of  which  is  lawful  in  China, 
which  do  not  infringe  on  previous  inventions  of  Chinese  subjects,  in  the  same 
manner  as  patents  are  to  be  issued  to  subjects  of  China. 

Article  XL* — Protection  of  copyright. — Whereas  the  Government  of  the 
United  States  undertakes  to  give  the  benefits  of  its  copyright  laws  to  the  citizens 
of  any  foreign  State  which  gives  to  the  citizens  of  the  United  States  the  benefits 
of  copyright  on  an  equal  basis  with  its  own  citizens : — 

Therefore  the  Government  of  China,  in  order  to  secure  such  benefits  in  the 
United  States  for  its  subjects,  now  agrees  to  give  full  protection,  in  the  same 
way  and  manner  and  subject  to  the  same  conditions  upon  which  it  agrees  to  pro- 
tect trade-marks,  to  all  citizens  of  the  United  States  who  are  authors,  designers 
or  proprietors  of  any  book,  map,  print  or  engraving  especially  prepared  for  the 
use  and  education  of  the  Chinese  people,  or  translation  into  Chinese  of  any 
book,  in  the  exclusive  right  to  print  and  sell  such  book,  map,  print,  engraving 
or  translation  in  the  Empire  of  China  during  ten  years  from  the  date  of  registra- 
tion. With  the  exception  of  the  books,  maps,  etc.,  specified  above,  which  may  not 
be  reprinted  in  the  same  form,  no  work  shall  be  entitled  to  copyright  privileges 
under  this  article.  It  is  understood  that  Chinese  subjects  shall  be  at  liberty  to 
make,  print  and  sell  original  translations  into  Chinese  of  any  works  written  or  of 
maps  compiled  by  a  citizen  of  the  United  States.  This  article  shall  not  be  held  to 
protect  against  due  process  of  law  any  citizen  of  the  United  States  or  Chinese 
subject  who  may  be  author,  proprietor  or  seller  of  any  publication  calculated  to 
injure  the  well-being  of  China. 

Article  XII. f — Navigation  of  inland  waters. — The  Chinese  Government 
having  in  1898  opened  the  navigable  inland  waters  of  the  Empire  to  commerce  by 
all  steam  vessels,  native  or  foreign,  that  may  be  specially  registered  for  the  pur- 

*  See  Japanese  Treaty  of  1903,  Art.  V. 

tSee  British  Treaty  of  1902,  Art.  VIII.  sec.  12,  and  Art.  X,  and  Japanese  Treaty  of 
1903,  Art.  VIII.    Compare  last  paragraph  with  Japanese  Treaty  of  1903,  Art.  X,  par.  3. 


430  CHINA  TREATIES  AND  AGREEMENTS 

pose,  for  the  conveyance  of  passengers  and  lawful  merchandise, — citizens,  firms 
and  corporations  of  the  United  States  may  engage  in  such  commerce  on  equal 
terms  with  those  granted  to  subjects  of  any  foreign  power. 

In  case  either  party  hereto  considers  it  advantageous  at  any  time  that  the 
■  rules  and  regulations  then  in  existence  for  such  commerce  be  altered  or  amended, 
the  Chinese  Government  agrees  to  consider  amicably  and  to  adopt  such  modifica- 
tions thereof  as  are  found  necessary  for  trade  and  for  the  benefit  of  China. 

Mukden  and  Antung  opened  to  foreign  trade. — The  Chinese  Government 
agrees  that,  upon  the  exchange  of  the  ratifications  of  this  Treaty,  Mukden  and 
Antung,  both  in  the  province  of  Sheng-king,  will  be  opened  by  China  itself  as 
places  of  international  residence  and  trade.  The  selection  of  suitable  localities 
to  be  set  apart  for  international  use  and  occupation  and  the  regulations  for  these 
places  set  apart  for  foreign  residence  and  trade  shall  be  agreed  upon  by  the 
Governments  of  the  United  States  and  China  after  consultation  together. 

Article  XIII. | — Uniform  national  coinage. — China  agrees  to  take  the  neces- 
sary steps  to  provide  for  a  uniform  national  coinage  which  shall  be  legal  tender 
in  payment  of  all  duties,  taxes  and  other  obligations  througliout  the  Empire  by 
the  citizens  of  the  United  States  as  well  as  Chinese  subjects.  It  is  understood, 
however,  that  all  Customs  duties  shall  continue  to  be  calculated  and  paid  on  the 
basis  of  the  Haikuan  Tael. 

Article  XIV. § — Christianity;  its  teachers  and  followers  not  to  be  dis- 
criminated against.  Rights  and  duties  of  missionaries. — The  principles  of  the 
Christian  religion,  as  professed  by  the  Protestant  and  Roman  Catholic  Churches, 
are  recognized  as  teaching  men  to  do  good  and  to  do  to  others  as  they  would  have 
others  do  to  them.  Those  w^ho  quietly  profess  and  teach  these  doctrines  shall  not 
be  harassed  or  persecuted  on  account  of  their  faith.  Any  person,  whether  citizen 
of  the  United  States  or  Chinese  convert,  who,  according  to  these  tenets,  peaceably 
teaches  and  practices  the  principles  of  Christianity  shall  in  no  case  be  interfered 
with  or  molested  therefor.  No  restrictions  shall  be  placed  on  Chinese  joining 
Christian  churches.  Converts  and  non-converts,  being  Chinese  subjects,  shall 
alike  conform  to  the  laws  of  China ;  and  shall  pay  due  respect  to  those  in  author- 
ity, living  together  in  peace  and  amity ;  and  the  fact  of  being  converts  shall  not 
protect  them  from  the  consequences  of  any  offence  they  may  have  committed 
before  or  may  commit  after  their  admission  into  the  church,  or  exempt  them 
from  paying  legal  taxes  levied  on  Chinese  subjects  generally,  except  taxes  levied 
and  contributions  for  the  support  of  religious  customs  and  practices  contrary  to 
their  faith.  Missionaries  shall  not  interfere  with  the  exercise  by  the  native  authori- 
ties of  their  jurisdiction  over  Chinese  subjects ;  nor  shall  the  native  authorities 
make  any  distinction  between  converts  and  non-converts,  but  shall  administer  the 
laws  without  partiality  so  that  both  classes  can  live  together  in  peace. 

Property  ;land  purchased  by  missionary  societies. — Missionary  societies  of 
the  United  States  shall  be  permitted  to  rent  and  to  lease  in  perpetuity,  as  the 
property  of  such  societies,  buildings  or  lands  in  all  parts  of  the  Empire  for  mis- 
sionary purposes  and,  after  the  title  deeds  have  been  found  in  order  and  duly 

tSee  British  Treaty  of  1902,  Art.  II,  and  Japanese  Treaty  of  1903,  Art.  XIII. 
§  See  U.  S.  Treaty  of  1858,  Art.  XXIX,  and  British  Treaty  of  1902,  Art.  XIII.     See 
Note  3  to  this  document,  post,  p.  452. 


NUAIBER  1903/5:  OCTOBER  8,  1903  431 

stamped  by  the  local  authorities,  to  erect  such  suitable  buildings  as  may  be  required 
for  carrying  on  their  good  work. 

Article  XV. || — Reform  6i  judicial  system.  Extra-territoriality  to  termi- 
nate,— The  Government  of  China  having  expressed  a  strong  desire  to  reform  its 
judicial  system  and  to  bring  it  into  accord  with  that  of  Western  nations,  the 
United  States  agrees  to  give  every  assistance  to  such  reform  and  will  also  be 
prepared  to  relinquish  extra-territorial  rights  when  satsified  that  the  state  of  the 
Chinese  laws,  the  arrangements  for  their  administration,  and  other  considerations 
warrant  it  in  so  doing. 

Article  XVI.jf — Prohibition  of  importation  of  morphia. — The  Government 
of  the  United  States  consents  to  the  prohibition  by  the  Government  of  China  of 
the  importation  into  China  of  morphia  and  of  instruments  for  its  injection, 
excepting  morphia  and  instruments  for  its  injection  imported  for  medical  purposes, 
on  payment  of  tariff  duty,  and  under  regulations  to  be  framed  by  China  which  shall 
effectually  restrict  the  use  of  such  import  to  the  said  purposes.  This  prohibition 
shall  be  uniformly  applied  to  such  importation  from  all  countries.  The  Chinese 
Government  undertakes  to  adopt  at  once  measures  to  prevent  the  manufacture  in 
China  of  morphia  and  of  instruments  for  its  injection. 

Article  XVII. — Treaties  to  remain  in  force  except  as  here  modified. — It 
is  agreed  between  the  High  Contracting  Parties  hereto  that  all  the  provisions  of 
the  several  treaties  between  the  United  States  and  China  which  were  in  force  on 
the  first  day  of  January  A.D.  1900,  are  continued  in  full  force  and  effect  except 
in  so  far  as  they  are  modified  by  the  present  Treaty  or  other  treaties  to  which  the 
United  States  is  a  party. 

The  present  Treaty  shall  remain  in  force  for  a  period  of  ten  years  beginning 
with  the  date  of  the  exchange  of  ratifications  and  until  a  revision  is  effected  as 
hereinafter  provided. 

Revision. — It  is  further  agreed  that  either  of  the  High  Contracting  Parties 
may  demand  that  the  tariff  and  the  articles  of  this  convention  be  revised  at  the 
end  of  ten  years  from  the  date  of  the  exchange  of  the  ratifications  thereof.  If 
no  revision  is  demanded  before  the  end  of  the  first  term  of  ten  years,  then  these 
articles  in  their  present  form  shall  remain  in  full  force  for  a  further  term  of  ten 
years  reckoned  from  the  end  of  the  first  term,  and  so  on  for  successive  periods  of 
ten  years. 

English  text  authoritative. — The  English  and  Chinese  texts  of  the  present 
Treaty  and  its  three  annexes  have  been  carefully  compared ;  but,  in  the  event 
of  there  being  any  difference  of  meaning  between  them,  the  sense  as  expressed 
in  the  English  text  shall  be  held  to  be  the  correct  one. 

This  Treaty  and  its  three  annexes  shall  be  ratified  by  the  two  High  Con- 
tracting Parties  in  conformity  with  their  respective  constitutions,  and  the  ratifica- 
tions shall  be  exchanged  in  Washington  not  later  than  twelve  months  from  the 
present  date.* 

In  testimony  whereof,  we,  the  undersigned,  by  virture  of  our  respective 

*  Ratified  by  China,  January  10,  1904,  and  by  the  United  States,  January  12,  1904;  rati- 
fications exchanged  at  Washington,  January  13,  1904. 

II  See  British  Treaty  of  1902,  Art.  XII,  and  Tapanese  Treaty  of  1903.  Art.  XI. 
USee  British  Treaty  of  1902,  Art.  XI. 


432  CHINA  TREATIES  AND  AGREEMENTS 

powers,  have  signed  this  Treaty  in  duplicate  in  the  EngHsh  and  Chinese  languages, 

and  have  affixed  our  respective  seals. 

Done  at  Shanghai,  this  eighth  day  of  Octobef  in  the  year  of  our  Lord  one 

thousand  nine  hundred  and  three,  and  in  the  twenty  ninth  year  of  Kuang  Hsu 

eighth  month  and  eighteenth  day. 

Edwin    H.    Conger,     [seal.] 
John  Goodnow.  [seal.] 

John  F.  Seaman.         [seal.] 

Signatures  and  seal  of  Chinese  Plenipotentiaries. 
[Lij  Hai-huan.] 
[Sheng  Hsuan-huai.] 


Annex  I. 


As  citizens  of  the  United  States  are  already  forbidden  by  treaty  to  deal  in  or 
handle  opium,  no  mention  has  been  made  in  this  Treaty  of  opium  taxation. 

As  the  trade  in  salt  is  a  government  monopoly  in  China,  no  mention  has  been 
made  in  this  Treaty  of  salt  taxation. 

It  is,  however,  understood,  after  full  discussion  and  consideration,  that  the 
collection  of  inland  dues  on  opium  and  salt  and  the  means  for  the  protection  of 
the  revenue  therefrom  and  for  preventing  illicit  traffic  therein  are  left  to  be 
administered  by  the  Chinese  Government  in  such  manner  as  shall  in  no  wise 
interfere  with  the  provisions  of  Article  IV  of  this  treaty  regarding  the  unob- 
structed transit  of  other  goods. 

Edwin    H.    Conger,     [seal.] 
John  Goodnow.  [seal.] 

John  F.  Seaman.         [seal.] 
Signatures  and  seal  of  Chinese  Plenipotentiaries. 
[Lij  Hai-huan.] 
[Sheng  Hsuan-huai.] 


Annex  II. 


Article  IV  of  the  Treaty  of  Commerce  between  the  United  States  and 
China  of  this  date  provides  for  the  retention  of  the  native  Customs  offices  at 
the  open  ports.  For  the  purpose  of  safeguarding  the  revenue  of  China  at  such 
places,  it  is  understood  that  the  Chinese  Government  shall  be  entitled  to  establish 
and  maintain  such  branch  native  Customs  offices  at  each  open  port,  within  a 
reasonable  distance  of  the  main  native  Customs  offices  at  the  port,  as  shall  be 
deemed  by  the  authorities  of  the  Imperial  Maritime  Customs  at  that  port  neces- 
sary to  collect  the  revenue  from  the  trade  into  and  out  of  such  port.  Such 
branches,  as  well  as  the  main  native  Customs  offices  at  each  open  port,  shall 


NUMBER  1903/5  :  OCTOBER  8,  1903 :  ANNEXES  433 

be  administered  by  the  Imperial  Maritime  Customs  as  provided  by  the  Protocol 
of   1901. 

Edwin    H.    Conger,     [seal.] 
John  Goodnow.  [seal.] 

John  F.  Seaman.         [seal.] 
Signatures  and  seal  of  Chinese  Plenipotentiaries. 
[Lij  Hai-huan.] 
[Sheng  Hsuan-hual] 


Annex  III. 


The  schedule  of  tariff  duties  on  imported  goods  annexed  to  this  Treaty  under 
Article  V  is  hereby  mutually  declared  to  be  the  schedule  agreed  upon  between 
the  representatives  of  China  and  the  United  States  and  signed  by  John  Goodnow 
for  the  United  States  and  Their  Excellencies  Lii  Hai-huan  and  Sheng  Hsuan-huai 
for  China  at  Shanghai  on  the  sixth  day  of  September  A.  D.  1902,t  according 
to  the  Protocol  of  the  seventh  day  of  September  A.  D.  1901. 

Edwin    H.    Conger,     [seal.] 
John  Goodnow.  [seal.] 

John  F.  Seaman.         [seal.] 
Signatures  and  seal  of  Chinese  Plenipotentiaries. 
[Lu  Hai-huan.] 
[Sheng  Hsuan-huai.] 


IMPORT  TARIFF 

[The  figures  in  the  Import  Tariff  schedule  express  amounts  in  Haikwan  Taels.] 

Agar-agar    per   picul . .  0.300 

Agaric.    See  Fungus. 

Amber  per  catty . .  .325 

Aniseed  (star)  : 

First  quality  (value  15  taels  and  over  per  picul)    per  picul.  .  1.000 

Second  quality  (value  under  15  taels  per  picul)   do .440 

Apricot  seed    do .900 

Arrowroot  and  arrowroot  flour 5  per  ct. 

Asafetida     per  picul. .  1.000 

Asbestos  boiler  composition    do .200 

Asbestos  fiber do 5.000 

Asbestos  millboard    do ... .  .500 

Asbestos   packing,  inchiding  sheets   and  blocks    do 3.500 

Asbestos  packing,  metallic   do ... .  5.000 

Asbestos    yarn     : do. . . .  2.250 

Awabi     ■ do. . . .  1.500 

Bacon  and  ham    5  per  ct. 


t  Consult  the  International  Agreement  relating  to  the  Revised  Import  Tariff  of  1902 
(No.  1902/6,  ante).  Consult  also  the  Revised  Tariff  approved  by  the  International  Tariff 
Commission,  December  19,  1918  (No.  1918/18,  post). 


434  CHINA  TREATIES  AND  AGREEMENTS 

Qrass    per  thousand . .  1.250 

Gunny  ".'.".'.'.*.'.".' do. . . .  4.250 

Gunny  (old)   : •• •••       5  per  ct 

j^gjjip                per  thousand . .  4.ls\) 

Hemp  (old)'  ■.■.■.■■■■■■ • 5  per  ct 

Straw    P^r   thousand. .  l.zoU 

Baking  powder  in  bottles  or  tins  : 

4-ounce   per  dozen. .  .083 

6-ounce do .110 

8-ounce do. . . .  .145 

12-ounce     do .226 

1-pound do .303 

3-pound    do. . . .  .810 

S-pound do. . . .  1.350 

Bark : 

Mangrove   per  picul. .  .073 

Plum  tree do ... .  .120 

Yellow  (for  dyeing)    5  per  ct. 

Yellow    (medicinal)    per  picul. .  .800 

Barley,  pearl do .300 

Basins,  iron    (enameled)  : 

Up  to  9  inches  in  diameter,  decorated  or  not  decorated   per  dozen..  .050 

Over  9  inches  in   diameter,   agate,  blue  and  white,   gray   or  mottled,   not 

decorated per  dozen . .  .090 

Over  9  inches  in  diameter,  decorated   (with  gold)    do. . . .  .175 

Over  9  inches  in  diameter,  decorated   (without  gold)    do .125 

Basins,  tin   (common)    per  gross. .  .250 

Beads: 

Coral per  catty. .  .750 

Cornelian  * per    picul .  .  7.000 

Glass  of  all  kinds  5  per  ct. 

Beer.    See  Wines,  etc. 

Beeswax,  yellow per  picul. .  1.600 

Belting    5  per  ct. 

Betel-nut  husk: 

Dried    per  picul. .  .077 

Fresh    do. . . .  .018 

Betel-nut  leaves,  dried   do .045 

Betel  nuts : 

Dried    do. . . .  .225 

Fresh do ... .  .018 

Bezoar  cow,  Indian   5  per  ct. 

Bicho  de  Mar: 

Black per  picul..  1.600 

White do. . . .  .700 

Bicycle  materials   5  per  ct. 

Bicycles    each . .  3.000 

Birds'  nests : 

First  quality '. . . per  catty..  1.400 

Second  quality  do ... .  .450 

Third  Quality   do. . . .  .150 

Blue : 

Paris .per  picul. .  1.500 

Prussian    do 1.500 

Bones,  tiger do 2.500 

Books : 

Chinese Free. 

Printed,  and  charts,  maps,  newspapers,  and  periodicals Free. 

Borax : 

Crude    per  picul..  .610 

Refined     do. . . .  1.460 

Braid,  Llama  do ... .  5.000 

Bricks,   fire    5  per  ct. 

Bronze   powder per  picul . .  2.200 

Butter  in  tins,  jars,  and  other  packages  do ... .  2.000 

Buttons : 

Agate  and  porcelain   per  12  gross . .  .010 

Brass  and  other  kinds  (not  jewelry)   per  gross. .  .020 


NUMBER  1903/5 :  OCTOBER  8,  1903 :  ANNEXES 


435 


Byrrh.     {See  Wines,  etc.) 

Camphor    ^. per  picul. . 

Camphor  baroos : 

Clean    per  catty. . 

Refuse    

Candles: 

9-ounce  per  case  of  25  packages  of  6  candles. . 

12-ounce     do ... . 

16-ounce    do ... . 

All  kinds,  differently  packed  per  picul. . 

other  weights,  duty  in  proportion. 
Canes : 

Bamboo  per  thousand . . 

Coir — 

1  foot  long  per  picul . . 

5  feet  long per  thousand . . 

Canned  fruits,^  vegetables,  etc.   (all  weights  and  measures  approximate): 
•    Table    fruits    (apples,    apricots,    grapes,    peaches,    pears,    and    plums),    per 

dozen  2^-pound  cans  

Pie  fruits   (apples,  apricots,  grapes,  peaches,  pears,  and  plums),  per  dozen 

2j/2-pound  cans    

Preserved  fruits  in  glass  bottles,  jars,  cardboard,  or  wooden  boxes,  including 

weight   of   immediate  package    per   picul . . 

Asparagus  per  dozen  2i4-pound  tins. . 

Corn  _ per  dozen  2-pound  tins . . 

Pease    do. . . . 

String  beans    do 

Tomatoes per   dozen   2V^-pound  tins . . 

All   other   vegetables   preserved  in   tins,   bottles,   or   jars,   including   weight 

of  immediate  package   per  picul . . 

Tomato   sauce   and   catsup — 

J^-pint  bottles per  dozen . . 

1-pint  bottles do 

Jams  and  jellies — 

1-pound  tins,  bottles,  or  jars   per  dozen . . 

2-pound  tins,  bottles,  or  jars do. .  . . 

Milk  (including  condensed)   per  case  of  4  dozen  1-pound  tins. . 

Cream,  evaporated — 

4  dozen  pints  (family  size)    per  case. . 

2  dozen  quarts  (hotel  size) do.... 

Canned   meats — 

Bacon  or  ham,  sliced — 

Half-pound   tins    per   dozen . 

1-pound   tins    do. . 

Dried  beef,  sliced  per  dozen  1-pound  jars . 

Mince-meat — 

IK-pound  pails  per  dozen . 

3-pound  pails  do. 

Kits   (half  barrels  and  barrels)    per  picul. 

Pork  and  beans,   plain   or  with  tomato   sauce — 

1-pound  tins    per  dozen. 

2-pound    tins    do . 

3-pound    tins    do. 

Potted  and  deviled  meat — 

Quarter-pound  tins    do. 

Half-pound    tins    do. 

Potted  and  deviled  poultry  and  poultry  and  meat  combined — 

Quarter-pound  tins   per  dozen . 

Half-pound  tins   do. . 

Soup  and  bouilli — 

2-pound    tins    do . . 

6-pound    tins    do. . 

Tamales,  chicken — 

Hal  f -pound    tins    do . . 

1-pound  tins  do. . 

Tongues  of  every  description — 

Half-pound  tins   do. . 

1-pound   tins    do. . 


1.650 

2.450 
5  per  ct. 

.075 
.100 
.133 
.750 


.400 

.200 
.300 


.065 

.057 

.650 
.118 
.054 
.060 
.054 
.054 

.525 

054 
.087 

.060 
.118 
.250 

.230 
.260 


.077 
.144 
.144 

.100 
.181 
.729 

.040 
.075 
.085 

.022 
.042 

.042 
.072 

.101 
.244 

.051 
.080 

.098 
.204 


436 


CHINA  TREATIES  AND  AGREEMENTS 


1  i^-pound  tins per  dozen . .  ,287 

2-pound   tins    ^  ...  do .333 

2>4-pound    tins    do .445 

3-pound   tins    do .515 

3^-pound   tins    do ... .  .545 

All  other  canned  meats,  including  game,  of  every  description,  with  or 
without   vegetables — 

Half-pound  tins   per  dozen . .  .052 

1-pound   tins    do .063 

2-pound    tins    do. . . .  .120 

4-pound   tins    do .210 

6-pound   tins    do .370 

14-pound   tins    do .810 

Canvas  and  cotton  duck,  not  exceeding  36  inches  wide  per  yard.  .  .010 

Capoor  cutchery    5  per  ct. 

Cardamoms : 

Superior,  and  amomums   per  picul . .  10.000 

Inferior,  or  grains  of  paradise   do ... .  1.000 

Husk do. . . .  .250 

Cards,  playing 5  per  ct. 

Cassia: 

Buds per   picul . .  .750 

Lignea do .920 

Twigs     do ... .  .170 

Cement    per  cask  of   3   piculs . .  .150 

Cereals  and  flour  (including  barley,  maize,  millet,  oats,  paddy,  rice,  wheat,  and 
flour  made  therefrom ;  also  buckwheat  and  buckwheat  flour,  corn  flour  and 
yellow  corn  meal,  rye  flour,  and  hovis  flour,  but  not  including  arrowroot  and 
arrowroot  flour,  cracked  wheat,  germea,  hominy,  pearl  barley,  potato  flour, 
quaker  oats,   rolled  oats,   sago  and   sago  flour,  shredded   wheat,   tapioca   and 

tapioca   flour,   and   yam  flour)    Free. 

Chairs,    Vienna    bent-wood    per    dozen . .  .800 

Charcoal per    picul . .  .030 

Cheese    5  per  ct. 

Chestnuts per  picul. .  .180 

China  root,  whole,  sliced,  or  in  cubes    do. . . .  .650 

China  ware,  coarse  and  fine  5  per  ct. 

Chloride  of  lime   •  • per  picul . .  .300 

Chocolate,   sweetened    per   pound . .  .012, 

Cigarettes : 

First  quality  (value  exceeding  4.50  taels  per  thousand) per  thousand. .  .500 

Second  quality  (value  not  exceeding  4.50  taels  per  thousand)    do. . .  .  .090 

Cigars     do ... .  .500 

Cinnabar    per    picul . .  3.750 

Cinnamon do ... .  4.000 

Clams,   dried    do ... .  .550 

Clocks  of  all  kinds   5  per  ct. 

Cloves    per  picul . .  .630 

Cloves,  mother    do ... .  .360 

Coal : 

Asiatic    per  ton . .  .250 

Other  kinds do. . . .  .600 

Asiatic,  briquettes do ... .  .500 

Cochineal 5  per  ct. 

Cockles : 

Dried  per  picul . .  .500 

Fresh '. do. . . .  .050 

Cocoa     do. . . .  3.600 

Coffee    .' do....  1.000 

Coir  canes  : 

1  foot  long per   picul . .  .200 

5  feet  long per  thousand . .  .300 

Coke : 

Asiatic    per  ton . .  .500 

Other  kinds    do. . . .  .900 

Compoy  per  picul .  .  2.000 

Coral     per    catty. .  1.110 

Coral  beads    do ... .  .750 


NUMBER  1903/5  :  OCTOBER  8,  1903 :  ANNEXES  437 

Coral,  broken  and  refuse   per  catty. .  .550 

Cordage  of  all  kinds   5  per  ct. 

Cornelian  beads per  picul . .  7.000 

Cornelian  stones,  rough   per  hundred . .  .300 

Corundum   sand per   picul. .  .195 

Cotton  piece  goods : 

Gray  shirtings  or  sheetings,  not  exceeding  40  inches  wide  and  not  exceeding 
40  yards  long — 

(a)  Weight  7  pounds  and  under  per  piece. .  .050 

(b)  Weight  over  7  pounds  and  not  over  9  pounds do. . . .  .080 

(c)  Weight  over  9  pounds  and  not  over  11  pounds   do....  .110 

(d)  Weight   over    11    pounds    do....  .120 

Imitation  native  cotton  cloth    (hand-made),  gray  or  bleached — 

(o)    Not  exceeding  20  inches  wide  and  not  exceeding  20  yards  long; 

weight  3  pounds  and  under   per  piece . .  .027 

(b)   Exceeding    20    inches    wide     5  per  ct. 

White  shirtings,  white  Irishes,  white  sheetings,  white  brocades,  and  white 
striped  or  spotted  shirtings ;  not  exceeding  37  inches  wide  and  not  ex- 
ceeding 42  yards  long    per  piece . .  .135 

Drills,  gray  or  white :  not  exceeding  31  inches  wide  and  not  exceeding  40 
yards  long — 

(a)  Weight   12^   pounds  and  under   per  piece..  .100 

(b)  Weight  over   12^   pounds do .125 

Jeans,  gray  or  white — 

(o)    Not    exceeding    31     inches    wide    and    not    exceeding    30    yards 

long    per  piece . .  .090 

(b)   Not    exceeding    31     inches    wide    and    not    exceeding    40    yards 

long    per  piece. .  .120 

T  cloths,  gray  or  white — 

(a)  Not    exceeding    34    inches    wide    and    not    exceeding    24    yards 

long    per  piece . .  .070 

(b)  Not    exceeding    34    inches    wide    and    exceeding    24    yards,    but 

not  exceeding  40  yards  long  per  piece. .  .135 

(c)  Exceeding  34   inches   but   not   exceeding   37   inches   wide   and   not 

exceeding  24  yards  long  per  piece. .  .080 

Crimp  cloth  and  crape,  plain — 

(o)   Not     exceeding    30     inches     wide     and     not    exceeding    6     yards 

long per  piece . .  .027 

(b)  Not  exceeding  30  inches  wide,  exceeding  6  yards  but  not  exceeding 

10  yards  long  per  piece. .  .035 

(c)  Not   exceeding  30  inches   wide   but   exceeding   10  yards   long,   per 

yard 003i^ 

White  muslins,  white  lawns,  and  white  cambrics :  not  exceeding  46  inches 

wide  and  not  exceeding   12  yards   long    per  piece..  .032 

Mosquito    netting,    white    or    colored :    not    exceeding   90   inches    wide,    per 

yard .010 

Lenos  and  balzarines,  white,  dyed,  or  printed :  not  exceeding  31  inches  wide 

and  not  exceeding  30  yards  long  per  piece. .  .090 

Leno  brocades  and  balzarine  brocades,  dyed  5  per  ct. 

Prints- 
Co)   Printed  cambrics,  lawns,  or  muslins :  not  exceeding  46  inches  wide 

and  not  exceeding  12  yards  long  per  piece. .  .037 

(6)  Printed  chintzes,  printed  crapes,  printed  drills,  printed  furnitures, 
printed  shirtings  printed  T-cloths  (including  those  goods  known 
as  blue  and  white  printed  T-cloths),  printed  twills:  but  not  in- 
cluding goods  mentioned  in  (c)  and  (h)  — 

1.  Not    exceeding    20    inches    wide     5  per  ct. 

2.  Exceeding  20  inches  but  not  exceeding  31  inches  wide  and 

not   exceeding   30   yards    long    per    piece..  .080 

(c)  Printed  crimp  cloth — 

1.  Not   exceeding  30   inches   wide   and   not   exceeding  6  yards 

long   per  piece . .  .027 

2.  Not   exceeding  30  inches   wide,   exceeding  6   yards   but   not 

exceeding    10    yards    long    per    piece..  .035 

3.  Not  exceeding  30  inches  wide  but  exceeding  10  yards  long, 

per  yard 003i/4 

(d)  Printed   lenos  and   balzarines:   not  exceeding  31    inches   wide  and 

not  exceeding  30  yards  long  per  piece. .  .090 


438  CHINA  TREATIES  AND  AGREEMENTS 

(e)   Printed  sheetings :  not  exceeding  36  inches  wide  and  not  exceeding 

43  yards  long  per  piece . .  .185 

(/)   Printed  Turkey  reds :  of  all  kinds,  not  exceeding  31  inches  wide  and 

not  exceeding  25  yards  long   per  piece..  .100 

(g)  Printed  sateens,  printed  satinets,  printed  reps,  printed  cotton  lastings, 
including  all  cotton  piece  goods  which  are  both  dyed  and  printed, 
except  those  specified  in  (/)  and  (h),  and  including  any  special 
finish,  such  as  mercerized  finish,  schreiner  finish,  gassed  finish, 
silk  finish,  or  electric  finish ;  not  exceeding  32  inches  wide  and  not 
exceeding  32  yards  long   per  piece. .  .250 

(/;)   Duplex  prints  or  reversible  cretonnes    (not  including  those  goods 

known  as  blue  and  white  printed  T-cloths)   5  per  ct. 

Dyed  cottons — 

(a)  Dyed  plain  cottons,  i.  c,  without  woven  or  embossed  figures   (in- 

cluding plain  Italians,  lastings,  reps,  and  ribs,  and  all  other  dyed 
plain  cottons  not  otherwise  enumerated,  and  including  any  special 
finish,  such  as  mercerized  finish,  schreiner  finish,  gassed  finish, 
silk  finish,  or  electric  finish)  ;  not  exceeding  36  inches  wide  and 
not  exceeding  33  yards  long per  piece. .  .240 

(b)  Dyed   figured   cottons,   i.e.,   with    woven   or   embossed   figures    (in- 

cluding figured  Italians  and  lastings,  figured  reps,  and  figured  ribs, 
and  all  other  dyed  figured  cottons  not  otherwise  enumerated,  and 
including  any  special  finish,  such  as  mercerized  finish,  schreiner 
finish,  gassed  finish,  silk  finish,  or  electric  finish)  :  not  exceeding 
36  inches  wide  and  not  exceeding  33  yards  long per  piece. .  .150 

(c)  Dyed  crimp  cloth — 

1.  Not  exceeding  30  inches  wide  and  not  exceeding  6  yards  long 

per  piece   .027 

2.  Not  exceeding  30  inches  wide,   exceeding  6  yards   but   not  ex- 

ceeding 10  yards  long   per  piece . .  .035 

3.  Not    exceeding   30   inches    wide    but    exceeding    10    yards    long 
per    yard . .  .003^ 

(d)  Dyed  drills :  not  exceeding  31  inches  wide  and  not  exceeding  43 

yards   long    per  piece. .  .170 

(e)  Dyed  lenos  and  balzarines :  not  exceeding  31  inches  wide  and  not 

exceeding  30  yards  long  per  piece. .  .090 

(/)   Dyed  leno  brocades    5  per  ct. 

(g)   Dyed  muslins,  lawns,  and  cambrics:  not  exceeding  46  inches  wide 

and  not  exceeding  12  yards  long per  piece. .  .037 

(/()  Dyed   shirtings  and   sheetings:   not  exceeding  36  inches   wide  and 

not  exceeding  43  yards  long   per  piece.  .  .150 

(0   Hongkong-dyed   shirtings:  not  exceeding  36  inches  wide  and  not 

exceeding  20  yards  long   per  piece. .  .100 

(;')  Dyed  cotton  cuts :  not  exceeding  36  inches  wide  and  not  exceed- 
ing 5J4  yards  long  per  piece . .  .022^2 

(N.  B. — The  pro  rata  rule  does  not  apply.) 
(k)   Dyed  T-cloths  (including  dyed  alpacianos),  dyed  real  and  imitation 

Turkey  reds  of  all  kinds :  not  exceeding  32  inches  wide  and  not 

exceeding  25   yards   long — 

1.  Weight  3%  pounds  and  under  per  piece..  .060 

2.  Weight  over  3^  pounds   " do ... .  .100 

Flannelettes  and  cotton  Spanish  stripes — 

(a)  Cotton  flannel,  Canton  flannel,  swan's-down,  flannelettes,  and  raised 
cotton  cloths  of  all  kinds,  plain,  dyed,  and  printed — 

1.  Not  exceeding  36  inches  wide  and  not  exceeding  IS  yards 

long   per  piece . .  .065 

2.  Not  exceeding  36  inches  wide,  exceeding  15  yards  but  not 

exceeding  30  yards  long   per  piece. .  .130 

(fr)   Dyed  cotton   Spanish   stripes — 

1.  Not  exceeding  32  inches  wide  and  not  exceeding  20  yards 

long    per  piece . .  .085 

2.  Exceeding  32  inches  but  not  exceeding  64  inches  wide  and 

not  exceeding  20  yards  long  per  piece. .  .170 

Colored  woven  cottons,  i.  c,  dyed  in  the  yarn,  except  crimp  cloth 5  per  ct. 

Crimp  cloth — 

(a)  Not    exceeding    30    inches    wide    and    not    exceeding    6    yards 

long  per  piece . .  .027 

(b)  Not  exceeding  30  inches  wide  and  exceeding  6  yards  but  not  exceed- 

ing 10  yards  long  per  piece. .  .035 


NUMBER  1903/5  :  OCTOBER  8.  1903 :  ANNEXES  439 

(c)   Not    exceeding    30    inches    wide    but    exceeding    10    yards    long 

per  yard. .  .003^ 

Velvets  and  velveteens,  velvet  cords,  and  fustians — 

(a)  Velvets  and   velveteens,  plain — 

1.  Not  exceeding  18  inches  wide   per  yard. .  .006 

2.  Exceeding   18  inches   but  not  exceeding  22  inches   wide,   per 

yard    .007 

3.  Exceeding  22  inches  but  not   exceeding  26  inches   wide,   per 

yard .008 

(b)  Velvets   and   velveteens,   printed   or   embossed:    not   exceeding   30 

inches   wide    per  yard.  .  .015 

(c)  Dyed  velvet  cords,  dyed  velveteen  cords,  dyed  corduroys,  dyed  fus- 

tians    of     any     description :     not     exceeding     30     inches     wide 

per  yard   .015 

Blankets,  cotton,  plain,  printed,  or  jacquard  per  piece. .  .030 

Handkerchiefs,  cotton — 

(a)  Plain,  dyed,  or  printed,  not  embroidered,  hemstitched  or  initialed: 

not  exceeding   1   yard  square    per  dozen . .  .020 

(b)  All  other  handkerchiefs  5  per  ct. 

Singlets  or  drawers,  cotton   .per  dozen . .  .125 

Socks,    cotton    (including    lisle    thread)  — 

First  quality  (i.  e.,  valued  at  1  tael  or  over  per  dozen  pairs),  per  dozen 

pairs    .075 

Second  quality    (i.  e.,  valued  at  less  than  1   tael  per  dozen  pairs),  per 

dozen  pairs .032 

Towels,  cotton — 

(o)   Honeycomb  or  huckaback,  plain  or  printed    (dimensions  exclusive 
of  fringe)  — 

1.  Not  exceeding  18  inches  wide  and  not  exceeding  40  inches 

long    per  dozen . .  .020 

2.  Exceeding    18    inches    wide    and    not    exceeding    50    inches 

long    per  dozen . .  .030 

(b)   All   other  towels    5  per  ct. 

Cottons,   unclassed    5  per  ct. 

Cotton,  raw   per  picul. .  .600 

Cotton  thread : 

Ball  thread,  dyed  or  undyed    do....  3.000 

On  spools — 

50  yards  per  gross . .  .040 

100  yards    do ... .  .080 

200  yards    do. . . .  .160 

Cotton  yarn  : 

Gray   or  bleached    per  picul . .  .950 

Dyed  5  per  ct. 

Gassed  ". 5  per  ct. 

Mercerized 5  per  ct. 

Wooloa  or  berlinette   per  picul . .  3.500 

Cow  bezoar,  Indian 5  per  ct. 

Crabs'  flesh       per  picul . .  .600 

Crocodile    (including  armadillo)    scales    do....  2.725 

Currants    do .500 

Cutch     do ... .  .300 

Cuttlefish     do .667 

Dyes,  colors,  and  paints : 

Aniline     5  per  ct. 

Blue- 
Paris per  picul . .  1.500 

Prussian    do. . . .  1.500 

Bronze  powder   do ... .  2.200 

Carthamin   5  per  ct. 

Chrome  yellow 5  per  ct. 

Cinnabar     per  picul . .  3.750 

Gamboge   do ... .  2.700 

Green — 

Emerald do. . . .  1.000 

Schweinfurt,  or  imitation   do. . .  .  1.000 

Indigo — 

Dried,  artificial  or  natural  5  per  ct. 


440 


CHINA  TREATIES  AND  AGREEMENTS 


Liquid — 

Artificial   per  ipicul. . 

Natural    do ... . 

Paste,  artificial   do ... . 

Lead — 

Red,  dry  or  mixed  with  oil   do ... . 

White,  dry  or  mixed  with  oil    do 

Yellow,  dry  or  mixed  with  oil  do. . . . 

Logwood  extract   do ... . 

Ocher   do. .  . . 

Smalt    do 

Ultramarine    do 

Vermilion   do. . . . 

Imitation    

White   zinc    

Paints,  unclassed  

Elephants'  teeth  (other  than  tusks)  and  jaws,  whole  or  part per  picul. . 

Elephants  tusks,  whole  or  parts  per  catty . . 

Emery  cloth  and  sandpaper  (sheets  not  exceeding  144  square  inches),  per  ream 

Emery  powder  

Enameled  ironware : 

Mugs,  cups,  basins,  and  bowls,  9  inches  or  under  in  diameter,  decorated  or 

not  decorated    per  dozen . . 

Basins  and  bowls,  over  9  inches  in  diameter,  agate,  blue  and  white,  gray, 

mottled,  not  decorated per  dozen . . 

Basins  and  bowls,  over  9  inches  in  diameter,  decorated    (with  gold),  per 

dozen     • 

Basins  and  bowls,  over  9  inches  in  diameter,  decorated  (without  gold),  per 

dozen     

Enamel  ware,  unclassed   

Fans : 

Palm-leaf — 

Coarse    per  thousand . . 

Fine    do ... . 

Fancy   do. . . . 

Paper  or  cotton,  of  all  kinds  do. . . . 

Silk 

Feathers : 

Kingfisher — 

Part  skins  (i.  e.,  wings,  tails,  or  backs)    per  hundred. 

Whole   skins    do . . . 

Peacock  

Files.    See  Tools. 

Fire  clay  per  picul . 

Firewood    do . . . 

Fish: 

Cuttle     do... 

Dried   or    smoked,    in   bulk    (including   stockfish   but   not    including   cuttle 

fish)    per  picul. 

Fresh    do .  .  . 

Maws   do . . . 

Salt    per  picul . 

Stock    do. . . 

Fishskins     do. . . 

Flints    do.. . 

Flour.    See  Cereals. 

Flour,  arrowroot,  potato,  sago,  tapioca,  yam 

Fungus  or  agaric  per  picul . 

Fungus,  white  per  catty. 

Galangal    per  picul. 

Gambier    do . . . 

Gambler,  false  or  cunao  (yam-root  dyestufif )    do . . . 

Gamboge    do . . . 

Gasoline  or  stove  naphtha   per  10  gallon  drum . 

Ginseng: 
Crude — 

First  quality  (value  exceeding  2  taels  per  catty)    per  catty. 

Second  quality  (value  not  exceeding  2  taels  per  catty) do. . . 


2.025 

.215 

2.025 

.450 
.450 
.450 
.600 

.600 

1.600 

.500 

4.000 

5  per  ct. 

5  per  ct. 

5  per  ct. 

3.000 

.170 

.250 

5  per  ct. 


.050 

.090 

.175 

.125 
5  per  ct. 


.280 

.450 

1.000 

L400 

per  ct. 


.250 

.600 
5  per  ct. 

.050 
.010 

.667 

.315 
.137 
4.250 
.160 
.315 
.600 
.040 

5  per  ct. 

1.750 
.250 
.170 
.300 
.150 

2.700 
.150 


.220 
.072 


NUMBER  1903/5 :  OCTOBER  8,  1903  :  ANNEXES  441 

Clarified   or   cleaned — 

First  quality  (value  exceeding  11  taels  per  catty) per  catty. .  1.100 

Second   quality    (value    exceeding   6   taels   but    not    exceeding    11    taels 

per  catty)    .per  catty. .  .375 

Third    quality    (value    exceeding    2    taels    but    not    exceeding    6    taels 

per  catty)    per  catty. .  .220 

Fourth  quality  (value  not  exceeding  2  taels  per  catty) do .080 

Glass : 

Plate- 
Silvered    per  square  foot . .  .025 

Unsilvered    5  per  ct. 

Window — 

Colored,  stained,  ground,  or  obscured per  box  of  100  square  feet..  .350 

Common,  not  stained,  colored,  or  otherwise  obscured do ... .  .170 

Glass  powder  (see  Match-making  materials)    per  picul, .  .110 

Glue    do. . . .  .830 

Gold  thread,  imitation.    See  Thread. 

Groundnuts do .150 

Gum  arabic do.  . . .  1.000 

Gum  benjamin    do.  . . .  .600 

Gum  benjamin,  oil  of    5  per  ct. 

Gum  dragon's  blood    per  picul . .  4.000 

Gum  myrrh        do. . . .  .465 

Gum  olibanum  do. . . .  .450 

Gum  resin do ...  .  .187 

Gutta-percha.    See  India  rubber. 

Hair,  horse  do 1.400 

Hair,  horsetails  do 2.500 

Hams     5  per  ct. 

Handkerchiefs.    See  Cotton  piece  goods. 

Hartall  or  orpiment   per  picul.  .  .450 

Hemp    -. 5  per  ct. 

Hessians  or  burlaps,  all  weights   per  1,000  yards. .  2.850 

Hide  poison  or  specific   5  per  ct. 

Hides,  buffalo  and  cow  per  picul.  .  .800 

Hollow-ware  :  cast  coated  or  tinned  do. . .  .  .500 

Hoofs,   animal    per  picul. .  .125 

Hops    5  per  ct. 

Horns  : 

Buffalo  and  cow   per  picul . .  .350 

Deer    5  per  ct. 

Rhinoceros     per  catty . .  2.400 

Hosiery.     See  Cotton  piece  goods  (socks). 

India-rubber  and  gutta-percha  articles  (other  than  boots  and  shoes) 5  per  ct. 

India-rubber  and  gutta-percha,  crude   per  picul. .  3.140 

India-rubber  boots    per  pair. .  .080 

India-rubber  shoes    do ... .  .020 

India-rubber,  old  (fit  only  for  remanufacture)    per  picul. .  .250 

Indigo : 

Dried,  artificial  or  natural    5  per  ct. 

Liquid — 

Artificial    per  picul . .  2.025 

Natural    do .215 

Paste,  artificial    do ... .  2.025 

Ink,  printing  5  per  ct. 

Isinglass  (fish  glue)    per  picul. .  4.000 

Isinglass,  vegetable   do. . . .  1.750 

Jams  and  jellies  in  tins,  bottles,  or  jars: 

1-pound   per  dozen . .  .060 

2-pound    do. . . .  .118 

Joss  sticks per  picul . .  .640 

Kerosene  oil  cans  and  cases,  empty per  2  cans  in  1  case . .  .005 

Lace  open  work  or  insertion  work  of  cotton,  machine  made : 

(a)   Not  exceeding  1  inch  wide,  outside  measurement,  per  12  dozen  yards..  .050 
lb)  Exceeding  1   inch  but  not  exceeding  2  inches  wide,   outside  measure- 
ment   per  12  dozen  yards .  .  .100 

(c)  Exceeding  2  inches  but  not  exceeding  3  inches  wide,  outside  measure- 

ment    per  12  dozen  yards .  .  .166 

(d)  Exceeding   3   inches   wide,   outside   measurement,    per    12    dozen   yards  -216 


442 


CHINA  TREATIES  AND  AGREEMENTS 


Lace  open  work  or  insertion  work  of  any  fibrous  material  except  silk  or  cotton 
or  imitation  gold  or  silver  thread : 

(a)  Machine  made   per  catty .  . 

(b)  Handmade  (including  cotton)    do. .  . . 

Lacquer    ware    

Lamps  and  their  accessories    

Lamp   wick    per  picul. . 

Lard,  pure  or  compound do.  . . . 

Lead,  red,  white,  yellow,  dry  or  mixed  with  oil  do 

Leather : 

Belting 

Calf    per  picul. . 

Colored    do ... . 

Cow    •  • do 

Harness   (not  including  enameled  or  pigskin)    do. . . . 

Kid   do. . . . 

Sole    do ... . 

Patent    do 

All    other   kinds 

Lichees,  dried per  picul . , 

Lily  flowers,  dried  do ... . 

Lily  seed  {i.e.,  lotus  nuts  without  husks)    do. . . . 

Lime,  chloride  of  do ... . 

Linen   

Liqueurs.    See  Wines,  etc. 

Licorice   per  picul. . 

Logwood  extract   do 

Lotus  nuts  {i.e.,  lily  seeds  with  husks)    do 

Lucraban    seed    do. . . . 

Lung-ngan  pulp    do ... . 

Lung-ngans,  dried   do. . . . 

Macaroni  and  vermicelli,  and  similar  pastes  do . . , . 

Mace    

Machines,  sewing,  hand  or  foot 

Madeira.     See  Wines,  etc.   (vins  de  liqueur). 
Marsala.     See  Wines,  etc.     (vins  de  liqueur). 

Malt   per  picul. . 

Mangrove    bark     do ... . 

Manure,  chemical    • 

Margarin,  in  tins,  jars,  or  kegs   per  picul. . 

Marsala.    See  Wines,  etc.  (vins  de  liqueur). 
Matches : 

Rainbow  or  brilliant    per  50  gross  boxes. 

Wax  vestas  :  not  exceeding  100  in  a  box per  10  gross  boxes . 

Wood,  safety  or  other — 

Large:  boxes  not  exceeding  2^^  by  1^2  by  ?4  inches,  per  50  gross  boxes. 
Small:  boxes  not  exceeding  2  by  \H  by  5^  inches,  per  100  gross  boxes. 

Boxes   exceeding   above   sizes    

Match-making  materials : 

Glass  powder    per  picul . 

Phosphorus     do . . . 

Splints    do. . . 

Wax,  parafin  do . . . 

Wood   shavings    do . . . 

Mats : 

Coir    (door)    per  dozen. 

Formosa,  grass   (bed)    each. 

Rush     per  hundred . 

Straw  do . . . 

Tatami   each . 

Matting: 

Coir :  not  exceeding  36  inches  wide per  roll  of  100  yards. 

Straw :  not  exceeding  36  inches  wide per  roll  of  40  yards . 

Meats,  in  bulk : 

Beef,  corned,  pickled,  in  barrels   per  picul. 

Dry-salted  meat,  in  boxes  and  barrels   do . . . 

Dry   sausages    do . . . 

Ham  and  breakfast  bacon,  in  boxes  or  barrels  


.500 

2.400 

5  per  ct. 

5  per  ct. 

2.000 

.600 

.450 

5  per  ct. 

7.000 

7.000 

2.500 

3.000 

7.000 

2.500 

7.000 

5  per  ct. 

.450 

.325 

LOOO 

.300 

5  per  ct. 


.500 
.600 
.400 
.350 
.550 
.450 
.325 

per  ct. 

per  ct. 


.370 
.073 

5  per  ct. 
L400 


L500 
L600 

.630 
.920 

5  per  ct. 

.110 
4.125 
.088 
.500 
.113 

1.000 
.050 
.500 
.225 
.045 

2.750 
.250 

.375 

.475 

.808 

5  per  ct. 


NU]^fBER  1903/5 :  OCTOBER  8,  1903 :  ANNEXES  443 

Lard,  pure  or  compound  per  picul . .  .600 

Melon   seeds    do....  .250 

Metals : 

Antifriction   5  per  ct. 

Antimony    per  picul . .  .700 

Brass  and  yellow  metal — 

Bars  and  rods    per  picul . .  1.150 

Bolts  and  nuts  and  accessories  do ... .  1.150 

Foil     do....  1.675 

Nails    do. . . .  1.150 

Screws 5  per  ct. 

Sheets,  plates,  and  ingots    per  picul . .  1.150 

Tubes  do. . . .  1.150 

Wire do. . . .  1.150 

Copper — 

Bars  and  rods   do 1,300 

Bolts,   nuts,   rivets,  and  washers 5  per  ct. 

Ingots    per  picul . .  1.175 

Nails    do. . . .  1.300 

Sheets  and  plates    do ... .  1 ,300 

Slabs    do. . . .  1.175 

Tacks  5  per  ct. 

Tubes   5  per  ct. 

Wire     per  picul. .  1.300 

Dross — 

Iron    do. . . .  .160 

Iron  and  tin    do. .-. .  .300 

Tin do....  .500 

German  silver — 

Sheets    do. . . .  2.200 

Wire    do ... .  1.500 

Iron  and  mild  steel,  new — 

Anchors,   and   parts   thereof ;    mill   iron ;    mill    and    ship's    cranks ;    and 
forgings  for  vessels,  steam  engines,  and  locomotives  (weighing  each  25 

pounds  or  over)    per  picul . .  .265 

Angles    do .140 

Anvils  and  parts  of   do .400 

Bar    do. . . .  .140 

Bolts   and   nuts    5  per  ct. 

Castings,  rough   per  picul . .  .140 

Chains,  and  parts  of   do. . . .  .265 

Cobbles  and  wire  shorts   ., do. . .  .  .130 

Hoops    do .140 

Kentledge     do. . . .  .075 

Nail  rod   do....  .140 

Nails — 

Wire    do ... .  .200 

Other   kinds    5  per  ct. 

Pig   .' per  picul . .  .075 

Pipes  and  tubes   5  per  ct. 

Plate  cuttings  per  picul . .  .110 

Plates  and  sheets   do .140 

Rails   do.  . . .  .125 

Rivets    do. . . .  .250 

Screws  5  per  ct. 

Sheets  and  plates    per  picul . .  .140 

Tacks,  blue,  of  all  sizes  do ... .  .400 

Wire  do. . . .  .250 

Bolts  and  nuts  5  per  ct. 

Cobbles  and  wire  shorts   per  picul . .  .130 

Sheets — 

Corrugated   do .275 

Plain    do....  .275 

Tubes    5  per  ct. 

Wire     per  picul . .  .250 

Wire,   shorts    ...do .130 

Iron,    old,     and     scrap,    of    any    description     (fit     only     for     remanufac- 

ture)    ......••.. per  picul..  .090 


444 


CHINA  TREATIES  AND  AGREEMENTS 


Lead — 

Pigs    per  picul 

Sheets    •  ■  •  ■ do . . . 

Lead  pipes   do . . 

Nickel,   unmanufactured    do. . 

Quicksilver     do. . 

Spelter   do . . 

Steel- 
Bamboo   do. . 

Bars    do. . 

Plates  and  sheets  do . . 

Tool,  and  cast  do. . 

Wire  and  wire  rope  do. . 

Steel,  mild.    See  Iron. 
Tin- 
Compound    

Foil 

Sheets  and  pipes   per  picul . 

Slabs     do. . . 

Tacks,  blue,  of  all  sizes    do . . . 

Tinned  plates — 

Decorated   do . . . 

Plain    do . . . 

White  metal — 

Sheets    do . . . 

Wire        do . . . 

Yellow  metal.    See  Brass. 
Zinc — 

Boiler  plates   do . . . 

Powder    do . . . 

Sheets,  including  perforated    do .  . . 

Milk,  condensed,  in  tins  per  case  of  4  dozen  1-pound  tins. 

Mineral  waters per  12  bottles  or  24  half  bottles. 

Mirrors     

Morphia,  in  all  forms   per  ounce . 

Molding  per  thousand  feet. 

Mushrooms    per  picul . 

Musical  boxes  

Musk per  catty . 

Mussels,   dried    per  picul . 

Needles : 

No.  7-0  per  100  mille. 

No.  3-0   do. . . 

Assorted,  not  including  7-0  do . . . 

Nutgalls    per  picul . 

Nutmegs    do . . . 

Oakum    do . . . 

Oil: 

Castor — 

Lubricating do.  . . 

Medicinal    do. . . 

Clove     per  catty . 

Cocoanut    per  picul . 

Colza   per  American  gallon . 

Engine — 

(c)   Wholly  or  partly  of  mineral  origin    do. . . 

(&)  All  other  kinds  (except  castor)    do. . . 

Ginger   per  picul . 

Kerosene   per  case  of  10  American  gallons. 

In  bulk per  10  American  gallons. 

Olive    per  imperial  gallon . 

Sandalwood   per  catty. 

Wood  per  picul . 

Oil  cans  and  cases  (kerosene)  empty per  2  cans  in  1  case. 

Olives,  fresh,  pickled,  or  salted  per  picul . 

Opium  per  picul    j     ,jjj[jj- 

Husk    per  catty . 


.285 
.330 
.375 
2.600 
4.280 
.375 

.250 
.250 
.250 
.750 

.750 


per  ct. 

per  ct. 

1.725 

1.500 

.400 

.350 
.290 

2.200 
1.500 


.600 

.400 

.520 

.250 

.050 

per  ct. 

3.000 

1.050 

1.800 

per  ct. 

9.000 

.400 

1.800 

1.500 

.985 

.870 

1.500 

.500 


.510 
1.000 
.150 
.400 
.050 

.015 

.025 

6.750 

.070 

.050 

.062 

.240 

.500 

.005 

.180 

30.000 

80.000 

.062 


NUMBER  1903/5  :  OCTOBER  8.  1903 :  ANNEXES  445 

Orange  peel    per  picul . .  .800 

Oysters,   dried    5  per  ct. 

Packing,  asbestos.    See  Asbestos. 

Packing,  engine  and  boiler,  all  other  kinds   S  per  ct. 

Paints.    See  Dyes,  colors,  and  paints. 

Paper : 

Cigarette  :  not  exceeding  2  by  4  inches per  100,000  leaves.  .  .125 

Printing — 

Calendered  and  (or)   sized  per  picul. .  .700 

Not  calendered  or  unsized    do ... .  .300 

Writing   or    foolscap    do ...  .  1.200 

All    other   kinds 5  per  ct. 

Peel,  orange    per  picul . .  .800 

Pepper : 

Black do. . . .  .760 

White do. . . .  1.330 

Perfumery   5  per  ct. 

Phosphorus    per  picul . .  4.125 

Pitch    do....  .125 

Plushes  and  velvets : 

(o)   Plushes  and  velvets  of  pure  silk per  catty. .  .650 

(6)   Silk  seal   (with  cotton  back)    do .200 

(c)  Plushes  and  velvets  of  silk  mixed  with  other  fibrous  materials    (with 

cotton  back)    per  catty..  .150 

(rf)  Plushes,  all  cotton   (including  mercerized)    do....  .110 

{e)  Velvets,  cotton.     See  Cotton  piece  goods. 

Pork   rind    per  picul .  .  1.500 

Prawns,  dried  {see  also  Shrimps)    do ...  .  1.000 

Preserved  fruits,  in  glass  bottles,  jars,  cardboard  or  wooden  boxes,   including 

weight  of  immediate  package  per  picul . .  .650 

Purses,  leather  (not  including  silver  or  gold  mounted)    per  gross..  .500 

Putchuck    per  picul . .  .715 

Raisins  and  currents  do ... .  .500 

Rattan : 

Chairs     5  per  ct. 

Core  per  picul . .  .225 

Skin    do. . . .  .750 

Rattans : 

Split    do. . . .  .325 

Whole    do. . . .  .225 

Resin    do. . . .  .187 

Ribbons,  silk,  silk  and  cotton,  silk  and  other  fibers,  with  or  without-  imitation 

gold  or  silver  thread   per  catty . .  .550 

Rope    5  per  ct. 

Rose  maloes   per  picul . .  1.000 

Safflower   do. . . .  .525 

In  barrels   Ao....  .400 

In  bottles per  12  bottles  or  24  half  bottles. .  .110 

Saltpeter  and  nitrate  of  soda per  picul . .  .325 

Sand,   red    do. . . .  .045 

Sandalwood    do. . . .  .400 

Sapan    wood    do ... .  .112 

Sea-horse    teeth    "•  •       5  per  ct. 

Seaweed: 

Cut    P^r  picul . .  .1  oU 

Long' '.'.".'.'. do. . . .  .100 

Prepared    do. . . .  1.000 

Seed :                                                                                                                                          .  i  nnn 

Lily  (f.  e.,  lotus  nuts  without  husks)   do l.UUU 

Lotus  nuts   (i.  e.,  lily  seeds  with  husks)    do .400 

Lucraban   do.  . . .  .350 

Melon  do. . . .  .250 

Pine,  or  fir  nuts    do....  .20U 

Sesamum     do. . . .  .200 

Sharks'  tins :                                                                                                                     ,  .  ,.o 

Black    do. . . .  1.608 


446  CHINA  TREATIES  AND  AGREEMENTS 

Clarified  or  prepared  per  picul . .  6.000 

White    do. . . .  4.600 

Shellac    do. . . .  2.500 

Shells : 

Mother-of-pearl    do .700 

Other   kinds    5  per  ct. 

Sherry.    See  Wines,  etc.   (vins  de  liqueur). 

Shoes  and  boots,  india-rubber,   for  Chinese : 

Boots  per  pair. .  .080 

Shoes    do .020 

Shrimps,  dried   (see  also  Prawns)    per  picul. .  .630 

Silk  piece  goods,  all  silk  (including  crape)  : 

(a)  Plain  per  catty. .  .325 

(b)  Brocaded  or  otherwise  figured   do. . . .  .700 

Silk  piece  goods,  mixtures   (i.  e.,  silk  and  cotton,  or  silk  and  other  materials) 

(including  crape  but  not  including  mixtures  with  real  or  imitation  gold  or 
silver  thread)  : 

(a)  Plain  per  catty. .  .250 

(b)  Brocaded    or  otherwise    figured do....  .500 

Silver  thread,  imitation.     (See  Thread.) 

Sinews : 

Buffalo  and  cow   per  picul . .  .550 

Deer    do....  1.050 

Singlets  or  drawers : 

Cotton    per    dozen .  .  .125 

Mixture     5  per  ct. 

Skins : 

Fish    per    picul . .  .600 

Sharks  5  per  ct. 

Smalt   per  picul . .  1.600 

Snuff    5  per  ct. 

Soap : 

Household  and  laundry  (including  blue  mottled),  in  bulk,  bars,  and  doublets 

weighing  not  less  than  one-half  pound  each < . . .  .per  picul. .  .240 

Toilet   and    fancy    5  per  ct. 

Socks,  cotton  (including  lisle  thread)  : 

First  quality    (i.  e.,  valued  at   1   tael  or  over  per  dozen  pairs),  per  dozen 

pairs    .075 

Second  quality  (i.  e.,  valued  at  less  than  1  tael  per  dozen  pairs),  per  dozen 
pairs    .032 

Soda: 

Ash    per    picul..  .150 

Bicarbonate    do ... .  .150 

Caustic  do ... .  .225 

Crystals    do .120 

Crystals,  concentrated do .140 

Soy    do. . . .  .250 

Spirits.     (See  Wines,  etc.) 

Spirits  of  wine.     (See  Wines,  etc.) 

Stick-lac    do. . . .  .700 

Stout.     (See  Wines,  etc.) 

Sugar : 

Brown,  up  to  No.  10  Dutch  standard  do .190 

Candy  .  .• do. . . .  .300 

White,    No.    11    Dutch    standard    and    over,    including    cube    and    refined 
per  picul  .240 

Sulphur  and  brimstone : 

Crude    do ... .  .150 

Refined do. . . .  .250 

Sulphuric  acid  do. . . .  .187 

Sunshades.  (See  Umbrellas.) 

Telescopes,  binoculars,  and   mirrors    5  per  ct. 

Thread : 

Cotton — 

Balls,  dyed  or  undyed  per  picul .  .  3.000 

Spools   (50  yards)    per  gross. .  .040 

Gold  and  silver — 

Imitation    (on  silk)    5  per  ct. 

Real     5  per  ct. 


NUMBER  1903/5  :  OCTOBER  8,  1903 :  ANNEXES  447 

Gold,  imitation  (on  cotton)    per  catty. .  .125 

Silver,  imitation  (on  cotton)    do. . . .  .090 

Tiles  6  inches  square  per  hundred. .  .600 

Timber: 

Beams — 

Hard  wood per  cubic  foot . .  .020 

Soft  wood  (including  Oregon  pine  and  California  redwood:  on  a  thick- 
ness of    1   inch)    per    1,000  superficial    feet..  1.150 

Teak  wood   per  cubic  foot . .  .081 

Laths per  thousand . .  .210 

Masts  and  spars — 

Hard    wood    5  per  ct. 

Soft  wood    5  per  ct. 

Piles  and  piling  (including  Oregon  pine  and  California  redwood,  on  a  thick- 
ness of  1  inch)    per  1,000  superficial  feet. .  1.150 

Planks- 
Hard  wood   per  cubic  foot . .  .020 

Teak    wood    do ... .  .081 

Planks  and  flooring — 

Soft  wood  (including  Oregon  pine  and  California  redwood,  and  allow- 
ing 10  per  cent  of  each  shipment  to  be  tongued  and  grooved :  on  a 

thickness  of  1  inch)    per  1,000  superficial  feet . .  1.150 

Soft  wood   (tongued  and  grooved,  in  excess  of  above,  10  per  cent) . .  5  per  ct. 

Railway  sleepers   5  per  ct. 

Teak-wood  lumber,  of  all  lengths  and  description   per  cubic  foot..  .081 

Tinder  per  picul . .  .350 

Tin   foil    5  per  ct. 

Tobacco : 

Leaf  per  picul . .  .800 

Prepared — 

In    bulk    do....  .950 

In  tins  or  packages  under  5  pounds  each   5  per  ct. 

Tools : 

Axes  and  hatchets   per  dozen . .  .500 

Files,  file  blanks,  rasps,  and  floats,  of  all  kinds — 

Not    exceeding    4    inches    long    do ... .  .040 

Exceeding  4   inches   and   not   exceeding  9   inches    long    do....  .072 

Exceeding  9  inches  and  not  exceeding  14  inches  long   do....  .168 

Exceeding   14  inches   long    do ... .  .224 

Tortoise  shell   per  catty. .  .450 

Trimmings : 

Bead 5  per  ct. 

Cotton  (pure  or  mixed  with  other  materials  but  not  silk)    5  per  ct. 

Cotton  (mixed  with  silk  and  imitation  gold  or  silver  thread)    5  per  ct. 

Tumeric    per    picul . .  .185 

Turpentine    per   gallon . .  .036 

Twine    5  per  ct. 

Ultramarine  per  picul . .  .500 

Umbrella  frames   per  dozen. .  .080 

Umbrellas,  parasols,  and  sunshades : 

With  handles  wholly  or  partly  of  precious  metals,  ivory,  mother-of-pearl, 

tortoise  shell,  agate,  etc.,  or  jeweled    5  per  ct. 

With  all  other  handles — 

Cotton    each. .  .020 

Mixtures,  not  silk   do. .  . .  .030 

Silk  and   silk  mixtures    do ... .  .080 

Varnish,  crude  lacquer,  gum  lacquer,  or  oil  lacquer  5  per  ct. 

Vaseline 5  per  ct. 

Vegetables,  dried  and  salted  or  pickled,  in  bulk   5  per  ct^ 

Vermicelli  per  picul. .  .325 

Vermilion do.  . . .  4.000 

Vermuth.    Sec  Wines,  etc. 

Watches,  of  all  kinds   5  per  ct. 

Waters,  aerated  and  mineral  per  12  bottles  or  24  half  bottles.  .  .050 

Wax: 

Bees,  yellow   per  picul . .  1 .600 

Tapan     do ... .  .650 

Parafi^n    do.  . .  500 


44S  CHINA  TREATIES  AND  AGREEMENTS 

Sealing    5  per  ct. 

White 5  per  ct. 

Wines,  etc : 

Champagnes  and  all  other  sparkling  wines,  in  bottles,  per  case  of  12  bottles 

or  24  half  bottles .650 

Still  wines,  red  or  white,  exclusively  the  produce  of  the  natural  fermentation 

of  grapes — 

(a)  Having  less  than  14°  of  alcohol — 

1.  In  bottles  per  case  of  12  bottles  or  24  half  bottles. .  .300 

2.  In  bulk per  imperial  gallon. .  .025 

(b)  Having  14°   or  more  of  alcohol;   also  vins  de  liqueur  other  than 
port — 

1.  In  bottles  per  case  of  12  bottles  or  24  half  bottles. .  .500 

2.  In  bulk  per  imperial  gallon . .  .150 

Port  wine — 

In  bottles per  case  of  12  bottles  or  24  half  bottles. .  .700 

In  bulk per  imperial  gallon . .  .175 

Vermuth  and  byrrh  per  case  of  12  liters. .  .250 

Sake : 

In  barrels  per  picul . .  .400 

In  bottles  per  case  of  12  bottles  or  24  half  bottles. .  .110 

Brandies  and  whiskies,  in  bulk  per  iniperial  gallon..  .125 

Brandy  and   cognac,  in  bottles    per  case  of    12   reputed   quarts..  .500 

Whisky,  in  bottles   do .350 

Other  spirits  (gin,  rum,  etc.)  — 

In    bottles     do....  .200 

In  bulk  per  imperial  gallon . .  .090 

Spirits  of  wine,  in  packages  of  any  description do. . . .  .028 

Ales,  beers,  cider,  and  perry — 

In  bottles per  case  of  12  reputed  quarts  or  24  reputed  pints. .  .085 

In  casks  per  imperial  gallon . .  .020 

Porters  and  stouts — 

In  bottles   per  case  of  12  reputed  quarts  or  24  reputed  pints..  .100 

In  casks  per  imperial  gallon. .  .025 

Liqueurs     5  per  ct. 

Wood: 

Camagon    per    picul . .  .090 

Ebony  do. . . .  .200 

Fragrant  5  per  ct. 

Garoo  per  catty. .  .100 

Kranj  ee  5  per  ct. 

Laka     per  picul.  .  .125 

Lignum-vitae     5  per  ct. 

Puru  per  picul . .  .075 

Red   do. . .  .  .200 

Rose    do. . . .  .200 

Sandal    do....  .400 

Sapan    do. . . .  .112 

Scented   5  per  ct. 

Shavings,    Hinoki    per  picul.  .  1.000 

Woolen  and  cotton  mixtures  : 

Flannel  (woolen  and  cotton)  :  not  exceeding  33  inches  wide,  per  yard .015 

Italian  cloth,  plain  or  figured,  having  warp  entirely  cotton  and  all  one  color, 
and  weft  entirely  wool  and  all  one  color :  not  exceeding  32  inches  wide 

and  not  exceeding  32  yards  long   per  piece.  .  .372 

Poncho  cloth  :  not  exceeding  76  inches  wide  per  yard. .  .030 

Spanish   stripes    (woolen   and  cotton)  :   not  exceeding  64  inches   wide,   per 

yard .014 

Union  cloth:   not  exceeding  76  inches  wide    per  yard..  .030 

Woolen  and  cotton  mixtures,  unclassed,  including  alpacas,  lusters,  Orleans, 

Sicilians,   etc 5  per  ct. 

Woolen  manufactures : 

Blankets  and  rugs  per  pound .  .  .020 

Broadcloth  :  not  exceeding  76  inches  wide  per  yard. .  .047^ 

Bunting :   not  exceeding  24  inches  wide  and   not  exceeding  40  yards   long 

per  piece .200 

Camlets,  Dutch :  not  exceeding  33  inches  wide  and  not  exceeding  61  yards 

long    per    piece..  1.000 


NUMBER  1903/5  :  OCTOBER  8,  1903 :  ANNEXES  449 

Camlets,  English :  not  exceeding  31  inches  wide  and  not  exceeding  61  yards 

long    per    piece . .  .500 

Flannel :  not  exceeding  33  inches  wide per  yard. .  .015 

Habit  cloth  :  not  exceeding  76  inches  wide  do. . . .  .047 J/2 

Lastings,  plain,   figured  or  craped :   not  exceeding  31   inches  wide  and  not 

exceeding  32  yards  long  per  piece . .  .450 

Llama  braid  per  picul . .  5.000 

Long  ells :  not  exceeding  31  inches  wide  and  not  exceeding  25  yards  long 

per  piece    .250 

Medium  cloth  :  not  exceeding  76  inches  wide  per  yard. .  .047}4 

Russian  cloth :  not  exceeding  76  inches  wide  •  • do. . . .  .047^ 

Spanish  stripes  :  not  exceeding  64  inches  wide  do. . . .  .021 

Woolens    (unclassed)    5  per  ct. 

Woolen  and  worsted  yarns  and  cords   (not  including  Berlin  wool)   per  picul..  5.300 

Berlin  wool    do. . . .  4.000 

Wooloa    or    berlinette    do ... .  3.500 

Worm  tablets,  in  bottles,  not  exceeding  60  pieces  per  dozen.  .  .035 

Yarn : 

Asbestos   per  picul . .  2.250 

Coir    5  per  ct. 

Cotton — 

Bleached  or  gray per  picul . .  .950 

Dyed    5  per  ct. 

Gray   per  picul . .  .950 

Mercerized    or    gassed    5  per  ct. 

Wooloa  or  berlinette   per  picul . .  3.500 

Wool,  Berlin do. . . .  4.000 

Woolen  and  worsted  (not  including  Berlin  wool)    do. . . .  5.300 

Note — If  any  of  the  articles  enumerated  in  this  tariff  are  imported  in  dimensions 
exceeding  those  specified,  the  duty  is  to  be  calculated  in  proportion  to  the  measurements  as 
defined. 

RULES  * 
Rule  I. 

Imports  unenumerated  in  this  Tariff  will  pay  Duty  at  the  rate  of  5  per  cent,  ad 
valorem ;  and  the  value  upon  which  Duty  is  to  be  calculated  shall  be  the  market  value  of 
the  goods  in  local  currency.  This  market  value  when  converted  into  Haikwan  Taels  shall 
be  considered  to  be  12  per  cent,  higher  than  the  amount  upon  which  Duty  is  to  be 
calculated. 

If  the  goods  have  been  sold  before  presentation  to  the  Customs  of  the  Application  to 
pay  duty,  the  gross  amount  of  the  bona  fide  contract  will  be  accepted  as  evidence  of  the 
market  value.  Should  the  goods  have  been  sold  on  c.  f.  and  i.  terms,  that  is  to  say,  without 
inclusion  in  the  price  of  Duty  and  other  charges,  such  c.  f.  and  i.  price  shall  be  taken  as 
the  value  for  Duty-paying  purposes  without  the  deduction  mentioned  in  the  preceding 
paragraph. 

If  the  goods  have  not  been  sold  before  presentation  to  the  Customs  of  the  Application 
to  pay  Duty,  and  should  a  dispute  arise  between  Customs  and  importer  regarding  the  value 
or  classification  of  goods,  the  case  will  be  referred  to  a  Board  of  Arbitration  composed  as 
follows : 

An  official  of  the  Customs ;  a  Merchant  selected  by  the  Consul  of  the  importer ;  and  a 
Merchant  dififering  in  nationality  from  the  importer,  selected  by  the   Senior  Consul. 

Questions  regarding  procedure,  etc.,  which  may  arise  during  the  sittings  of  the  Board 
shall  be  decided  by  the  majority.  The  final  finding  of  the  majority  of  the  Board,  which 
must  be  announced  within  fifteen  days  of  the  reference  (not  including  holidays),  will 
be  binding  upon  both  parties.  Each  of  the  two  merchants  on  the  Board  will  be  entitled  to 
a  fee  of  Ten  Haikwan  Taels.  Should  the  Board  sustain  the  Customs  valuation,  or,  in  the 
event  of  not  sustaining  that  valuation,  should  it  decide  that  the  goods  have  been  undervalued 
by  the  importer  to  the  extent  of  not  less  than  7j/2  per  cent.,  the  importer  will  pay  the  fees ; 
if  otherwise,  the  fees  will  be  paid  by  the  Customs.  Should  the  Board  decide  that  the  cor- 
rect value  of  the  goods  is  20  per  cent,  (or  more)  higher  than  that  upon  which  the  importer 
originally  claimed  to  pay  Duty,  the  Customs  authorities  may  retain  possession  of  the  goods 


*  In  connection  with  these  rules,  consult  the  international  Agreement  relating  to  the 
revised  import  tariff  of  1902  (No.  1902/6,  ante).  For  the  text  of  the  Rules  as  revised  by 
the  International  Tariff  Conference,  December  19,  1918,  see  the  Rules  annexed  to  No. 
1918/18,  at  p.  1483,  post. 


450  CHINA  TREATIES  AND  AGREEMENTS 

until   full   Duty  has  been  paid  and  may  levy  an  additional  Duty  equal  to  four  times  the 
Duty  sought  to  be  evaded. 

In  all  cases  invoices,  when  available,  must  be  produced  if  required  by  the  Customs. 

Rule  II* 

The  following  will  not  be  liable  to  Import  Duty:  Foreign  Rice,  Cereals,  and  Flour; 
Gold  and  Silver,  both  Bullion  and  Coin ;  Printed  Books,  Charts,  Maps,  Periodicals,  and 
Newspapers;  Samples  in  reasonable  quantities,  and  certified  to  be  for  show  and  not  for 
sale;  Government  Stationery  for  Consulates  in  China;  Passengers  Baggage  for  bona  fide 
private  use;  Circulars,  etc.,  distributed  gratis  by  mercantile  houses;  and  Private  Effects 
(not  including  Wines,  Stores,  and  Tobacco)  of  individual  Foreigners  imported  by  themselves 
for  their  own  personal  use  and  not  for  sale,  provided  that  the  Customs  authorities  are 
satisfied  that  the  articles  in  question  fulfil  these  conditions. 

A  freight  or  part  freight  of  Duty-free  commodities  (personal  baggage  of  less  than 
tiventy  passengers  and  Gold  and  Silver  Bullion  and  Foreign  Coins  excepted)  will  render  the 
vessel  carrying  them,  though  no  other  cargo  be  on  board,  liable  to  Tonnage  Dues. 

Drawbacks  will  be  issued  for  Ships  Stores  and  Bunker  Coal  when  taken  on  board. 

Rule  Ill.-f 

Except  at  the  requisition  of  the  Chinese  Government,  or  for  sale  to  Chinese  duly 
authorized  to  purchase  them,  Import  trade  is  prohibited  in  all  Arms,  Ammunition,  and 
Munitions  of  War  of  every  description.  No  Permit  to  land  them  will  be  issued  until  the 
Customs  have  proof  that  the  necessary  authority  has  been  given  to  the  importer.  Infraction 
of  this  rule  will  be  punishable  by  confiscation  of  all  the  goods  concerned.  The  import  of 
Salt  is  absolutely  prohibited. 

ShENG   HsiJAN-HUAI. 

Lij  Hai-huan. 
Subject  to  the  approval  of  His  Imp.  &  Roy. 

Apostolic  Majesty's  Government  E.  v.  Hirsch. 
Ad   referendum  D.  Siffert. 
Dr.  Boye. 
Jas.  L.  Mackay. 
E.  Hioki. 
M.  Odagiri. 
J.  Yamaoka. 
Ad  referendum  advocaat  F.  B.  v'Jacob. 

John  GoooNow.t 


Note  1. 

In  reference  to  the  rights  and  privileges  of  consular  officers  as  assessors  in  mixed 
cases  in  the  Chinese  courts,  consult  the  following  "  Protocol  of  understanding  in  regard  to 
the  method  of  procedure  to  be  followed  when  an  American  plaintiff  sues  a  Chinese  defendant 
in  the  Tientsin  consular  district "  : 

Protocol  of  Procedure  in  Mixed  Cases  in  Chinese  Courts  in  Tientsin  District.— 

October  24,  1917. 

"Court:  Such  cases  are  to  be  tried,  not  in  the  Shen  P'an  T'ing,  but  in  a  court  held  by  the 

local  territorial  officials  (Ti  Fang  Kwan). 
"Assessor:  Notice  of  the  time  and  place  of  the  hearing,  when   set,   shall  be  sent  to  the 

American  Consul  General  well  in  advance,  so  that,  in  accordance  with  the  treaty,  he 

may,  if  he  wishes,  send  an  Assessor  to  sit  in  the  case. 


*  In  the  text  as  given  in  U.  S.  Treaty  Series,  Rule  II  is  printed  in  full ;  but  with 
reference  to  the  two  passages  which  are  herewith  printed  in  italics,  there  is  added  as  a 
note  the  text  of  the  despatch  addressed  by  the  foreign  members  of  the  Import  Tariflf 
Revision  Commission  to  the  Chinese  Commissioners,  under  date  of  August  29,  1902 
(printed  at  p.  340,  ante,  in  the  first  note  to  No.  1902/6),  recording  the  elimination  from 
Rule  II  of  the  italicized  passages. 

t  For  modification  of  this  rule,  see  the  revised  Regulations  for  arms  and  ammunition. 
May  30.  1908  (No.  1908/10,  post). 

t  Signed  bv  representative  of  France  March  30,  1904;  by  representatives  of  Italy,  Russia. 
Norwav  and  Sweden,  March  28,  1903;  of  Denmark,  March  23,  1904:  and  of  Portugal, 
November  11,  1904. 


NUMBER  1903/5  OCTOBER  8,  1903:  NOTES  451 

"Introduction  of  IVitncsses:  The  Assessor  shall  have  the  right  to  introduce  such  witnesses 
as  he  wishes,  but  the  summons  for  witnesses  of  Chinese  nationahty  shall  be  issued  by  the 
Judge  of  the  Court  hearing  the  case.    It  is  understood  that,  when  the  Assessor  indicates 
to  the  Judge  his  desire  to  introduce  a  certain  witness,  the  Judge  has  no  option  but  to 
summon  that  witness. 
"Examination  of  Witnesses:  The  Assessor  shall  have  the  right,  in  accordance  with  the  treaty, 
to  question  the  witnesses  produced  in  the  Court,  but  it  is  understood  that  in  putting 
his  question  to  witnesses  the  procedure  will  be  for  the  Assessor  to  inform  tiie  Judge 
at  the  time  in  the  Court  that  he  wishes  a  certain  question  put  to  the  witness  and  that 
the  Judge  shall  then  and  there,  forthwith,  put  that  exact  question,  in  the  words  and 
phrasing  of  the  Assessor  to  the  witness.    It  is  understood  that  the  Judge  has  no  option 
but  to  put  the  questions  of  the  Assessor  and  to  do  so  in  the  Assessor's  exact  words. 
"  Cross  Examination  of  Witnesses:    The  procedure  in  the  cross  examination  of  witnesses 
shall  be  the  same  as  in  direct  examination,  it  being  understood,  in  accordance  with  the 
treaty,  that  the  Assessor  has  the  right  to  cross  examine  any  witness. 
"  Recognition  of  Assessor:  The  Assessor  shall  be  given  due  and  proper  recognition,  treated 
with  the  courtesy  due  to  his  Government  and  his  position,  and  seated  at  the  table  with 
the  Judge,  not  at  a  side  table. 
"  Signed  at  Tientsin,  China,  this  24th  day  of  October,  1917. 

"  (Signed  and  sealed) 

"  Huang  Yung-liang, 
''Special  Commissioner  of  Foreign  Affairs  for  Chihli  Province. 
"  (Signed)  "  P.  R.  Josselyn, 

"  (Sealed)  "  Vice  Consul  of  the   United  States  of  America,  in  Charge 

of  the  American  Consulate  General  at  Tientsin,  China." 


Note  2. 

To  the  text  of  the  commercial  treaty  as  printed  in  Customs  is  annexed  (Vol.  I,  pp.  761 
et  seq.)  the  following  exchange  of  notes  in  reference  to  the  provisions  of  Article  IV: 

Exchange  of  Notes  regarding  Taxes. — September  24,  1903. 

"  Shanghai,  24th  September,   1903. 
"  Gentlemen, 

"  In  our  discussions  we  have  on  several  occasions  insisted  that  this  Treaty  should  embody 
both  the  provisions  contained  in  the  revised  British  Commercial  Treaty  recognizing  the 
right  of  China  to  collect  consumption  duty  and  excise  duty,  and  also  her  right  to  levy 
production  duty  in  order  to  make  good  the  duty  which  would  have  been  leviable  on  goods  in 
transit  by  the  Native  Custom-houses  inland,  now  abolished.  While  you  have  not  agreed  to 
embody  these  provisions  in  your  Treaty,  you  have  constantly  replied  that  the  United  States 
has  no  intention  of  limiting  in  this  Treaty  the  sovereign  rights  of  China  excepting  as  speci- 
fied therein. 

"  It  was  our  intention  to  write  a  dispatch  to  be  an  Annex  to  the  Treaty  specially 
affirming  the  right  of  China  to  levy  the  taxes  mentioned  above.  However,  you  have  at  our 
urgent  request  inserted  in  the  4th  Article  of  this  Treaty  a  very  broadly  worded  clause  as 
follows : — '  Nothing  in  this  Article  is  intended  to  interfere  with  the  inherent  right  of  China  to 
levy  such  other  taxes  as  are  not  in  conflict  with  its  provisions.' 

"  This  more  completely  covers  the  ground  than  such  a  dispatch  would  have  done.  We 
therefore  only  desire  now  to  state  again  that  China  reserves  her  right  to  levy  any  and  all 
taxes,  provided  only  that  they  do  not  conflict  with  the  provisions  of  our  Treaty  with  you. 

"  We  have  the  honor  to  be.  Gentlemen, 

"  Your  obedient  servants, 

[Cards  enclosed] 
"  Treaty  Commissioners  for  China. 
'  Hon.  J.  GooDNOw, 
"  Hon.  J.  F.  Seaman, 

"  Treaty  Commissioners  for  the  United  States." 


"  Shanghai,  September  30th,  1903. 
"  Gentlemen  : 

"  We  have   received  your   dispatch   of   September  24th. 

"  In   framing  this  Treaty  we  have   endeavored   to  recognize  the   right   of   China  as  a 
sovereign  state  to  levy  such  taxes  as  are  not  in  conflict  with  the  provisions  of  this  Treaty 


452  CHINA  TREATIES  AND  AGREEMENTS 

which  is  intended  to  extend  the  commercial  relations  between,  and  promote  the  best  inter- 
ests of,  the  people  of  the  two  countries.  With  this  end  in  view,  we  inserted  at  your  request 
in  Article  IV  the  clause  '  Nothing  in  this  Article  is  intended  to  interfere  with  the  inherent 
right  of  China  to  levy  such  other  taxes  as  are  not  in  conflict  with  its  provisions.'  We,  with 
Your  Excellencies,  appreciate  the  fact  that  this  clause  is  comprehensive  and  conserves  to  the 
fullest  extent  the  sovereign  rights  of  China  except  as  specified  in  this  Treaty. 
"  We  are,  Sirs, 

"  Your  obedient  servants, 

"  (Signed)        John  Goodnow, 
"  (Signed)        J.  F.  Seaman, 

"  Treaty  Commissioners  for  the  U.  S. 
"  To  Their  Excellencies, 

"  Lij  Hai-huan, 
"  Sheng  Hsuan-huai, 
"Wu  T'ing-fang, 
"  Treaty  Commissioners  for  China." 


Note  3. 

Under  date  of  October  1,  1907,  was  issued  an  Imperial  Edict  in  regard  to  the  protection 
of  missions,  of  which  the  following  is  a  translation : 

Chinese  Imperial  Edict  for  Protection  of  Missions. — October  i,  1917. 

"  An  Edict  for  the  protection  of  missions  in  accordance  with  treaty  provisions.  It  is  the 
duty  of  all  local  officials  to  protect  missionaries  wherever  found  in  China,  in  respect  to  their 
persons,  lives,  money  and  property. 

"  In  the  last  two  or  three  years  there  have  been  cases  in  every  province  of  the  burning 
of  the  buildings  belonging  to  missionary  societies.  No  locality  has  been  able  to  keep  away 
from  doing  injury  to  missionaries.  We  are  greatly  grieved  at  this.  We  are  pushing 
inquiries  as  to  the  cause.  A  large  part  of  the  disagreement  arising  between  the  missionary 
societies  and  the  common  people  is  caused  by  the  crookedness  of  the  Yamen  underlings. 

"  In  times  past  treaties  have  been  concluded  in  which  it  is  clearly  stipulated  that 
missionaries  shall  do  their  duty  in  preaching  their  doctrines.  Those  who  practice  these 
doctrines  should  not  be  oppressively  treated  nor  obstructed.  If,  however,  there  arises 
any  question  coming  under  the  jurisdiction  of  Chinese  law,  the  local  officials  must  conform 
to  said  law  in  that  which  they  do.    The  necessary  distinctions  are  clearly  shown. 

"  Let  the  Viceroys  and  Governors  of  all  the  Provinces  have  printed  all  the  clauses 
of  the  treaties  concerned  with  missions  and  circulate  them  among  their  subordinates,  to  the 
end  that  they  may  be  energetically  explained  to  the  people  and  observed  by  the  officials. 

"  The  missionaries,  on  the  other  hand,  must  likewise  observe  treaty  stipulations.  The 
people,  whether  in  or  out  of  the  mission  societies  are  alike  Our  children  and  are  all 
amenable  to  the  country's  law.  So  far  as  infraction  of  the  laws  and  lawsuits  are  con- 
cerned all  the  people  are  on  an  equality.  They  should  on  no  account  be  treated  with  any 
discrimination.     Thus   the  laws   will   be   respected. 

"  Let  it  be  known  forthwith  to  the  common  people  and  to  the  members  of  the  societies 
that  the  relations  of  each  to  the  others  must,  according  to  their  duty,  be  just;  the  officials 
and  their  underlings  must  be  upright  in  their  jurisdiction.  Let  the  people  and  the  members 
of  the  societies  of  their  own  accord  make  an  end  of  their  mutual  anger  and  jealousy.  For 
there  are  certain  rowdies  who  deceitfully  stir  up  trouble  with  false  reports.  Continual 
guard  should  be  taken  against  these  occurrences  and  on  signs  of  their  appearance  they 
should  be  prevented. 

"  If  the  local  officials  do  not  understand  the  treaty  provisions,  or  if  they  are  negligent 
or  unjust  in  their  administration,  or  if  they  are  pusillanimous  and  backward  in  their 
actions,  then  gradually  serious  trouble  will  arise.  In  that  case  these  officials  will  be  sought 
out  and  condignly  punished.     This  Decree  is  for  their  warning. 

"  Respect  this." 

See  also  the  Memorial  and  Rescript  of  March  12,  1908,  in  regard  to  the  revision  of  the 
procedure  governing  intercourse  between  the  local  officials  and  missionaries  (No.  1908/4, 
post). 


NUMBER  1903/6 :  OCTOBER  29,  1903  453 


NUMBER  1903/6. 

FRANCE  AND  CHINA. 
Contract  for  the  Yunnan  Railway.''^ — October  29,  1903. 

The  19th  and  20th  of  the  3rd  moon  of  the  24th  year  of  Kuang-Hsu,  cor- 
responding to  the  9th  and  10th  of  April,  1898,  Notes  were  exchanged  between 
Mr.  Dubail,  Charge  d'Affaires  of  the  French  RepubHc  at  Peking,  and  the  Tsungli 
Yamen. 

In  those  Notes  is  contained  the  following: 

1st. — The  Chinese  Government  grants  to  the  French  Government,  or  to  the 
French  company  which  the  latter  may  designate,  the  right  to  construct  a  railway 
running  from  the  frontier  of  Tonkin  to  Yunnan  Fu,  the  Chinese  Government 
having  no  other  obligation  than  to  furnish  the  land  for  the  road  and  its 
appurtenances. 

2nd. — The  route  of  this  line  is  now  being  surveyed  and  will  be  fixed  later 
on  by  agreement  between  the  two  Governments. 

3rd. — Regulations  will  be  jointly  made.  In  the  dispatch  of  the  Tsungli 
Yamen  it  is  said  that  these  conventions  are  destined  to  draw  closer  the  bonds 
of  friendship  that  unite  France  and  China,  and  that  the  two  nations  ought  to 
strengthen  the  good  relations  that  exist  between  them  and  avert  forever  any 
cause  of  conflict. 

The  French  Government  has  therefore  designated,  to  construct  and  operate 
the  railway  from  Tonkin  to  Yunnan  Fu,  the  Compagnie  franqaise  des  Chemins  de 
fer  de  I'Indo-Chine  et  du  Yunnan,  which  has  been  constituted  by  the  most  im- 
portant financial  establishments  of  France. 

The  route  of  the  railway  has,  on  the  other  hand,  been  surveyed  by  the  French 
Government  and  then  by  the  Compagnie  frangaise  des  Chemins  de  fer  de  I'lndo- 
Chine  et  du  Yunnan. 

To  give  efifect  to  the  conventions  cited  above,  the  High  Contracting  Authori- 
ties have,  by  mutual  agreement,  established  the  present  regulations  for  the  pur- 
pose of  averting  forever  any  cause  of  conflict,  and  assuring  the  carrying  out 
of  the  undertaking  and  the  operation  of  the  railway  under  conditions  satisfactory 
to  all. 

Article  I. — The  route  of  the  railway  to  be  constructed  between  the  frontier 
of  Tonkin  and  Yunnan  Fu  will  start  from  Hokow  and  pass  by  or  near  Mengtsz 
on  the  way  to  Yunnan  Fu. 

If  it  should  hereafter  be  deemed  necessary  by  the  French  Government  to 
make  any  modifications  in  the  route  indicated  above,  notice  thereof  will  be  given 
to  the  High  Authorities  of  the  Province  of  Yunnan  by  official  dispatches  from 
the  Consul  General  of  France  in  residence  in  that  province.     After  examining 

*  Translation  from  the  French  text. 

In  connection  with  this  contract  see  also  the  exchange  of  notes  of  April  9  and  10,  1898 
(No.  1898/7,  ante).    See  Note  to  this  document,  post,  p.  462. 


454  CHINA  TREATIES  AND  AGREEMENTS 

the  proposals  submitted,  in  consultation  with  the  engineers,  and  upon  its  being 
recognized  that  no  objection  exists,  an  answer  will  be  given  immediately  by  the 
High  Authorities  of  Yunnan  to  the  Consul  General  of  France,  by  means  of  an 
official  dispatch  giving  the  necessary  consent,  whereupon  the  modifications  may 
be  effected. 

In  case  of  disagreement  between  the  High  Authorities  of  the  Province  of 
Yunnan  and  the  Consul  General  of  France,  it  will  be  adjusted  by  agreement 
between  the  Legation  of  the  French  Republic,  at  Peking,  and  the  Wai-wu  Pu. 

Article  H. — When  the  agents  for  the  work  shall  have  fixed  definitively 
upon  the  detailed  plans  for  the  railway,  they  will  draw  up  a  detailed  map  of 
the  route,  and  will  precisely  indicate  thereon  the  locations  of  stations  and 
yards. 

The  land  necessary  for  the  construction  of  stations,  yards  and  workshops, 
stores,  in  short  everything  included  under  the  term  appurtenances  (dcpendances), 
will  be  indicated  quite  clearly  by  dimensions,  and  the  use  to  which  it  is  to  be 
put  will  be  mentioned.  Such  use  will  be  solely  for  the  needs  of  the  railway,  and 
only  so  much  of  the  land  will  be  taken  as  is  strictly  necessary  for  the  proposed 
purpose.  The  effort  will  be  made  first  of  all  to  make  use  of  public  lands.  The 
effort  will  likewise  be  made  to  avoid  so  far  as  possible  temples  and  graves,  as 
well  as  dwelling  houses  and  market  gardens. 

The  plans  will  be  sent  in  duplicate,  as  the  work  of  survey  progresses,  through 
the  intermediation  of  the  Consul  General  of  France  to  the  High  Authorities  of 
Yunnan,  in  order  that  the  latter  may  be  able  to  acquire  possession  of  the  neces- 
sary lands.  One  of  these  copies  will  be  returned  by  the  High  Authorities  to 
the  Consul  General  after  having  been  stamped  with  the  seals  of  the  Provincial 
Government.     One  copy  will  be  preserved  in  the  archives. 

On  the  other  hand,  the  lands  having  been  from  time  to  time  turned  over 
within  the  periods  fixed  in  Article  HI,  the  work  may  commence  whenever  the 
complete  transfer  thereof  shall  have  been  effected. 

Article  HI.-  —The  Consul  General  of  France  will  make  known  from  time 
to  time  as  needed,  by  official  letters  to  the  High  Authorities  of  Yunnan,  the 
lands  which  may  be  necessary  for  the  railway  line  and  its  appurtenances,  and  the 
expropriation  of  which  may  have  been  determined  on  by  the  engineers  of  the  work, 
as  stated  in  Article  H. 

Lands  belonging  to  the  imperial  domain  are  to  be  turned  over  immediately. 

Lands  belonging  to  private  persons  will  be  purchased  by  the  High  Provincial 
Authorities  so  as  to  be  turned  over  in  each  case  within  a  period  of  not  more  than 
six  months  after  the  official  letters  requesting  their  transfer  shall  have  been  sent 
by  the  Consul  General  of  France. 

To  obviate  all  dispute  between  the  Railway  Administration  and  the  former 
owners  of  the  soil,  duplicates  of  the  deeds  of  sale  will  be  turned  over  to  the 
Railway  Administration  by  the  Provincial  Authorities.  In  these  deeds,  the  owners 
and  lessees  of  the  lands  are  to  declare  that  they  have  been  indemnified  for  all 
damages  that  the  construction  of  the  railway  might  occasion  them.  The  forms 
for  these  deeds  shall  be  drawn  up  by  mutual  agreement  between  the  High  Pro- 
vincial Authorities  and  the  Consul  General  of  France. 


NUMBER  1903/6:  OCTOBER  29,  1903  455 

The  agents  of  the  Railway  will  have  trenches  dug  to  indicate  the  boundaries 
of  the  lands  thus  transferred. 

Article  IV. — There  may  be  established,  to  the  side  of  the  construction  work 
on  the  railway  line  {lateralement  aux  entreprises  de  la  voie  ferree)  a  service 
road  of  two  or  three  meters  in  width  for  the  movement  of  the  personnel  of 
the  railway  employed  in  surveys  and  in  the  work  of  construction,  for  the  prepara- 
tions in  connection  with  the  work,  and  also  for  the  transportation  of  tools, 
machines,  and  supplies.  This  road,  on  which  a  temporary  track  may  be 
laid,  will  be  so  arranged  as  to  cause  the  least  possible  damage  to  private 
property. 

The  builders  will  also  be  at  liberty  to  lay  down  service  railways  to  lead  to 
the  quarries,  for  the  extraction  and  transportation  of  materials,  and  for  access 
to  the  yards  of  the  railway  and  its  appurtenances. 

The  lands  necessary  for  the  establishment  of  these  roads  will  be  transferred 
by  the  Provincial  Authorities  on  the  same  conditions  as  the  lands  necessary  for 
the  establishment  of  the  railway  line  and  its  appurtenances. 

If  the  lands  necessary  for  the  establishment  of  the  service  roads  are  leased 
to  private  individuals,  the  rent  for  them  will  be  paid  by  the  Company,  and  on 
completion  of  construction  the  lands  will  be  returned  to  their  owners. 

Article  V. — The  work  will  begin  at  Hokow ;  but  it  is  herewith  agreed 
that  the  yards  may  at  the  same  time  be  opened  along  the  line  of  the  railway 
wherever  it  may  be  necessary,  at  the  points  indicated  by  the  engineers,  as,  for 
instance,  for  the  construction  of  bridges,  the  digging  of  cuts  and  tunnels,  the 
building  of  stations,  and  other  yards. 

Article  VI. — The  gauge  of  the  track,  between  the  inner  edges  of  the  rails, 
will  be  one  meter. 

Article  VII. — The  railway  track  must  not  in  any  case,  along  the  line,  cause 
damage  to  the  walls  of  city  fortifications,  to  public  institutions,  or  to  important 
posts  for  the  defense  of  the  country. 

If  rivers  or  irrigation  canals  are  encountered,  means  must  be  taken  to  deal 
with  them,  either  by  constructing  bridges  or  by  installing  culverts  so  as  to  assure 
their  flow  in  the  most  convenient  manner  and  to  cause  no  injury  to  farming  inter- 
ests.   These  works  will  be  at  the  expense  of  the  builders. 

Article  VIII. — For  the  materials  necessary  for  construction,  all  means  will 
be  taken  to  make  use,  so  far  as  possible,  of  those  to  be  found  in  the  country. 

The  local  authorities  will  do  their  utmost  to  assist  therein,  and  the  agents 
for  the  work  may  address  themselves  to  those  authorities  in  order  to  have  the 
prices  thereof  fixed  by  mutual  agreement  in  accordance  with  the  prices  current 
in  the  districts  in  question. 

The  builders  will,  however,  reserve  the  right  to  deal  directly  with  the  mer- 
chants for  the  purchase  of  such  materials.  They  may  have  these  purchases 
registered  by  the  local  mandarins  in  order  to  prevent  any  fraud  and  to  avoid 
any  dispute  as  to  the  carrying  out  of  the  contracts.  The  prices  fixed  will  be 
paid  by  the  builders. 

It  is  understood  that  the  builders  will  have  the  right  to  supply  themselves 
elsewhere  in  China  when  they  do  not  find  locally  the  materials  and  supplies 


456  CHINA  TREATIES  AND  AGREEMENTS 

necessary,  or  when  the  local  dealers  insist  upon  a  price  exceeding  the  current 

price. 

Article  IX. — As  regards  the  extraction  of  stone  and  sand  from  the  quar- 
ries, as  well  as  the  furnishing  of  wood  from  the  forests,  information  will  be  given 
in  advance  to  the  local  authorities,  who,  after  having  satisfied  themselves  of  the 
possibilities,  will  in  as  short  a  space  of  time  as  possible  give  the  lands  necessary 
for  the  purpose  of  such  quarrying,  if  they  are  included  in  public  lands.  As  to 
forests,  even  when  they  are  property  of  the  public  domain,  the  purchase  of  felling 
rights  must  be  negotiated  with  the  local  authorities. 

But  if  such  sites  are  found  upon  private  lands,  the  materials  must  be  pur- 
chased either  upon  an  understanding  with  the  local  authorities  or  by  direct  bar- 
gain made  with  the  owners. 

The  prices  fixed  will  be  paid  by  the  builders. 

Article  X. — All  the  lands  which  may  be  used  only  during  the  construction 
of  the  railway  line,  such,  for  example,  as  the  yards  and  storing-places  for  mate- 
rials, the  roads  for  the  transportation  of  materials  and  approaches  to  the  yards, 
the  quarries,  the  dumps  of  earth,  the  places  for  excavating  earth,  the  temporary 
lodgings  for  workmen  and  agents  of  construction,  the  establishments  necessary 
only  during  construction,  will  all  be  immediately  restored  to  the  Authorities  of 
Yunnan  from  time  to  time  as  they  are  no  longer  needed. 

The  Authorities  will  thereupon  return  them  to  their  owners. 

Article  XL — When  the  main  line  shall  have  been  finished,  if  the  two 
parties  consider  it  advantageous,  then,  after  an  agreement  with  the  High  Author- 
ities of  Yunnan  and  an  understanding  between  the  Minister  of  France  at  Peking 
and  the  Wai-wu  Pu  as  to  the  manner  of  procedure,  branches  connecting  with  the 
main  line  may  be  constructed. 

Article  XII. — The  engineers,  foremen  and  overseers  of  the  work,  as  well 
as  all  technical  employees,  may  be  taken  from  among  foreigners.  The  rest  of 
the  workmen  of  every  sort  will  be  taken  first  of  all  from  among  the  people 
of  the  province.  In  the  event  that  the  workmen  of  Yunnan  should  not  be  nu- 
merous enough,  or  if  the  wages  demanded  by  them  should  be  too  high,  the  builders 
may  engage  Chinese  laborers  from  the  other  provinces. 

With  a  view  to  preventing  agitators  from  making  their  way  into  the  province, 
the  Chinese  laborers  coming  from  other  provinces,  as  well  as  those  recruited  in 
Yunnan,  must  present  themselves  to  the  local  authorities  to  be  matriculated. 

The  various  prices  and  wages  for  the  day  or  for  the  job  will  be  equitably 
fixed.  They  will  be  paid  either  daily  or  at  fixed  intervals,  in  accordance  with  an 
agreement  between  the  builders  and  the  laborers. 

In  the  event  of  a  progressive  increase  of  prices  or  of  a  combination  among 
the  Chinese  laborers,  resort  will  be  had  to  the  local  authorities,  who  will  do  all 
that  is  incumbent  upon  them  to  assist  and  to  fix  the  wages  in  agreement  with 
the  agents  of  the  railway,  and  to  tranquilize  the  people. 

If  the  local  authorities  have  fixed  a  rate,  and  the  Chinese  laborers  continue 
to  refuse  to  go  to  work,  the  Company  shall  then,  upon  determination  of  that 
fact  by  the  local  authorities,  be  authorized  to  have  resort  to  foreign  laborers. 

Article  XIII. — The  Chinese  employees  and  laborers  in  the  service  of  the 


NUMBER  1903/6 :  OCTOBER  29,  1903  457 

railway  shall  be  treated  with  kindness.  Those  who  may  be  sick  will  receive 
medical  care  and  medicines.  Those  who  may  in  the  course  of  the  work  be 
injured  or  incapacitated  will  be  generously  assisted,  as  will  also  the  families  of 
those  who  may  have  been  accidentally  killed. 

Article  XIV. — The  agents  employed  and  the  laborers  in  the  construction 
yards  will  all  be  placed  under  the  authority  and  supervision  of  the  Engineer-in- 
Chief  and  of  his  authorized  representatives.  They  may  not  be  ill-treated.  All 
questions  and  matters  of  legal  procedure,  lawsuits,  murders,  thefts,  quarrels  and 
disturbances  that  may  arise  among  the  Chinese  laborers  will  be  under  the  juris- 
diction of  the  competent  local  authorities,  who  will  make  investigations  and 
punish  the  guilty  according  to  law.  If  any  one  of  these  individuals  whatsoever 
be  judged  and  punished,  the  agents  of  the  railway  must  at  once  deliver  him  over 
upon  being  informed  by  the  local  authorities,  and  they  may  not  stand  in  the 
way  of  justice  by  extending  their  protection  over  him. 

The  local  authorities  must  likewise,  at  the  request  of  the  European  agents, 
arrest  and  punish  according  to  law  all  such  Chinese  agents  as  may  have  been 
guilty  of  crimes,  thefts  or  misdeeds  towards  the  foreign  agents. 

If  it  be  found  that  any  of  the  foreign  agents  offend  against  the  proprieties 
or  infringe  the  rules,  they  must  be  dealt  with  in  accordance  with  the  articles  of 
the  treaties.  The  Chinese  and  foreign  laborers,  and  the  agents,  without  distinc- 
tion of  nationality,  must  not  arbitrarily  force  their  way  into  the  dwelling  of  any- 
one else,  and  thus  give  rise  to  incidents  with  the  people.  Those  who  disregard 
this  rule  will  be  severely  dealt  with,  in  accordance  with  the  law. 

All  purchases  of  articles  of  provisions  must  be  paid  for  equitably  at  the 
market  price. 

Article  XV. — For  the  purpose  of  guaranteeing  tranquility  in  the  yards, 
the  Company,  in  agreement  with  the  High  Functionary  residing  at  Mengtsz,  may 
at  its  own  expense  enroll  native  militia,  and  choose  Chinese  or  European  chiefs 
of  police  who  will  command  them  and  will  select  the  important  points  at  which 
these  police  forces  are  to  be  placed  with  a  view  to  maintaining  order;  in  case 
the  native  militia  should  be  inadequate  (impnissantes),  the  High  Authorities  of 
Yunnan  must,  upon  a  request  being  addressed  to  them  by  the  agents  of  the 
railway,  dispatch  detachments  of  regular  soldiers  to  such  points.  The  militia 
enrolled  by  the  Company  shall  have  no  other  function  than  to  exercise  police 
control  over  the  yards  and  among  the  laborers. 

After  the  completion  of  the  line,  these  militia  troops  may  be  employed  at 
the  expense  of  the  Company  for  the  upkeep  of  the  line.  In  all  cases,  the  pro- 
tection of  the  work  from  any  trouble  on  the  part  of  the  population  is  a  matter 
for  the  Authorities  of  the  Province,  on  their  sole  responsibility.  The  Company 
must  not  in  any  case  call  in  European  troops. 

Article  XVI. — When  the  agents  of  the  railway  arrive  in  Yunnan,  the  Vice 
Consul  at  Hokow  will  give  notice  thereof  to  the  Vice  Commissioner  of  the 
Frontier  who  resides  in  that  City.  The  latter  will  within  three  days  deliver  to 
those  concerned  temporary  passports  permitting  them  to  enter  the  territories  of 
Yunnan.  When  the  agents  arrive  at  Mengtsz,  the  Customs  Taotai  will  within 
three  days  have  a  regular  passport  made  out,  to  be  substituted  for  the  other. 


458  CHINA  TREATIES  AND  AGREEMENTS 

The  agents  furnished  with  such  passports  in  conformity  with  the  rule  will  receive, 
in  all  their  movements,  complete  protection  on  the  part  of  the  local  authorities, 
but  the  authorities  will  take  no  responsibility  in  regard  to  any  person  who  should 
not  be  supplied  with  such  a  passport. 

Article  XVII. — When  the  agents  for  the  work  arrive  in  Yunnan,  their 
names  must  be  transcribed  into  Chinese  characters,  and  brought  by  the  Consuls 
to  the  knowledge  of  the  High  Authorities  of  the  Province.  A  register,  in 
which  these  names  will  be  recorded,  will  be  kept  by  both  parties.  These  names 
cannot  thereafter  be  changed  under  any  pretext. 

Every  change  or  change  of  residence  of  the  agents  must  likewise  be  brought 
to  the  knowledge  of  the  authorities,  in  order  to  facilitate  investigations  when- 
ever and  wherever  necessary. 

The  names  carried  in  the  registers  must  be  identical  with  those  written  in 
the  passports :  there  must  be  no  discrepancy. 

Article  XVIII. — For  the  renting  of  houses  for  the  agents  of  the  work  in 
the  vicinity  of  the  line,  official  notice  must  be  given  to  the  local  authorities,  after 
which  negotiations  are  to  be  carried  on  with  the  owners  of  the  houses.  A  copy 
of  the  contract  of  lease  must  be  sent  to  the  local  authorities,  who  will  retain  it  in 
their  archives. 

Article  XIX. — In  going  about  their  duties  the  agents  of  the  work,  as  also 
the  laborers,  must  be  careful  of  private  property.  Whenever  damage  may  have 
been  caused,  whether  to  buildings  or  to  cultivated  places,  a  valuation  will  be 
undertaken  with  the  local  authorities,  and  the  amount  of  indemnification  to  be 
paid  will  be  determined  by  agreement  in  such  manner  as  to  show  real  kindness 
towards  the  population. 

Article  XX. — The  customs  regulations  forbid  in  principle  the  importa- 
tion of  powder  and  explosives.  Inasmuch,  however,  as  these  products  are  in- 
dispensable for  use  in  the  construction  of  a  railway  line,  it  is  necessary  to  make 
an  exception  to  the  rule,  and  to  permit  their  entry.  A  declaration  of  the  quan- 
tities of  powder  and  explosives  to  be  entered  must  as  a  matter  of  course  be  made 
to  the  Customs  in  due  time,  and  after  an  examination  shall  have  been  made  of 
the  products,  suitable  places  will  be  selected,  by  agreement  with  the  local  au- 
thorities, for  the  construction  of  storage  magazines  in  order  to  prevent  any 
accident. 

If  it  is  more  advantageous  to  manufacture  these  products  locally,  that  fact 
should  be  communicated  in  advance  to  the  High  Authorities  of  Yunnan,  who, 
on  ascertaining  that  there  is  no  objection,  will  grant  permission  to  establish 
special  factories,  and  will  name  delegates  to  supervise  in  common  and  to  control 
the  manufacture.  Whether  the  explosives  be  imported  or  manufactured  locally, 
they  are  in  cither  case  to  be  limited  to  the  quantities  absolutely  necessary. 

A  special  register  will  be  kept,  in  which  will  be  noted  with  the  utmost 
detail  the  exact  quantities  of  such  products  on  hand  in  the  magazine.  Each 
month,  the  local  authorities  will  make  an  inspection  thereof  and  draw  up  a  re- 
port. The  powder  and  the  explosives  will  be  used  strictly  for  the  work  of  the 
railway,  and  none  can  be  sold.  All  precautions  of  prudence  must  be  taken 
so  that  no  harm  may  result  to  the  population.     If  by  any  accident  persons  or 


NUMBER  1903/6:  OCTOBER  29,  1903  459 

stock  are  injured,  or  if  properties  are  damaged,  an  indemnification  must  be  paid 
or  a  gift  for  relief  be  made,  in  accordance  witli  the  circumstances. 

Article  XXI. — When  the  railway  has  been  finished  and  is  in  operation, 
the  import  and  export  duties  will  be  levied  on  imported  and  exported  goods 
according  to  the  tariff.  Goods  despatched  into  the  interior,  having  paid  the 
transit  dues,  will  no  longer  be  liable  to  any  tax  at  the  Likin  offix;es ;  but  they 
will  pay  the  Customs  and  Likin  duties  at  the  Customs  and  Likin  offices  if  they 
have  not  paid  the  transit  dues. 

China  must  hereafter  give  attention  to  the  question  of  increasing  the  Cus- 
toms offices  in  order  to  facilitate  verification.  Later,  when  the  rules  in  regard  to 
the  increase  of  Customs  duties  shall  have  been  fixed,  the  goods  transported  by 
the  line  must  be  dealt  with  in  accordance  with  these  new  tarififs. 

Article  XXII. — The  machinery,  equipment  and  materials  necessary  for 
the  construction  and  the  operation  of  the  railway  shall  not  be  subject  to  any 
Customs  duties  upon  importation.  These  articles  will,  at  the  time  of  being 
entered,  be  the  subject  of  a  declaration  at  the  first  Chinese  station  at  which 
there  is  a  Customs  office,  but  without  the  builders  having  to  transport  the  ma- 
terial beyond  the  point  where  it  is  to  be  used.  This  declaration  will  specify  the 
number  and  the  character  of  the  articles  imported. 

Article  XXIII. — The  passenger  and  freight  tarififs  will  be  fixed  by  the 
concessionary  Company. 

The  dispatches  and  official  letters  sent  by  the  High  Chinese  Authorities,  as 
also  the  mail  bags  of  the  Administration  of  Chinese  Imperial  Posts,  with  a  mes- 
senger, will  be  transported  without  charge  in  the  regular  trains. 

The  Chinese  Posts  may  rent  from  the  Company  a  car  for  the  transporta- 
tion of  letters,  or  themselves  provide  a  special  car  which  the  Company  must 
attach  to  the  trains.  They  may  at  any  time  whatever  have  a  special  postal  train 
dispatched.  The  charge  for  the  rent  of  a  postal  car  will  be  half  of  the  price  for 
a  passenger  car.     This  price  cannot  be  further  reduced. 

To  send  a  special  postal  train,  a  certificate  from  the  High  Authorities  of 
Yunnan  will  be  required.  There  will  be  a  special  reduced  price  therefor.  The 
price  is  not  to  exceed  fr.  1.50  per  kilometer  traversed,  with  a  single  engine,  or 
fr.  2.50  per  kilometer  traversed,  with  two  engines.  It  is  understood,  moreover, 
that  the  postal  regulations  in  force  in  China  must  be  complied  with. 

If  the  Chinese  Government  has  occasion  to  dispatch  troops  of  any  sort, 
or  arms  or  munitions  or  provisions  for  such  troops,  or  assistance  in  kind  to  be 
distributed  gratuitously  (in  case  of  famine  or  other  disaster),  such  consignments 
shall  have  the  right  of  way  over  all  other  transportation,  and  the  price  will  be 
half  that  of  the  ordinary  tarifif.  This  reduction  will  not  apply  to  troops  traveling 
in  the  fourth  class. 

Article  XXIV. — The  present  railway  line  having  as  its  sole  purpose  the 
facilitation  of  commerce,  once  it  has  been  built  and  train  traffic  has  com- 
menced, the  use  of  it  will  not  be  permitted  for  the  purpose  of  transporting  Anna- 
mite  salt,  or  European  troops,  or  military  arms,  or  munitions  which  might  serve 
for  the  use  of  such  European  troops.  It  must  not  carry  articles  forbidden  by  the 
laws  of   China. 


460  CHINA  TREATIES  AND  AGREEMENTS 

If  China  has  a  war  with  a  foreign  nation,  the  railway  may  not  observe  the 
rules  of  neutrality ;  it  will  be  at  the  entire  disposal  of  China. 

Article  XXV. — There  shall  be  paid  to  the  Chinese  Government  by  the 
Railway  Administration  a  yearly  sum  of  twenty  francs  per  kilometer  of  the 
railway  under  construction  or  in  operation,  in  repayment  of  its  expenses  in 
guarding  the  railway. 

Article  XXVL — When  the  railway  line  shall  have  been  completed,  use 
must  so  far  as  possible  exclusively  be  made  of  Chinese  as  guards  for  the  track 
and  as  laborers  on  the  work  of  its  upkeep.  In  each  locality,  one  of  the  elders 
who  is  most  worthy  of  confidence  will  be  entrusted  with  arranging  for  em- 
ployment, in  order  that  the  individuals  so  employed  may  be  peaceable  and  honest 
folk. 

In  order  to  facilitate  the  control  of  them,  each  of  the  employees  will  be 
furnished  by  the  local  authorities  with  a  card,  which  will  be  asked  for  them  by 
the  notable  entrusted  with  recruiting  them. 

Article  XXVII. — If  in  the  course  of  operation  of  the  railway  damages 
should  be  caused  to  property,  or  injuries  should  be  occasioned  to  individuals, 
through  accidents  attributable  to  the  operating  Company,  the  latter  must  make 
an  allowance  for  relief,  or  pay  an  indemnity  to  remedy  the  damage  caused  by 
its  act. 

It  will  be  the  same  in  the  case  of  damages  or  injuries  caused  by  a  faulty 
management  of  the  trains  put  into  operation  before  the  full  completion  of  the 
work. 

Article  XXVIII. — Special  schools  may  be  established  at  the  expense  of  the 
Company,  where  the  Chinese  will  be  taught  with  a  view  to  their  becoming  inter- 
preters and  technical  agents. 

Afterwards,  when  the  Administration  of  the  Railway  is  in  need  of  per- 
sonnel, it  shall  choose  first  of  all  from  among  the  students  trained  in  these 
schools. 

Article  XXIX. — The  Administration  of  the  Railway  may,  as  the  opening 
of  the  several  sections  proceeds,  build  the  telegraph  or  telephone  line  to  follow 
the  track.  These  lines  will  be  solely  for  the  service  of  the  railway,  and  may  not 
receive  or  dispatch  telegrams  for  the  public. 

Article  XXX, — All  questions  concerning  the  railway  that  shall  require 
agreement  with  the  High  Provincial  Authorities  shall  be  discussed  between  the 
Consul  General  of  France  and  the  High  Provincial  Authorities. 

It  is  understood  that  when  technical  questions  are  concerned,  the  judg- 
ment of  the  engineers  will  be  accepted. 

Article  XXXI. — When  the  work  on  the  line  begins,  notice  thereof  will  be 
given  by  official  letters  from  the  Consul  General  to  the  High  Authorities  of  Yun- 
nan, and  the  latter  will  immediately  designate  a  high  official  personage  for  the 
purpose  of  consulting,  throughout  the  length  of  the  line,  with  the  agents  of  the 
railway,  in  order  to  adjust  in  accord  with  them  matters  concerning  the  execu- 
tion of  the  work  in  accordance  with  the  understanding  arrived  at  between  the 
Consul  General  and  the  High  Provincial  Authorities.  The  latter  likewise 
consent  to  delegate  a  certain  number  of  functionaries  to  whom  they  will  give 


NUMBER  1903/6 :  OCTOBER  29,  1903  461 

instructions  to  assist  the  agents  and  to  help  them  in  their  work.  Should  com- 
plications arise  with  the  people  of  the  country,  it  will  be  the  duty  of  these  dele- 
gates to  adjust  them  in  cooperation  with  the  local  authorities,  in  such  fashion  that 
no  misunderstanding  may  arise  and  no  quarrel  be  started  among  the  population. 

If  incidents  take  on  a  grave  character  and  cannot  be  satisfactorily  settled 
locally,  a  report  will  be  drawn  up  in  order  to  enable  the  Authorities  of  Yunnan 
to  settle  the  matter  with  the  Consul  General  of  France.  If  the  question  lies 
outside  the  powers  of  the  High  Authorities,  it  will  be  taken  to  Peking,  where  it 
will  be  settled  between  the  Chinese  Government  and  the  Minister  of  France. 

Article  XXXII. — During  construction,  there  shall  be  paid  monthly  to  the 
High  Authorities  of  Yunnan  a  sum  of  4450  taels  to  defray  the  expenses  of  main- 
tenance and  the  traveling  expenses  of  the  high  official  resident  in  Mengtsz,  of 
two  mandarins  under  his  orders  (one  of  them  concerning  himself  with  lands,  and 
the  other  with  justice,  in  that  city),  of  one  functionary  corresponding  to  them 
near  the  High  Authorities  at  Yunnan  Fu,  of  twelve  delegates  assigned  by  the 
Province  to  assist  in  the  construction  of  the  line,  of  ten  chiefs  of  police  and  two 
hundred  and  forty  men  of  the  guard,  of  one  interpreter,  and  of  all  the  subordi- 
nate functionaries. 

Article  XXXIII. — The  present  regulations,  when  they  shall  have  been 
approved  by  the  Chinese  Government,  will  constitute  the  definitive  rule  by  which 
all  questions  concerning  the  construction  and  operation  of  the  railway  will  be 
determined. 

Article  XXXIV. — At  the  end  of  twenty-four  *  years  the  Chinese  Govern- 
ment may  enter  into  negotiations  with  the  French  Government  to  take  back  the 
line  and  all  properties  connected  therewith,  upon  the  full  payment  of  the  costs  of 
construction,  industrial  profits,  interest  paid,  and  the  expenses  of  every  sort 
attributable  to  the  railway  {moyefinant  le  remboursement  integral  des  frais  de 
construction,  de  la  main  d'aiivre  industrielle  ainsi  que  des  garanfies  d'interet 
payees  ct  les  depenses  de  toute  nature  imputahles  au  cJiemin  de  fer.) 

If  at  that  time  the  said  costs,  values  and  expenses  have  been  fully  repaid 
by  the  revenues  of  the  line,  the  line  and  all  its  appurtenances  may  be  turned 
over  without  charge  into  the  hands  of  the  Authorities  of  Yunnan,  who  will  take 
control  of  it.  For  the  appraisement  of  the  construction  and  other  expenses,  the 
French  budget  accounts,  established  at  the  time  when  the  negotiations  above 
contemplated  may  have  been  entered  into,  will  be  taken  as  a  basis  for  estimating 
whether  or  not  China  would  eventually  have  to  make  a  payment  before  entering 
into  possession  of  the  railway. 

Done  and  signed  at  the  Ministry  for  Foreign  Affairs  at  Peking,  in  four 
originals,  October  29,  1903  (10th  day  of  the  9th  moon  of  the  29th  year  of 
Kuang-Hsu),  by  Their  Excellencies  Mr.  Lien  Fang,  Secretary  of  State  at  the 
Ministry  for  Foreign  Afifairs  of  China,  and  Mr.  Pierre  Rene  Georges  Dubail, 
Envoy  Extraordinary  and  Minister  Plenipotentiary  of  the  French  Republic  in 
China. 

(Sgd.)  G.  Dubail.  (Sgd.)  Lien  Fang. 

*  The  French  text  to  which  the  Editor  had  access  gave  this  figure  as  viitgt-quatre; 
there  is,  however,  some  reason  to  doubt  whether  this  was  not  a  typographical  error  for 
quatre-vingt  {i.e.,  eighty). 


462  CHINA  TREATIES  AND  AGREEMENTS 

Note. 

Doc.  Dipl.,  Chine,  Juin — Octobre,  jgoo,  contains  the  following  comment  concerning  the 
Yunnan  Railway : 

"  By  a  convention  of  the  9-10  April,  1898,  the  French  Government  secured  for  itself 
or  for  the  Company  chosen  by  it,  the  right  to  build  a  railway  from  Laokay  (frontier  of 
Tongking),  J;o  Yiin-nan  Hsien  (450  kilometers),  and  a  law  of  December  25,  1898,  authorized 
the  Government  of  Indo-China  to  grant  a  guarantee  of  interest  to  the  Company  which  might 
become   the   grantees   of   this   line. 

"  In  conformity  with  this  law,  the  Governor  General  of  Indo-China  signed  the  15  June 
1901,  with  a  s3'ndicate  of  the  principal  financial  houses  of  Paris,  a  convention  for  the  building 
of  the  railway  from  Laokay  to  Yiin-nan  Hsien  and  for  the  working  of  the  whole  line  from 
Haiphong  to  Yiin-nan  Hsien. 

"  This  convention  was  ratified  by  a  law  of  July  5,  1901. 

"  The  principal  provisions  of  the  convention  are  the  following : 

"  The  syndicate  agrees  to  organize,  within  three  months  from  the  date  of  the  passage 
of  the  law  approving  the  convention  between  the  Government  of  Indo-China  and  it,  a  stock 
company  with  a  capital  of  12,500,000  francs,  to  work  the  line  from  Haiphong  to  Laokay 
which  is  to  be  built  by  the  Government  of  Indo-China,  and  for  the  purpose  of  building 
itself  and  working  the  railway  from  Laokay  to  Yiin-nan  Hsien.  The  company  will  receive 
from  the  colony  a  subvention  of  12,500,000  francs  and  also  a  guarantee  of  three  millions  of 
francs  payable  during  75  years,  for  the  bonds  which  it  shall  have  issued  for  the  purpose  of 
building  the  railway. 

"Last  July  (1901)  the  Compagnie  fran^aise  des  chemins  de  fer  de  I'Indo-Chine  et  du 
YtiiiJian  was  organized,  and  the  bonds  have  just  been  issued. 

"  For  the  purpose  of  building  the  line  from  Laokay  to  Yiin-nan  Hsien,  the  company  has 
negotiated  with  the  Regie  generale  des  chemins  de  fer  and  the  Societe  de  construction  des 
Batignolles,  which  have  formed  for  this  purpose  the  Socictc  de  consfntction  de  chemins  de 
fer  indo-chinois  with  a  capital  of  4  million. 

"The  Societe  de  construction  has  sent  during  the  present  month  (October,  1901),  survey 
parties  to  Ytin-nan   for  the  final   study  of  the  line." 

The  line  from  Hokow  to  Yunnan  Fu  was  completed  in  1910. 


NUMBER  1903/7. 

BELGIUM  (Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramw^ays  en  Chine) 

AND  CHINA. 

Loan  Contract,  and  Operating  Contract,  for  the  Kaifengfu — Honanfii  Raikvay* 

—November  12,  1903. 

{I)—LOAN  CONTRACT. 

Between  the  Undersigned : 

1  °  The  Imperial  Chinese  Railway  Company,  represented  by  H.  E.   Sheng 
Kung  Pao,  Director  General,  duly  authorized  by  the  Chinese  Government, 

2°  La  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways  en  Chine, 

*  Translation  of  the  loan  contract,  printed  in  Rockhill,  p.  389,  with  date  and  signatures 
supplied  from  French  version  printed  in  Wang,  p.  285;  operating  contract  translated  from 
the  French  text  as  printed  in  Wang,  p.  315.  Loan  contract  printed  also  in  F.  E.  Review, 
vol.  5,  p.  145;  Kent,  278. 

These  contracts  were  modified  by  the  Lung-Tsing-U-Hai  Railway  Contract  of  September 
24.  1912  (Xo.  1912/11,  post). 

The  Kaifengfu — Honanfu  Railway  is  also  known  as  the  Pienlo  Railway. 


NUMBER  1903/7:  NOVEMBER  12,  1903  463 

represented  by  Monsieur  Armand  Roufifart,  its  delegated  Administrator,  pro- 
vided with  full  powers, 

It  has  been  agreed  as  follows : 

Article  I. — The  Director  General  of  the  Imperial  Chinese  Railway  Com- 
pany H.  E.  Sheng  Kung  Pao  has  asked,  in  a  report,  the  Chinese  Government 
that  a  line  of  railway  should  be  built  starting  from  a  point  called  Yung  Tse  on 
the  Railway  line  of  the  Luhan  where  the  latter  crosses  the  River.  From  that 
point  eastward  to  Kaifeng  the  line  will  be  170  li  long  and  westward  to  Honan 
Fu  it  will  cover  250  li.  These  two  branches  of  the  Luhan  to  be  built  by  a  Bel- 
gian party  (groupe)  which  will  make  a  Loan  to  build  them. 

This  proposal  was  accepted  by  a  decree  dated  the  30th  day  of  the  10th 
moon  of  25th  year  of  the  present  reign. 

Monsieur  Roufifart,  the  representative  of  La  Compagnie  Generale  de 
Chemins  de  Fer  et  de  Tramways  en  Chine,  has  asked  us  by  letter,  to  undertake 
this  building,  and  we  sent  a  Chinese  official  to  accompany  him  in  his  preliminary 
study  on  the  ground.  After  said  study.  Monsieur  Roufifart  estimated  the  probable 
cost  of  these  two  branches  at  One  Million  Pounds  Sterling  or  25,000,000 
francs ;  and  for  all  other  terms  the  contracts  from  Peking  to  Hankow  are  to  be 
followed.f 

Under  date  of  the  29th  day  of  the  12th  moon  of  the  28th  year  of  the 
present  reign,  the  Wai-wu  Pu  wrote  to  me  that  I  was  to  discuss  the  terms  of 
the  contract  with  Monsieur  Roufifart,  and  it  asked  me  to  settle  the  matter  as 
promptly  as  possible. 

Considering  that  Monsieur  Roufifart  has  full  powers  from  the  Compagnie 
Generale  de  Chemins  de  Fer  et  de  Tramways  en  Chine  to  negotiate  this  business 
for  it,  we.  Director  General  of  the  Imperial  Chinese  Railway  Company,  and 
Monsieur  Armand  Roufifart  representing  the  Compagnie  Generale  de  Chemins 
de  Fer  et  de  Tramways  en  Chine,  hereby  enter  into  a  contract  for  a  loan,  the 
product  of  which  shall  be  applied  to  the  building  of  the  Railway  from  Honan 
Fu  to  Kaifeng  Fu. 

Before  signing  the  contract,  the  Director  General  of  the  Imperial  Chinese 
Railway  Company  has  submitted  said  contract  for  Imperial  Sanction,  and  it  has 
been  approved  under  date  of  October  29th,  1903,  that  is,  the  10th  day  of  the 
9th  moon  of  the  29th  year  of  the  Reign  of  Kuang  Hsii. 

This  Decree  shall  form  Annex  1  of  the  present  contract.  In  virtue  of  the 
above  the  Director  General,  on  account  of  the  Chinese  Government,  makes  a 
Gold  5%  Loan  for  the  sum  of  25,000,000  francs  or  1,000,000  pounds  sterling. 
This  Loan  shall  be  known  as  the  Chinese  Government  5%  Gold  Foreign  1903 
Loan  (Emprtint  du  Gouvernement  Chinois  5%  or  Exterieur  1903). 

Article  II. — This  loan  shall  be  represented  by  50,000  bonds  of  500  francs 
Gold  each. 

These  bonds,  the  text  of  which  is  annexed  to  the  present  contract  (Annex  2), 
shall  be  signed  in  the  name  of  the  Chinese  Government  by  the  Minister  Plenipo- 
tentiary of  China  at  Brussels. 

t  See  the  loan  and  operating  contracts  for  the  Peking-Hankow  Railway,  June  26,  1898 
(No.  1898/13,  ante). 


464  CHINA  TREATIES  AND  AGREEMENTS 

They  shall  be  delivered  in  fractional  bonds  (coupons)  of  1  to  2  bonds  in 
such  proportion  as  the  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways 
en  Chine  may  request,  the  total  number  not  to  exceed  50,000;  the  expense  of 
making  these  bonds  shall  be  charged  to  the  Compagnie  Generale  de  Chemins  de 
Fer  et  de  Tramways  en  Chine.  They  shall  bear  5%  interest  a  year  on  the 
nominal  capital  payable  in  gold. 

Interest  shall  run  from  the  date  of  payment  of  the  product  (of  the  sale) 
of  the  bonds,  and  shall  be  payable  the  1st  January  and  1st  July  of  each  year. 

Coupons  which  have  become  due  and  have  been  paid,  shall  be  classed  in 
numeric  order  by  the  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways 
en  Chine,  and  at  its  expense,  and  it  shall  then  send  them  to  the  Imperial  Chinese 
Railway  Company  at  Shanghai  to  be  cancelled.  If  the  returned  coupons  are  lost 
in  transmission,  the  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways 
en  Chine  must  publish  the  numbers  of  the  paid  and  lost  coupons  in  four  dif- 
ferent newspapers,  and  transmit  to  the  Imperial  Chinese  Railway  Company  a 
declaration  stating  the  loss. 

Article  III. — The  loan  shall  be  redeemed  in  twenty  years  counted  from 
the  10th  year  of  issue,  by  the  method  of  drawing  by  lots  in  the  offices  of  the 
Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways  en  Chine,  in  accord- 
ance with  the  table  annexed  to  the  present  contract  (Annex  3).  The  drawings 
by  lot  shall  take  place  on  the  third  Wednesday  of  April  in  each  year.  The  first 
drawing  shall  take  place  on  that  date  beginning  with  the  tenth  year  from  the 
date  of  issue  of  the  loan. 

The  numbers  of  the  drawn  bonds  shall  be  published  in  four  newspapers  at 
the  expense  of  the  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways 
en  Chine. 

Article  IV. — The  bonds  drawn  by  lots  shall  be  paid  in  gold  at  their  par 
value  on  the  date  on  which  falls  due  the  coupon  following  the  date  of  the 
drawing.  Bonds  presented  for  refunding  must  have  attached  all  coupons  still 
unpaid,  and  the  amount  of  missing  coupons  will  be  deducted  from  the  capital 
to  be  reimbursed.  Interest  on  bonds  will  cease  to  accrue  from  the  day  set  for 
reimbursement.  Paid  off  bonds  shall  be  classified  and  sent  back  by  and  at  the 
expense  of  the  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways  en 
Chine  to  the  Imperial  Chinese  Railway  Company  at  Shanghai  to  be  cancelled. 
If  these  bonds  should  be  lost  on  the  way,  the  Compagnie  Generale  de  Chemins 
de  Fer  et  de  Tramways  en  Chine,  shall  publish  the  numbers  of  the  paid  and  lost 
bonds  in  four  different  newspapers,  and  transmit  to  the  Imperial  Chinese  Rail- 
way Company  a  declaration  stating  the  loss. 

Article  V. — The  Chinese  Government  denies  itself  the  right,  before  the 
date  fixed  for  the  first  amortization,  to  fix  a  larger  amortization,  or  to  refund 
the  whole  loan  or  to  convert  it.  After  that  date  it  shall  be  free  to  refund  the 
loan  at  whatsoever  time  it  chooses  before  the  dates  of  payment,  and  the  refund- 
ing made  all  contracts  shall  be  declared  annulled. 

Article  VI. — Coupons  and  bonds  shall  be  paid  off  in  francs  in  the  office 
or  offices  entrusted  with  the  management  of  the  loan. 

Article  VII. — Interest  payment  and  the  reimbursement  of  the  bonds  pro- 


NUMBER  1903/7:  NOVEMBER  12,  1903  465 

vided  for  in  the  present  loan  shall  be  guaranteed  by  the  gross  revenues  of  the 
Imperial  Chinese  Government. 

Furthermore  in  virtue  of  the  authorization  already  granted  by  the  Chinese 
Government,  and  in  accord  with  it,  the  Imperial  Chinese  Railway  Company, 
declares  that  it  makes  a  preferential  assignment  in  favor  of  the  payment  of 
interest  and  of  the  capital  of  the  present  loan,  and  that  it  cedes  and  assigns  in 
favor  of  said  obligations,  all  the  net  receipts  of  the  line  from  Kaifengfu  to 
Honanfu,  after  the  regular  payment  of  all  expenses  of  management  and  operat- 
ing, the  whole  as  elsewhere  indicated  in  an  operating  treaty  concluded  between 
the  Imperial  Chinese  Railway  Company  and  the  Compagnie  Generale  de 
Chemins  de  Fer  et  de  Tramways  en  Chine,  said  treaty  being  annexed  to  and 
forming  an  integral  part  of  the  present  contract.  This  assignment  is  made  exclu- 
sively and  irrevocably  until  complete  redemption  of  the  bonds  of  the  present 
contract. 

Article  VIII. — After  auditing  and  noting  the  net  receipts,  the  Imperial 
Chinese  Railway  Company  shall  direct  the  Compagnie  Generale  de  Chemins  de 
Fer  et  de  Tramways  en  Chine  to  deposit  these  funds  in  a  bank  to  be  chosen  by 
common  consent.  This  bank  shall  convert  into  gold,  in  accordance  with  the 
provisions  stipulated  in  the  contract  made  between  the  Bank,  the  Imperial 
Chinese  Railway  Company  and  the  Compagnie  Generale  de  Chemins  de  Fer  et 
de  Tramways  en  Chine,  and  to  the  best  advantage  of  the  Imperial  Chinese  Rail- 
way Company,  the  sums  paid  it,  and  up  to  the  full  amount  needed  to  insure  the 
service  of  the  loan  at  the  next  semi-annual  payment. 

These  deposits  shall  continue  to  be  made  until  the  sum  needed  for  the 
integral  service  of  the  loan  on  the  following  date  of  payment  has  been  realized 
in  GOLD,  and  in  such  manner  that  said  service  is  insured  at  least  three  months 
before  the  date  of  the  semi-annual  payment. 

The  bank  designated  for  the  receipt  of  these  sums  shall  use  them  to  the 
best  advantage  of  the  Imperial  Chinese  Railway  Company.  The  account  in 
which  these  sums  shall  be  carried  shall  be  charged  twenty  days  before  the  date 
of  payment  with  the  sums  needed  for  the  service  of  the  loan,  interest,  amortiza- 
tion, money  expenses,  difference  of  exchange  and  the  commissions  provided  for 
by  the  present  contract. 

Article  IX. — The  bank  in  which  shall  be  deposited  the  loan  funds  shall 
have  the  right  without  further  authorization  to  levy  on  said  funds  on  deposit 
the  amount  of  the  coupons  to  be  paid  during  the  construction  period;  but  it 
shall  advise  the  Director  General  as  these  payments  are  made. 

Article  X. — To  insure  the  guarantee  just  given  to  the  bonds  of  the  present 
contract,  the  Imperial  Chinese  Railway  Company  grants  these  bonds  a  special 
first-class  guarantee  on  the  Railway  from  Kaifengfu  to  Honanfu,  on  its  fixed 
and  rolling  stock  and  its  receipts. 

This  special  assignment  is  accepted  in  the  name  of  the  bondholders  by  the 
Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways  en  Chine.  In  case  of 
non-fulfillment  of  the  obligations  assumed  by  the  Imperial  Chinese  Railway  Com- 
pany in  the  present  contract,  the  Compagnie  Generale  de  Chemins  de  Fer  et  de 
Tramways  en  Chine  shall  have   full  power  to  take   such   action   against   said 


466  CHINA  TREATIES  AND  AGREEMENTS 

property  as  may  result  from  this  special  assignment,  and  in  that  case,  the  pro- 
visions of  the  operating  treaty  hereto  annexed,  must  always  be  strictly  observed. 

Article  XI. — The  preceding  provisions  do  not  conflict  with  the  personal 
responsibility  of  the  Chinese  Government  concerning  the  present  loan,  as  said 
responsibility  is  specified  in  Article  VII. 

Consequently  the  Imperial  Chinese  Government  pledges  itself  to  make  up 
the  sum  necessary  for  the  service  of  the  loan  in  gold,  in  case  the  sums  derived 
from  the  net  revenues  of  the  line  from  Kaifengfu  to  Honanfu  and  paid  in  by 
the  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways  en  Chine,  entrusted 
with  this  management  by  the  Imperial  Chinese  Railway  Company,  to  the  bank 
chosen,  should  not  produce  after  conversion  into  gold  and  three  months  before 
the  date  of  the  following  semi-annual  payment,  an  amount  sufficient  to  insure 
said  service. 

In  this  case,  and  on  demand  made  it,  the  Imperial  Chinese  Government 
shall  be  bound  to  put  at  the  disposal  of  the  Compagnie  Generale  de  Chemins  de 
Fer  et  de  Tramways  en  Chine  sixty  days  before  the  following  semi-annual  pay- 
ment falls  due,  in  gold  or  in  securities  of  sufficient  amount  to  produce  it  in 
GOLD,  the  sum  stated  to  it  as  being  needed  to  make  up  said  service. 

Article  XII. — From  the  sums  derived  from  the  deposits  by  the  Compagnie 
Generale  de  Chemins  de  Fer  et  de  Tramways  en  Chine,  entrusted  with  that  duty 
by  the  Imperial  Chinese  Railway  Company,  or  from  the  supplementary  sums 
paid  by  the  Chinese  Government,  the  Compagnie  Generale  de  Chemins  de  Fer 
et  de  Tramways  en  Chine  shall,  in  proper  season,  place  at  the  disposal  of  the 
firms  entrusted  with  the  management  of  the  loan,  the  amounts  necessary  therefor 
according  to  the  needs  as  determined  during  the  preceding  half  year. 

Article  XIII. — The  Imperial  Chinese  Government  will  pay  to  the  firms 
entrusted  with  the  management  of  the  loan,  a  commission  of  ^%  that  is  to  say 
25  francs  for  10,000  francs  on  the  amount  of  the  coupons  paid,  and  a  commis- 
sion of  %%  on  the  amount  of  bonds  drawn  by  lots  or  redeemed  under  antici- 
pated refundings.  The  amount  of  this  allowance  shall  be  settled  every  six 
months ;  and,  in  case  of  insufficiency,  it  will  be  paid  at  once  by  the  Imperial 
Chinese  Government. 

Article  XIV. — The  Imperial  Chinese  Government  binds  itself  to  respect 
and  cause  to  be  respected  the  privilege  provided  for  in  favor  of  the  bonds  under 
Article  IX  of  the  present  conventions,  and  to  hold  free  of  all  Chinese  taxation 
whatsoever  the  bonds  and  coupons  as  well  as  all  operations  whatsoever  connected 
with  the  management  (service)  of  the  loan.  The  preceding  (provision)  con- 
cerns the  bonds  and  coupons  of  the  loan  and  the  operations  relating  to  the 
management  of  the  loan,  and  which  shall  be  exempt  from  all  taxation.  But  the 
taxes  now  in  force  in  China  such  as  land  rent  and  the  taxes  which  the  Chinese 
Government  may  impose  hereafter,  such  as  a  stamp  tax  levied  on  the  general 
commerce  of  China,  the  Railway  provided  for  in  the  present  contract  and  its 
traffic  shall  bear  them.  It  being  understood  that  no  exceptional  law  shall  be 
passed  for  the  Railway  in  question,  and  that  the  rule  which  shall  be  applied  to 
it  shall  be  that  of  all  Chinese  Railways. 

Article  XV. — Coupons  which  have  not  been  presented  for  cashing  within 


NUMBER  1903/7:  NOVEMBER  12,  1903  467 

five  years  after  the  date  on  which  they  fall  due,  shall  be  lost  by  limitation 
(prescrifs)  in  favor  of  the  Imperial  Chinese  Government.  The  limit  of  time 
shall  be  of  30  years  in  case  of  redeemed  bonds. 

On  the  death  of  any  bondholder  of  the  present  loan,  the  bonds  shall  be 
transferred  and  shall  belong  to  the  heirs,  in  conformity  with  the  inheritance  laws 
in  force  in  the  country  of  the  bondholder. 

Payment  of  coupons  and  refunding  of  bonds  shall  take  place  in  time  of 
peace  and  in  time  of  war  to  the  holders  whether  they  be  subjects  of  friendly 
states  or  of  hostile  ones.  In  case  of  loss,  theft  or  destruction  of  bonds  of  the 
present  loan,  the  Imperial  Chinese  Government  will  authorize  the  Compagnie 
Generale  de  Chemins  de  Fer  et  de  Tramways  en  Chine  to  replace  the  bonds  by 
new  ones  at  its  own  expense,  whenever  it  shall  have  satisfactory  evidence  of 
the  loss  or  destruction  of  the  bonds  and  title  deeds  {des  titres  et  des  droits)  of 
the  claimants. 

Article  XVI. — The  Imperial  Chinese  Government  through  its  representa- 
tives, shall  at  once  take  steps  and  shall  furnish  the  necessary  documents  to  secure 
the  official  listing  (of  the  bonds)  in  the  Bourses  of  the  capitals  of  Europe. 

Article  XVII. — The  whole  amount  of  the  present  loan  amounting  to 
twenty  five  millions  of  francs,  represented  by  50,000  bonds  of  500  francs  each, 
possession  to  be  had  from  the  date  of  payment,  is  bought  outright  (pris  ferme) 
by  the  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways  en  Chine,  at 
the  price  of  90%,  that  is  for  the  sum  of  twenty  two  millions  five  hundred  thou- 
sand francs. 

If  on  the  date  of  issue,  the  bonds  for  the  loan  for  the  Hankow-Peking 
Railway  should  be  quoted  below  482.50  francs  inclusive  of  the  interest  payable 
{en  tenant  contpte  de  la  jouissance)  the  two  contracting  parties  would  have  the 
right  to  cancel  the  present  contract. 

Article  XVIII. — The  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tram- 
ways en  Chine  will  deposit  the  full  amount  of  the  proceeds  of  this  purchase  in 
the  banks  designated  by  it  after  agreement  with  the  Director  General  of  the 
Imperial  Chinese  Railway  Company,  on  delivery  of  the  50,000  bonds  bought  out- 
right (achetees  fermes). 

The  sum  needed  for  the  building  of  a  fixed  length  of  line  shall  be  transferred 
to  Shanghai  and  deposited  in  such  bank  as  is  mutually  agreed  upon. 

This  bank  shall  convert  into  taels  the  sum  in  accordance  with  the  instruc- 
tions of  the  Director  General  of  the  Imperial  Chinese  Railway  Company.  A 
sum  on  the  available  proceeds  of  the  loan,  at  least  Moth  of  the  proceeds  of  the 
conversion  into  taels,  shall  be  deposited  in  a  bank  in  China,  to  be  chosen  by  the 
Director  General  of  the  Imperial  Chinese  Railway  Company,  and  under  his  sole 
responsibility,  and  this  deposit  shall  be  applied  to  expenses  at  such  times  as  the 
rates  for  the  conversion  of  European  values  into  taels  may  be  unfavorable.  It 
being  well  understood  that  the  depository  establishments  shall  only  be  required 
to  deliver  these  sums  under  the  conditions  and  limitations  mentioned  in  Article 
XX  here  below. 

The  depository  bank  shall  use  the  sums  available  in  the  most  advantageous 
manner  for  the  Imperial  Chinese  Railway  Company,  in  the  same  manner  as  the 


468  CHINA  TREATIES  AND  AGREEMENTS 

available  funds  deposited  in  foreign  banks  shall  also  be  made  to  produce  interest. 

Article  XIX. — The  construction  work  for  the  whole  of  the  line  shall  be 
under  the  direction  of  the  chief  engineer  chosen  by  the  Compagnie  Generale  de 
Chemins  de  Fer  et  de  Tramways  en  Chine,  entrusted  with  this  work  by  the 
Imperial  Chinese  Railway  Company  and  for  its  account. 

The  chief  engineer  shall  prepare  all  studies,  plans,  tracings,  estimates  for 
the  whole  of  the  line ;  he  shall  direct  the  carrying  out  of  all  works  and  shall  order 
the  materials,  tools  and  supplies  necessary  to  insure  the  regular  working  of  the 
line.  Nevertheless  all  these  operations  must  be  submitted  for  the  approval  of 
the  Director  General  of  the  Imperial  Chinese  Railway  Company. 

As  the  line  from  Kaifengfu  to  Honanfu  is  a  feeder  (couHiient)  of  the 
Luhan,  the  width  of  the  rails  and  the  general  methods  of  operating  must  be  the 
same  as  on  the  Luhan. 

With  the  exception  of  the  supplies  of  material  and  the  expenses  of  all  kinds 
duly  authorized  by  an  act  signed  by  the  Director  General  of  the  Imperial  Chinese 
Railway  Company  and  paid  at  Brussels,  the  Imperial  Chinese  Railway  Company 
shall  place  at  the  disposal  of  the  Compagnie  Generale  de  Chemins  de  Fer  et  de 
Tramways  en  Chine  from  the  proceeds  of  the  loan,  the  sums  necessary  to  make, 
without  any  exceptions,  all  necessary  payments  for  the  carrying  out  of  the  works, 
the  salaries  of  the  staff  under  its  orders,  and  in  general,  for  all  expenses  of 
whatsoever  kind.  But  these  payments  must  always  be  previously  approved  by 
the  representatives  of  the  Director  General. 

After  the  signing  of  the  present  contract,  the  Imperial  Chinese  Railway 
Company  directs  the  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways 
en  Chine  to  choose  an  engineer  with  experience  in  construction  work  who  shall 
direct  the  construction  of  the  line  and  prepare  studies,  plans,  tracings,  and  speci- 
fications for  the  whole  line,  and  the  whole  shall  be  submitted  for  the  approval 
of  the  Director  General  of  the  Imperial  Chinese  Railway  Company.  Said  chief 
engineer  shall  be  appointed,  on  recommendation  of  the  Compagnie  Generale  de 
Chemins  de  Fer  et  de  Tramways  en  Chine,  by  the  Director  General  of  the  Impe- 
rial Chinese  Railway  Company,  to  whom  he  is  directly  responsible. 

The  Director  General  of  Chinese  Railways  shall  fix  the  amount  of  his  salary, 
after  agreement  with  the  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tram- 
ways en  Chine, 

The  chief  engineer  shall  prepare  a  tabulated  plan  of  the  European  stafif 
necessary  for  the  building,  and  shall  submit  it  for  the  approval  of  the  Director 
General  of  the  Imperial  Chinese  Railway  Company.  This  stafif  shall  be  engaged 
by  the  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways  en  Chine,  which 
shall  put  it  under  the  order  of  the  chief  engineer. 

As  regards  the  Chinese  stafif  whether  technical  or  other,  the  Director  General 
of  the  Imperial  Chinese  Railway  Company  reserves  to  himself  the  right  to  choose 
it,  and  to  put  it  under  the  orders  of  the  chief  engineer.  No  Chinese  or  European 
employe  shall  be  engaged  without  the  assent  of  the  Director  General  of  the 
Imperial  Chinese  Railway  Company.  It  is  understood  that  Chinese  subjects 
who  have  made  special  studies  or  who  have  acquired  sufficient  practical  knowl- 
edge, may  be  presented  by  the  Director  General  of  the  Imperial  Chinese  Rail- 


NUMBER  1903/7:  NOVEMBER  12,  1903  469 

way  Company  to  the  chief  engineer,  who  shall  employ  them  on  the  works  under 
the  same  conditions  as  European  employes.  As  to  the  technical  service,  the 
Chinese  staff  as  well  as  the  European  staff  shall  be  under  the  direct  orders  of 
the  chief  engineer.  But  the  Director  General  reserves  the  right  to  demand  the 
instant  dismissal  of  any  agent  of  whatever  nationality  on  condition  that  the 
demand  for  dismissal  is  based  on  serious  reasons. 

The  Director  General  likewise  reserves  the  right  to  depute  on  the  works  a 
special  Representative  with  full  powers.  The  salary  of  said  Representative,  as 
also  the  running  expenses  of  the  head  office  at  Shanghai  shall  devolve  on  the 
Kaifengfu  to  Honanfu  railway  concern. 

Orders  for  materials,  tools  and  furniture  for  the  construction  of  the  line 
and  for  its  orderly  working,  shall  be  submitted  through  the  chief  engineer  to 
the  Director  General  for  approval. 

Orders  as  well  as  contracts  for  work  shall  be  drawn  up,  after  mutual  agree- 
ment, by  the  chief  engineer  and  the  representative  of  the  Director  General. 

Statements  of  the  sums  paid  for  supplies  of  materials  and  expenditures  of 
every  description  settled  in  Europe  shall  be  sent  with  all  vouchers  and 
explanatory  documents  to  the  Imperial  Chinese  Railway  Company  every  three 
months. 

Every  month  the  chief  engineer,  in  agreement  with  the  Imperial  Chinese 
Railway  Company,  shall  request  the  bank  in  which  are  deposited  the  loan  funds, 
to  pay  the  amount  necessary  for  the  general  expenses  of  the  undertaking  during 
the  month  following,  to  an  agent  chosen  by  the  Director  General  of  the  Imperial 
Chinese  Railway,  and  against  receipt  duly  signed  by  the  latter  and  under  the 
responsibility  of  the  Director  General  of  the  Imperial  Chinese  Railway  Com- 
pany. This  agent  shall  not  surrender  any  of  the  funds  except  under  the  signa- 
ture of  both  the  chief  engineer  and  the  representative  of  the  Director  General. 

The  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways  en  Chine  shall 
not  therefore  be  obliged  to  meet  any  expense  for  the  building  out  of  its  own 
money. 

Said  Company  shall  endeavor  to  finish  the  work  on  the  line  within  two 
years  from  the  date  on  which  the  Railway  from  Hankow  to  Peking  shall  be 
opened  to  traffic  as  far  as  the  Yellow  River,  because  materials  will  then  be  easily 
transported. 

It  is  well  understood  that  the  Imperial  Chinese  Railway  Company  will  not 
pay  the  expenses  of  the  office  in  Brussels,  except  the  necessary  expenses  for 
the  studies,  orders,  receipt  of  materials,  living  of  staff;  consequently  the  personal 
expenses  of  the  directors,  allowances  (indemnites),  etc.,  will  continue  to  be 
chargeable  to  the  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways  en 
Chine. 

Article  XX. — The  price  paid  for  the  above  mentioned  bonds  being  exclu- 
sively assigned  to  the  building  of  the  railway  from  Kaifengfu  to  Honanfu,  the 
Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways  en  Chine,  or  the  bank 
having  received  the  deposits,  would  have  the  right  not  to  give  up  these  funds 
in  case  one  of  the  deposits  should  not  have  been  applied  as  provided  for,  and 
also  in  case  the  delegates  of  the  Compagnie  Generale  de  Chemins  de  Fer  et  de 


470  CHINA  TREATIES  AND  AGREEMENTS 

Tramways  en  Chine  were  not  enabled  by  the  Imperial  Chinese  Railway  Com- 
pany to  continue  the  direction  of  the  construction  works. 

The  balance  on  hand,  if  any  should  exist  after  the  completion  of  the  works, 
shall  be  held  subject  to  the  order  of  the  Imperial  Chinese  Railway  Company. 
After  the  completion  of  the  works  and  the  organization  of  traffic,  if  the  funds 
of  the  issue  should  still  show  a  (credit)  balance,  said  balance  shall  be  paid  in 
full  to  the  Imperial  Chinese  Railway  Company,  who  shall  remit  it  to  the  Chinese 
Government. 

If  the  loan  provided  for  in  the  present  contract  should  not  be  enough  to 
finish  the  line  or  to  organize  traffic,  the  Compagnie  Generale  de  Chemins  de  Fer 
et  de  Tramways  en  Chine  is  authorized  by  the  present  (contract)  to  make  a 
further  loan  on  the  same  terms  as  in  the  present  contract  without  being  obliged 
to  make  a  new  contract. 

Article  XXI. — Within  nine  months  following  the  date  of  the  signing  of 
the  present  contract,  the  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tram- 
ways en  Chine  shall  buy  outright  from  the  50,000  bonds  a  first  lot  for  12,500,000 
francs  at  the  price  of  90%,  for  the  purpose  of  building  the  first  portion  of  the 
line.  The  balance  of  the  issue,  or  12,500,000  francs,  for  the  building  of  the 
second  section  of  the  line,  shall  be  taken  at  the  same  price  and  in  one  or  two 
installments  by  (public)  subscription  or  otherwise.  But  it  remains  well  under- 
stood that  the  expense  of  issuing  the  loan  falls  on  the  Compagnie  Generale 
de  Chemins  de  Fer  et  de  Tramways  en  Chine. 

If  the  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways  en  Chine 
should  begin  simultaneously  the  building  of  both  sections  of  the  road  on  either 
side  of  the  Luhan  line,  it  shall  have  the  right  to  make  but  one  issue  for  the 
whole  loan. 

Article  XXII. — Preliminary  studies  of  the  line  after  the  signing  of  the 
present  contract  are  at  the  expense  of  the  Imperial  Chinese  Railway  Company, 
and  are  to  be  provided  for  out  of  the  loan  funds.  Said  studies  of  the  line  shall 
be  provided  for  from  the  revenues  derived  from  the  loan, -and  they  shall  begin 
on  the  section  running  from  Kaifengfu  to  the  junction  with  the  Hankow- 
Peking  line.  They  shall  afterwards  be  made  over  the  other  sections.  From 
the  Luhan  junction  to  Honanfu  will  constitute  the  second  section. 

The  proceeds  from  the  first  purchase  of  bonds  shall  be  applied  to  the 
building  of  the  portion  of  line  from  Kaifengfu  to  the  Luhan  junction. 

The  preliminary  studies  shall  begin  within  nine  months  from  the  date  of 
signing  the  present  contract. 

The  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways  en  Chine  shall 
deposit  one  million  francs  to  the  order  of  the  Imperial  Chinese  Railway  Com- 
pany. This  sum  is  considered  as  an  advance  on  the  loan  for  the  Railway  from 
Kaifengfu  to  Honanfu,  and  is  to  be  specially  devoted  to  expenses  for  study  of 
the  line. 

The  depository  bank  shall  not  surrender  this  sum  except  in  accordance  with 
the  provisions  of  Article  XX  of  the  present  contract. 

This  advance  shall  produce  an  annual  6%  interest  without  rate  of  issued 

t  I.e.,  on  its  par  value,  presumably. 


NUMBER  1903/7:  NOVEMBER  12,  1903  471 

but  it  shall  be  refunded  with  the  proceeds  of  the  first  sale  of  12,500,000  francs, 
which  must  be  issued  within  nine  months  from  the  signing  of  the  present  con- 
tract ;  a  portion  of  the  proceeds  of  this  sale  will  be  used  to  refund  the  advance 
first  made. 

Article  XXIII. — Should  the  Compagnie  Generale  de  Chemins  de  Fer  et 
de  Tramways  en  Chine  finish  satisfactorily  the  work  for  the  Railway  from 
Kaifengfu  to  Honanfu,  complying  strictly  with  all  the  provisions  of  the  present 
Contract,  and  should  the  Chinese  Government  decide  to  extend  the  Railway  from 
Honanfu  to  Singanfu,  the  Director  General  of  the  Imperial  Chinese  Railway 
Company  agrees  to  come  to  an  understanding  preferably  with  and  to  grant  an 
option  for  the  Loan  necessary  for  said  undertaking  to  the  Compagnie  Generale 
de  Chemins  de  Fer  et  de  Tramways  en  Chine,  in  conformity  with  the  provi- 
sions and  conditions  of  the  present  Contract. 

It  is  clearly  understood  that  if  the  Chinese  Government  should  be  able  to 
raise  the  capital  necessary  for  the  construction  of  the  extension,  either  from  its 
own  resources,  or  from  funds  gathered  by  means  of  shares  subscribed  by  its 
own  nationals,  the  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways  en 
Chine  would  not  be  entitled  to  avail  itself  of  this  Article. 

Article  XXIV. — The  present  contract  shall  only  be  binding  on  the  Com- 
pagnie Generale  de  Chemins  de  Fer  et  de  Tramways  en  Chine  if  it  is  assumed 
that,  exclusive  of  what  may  be  furnished  and  produced  in  China,  and  bought 
at  the  same  prices  as  the  European  product  delivered  in  China,  the  total  amount 
of  materials  and  supplies  necessary  for  the  building  and  operating  of  the  rail- 
way from  Kaifengfu  to  Honanfu  will  be  asked  of  and  ordered  from  the  Com- 
pagnie Generale  de  Chemins  de  Fer  et  de  Tramways  en  Chine,  which  will  fill 
these  orders  under  the  best  possible  terms. 

The  carrying  out  of  this  provision  of  this  contract  by  the  Imperial  Chinese 
Railway  Company  will  be  proven  by  the  orders  for  materials  for  each  of  the 
sections  of  line  undertaken. 

Orders  from  the  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways 
en  Chine  will  be  free  from  all  duties  or  from  likin  on  importation  or  in  transit 
across  Chinese  territory. 

If  proof  of  the  granting  of  this  franchise  is  not  forthcoming  before  the  end 
of  the  month  following  the  date  on  which  the  Belgian  Government  should  inform 
the  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways  en  Chine  that  it 
has  received  notification  concerning  Article  XXVIII,  said  Company  reserves  the 
right  not  to  consider  itself  bound. 

It  reserves  the  same  right  if  extraordinary  events  should  take  place,  such  as 
a  war,  or  if  there  were  absolute  impossibility  to  secure  subscribers  for  the 
bonds. 

Should  on  its  side  the  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tram- 
ways en  Chine  not  fulfil  within  the  given  delays  the  obligations  it  has  assumed  by 
the  present  contract,  it  shall  become  annulled.  The  Imperial  Chinese  Railway 
Company  would  be  at  liberty  to  enter  into  contract  with  whomsoever  it  chose, 
and  to  give  up  the  services  of  the  chief  engineer. 

It  is  expressly  agreed  that  the  works  and  mines  under  the  control  of  H.  E. 


472  CHINA  TREATIES  AND  AGREEMENTS 

Sheng  Kung-Pao  shall  have  a  preferential  right  for  all  orders  necessary  for 
the  building  and  operating  of  the  railway  which  is  the  object  of  the  present  con- 
tract. The  word  preference  applies  to  equality  of  specifications  and  prices  includ- 
ing transportation,  as  if  the  orders  had  to  be  filled  abroad  and  delivered  in 
China. 

All  orders  made  in  China  shall  be  free  of  duties  and  of  likin  on  Chinese 
territory. 

Article  XXV. — In  case  of  disagreement  between  the  Compagnie  Generale 
de  Chemins  de  Fer  et  de  Tramways  en  Chine  or  its  delegates  and  the  Imperial 
Chinese  Government  or  the  Imperial  Chinese  Railway  Company,  such  conflicts 
or  disagreements  shall  be  settled  by  the  decision  of  a  member  of  the  Ministry 
of  Foreign  Affairs  and  the  Minister  of  Belgium  in  China.  In  case  of  non-agree- 
ment, the  third  arbitrator  shall  be  the  Dean  of  the  Diplomatic  Body  at  Peking. 

Article  XXVI. — Should  the  Minister  of  Belgium  request  the  Chinese 
Minister  of  Foreign  Aflfairs,  the  latter  shall  be  bound  to  give  cognizance  of  the 
title  (notifier  le  titre)  to  the  Minister  of  the  foreign  country  mentioned  to  him 
as  subscribing  to  the  issue  of  bonds. 

Article  XXVII. — The  present  contract  is  drawn  up  in  triplicate,  one  copy 
for  the  Chinese  Government,  one  for  the  Imperial  Chinese  Railway  Company 
and  the  third  for  the  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways 
en  Chine. 

In  case  of  doubt  or  disagreement,  the  French  text  alone  shall  be  authoritative 
in  interpreting  the  present  contract. 

The  present  contract  shall  be  submitted  through  the  proper  channel  for  the 
Imperial  Sanction,  and  when  that  shall  have  been  obtained,  the  Minister  of 
Foreign  Affairs  shall  notify,  by  official  despatch,  the  Representative  of  Belgium 
at  Peking,  and  in  case  of  necessity,  the  Representative  at  Peking  of  the  foreign 
country  to  whom  the  title  shall  be  notified. 

Article  XXVIII. — The  Compagnie  Generale  de  Chemins  de  Fer  et  de 
Tramways  en  Chine  has  been  organized  at  Brussels  the  26th  March,  1900,  under 
Belgian  law  (regime  beige)  and  with  Belgian  capital. 

The  Imperial  Chinese  Railway  Company  only  recognizes  for  the  purposes 
of  the  present  contract  the  above  mentioned  contracting  Belgian  Company,  which 
shall  never  have  the  right  to  transfer  the  present  contract  to  other  nations  nor 
to  persons  of  another  nationality  than  Belgian. 

Article  XXIX. — The  present  contract  includes  the  right  to  build  little 
branch  lines  from  the  line  from  Kaifengfu  to  Honanfu  for  the  purpose  of  secur- 
ing traffic  and  establishing  useful  relations.  These  branch  lines  shall  only  be 
built  after  agreement  with  the  Director  General  and  the  Governor  of  Honan  and 
in  accordance  with  plans  approved  by  them. 

Done  at  Shanghai,  November  12,  1903  (24th  day  of  9th  moon  of  29th  year 
of  Kuang  Hsu). 

(Sgd.)  Arm.  Rouffart. 

(Sgd.)  Sheng  Kung  Pao. 


NUMBER  1903/7:  NOVEMBER  12,  1903  473 

{II)— OPERATING  CONTRACT. 

Between  the  undersigned : 

(1)  The  Imperial  Chinese  Railway  Company,  represented  by  His  Excel- 
lency Sheng  Kung  Pao,  Director  General,  and 

(2)  The  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways  en  Chine, 
represented  by  Mr.  A.  Rouffart,  its  delegated  Administrator, 

It  has  been  agreed  as  follows : 

Article  I. — The  Imperial  Chinese  RaiTway  Company,  duly  authorized  by 
the  Imperial  Chinese  Government,  entrusts  the  Compagnie  Generale  de  Chemins 
de  Fer  et  de  Tramways  en  Chine,  which  will  appoint  its  delegates  for  the  pur- 
pose, with  the  directing,  managing  and  operating  of  the  line  from  Kaifengfu  to 
Honanfu,  for  which  the  Imperial  Chinese  Railway  Cornpany  holds  the  con- 
cession. 

Article  II. — The  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways 
en  Chine  will  undertake  the  operation  of  the  line  upon  completion  of  the  several 
sections,  after  their  definitive  acceptance  by  the  Imperial  Chinese  Railway 
Administration ;  each  section  having  to  be  completely  equipped  and  supplied  in 
advance  with  all  material  necessary  for  its  operation,  as  well  as  with  supplies, 
tools  and  rolling-stock. 

The  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways  en  Chine  or 
the  delegates  it  may  have  appointed  in  accordance  with  the  provisions  of 
Article  I  will  organize  the  service,  will  have  the  right  to  engage  the  stafif — over 
which  it  will  have  an  absolute  right  of  discharge  or  dismissal, — will  fix  their 
salaries  according  to  a  tabulated  plan  of  organization  approved  in  advance  by 
the  Director  General  of  the  Imperial  Chinese  Railway  Company,  will  order  what- 
ever is  necessary  for  the  operation  or  upkeep  of  the  line,  will  fix  the  tariffs 
within  the  terms  of  the  contracts  for  the  concession,  will  receive  the  revenues 
of  all  kinds,  and  will  make  the  payments  for  the  expenses  of  operation  and 
management  to  the  Chinese  Railway  Company.  The  foregoing  steps  to  be  taken 
in  respect  to  the  operation  of  the  line  will  be  submitted  in  advance  to  the  judg- 
ment of  the  Director  General  of  the  Imperial  Chinese  Railways,  who  will  have 
the  most  extensive  right  of  control  over  the  revenues  and  expenditures,  and  who 
will  for  that  purpose  appoint  delegates,  especially  an  operating  manager,  a 
cashier,  a  chief  accountant  and  a  chief  interpreter  to  represent  the  Imperial 
Chinese  Railway  Company  with  the  European  engineers,  in  order  to  exercise 
effectively  this  right  of  control.  The  station-masters  will  be  appointed  by  agree- 
ment between  the  operating  manager  and  the  Chinese  Director. 

The  salaries  of  these  delegates  will  be  paid  out  of  operating  expenses,  and 
the  Chinese  Director  will  sign  jointly  with  the  Engineer-in-Chief  all  documents 
of  account  without  exception. 

If  any  employee  engaged  in  the  operation  by  the  Compagnie  Generale  de 
Chemins  de  Fer  et  de  Tramways  en  Chine,  whatever  his  nationality,  is  found 
guilty  of  bad  conduct,  insubordination,  ill-treatment  of  the  Chinese,  or  disrespect 
towards  the  Chinese  authorities,  the  Chinese  Railway  Company  need  only  give 


474  CHINA  TREATIES  AND  AGREEMENTS 

notice  of  it  to  the  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways  en 
Chine  in  order  that  it  may  immediately  discharge  the  guilty  person. 

The  Chinese  stafif  as  deemed  necessary  for  operating  will  be  chosen  and 
appointed  by  the  Chinese  Director,  who  will  offer  them  for  approval  by  the 
Engineer-in-Chief  and  place  them  under  his  orders. 

The  acquisition  of  all  new  material,  and  new  work  of  improvement  or  exten- 
sion of  the  line  or  of  the  stations,  which  may  be  necessary  after  the  opening  of 
each  section  to  traffic,  will  be  entirely  at  the  expense  of  the  operating  account. 
The  orders  required  for  the  repair  and  upkeep  of  the  line  will  so  far  as  possible 
be  given  to  the  factories  and  mines  under  the  control  of  H.  E.  Sheng  Kung  Pao, 
which  will  have  for  such  orders  a  right  of  preference  over  European  factories 
and  mines  upon  the  same  prices  and  terms  as  though  the  orders  had  been  given 
in  Europe  and  delivered  in  China. 

Article  III. — In  case  of  war  with  any  nation  whatsoever,  or  of  revolution 
in  China,  the  transportation  of  troops,  munitions  and  provisions  for  the  Chinese 
Army  will  have  precedence  over  all  commercial  traffic.  This  transportation  will 
be  charged  for  at  a  reduction  of  50%  from  the  tariff.  It  will  be  conducted  in 
accordance  with  the  orders  of  the  Director  General  of  the  Chinese  Railways.  It 
will  moreover  be  forbidden  to  transport  anything  which  might  be  of  a  character 
to  injure  the  Chinese  Government.  In  case  the  Chinese  Government  or  the  local 
authorities  should  need  trains  for  important  purposes,  the  Engineer-in-Chief 
would  arrange  for  such  trains  in  cooperation  with  the  Chinese  Director  delegated 
by  the  Director  General  of  the  Imperial  Chinese  Railway  Company.  Free  tickets 
may  be  given  only  by  agreement  between  the  Engineer-in-Chief  and  the  Chinese 
Director. 

Article  IV. — From  the  net  profits  of  operation  remaining  available  after 
the  payment  of  all  operating  expenses,  the  Compagnie  Generale  de  Chemins  de 
Fer  et  de  Tramways  en  Chine  will  retain  such  amounts  as  are  necessary  to 
assure  each  half-year,  at  least  three  months  before  due-date,  the  service  of  the 
loan  contracted  by  the  Chinese  Government  for  the  enterprise. 

This  retention  will  be  made  so  long  as  the  said  loan  shall  not  have  been 
wholly  repaid.  The  proceeds  of  this  retention  will  be  paid  over  each  month 
into  the  hands  of  the  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways  en 
Chine  or  into  the  hands  of  the  Bank  that  the  latter  may  have  designated,  which 
must  turn  over  a  receipt  to  the  Chinese  Director,  who  will  notify  the  Director 
General  of  the  amounts  of  these  payments. 

The  bank  will  make  the  most  favorable  conversion  into  gold  of  the  amounts 
paid  over  to  it,  to  be  used  for  the  service  of  the  loan ;  the  amount  in  gold 
so  converted  will  be  communicated  to  the  Director  General  by  the  Chinese 
Director. 

Whenever  the  service  of  the  loan  may  have  been  assured  by  means  of  the 
sums  thus  paid  over,  10%  of  the  surplus  will  be  set  aside,  which  will  be  devoted 
to  the  establishment  of  a  reserve  fund  to  make  repairs  or  to  rebuild  as  required 
in  order  to  assure  operation.  Such  balance  as  then  remains  available  out  of 
the  operating  revenues  will  then  be  paid  over  to  the  Chinese  Railway  Company. 
Whenever  the  loan  to  which  the  present  Contract  relates  shall  have  been  repaid 


NUMBER  1903/7:  NOVEMBER  12,  1903  475 

in  full  according  to  the  conditions  stipulated,  the  Compagnie  Generale  de 
Chemins  de  Fer  et  de  Tramways  en  Chine  or  its  delegates  must  hand  over  the 
entire  line,  with  all  its  materials  and  appurtenances,  in  good  condition  and 
in  regular  operation,  to  the  Imperial  Chinese  Railway  Company,  which  will 
operate  it,  itself. 

Article  V. — The  term  of  the  present  Operating  Contract  is  fixed  at  thirty 
years,  beginning  with  the  date  of  the  signature  of  the  present  Contract.  This 
term,  however,  would  be  prolonged  as  of  course  (i.e.,  de  plein  droit)  in  the 
event  that  the  loans  should  not  at  that  time  have  been  completely  amortized. 

That  prolongation  would  continue  so  long  as  such  complete  amortization  had 
not  been  effected.  The  present  Operating  Contract  would  be  cancelled  from  the 
date  of  the  full  repayment  of  the  loan,  even  before  the  due  period. 

Article  VI. — During  the  whole  period  of  the  operation  of  the  line  by  the 
Belgian  Company,  the  Imperial  Chinese  Railway  Company  grants  to  it  a  partici- 
pation of  20%  in  the  net  profits  of  the  railway  from  Kaifengfu  to  Honanfu 
(after  deducting  the  costs  of  operation,  the  amounts  necessary  for  the  service  of 
interest  and  amortization  of  the  loan,  and  the  reserve  funds)  as  determined  by 
mutual  agreement  after  each  accounting  period. 

If  the  Chinese  Posts  desire  to  dispatch  letters  by  this  line,  the  Company 
must  prepare  a  car  for  the  purpose,  and  all  the  stations  along  the  line  must  have 
offices  for  the  postal  service,  arranged  in  conformity  with  the  regulations  of  the 
Chinese  Posts.  The  nation  to  which  the  Compagnie  Generale  de  Chemins  de 
Fer  et  de  Tramways  en  Chine  belongs  may  not  establish  along  the  line  any 
postal  service  of  its  own. 

Article  VII. — In  case  of  conflict  or  difference  between  the  Chinese  Gov- 
ernment or  the  Imperial  Chinese  Railway  Company  and  the  Compagnie  Generale 
de  Chemins  de  Fer  et  de  Tramways  en  Chine,  these  conflicts  or  differences  will 
be  adjusted  as  provided  in  Article  XXV  of  the  Loan  Contract. 

Article  VIII. — If  the  operating  revenues  should  not  be  sufficient  to  cover 
the  costs,  the  Chinese  Railway  Company  would  have  to  furnish  the  funds  neces- 
sary to  insure  the  regular  operating  service  under  normal  conditions.  These 
supplementary  funds  must  be  considered  as  advances,  and  so  soon  as  the  receipts 
show  an  available  balance,  after  the  payment  of  all  costs,  they  should  be  at  once 
repaid. 

Article  IX. — The  materials  and  all  supplies  that  the  Compagnie  Generale 
de  Chemins  de  Fer  et  de  Tramways  en  Chine  may  need  for  the  operation  and 
for  the  upkeep  and  repair  of  the  line  will  be  exempted  from  all  customs  and  likin 
duties. 

Article  X. — The  present  Contract  is  drawn  up  in  triplicate,  one  copy 
for  the  Chinese  Government,  one  for  the  Chinese  Railway  Company,  and  the 
third  for  the  Compagnie  Generale  de  Chemins  de  Fer  et  de  Tramways  en  Chine. 

In  case  of  doubt  or  difference,  the  French  text  alone  will  be  authoritative 
for  its  interpretation. 

The  present  Contract  must  be  submitted  through  the  proper  channel  for  the 
Imperial  sanction,  and  when  that  sanction  has  been  obtained,  the  Minister  for 
Foreign  Affairs  must  give  notice  thereof  by  official  dispatch  to  the  representative 


476  CHINA  TREATIES  AND  AGREEMENTS 

of  Belgium  in  Peking,  and  in  case  of  necessity,  to  those  of  the  foreign  countries 
which  may  have  taken  part  in  the  subscription  to  the  bonds. 

Done  at  Shanghai,  November  12,  1903,  that  is,  the  24th  day  of  the  6th 
moon  of  the  29th  year  of  the  Reign  of  Kuang  Hsii. 

(Sgd.)        Arm.  Rouffart.  (Sgd.)         Sheng  Kung  Pao. 


NUMBER  1904/1. 

CHINA. 
Customs  Regulations  for  the  Port  of  Kongmoon* — March  25,  1904. 

1. — All  vessels  trading  at  Kongmoon  are  subject  to,  and  will  be  treated  in 
accordance  with,  the  West  River  Regulations,  1904,  and,  where  these  do  not 
apply,  with  ordinary  Customs  Regulations  and  existing  Treaties.  Inland-waters 
steamers  will  comply  with  the  Inland  Waters  Steam  Navigation  Regulations. 

2. — For  shipment  and  discharge  of  cargo,  vessels,  including  inland-waters 
steamers,  must  take  up  the  berths  in  the  harbour  assigned  by  the  Harbour  Mas- 
ter, and  may  not  move  therefrom  without  his  permission.  The  harbour  limits  of 
the  Port  are  : — 

Soiith-zuest  of  Kongmoon  town:  within  a  line  drawn  east  and  west 

through  the  Wen-wu  Temple. 
In  the  West  River, 'east  of  Kongmoon  Creek:  within  a  line  drawn  north- 
east through  Li-yu  Hill. 
In  the  West  River,  zvest  of  the  Kongmoon  Creek:  within  a  line  drawn 
south-west  through  the  Chih-shan  Village  Jetty. 
Steamer  Anchorage. — In  West  River,  opposite  I.M.  Customs,  adjoining  the 
mouth  of  the  Kongmoon  Creek.     Cargo-boats,  sampans,  etc.,  are  forbidden  to 
approach  incoming  vessels  before  they  are  properly  moored. 

3. — Cargo-boats  must  be  registered  at  the  Custom  House,  and  their  numbers 
conspicuously  painted  on  them  in  Chinese  and  in  English. 

4. — The  landing  and  shipment  of  cargo  or  ballast,  and  passengers  and  their 
luggage,  may  only  take  place  between  6  a.m.  and  6  p.m.,  and  cannot  go  on  either 
at  night  or  on  Sundays  and  holidays  without  special  permission.  Cargo  landed, 
shipped,  or  transhipped  without  a  Permit  is  liable  to  confiscation. 

5. — The  Manifest  must  contain  an  account  of  the  marks,  numbers,  and 
contents  of  every  package  on  board.  For  exhibiting  a  false  Manifest  the  master 
is  liable  to  fine.  Goods  found  on  board  not  specified  on  the  Manifest  are  liable 
to  confiscation. 

*  Text  as  published  with  the  Inspector-General's  Circular  No.  1235  (Imperial  Maritime 
Customs:  II — Special  Series;  No.  28;  published  in  1905). 

See  Article  8,  Section  12,  and  Article  10,  British  Commercial  Treaty  of  1902  (No. 
1902/7,  ante). 


NUMBER  1904/1 :  MARCH  25,  1904  477 

6. — On  entry  and  upon  receipt  of  Consular  Report  or  River  Pass,  together 
with  the  Manifest  of  the  import  cargo,  accompanied  by  Tonnage  Dues  Certificate, 
and,  if  from  a  Treaty  Port,  Cargo  Certificate,  and  on  consignees  applying,  speci- 
fying on  their  applications  in  Chinese  and  English,  the  nature  of  the  goods,  the 
marks  and  numbers,  weight,  value,  etc.,  Permits  will  be  issued  authorising  the 
discharge  of  consignments — 

(a.)  Into  registered  cargo-boats,  which  must  repair  to  the  Custom 
House  direct  for  examination,  after  which  Duty  Memos,  will  be 
issued  and,  on  payment  of  Duty,  the  goods  will  be  released ;  or 
(b.)  Under  approved  guarantee  into  godowns  or  hulks,  approved  of  by 
the  Customs,  where  they  will  be  examined,  after  which  Duty 
Memos,  will  be  issued  and,  on  payment  of  Duty,  the  goods  will  be 
released. 

7. — Goods  for  export  must  be  sent  to  the  Customs  Jetty  for  examination, 
accompanied  by  the  shipper's  Application  (giving  the  required  particulars  as  to 
the  nature  of  the  goods,  the  marks  and  numbers,  weight  and  value,  etc.)  for  a 
Shipping  Permit.  After  examination.  Duty  Memos,  will  be  issued  and,  on  pay- 
ment of  Duty,  Shipment  Permits  will  be  issued. 

8. — The  landing  and  shipment  of  cargo  having  been  completed,  and  all  Dues 
and  Duties  having  been  paid,  the  Customs  Clearance  will  be  issued,  and  the  ves- 
sel will  be  entitled  to  the  return  of  her  papers  and  may  then  proceed.  The  Cus- 
toms will  be  at  liberty  to  seal  the  hatches  and  place  Customs  ofificers  on  board 
to  accompany  vessels  up  and  down  the  River. 

9. — Cargo  for  which  a  Shipment  Permit  has  been  issued,  but  which  cannot 
be  received  on  board,  must  be  reported  and  await  Customs  examination  before 
being  relanded. 

10. — Munitions  of  war  may  not  be  landed  until  a  Munitions  Special  Permit 
from  the  Customs  has  been  obtained.  Vessels  arriving  at  this  Port  and  having 
on  board,  as  cargo,  any  explosive  or  the  specially  prepared  constituents  of  such, 
shall  anchor  east  of  Li-yii  Hill,  in  the  West  River,  outside  of  the  harbour 
limits,  shall  fly  a  red  flag,  and  shall  abide  by  the  instructions  received  from 
the  Customs  concerning  the  discharge  of  the  same. 

11. — In  the  case  of  Foreign  goods  from  abroad  to  pay  Duty,  the  importer 
may  produce  his  bona  fide  invoice;  if  the  invoice  does  not  include  freight  and 
insurance,  10  per  cent,  will  be  added  to  the  invoice  value  in  the  case  of  goods  pay- 
ing ad  valorem  Duty,  but  the  Customs  reserve  the  right  not  to  accept  invoices 
as  a  statement. 

12. — Chartered  junks  are  only  available  for  carrying  Foreign-owned  cargo 
from  Treaty  Port  to  Treaty  Port,  and  must  take  out  special  papers  at  the  Cus- 
toms in  exchange  for  properly  executed  and  approved  Bonds. 

13. — Masters  of  vessels  shall  not  permit  ballast  or  ashes  to  be  thrown  over- 
board. 

14. — No  buoy  may  be  laid  down  without  the  sanction  of  the  Harbour  Mas- 
ter and  his  approval  of  the  moorings  by  which  it  is  to  be  held  in  position.  The 
Harbour  Master  will  be  at  liberty  to  moor  such  vessels  at  unoccupied  buoys  as  he 
may  see  fit. 


478  CHINA  TREATIES  AND  AGREEMENTS 

15. — Steamers  on  entering  the  harbour  must  go  slow. 

16, — The  blowing  of  steam-whistles  or  syrens,  except  for  the  purpose  of 
signalling  in  accordance  with  the  Regulations  for  Preventing  Collisions  at  Sea, 
or  for  the  purpose  of  warning  vessels  of  danger,  is  forbidden. 

17. — Masters  of  vessels  are  requested  to  furnish  the  Harbour  Master's  Office 
with  any  information  they  may  possess  relative  to  any  new  danger,  such  as  rocks, 
shoals,  etc.,  or  any  changes  in  the  channels  of  the  River  that  they  may  have  dis- 
covered. 

18. — The  Custom  House  will  be  open  for  the  transaction  of  general  business 
from  10  A.M.  to  4  p.m.,  Sundays  and  holidays  excepted.  All  export  Manifests  and 
Applications  for  cargo  to  be  shipped  the  same  day  should  be  in  the  office  not  later 
than  3  p.m.  All  communications  regarding  Customs  business  should  be  ad- 
dressed to  the  Commissioner  of  Customs. 

The  above  Regulations  are  open  to  revision  when  and  if  necessary. 

(Signed)  F.  W.  Maze, 

Acting  Commissioner. 
Custom  House, 
Kongmoon,  25th  March,  1904. 


NUMBER  1904/2. 

GREAT  BRITAIN  AND  CHINA. 

Convention  respecting  the  employment  of  Chinese  labour  in  British  colonies  and 

protectorates.*— May  13,  1904. 

Whereas  a  Convention  between  Her  Majesty  Queen  Victoria  and  His 
Majesty  the  Emperor  of  China  was  signed  at  Peking  on  the  24th  October,  1860, 
by  Article  V  of  which  His  Imperial  Majesty  the  Emperor  of  China  consented 
to  allow  Chinese  subjects,  wishing  to  take  service  in  British  Colonies  or  other 
parts  beyond  the  seas,  to  enter  into  engagements  with  British  subjects,  and  to 
ship  themselves  and  their  families  on  board  of  British  vessels  at  the  open  ports 
of  China  in  conformity  with  Regulations  to  be  drawn  up  between  the  two 
Governments  for  the  protection  of  such  emigrants : 

And  whereas  the  aforesaid  Regulations  have  not  hitherto  been  framed,  His 
Majesty  the  King  of  the  United  Kingdom  of  Great  Britain  and  Ireland  and  of 
the  British  Dominions  beyond  the  Seas.  Emperor  of  India,  and  His  Majesty  the 
Emperor  of  China  have  accordingly  appointed  the  following  as  their  respective 
Plenipotentiaries,  that  is  to  say : — 

His    Majesty    the    King   of    the    United    Kingdom    of    Great    Britain    and 

*  Text  as  printed  in  British  Treaty  Series  (1904),  No.  7;  printed  also  in  British  Parlia- 
mentary Paper,  Africa  (1904),  No.  6;  Customs,  Vol.  I,  p.  643;  Hcrtslet,  p.  189. 


NUMBER  1904/2:  MAY  13,  1904  479 

Ireland  and  of  the  British  Dominions  beyond  the  Seas,  Emperor  of  India, 
the  Most  Honourable  Henry  Charles  Keith  Petty-Fitzmaurice,  Marquess  of 
Lansdowne,  His  Majesty's  Principal  Secretary  of  State  for  Foreign  Affairs; 
and 

His  Majesty  the  Emperor  of  China,  Chang  Teh-Yih,  Brevet  Lieutenant- 
General  of  the  Chinese  Imperial  Forces,  His  Imperial  Majesty's  Envoy  Extra- 
ordinary and  Minister  Plenipotentiary  at  the  Court  of  His  Majesty  the  King  of 
the  United  Kingdom  of  Great  Britain  and  Ireland  and  of  the  British  Dominions 
beyond  the  Seas,  Emperor  of  India ; 

And  the  said  Plenipotentaries  having  met  and  communicated  to  each  other 
their  respective  full  powers,  and  found  them  in  good  and  due  form,  have  agreed 
upon  and  concluded  the  following  Articles : — 

Article  I. — As  the  Regulations  to  be  framed  under  the  above-mentioned 
Treaty  were  intended  to  be  of  a  general  character,  it  is  hereby  agreed  that  on 
each  occasion  when  indentured  emigrants  are  required  for  a  particular  British 
Colony  or  Protectorate  beyond  the  seas,  His  Britannic  Majesty's  Minister  in 
Peking  shall  notify  the  Chinese  Government,  stating  the  name  of  the  particular 
Colony  or  Protectorate  for  which  the  emigrants  are  required,  the  name  of  the 
Treaty  port  at  which  it  is  intended  to  embark  them,  and  the  terms  and  conditions 
on  which  they  are  to  be  engaged ;  the  Chinese  Government  shall  thereupon, 
without  requiring  further  formalities,  immediately  instruct  the  local  authorities 
at  the  specified  Treaty  port  to  take  all  the  steps  necessary  to  facilitate  emigration. 
The  notification  herein  referred  to  shall  only  be  required  once  in  the  case  of 
each  Colony  or  Protectorate,  except  when  emigration  under  indenture  to  that 
Colony  or  Protectorate  from  the  specified  Treaty  port  has  not  taken  place  during 
the  preceding  three  years. 

Article  II. — On  receipt  of  the  instructions  above  referred  to  the  Taotai  at 
the  port  shall  at  once  appoint  an  officer,  to  be  called  the  Chinese  Inspector,  who, 
together  with  the  British  Consular  Officer  at  the  port,  or  his  Delegate,  shall  make 
known  by  Proclamation  and  by  means  of  the  native  press  the  text  of  the  Inden- 
ture which  the  emigrant  will  have  to  sign,  and  any  particulars  of  which  the 
Chinese  officer  considers  it  essential  that  the  emigrant  shall  be  informed,  re- 
specting the  country  to  which  the  emigrant  is  to  proceed,  and  respecting  its 
laws. 

Article  III. — The  British  Consular  Officer  at  the  port,  or  his  Delegate, 
shall  confer  with  the  Chinese  Inspector  as  to  the  location  and  installation  of  the 
offices  and  other  necessary  buildings,  hereinafter  called  the  Emigration  Agency, 
which  shall  be  erected  or  fitted  up  by  the  British  Government,  and  at  their 
expense,  for  the  purpose  ot  carrying  on  the  business  of  the  engagement  and 
shipment  of  the  emigrants,  and  in  which  the  Chinese  Inspector  and  his  staff 
shall  have  suitable  accommodation  for  carrying  on  their  duties. 

Article  IV. — 1.  There  shall  be  posted  up  in  conspicuous  places  throughout 
the  Emigration  Agency,  and  more  especially  in  that  part  of  it  called  the  Depot, 
destined  for  the  reception  of  intending  emigrants,  copies  of  the  Indenture  to 
be  entered  into  with  the  emigrant,  drawn  up  in  the  Chinese  and  English  languages, 
together  with  copies  of  the  special  Ordinance,  if  any,  relating  to  immigration 


480  CHINA  TREATIES  AND  AGREEMENTS 

into  the  particular  Colony  or  Protectorate  for  which  the  emigrants  are  required. 

2.  There  shall  be  kept  a  Register  in  English  and  in  Chinese,  in  which  the 
names  of  intending  indentured  emigrants  shall  be  inscribed,  and  in  this  Register 
there  shall  not  be  inscribed  the  name  of  any  person  who  is  under  20  years  of  age, 
unless  he  shall  have  produced  proof  of  his  having  obtained  the  consent  of  his 
parents  or  other  lawful  guardians  to  emigrate,  or,  in  default  of  these,  of  the 
Magistrate  of  the  district  to  which  he  belongs.  After  signature  of  the  Indenture 
according  to  the  Chinese  manner,  the  emigrant  shall  not  be  permitted  to  leave 
the  Depot,  previously  to  his  embarkation,  without  a  pass  signed  by  the  Chinese 
Inspector,  and  countersigned  by  the  British  Consular  Officer  or  his  Delegate, 
unless  he  shall  have,  through  the  Chinese  Inspector,  renounced  his  agreement  and 
withdrawn  his  name  from  the  register  of  emigrants. 

3.  Before  the  sailing  of  the  ship  each  emigrant  shall  be  carefully  examined 
by  a  qualified  Medical  Officer  nominated  by  the  British  Consular  Officer  or  his 
Delegate.  The  emigrants  shall  be  paraded  before  the  British  Consular  Officer  or 
his  Delegate  and  the  Chinese  Inspector  or  his  Delegate,  and  questioned  with  a 
view  to  ascertain  their  perfect  understanding  of  the  Indenture. 

Article  V. — All  ships  employed  in  the  conveyance  of  indentured  emigrants 
from  China  under  this  Convention  shall  engage  and  embark  them  only  nt  a 
Treaty  port,  and  shall  comply  with  the  Regulations  contained  in  the  Schedule 
hereto  annexed  and  forming  part  of  the  Convention. 

Article  VI. — For  the  better  protection  of  the  emigrant,  and  of  any  other 
Chinese  subject  who  may  happen  to  be  residing  in  the  Colony  or  Protectorate 
to  which  the  emigration  is  to  take  place,  it  shall  be  competent  to  the  Emperor 
of  China  to  appoint  a  Consul  or  Vice-Consul  to  watch  over  their  interests  and 
well-being,  and  such  Consul  or  Vice-Consul  shall  have  all  the  rights  and  privi- 
leges accorded  to  the  Consuls  of  other  nations. 

Article  VII. — Every  Indenture  entered  into  under  the  present  Articles 
shall  clearly  specify  the  name  of  the  country  for  which  the  labourer  is  required, 
the  duration  of  the  engagement,  and,  if  renewable,  on  what  terms,  the  number 
of  hours  of  labour  per  working  day,  the  nature  of  the  work,  the  rate  of  wages 
and  mode  of  payment,  the  rations,  clothing,  the  grant  of  a  free  passage  out,  and, 
where  such  is  provided  for  therein,  a  free  passage  back  to  the  port  of  embarkation 
in  China  for  himself  and  family,  right  to  free  medical  attendance  and  medi- 
cines, whether  in  the  Colony  or  Protectorate  or  on  the  voyage  from  and  to  the 
port  of  embarkation  in  China,  and  any  other  advantages  to  which  the  emigrant 
shall  be  entitled.  The  Indenture  may  also  provide  that  the  emigrant  shall,  if 
considered  necessary  by  the  medical  authorities,  be  vaccinated  on  his  arrival  at 
the  Depot,  and,  in  the  event  of  such  vaccination  being  unsuccessful,  revaccinated 
on  board  ship. 

Article  VIII. — The  Indenture  shall  be  signed,  or  in  cases  of  illiteracy 
marked,  by  the  emigrant  after  the  Chinese  manner,  in  the  presence  of  the  Chinese 
Inspector  or  his  Delegate  and  of  the  British  Consular  Officer  or  his  Delegate,  who 
shall  be  responsible  to  their  respective  Governments  for  its  provisions  having 
been  clearly  and  fully  explained  to  the  emigrant  previous  to  signature.  To 
each  emigrant  there  shall  be  presented  a  copy  of  the  Indenture  drawn  up  in 


NUMBER  1904/2:  MAY  13,  1904  481 

Chinese  and  English.  Such  Indenture  shall  not  be  considered  as  definitive  or 
irrevocable  until  after  the  embarkation  of  the  emigrant. 

Article  IX. — In  every  British  Colony  or  Protectorate  to  which  indentured 
Chinese  emigrants  proceed,  an  officer  or  officers  shall  be  appointed,  whose  duty 
it  shall  be  to  insure  that  the  emigrant  shall  have  free  access  to  the  Courts  of 
Justice  to  obtain  the  redress  for  injuries  to  his  person  and  property  which  is 
secured  to  all  persons,  irrespective  of  race,  by  the  local  law. 

Article  X. — During  the  sojourn  of  the  emigrant  in  the  Colony  or  Pro- 
tectorate in  which  he  is  employed,  all  possible  postal  facilities  shall  be  afforded 
to  him  for  communicating  with  his  native  country,  and  for  making  remittances 
to  his  family. 

Article  XI. — With  regard  to  the  repatriation  of  the  emigrant  and  his  family, 
whether  on  the  expiration  of  the  Indenture  or  from  any  legal  cause,  or  in  the  event 
of  his  having  been  invalided  from  sickness  or  disablement,  it  is  understood  that 
this  shall  always  be  to  the  port  of  shipment  in  China,  and  that  in  no  case  shall  it 
take  place  by  any  other  means  than  actual  conveyance  by  ship,  and  payment 
of  money  to  the  returning  emigrant  in  lieu  of  passage  shall  not  be  admissible. 

Article  XII. — Nothing  in  any  Indenture  framed  under  these  Articles  shall 
constitute  on  the  part  of  the  employer  a  right  to  transfer  the  emigrant  to  another 
employer  of  labour  without  the  emigrant's  free  consent  and  the  approval  of  his 
Consul  or  Vice-Consul ;  and  should  any  such  transfer  or  assignment  take  place, 
it  shall  not  in  any  way  invalidate  any  of  the  rights  or  privileges  of  the  emigrant 
under  the  Indenture. 

Article  XIII. — It  is  agreed  that  a  fee  on  each  indentured  emigrant  shipped 
under  the  terms  of  this  Convention  shall  be  paid  to  the  Chinese  Government 
for  expenses  of  inspection,  but  no  payment  of  any  kind  shall  be  made  to  the 
Chinese  Inspector  or  any  other  official  of  the  Chinese  Government  at  the  port 
of  embarkation.  The  above  fee  shall  be  paid  into  the  Customs  bank  previous 
to  the  clearance  of  the  ship,  and  shall  be  calculated  at  the  following  rate: — 
3  Mexican  dollars  per  head  for  any  number  of  emigrants  not  exceeding  10,000, 
and  two  dollars  per  head  for  any  number  in  excess  thereof,  provided  they  are 
shipped  at  the  same  Treaty  port,  and  that  not  more  than  twelve  months  have 
elapsed  since  the  date  of  the  last  shipment. 

Should  the  port  of  embarkation  have  been  changed,  or  a  space  of  more  than 
twelve  months  have  elapsed  since  the  date  of  the  last  shipment,  inspection  charges 
shall  be  paid  as  in  the  first  instance. 

Article  XIV. — The  English  and  Chinese  text  of  the  present  Convention 
have  been  carefully  compared,  but  in  the  event  of  there  being  any  difference  of 
meaning  between  them,  the  sense  as  expressed  in  the  English  text  shall  be  held 
to  be  the  correct  sense. 

Article  XV. — The  present  Convention  shall  come  into  force  on  the  date 
of  its  signature  and  remain  in  force  for  four  years  from  that  date,  and  after 
such  period  of  four  years  it  shall  be  terminable  by  either  of  the  High  Contract- 
ing Parties  on  giving  one  year's  notice. 

In  witness  whereof  the  Plenipotentiaries  have  signed  the  present  Convention, 
and  have  affixed  thereto  their  seals. 


482  CHINA  TREATIES  AND  AGREEMENTS 

Done  at  London  in  four  copies,  two  in  English  and  two  in  Chinese,  this 
thirteenth  day  of  May  of  the  year  1904. 

(L.S.)  (Signed)  Lansdowne. 

(L.S.)  (Signed)  T.  Y.  Chang. 


SCHEDULE. 
Regulations. 

SHIPS  employed  in  the  transport  of  indentured  emigrants  from  China  under 
this  Convention  must  be  seaworthy,  clean,  and  properly  ventilated,  and,  with 
regard  to  the  following  matters,  shall  comply  with  conditions  as  far  as  possible 
equivalent  to  those  in  force  in  British  India  with  reference  to  the  emigration  of 
natives  from  India  : — 

Accommodation  required  on  board  (vide  section  57  of  "  The  Indian  Emi- 
gration Act,  1883  ")• 

Sleeping  accommodation,  consisting  of  wooden  sheathing  to  the  decks  or 
sleeping  platforms  (vide  rule  regarding  "  iron  decks,"  as  amended  the  16th 
August,  1902,  in  Schedule  "  A  "  to  the  rules  under  "  The  Indian  Emigration 
Act,  1883"). 

Rules  as  to  space  on  board  (vide  section  58  of  "  The  Indian  Emigration 
Act,  1883"). 

Carriage  of  qualified  surgeon,  with  necessary  medical  stores. 

Storage  of  drinking  water  (vide  rule  113,  as  amended  the  24th  February, 
1903,  under  "  The  Indian  Emigration  Act,  1883  "). 

Provision  of  adequate  distilling  apparatus  (vide  Schedule  "  C  "  to  the  rules 
under  "The  Indian  Emigration  Act,  1883"). 

The  dietary  for  each  indentured  emigrant  on  board  ship  shall  be  as  follows 
per  day  : —  Not  less  than 

Rice,  not  less  than  1%  lb.,  or  flour  or  bread  stuffs 1^^  lb. 

Fish  (dried  or  salt)  or  meat  (fresh  or  preserved) 0}^    „ 

Fresh  vegetables  of  suitable  kinds IVs    „ 

Salt   1       oz. 

Sugar    1  /^    M 

Chinese  tea 0%    „ 

Chinese  condiments  in  sufficient  qualities  [quantities?] 

Water,  for  drinking  and  cooking 1       gallon 

or  such  other  articles  of  food  as  may  be  substituted  for  any  of  the  articles  enume- 
rated in  the  foregoing  scale  as  being  in  the  opinion  of  the  doctor  on  board  equiv- 
alent thereto. 


NUMBER  1904/2:  MAY  13,  1904  483 

Exchange  of  Notes  betzvecn  the  Marquess  of  Lansdowne  and  Chang  Ta-jen, 

May  13,  1904. 

Foreign  Office,  May  13,  1904. 
Sir, 

By  Article  VI  of  the  Convention  about  to  be  concluded  between  Great  Britain 
and  China  with  regard  to  Chinese  subjects  leaving  the  Treaty  ports  of  China 
under  Indenture  for  service  in  British  Colonies  or  Protectorates  it  is  provided 
that  :— 

"  For  the  better  protection  of  the  emigrant  and  of  any  other  Chinese  subject 
who  may  happen  to  be  residing  in  the  Colony  or  Protectorate  to  which  the  emi- 
gration is  to  take  place,  it  shall  be  competent  to  the  Emperor  of  China  to  appoint 
a  Consul  or  Vice-Consul  to  watch  over  their  interests  and  well-being,  and  such 
Consul  or  Vice-Consul  shall  have  all  the  rights  and  privileges  accorded  to  the 
Consuls  of  other  nations." 

His  Majesty's  Government  consider  it  specially  important  that  the  persons 
appointed  to  occupy,  for  the  purpose  named,  the  position  of  Consul  or  Vice- 
Consul  should  be  experienced  officers  of  Chinese  nationality,  that  they  should  be 
exclusively  in  the  service  of  the  Emperor  of  China,  and  that  in  each  case  the 
name  of  the  person  selected  should  be  communicated  to  His  Majesty's  Govern- 
ment, and  their  agreement  to  the  appointment  obtained. 

I  have  the  honour  to  inquire  whether  the  Chinese  Government  are  prepared 
to  meet  the  wishes  of  His  Majesty's  Government  in  the  matter.  If  so,  and 
if  you  will  inform  me  accordingly,  this  note  and  your  reply  might  be  attached  to 
the  Convention  in  order  to  place  on  formal  record  the  arrangement  concluded. 

I  have,  &c. 

(Signed)  Lansdowne. 

Chang  Ta-Jen, 

&c.,        &c.,        &c. 


Chinese  Legation,  May  13,  1904. 
My  Lord  Marquess, 

In  reply  to  your  Lordship's  note  of  this  date,  I  have  the  honour  to  state 
that  the  Chinese  Government  are  in  entire  accord  with  His  Britannic  Majesty's 
Government  as  to  the  great  importance  they  attach  to  the  Consuls  and  Vice- 
Consuls  to  be  appointed  under  Article  VI  of  the  Convention  about  to  be  concluded 
between  the  two  Governments  being  men  of  great  experience,  and  will  consider 
it  a  duty  which  they  owe  to  the  emigrant  to  confine  the  selection  of  these  officers 
to  such  as  in  all  respects  conform  to  the  requirements  specified  in  the  note  above 
referred  to,  which,  together  with  the  present  one,  it  has  been  mutually  agreed 
shall,  in  proof  of  this  understanding,  be  appended  to  the  said  Convention. 

I  have,  &c. 

(Signed)  T.  Y.  Chang. 

The  Marquess  of  Lansdowne,  K.G., 

&c.,        &c.,        &c. 


434  CHINA  TREATIES  AND  AGREEiMENTS 

NUMBER  1904/3. 

CHINA. 
West  River  regulations,  1904^— July  30,  1904. 

ARTICLE  I. — Former  Regulations  rescinded. — The  Regulations  of  Trade 
on  the  West  River  hitherto  in  force  are  hereby  abrogated. 

ARTICLE  II. — Ports,  Stages,  or  Ports  of  Call,  and  Passenger  Sta- 
tions.— The  merchant  vessels  of  the  Treaty  Powers  are  authorised  to  trade  on 
the  West  River  at  the  following  four  Treaty  Ports  : — 

Canton  (directly  connected  with  the  West  River),  Kongmoon,  Samshui,  and 
Wuchow. 

Steamers  are  authorised  to  land  and  ship  goods  in  accordance  with  Regu- 
lations hereinafter  set  forth  at  the  following  six  Stages  or  Ports,  of   Call: — 

Kumchuk,  Paktauhau,  Shiuhing,  Lotinghau,  Takhing,  and  Dosing; 
and  to  land  and  ship  passengers  and  their  luggage  at  any  of  the  following  10 
regular  Passenger  Stations : 

Yungki  (in  Tailung  Channel),  Mahning  (in  Junction  Channel),  Kaukong, 
Kulow,  Wingon,  Howlik,  Lukpu,  Yuetsing,  Lukto,  and  Fungchuen  (in  West 
River). 

Passengers  luggage  must  not  contain  articles  subject  to  Duty,  and  the  presence 
of  dutiable  articles  will  render  the  whole  liable  to  confiscation. 

ARTICLE  III. — Arms  Certificate. — Vessels  proposing  to  trade  on  the 
West  River  must  provide  themselves  with  an  Arms  Certificate.  This  Certificate, 
which  is  to  be  made  out  on  a  form  supplied  by  the  Customs  and  signed  by  the 
captain,  must  state  the  number  of  muskets,  guns,  swords,  etc.,  and  the  quantity 
of  ammunition  carried  for  self  defence,  and  be  produced  for  inspection  and  veri- 
fication when  required. 

ARTICLE  IV. — Classes  of  Vessels. — Merchant  vessels  trading  on  the 
West  River  are  to  be  divided  into  the  following  classes : — 

A.  Steamers. — \.  Inland-zvaters  steamers  trading  to  permitted  inland  places. 
2.  Local  river  steamers  running  from  Canton,  Kongmoon,  or  Samshui  to  Ports  up 
River  without  leaving  Liang  Kwang  waters.  3.  Foreign-going  steamers  from 
and  to  Hongkong,  Macao,  etc.,  trading  for  the  voyage  up  and  down  River. 

B.  Small  Craft  (lorclias,  papicos,  junks,  etc.) 

ARTICLE  V. — A.  Steamers. — 1.  Inland-waters  steamers  are  to  comply 
with  the  Inland  Waters  Steam  Navigation  Regulations. 

2.  Local  river  steamers,  which  do  not  leave  Liang  Kwang  waters,  but  which, 
running  from  Canton,  Kongmoon,  or  Samshui,  are  to  trade  only  at  Treaty  Ports 
and  Ports  of  Call,  and  take  passengers  to  and  from  the  authorised  Passenger 
Stations,  are  to  deposit  their  Registers  with  their  Consul,  or,  if  consularly  unrepre- 

*  Text  as  published  in  the  Inspector-General's  Circular  No.  1235  {Imperial  Maritime 
Customs;  II — Special  Series,  No.  28;  published  in   1905). 

See   British   Commercial  Treaty  of    1902    (No.    1902/7.  ante). 


NUMBER  1904/3 :  JULY  30,  1904  485 

sented,  with  the  Customs  at  Canton,  Kongmoon,  or  Samshui,  where  the  Customs, 
on  receipt  of  a  Consular  Application  or  on  deposit  of  her  papers,  will  issue  a 
Certificate  to  the  steamer,  to  be  called  the  "  River  Pass,"  on  which  shall  be  entered 
the  steamer's  name,  flag,  and  registered  tonnage,  the  said  River  Pass  to  be  valid 
for  the  year  during  which  issued,  on  expiry  of  which  it  must  be  either  surrendered 
or  renewed  at  the  Port  of  issue. 

3.  Foreign-going  steamers  from  and  to  Hongkong,  Macao,  etc.,  proceeding 
to  the  West  River  must  enter  either  by  (a)  Motomoon  ("Broadway"),  (b) 
W'angmoon,  or  (c)  via  Canton. 

(a)  If  entering  by  Motomoon  they  must  report  at  the  Malowchow  Station 
(Lappa  Customs)  and  produce  for  inspection  and  verification  a  Gen- 
eral Import  Alanifest  of  all  cargo  on  board,  showing  destination.  The 
Customs  officials  will  inspect  the  vessel  on  arrival,  note  the  quantity 
of  arms,  etc.,  on  board,  and  issue  the  Kongmoon  Pass,  upon  receipt 
of  which  the  vessel  will  proceed,  direct  and  without  anchoring,  landing 
or  shipping  cargo  or  passengers,  to  Kongmoon,  and  surrender  the 
Pass.  If  proceeding  further  up  the  West  River,  steamers  will  deposit 
their  Registers  with  their  Consul,  or,  if  consularly  unrepresented, 
with  the  Customs.  Upon  receipt  of  the  Consular  Report,  or  on  de- 
posit of  her  papers,  the  Customs  will  issue  a  Certificate  to  the 
steamer,  to  be  called  the  "  Special  River  Pass,"  on  which  shall  be 
entered  the  steamer's  name,  flag,  and  registered  tonnage,  and  without 
which  she  may  not  proceed  to  any  Treaty  Port  (the  original  Port 
of  entry  excepted).  Port  of  Call,  or  Passenger  Station  on  the  River. 
On  return  to  Kongmoon,  and  when  all  Dues  and  Duties  are  either 
paid  or  accounted  for,  the  Customs,  on  surrender  of  the  Special 
River  Pass,  will  issue  a  Clearance,  which  will  entitle  the  vessel  to 
the  return  of  her  Register  and  Kongmoon  Pass.  The  vessel  is  then 
free  to  depart  via  the  Motomoon  ("  Broadway  ")  or  via  the  Wang- 
moon,  as  provided  for  below,  (&).  Proceeding  via  the  Motomoon 
("Broadway"),  the  Kongmoon  Pass  will  be  surrendered  at  the 
Malowchow  Station  (Lappa  Customs),  where  the  General  Export 
Manifest  of  all  cargo  on  board  will  be  produced  for  inspection  and 
verification. 
(b.)  If  entering  by  Wangmoon,  steamers  must  report  at  the  Wangmoon 
Station  and  comply  with  the   requirements   set   forth  above,    (a). 

According  to  the  destination  declared  the    „    ^  , — r-  Pass  will  then  be 

°  Samshui 

issued,  upon  receipt  of  which  the  vessel  will  proceed  by  the  authorised 
route,  direct  and  without  anchoring,  landing  or  shipping  cargo  or 
passengers,  to  the  Port  indicated  on  the  Pass,  where  the  latter  will 
be  surrendered.  If  proceeding  elsewhere  on  the  West  River,  steamers 
will  deposit  their  Registers  with  their  Consul,  or,  if  consularly  un- 
represented, with  the  Customs.  Upon  receipt  of  the  Consular  Report, 
or  on  deposit  of  her  papers,  the  Customs  will  issue  a  Certificate  to 
the  steamer,  to  be  called  the  "  Special  River  Pass,"  on  which  shall 


486  CHINA  TREATIES  AND  AGREEMENTS 

be  entered  the  steamer's  name,  flag,  and  registered  tonnage,  and 
without  which  she  may  not  proceed  to  any  Treaty  Port  (the  original 
Port  of  entry  excepted),  Port  of  Call,  or  Passenger  Station  on  the 
River.  On  return  to  the  original  Port  of  entry,  and  when  all  Dues 
and  Duties  are  either  paid  or  accounted  for,  the  Customs,  on  surren- 
der of  the  Special  River  Pass,  will  issue  a  Clearance,  which  will 

entitle  the  vessel  to  the  return  of  her  Register  and    ■  „    ^  . — r-  Pass. 

Samshui 

The  vessel  is  then  free  to  depart  via  the  Wangmoon  or  via  the  Moto- 

moon  ("Broadway"),  as  provided  for  above,  (o).     Proceeding  via 

Kongmoon 
the   Wangmoon,   the    -^ r— :-   Pass    will   be   surrendered   at   the 

Wangmoon  Station,  where  the  General  Export  Manifest  of  all  cargo 
on  board  will  be  produced  for  inspection  and  verification. 
(c.)  If  entering  via  Canton,  vessels  will  proceed  by  the  authorized  Bogue 
route,  direct  and  without  anchoring,  landing  or  shipping  cargo  or 
passengers,  and  deposit  their  Register  with  Consul  or  Customs  at 
Canton  in  order  to  obtain  the  Special  River  Pass,  without  which  they 
may  not  proceed  to  any  Treaty  Port,  Port  of  Call,  or  Passenger  Sta- 
tion on  the  West  River,  and  the  surrender  of  which,  on  return,  all 
Dues  and  Duties  having  either  been  paid  or  accounted  for,  will 
entitle  them  to  Customs  Clearance  and  return  of  Register. 

4.  Shipment  and  discharge  of  cargo  by  local  river  steamers  and  Foreign- 
going  steamers  at  any  other  points  on  the  River  than  the  Treaty  Ports  and  Ports 
of  Call  enumerated  in  Article  II  is  prohibited,  and  any  violation  of  this  prohibition 
will  be  dealt  with  in  accordance  with  the  Treaty  provisions  applicable  to  clan- 
destine trade  along  the  coast. 

5.  Local  river  steamers  and  Foreign-going  steamers  trading  at  the  West 
River  Treaty  Ports — Canton,  Kongmoon,  Samshui,  and  Wuchow — must  report 
and  clear  and  load  and  discharge  cargo  in  the  same  manner  as  at  other  Treaty 
Ports  along  the  coast,  and  in  accordance  with  the  Customs  Regulations  of  the 
River  Ports  concerned. 

6.  Duty  treatment  of  merchandise  carried  by  local  river  steamers  and  For- 
eign-going steamers : — 

A.  Foreign  Trade. — Import  Duty  shall  be  payable  as  follows :  on  cargo  from 
abroad  for  (a)  a  Treaty  Port,  at  destination  Treaty  Port;  {h)  a  Port  of  Call, 
at  Port  of  entry  from  abroad  (Kongmoon,  Samshui,  or  Canton).  Export  Duty 
shall  be  payable  as  follows:  on  cargo  for  abroad  from  (a)  a  Treaty  Port,  at 
Port  of  shipment;  {h)  a  Port  of  Call,  at  Port  of  clearance  for  abroad  (Kongmoon, 
Samshui,  or  Canton). 

B.  Domestic  Trade. — Export  (full)  and  Coast  Trade  (half)  Duties  shall  be 
payable  as  follows:  on  cargo  from  (a)  Treaty  Port  to  Treaty  Port,  full  at  Port 
of  shipment  and  half  at  Port  of  discharge;  (b)  Treaty  Port  to  Port  of  Call,  if 
another  Treaty  Port  is  to  be  passed  en  route,  full  and  half  at  Port  of  shipment, 
otherwise  full  only  at  said  Port  of  shipment;  (c)  Port  of  Call  to  Treaty  Port, 
if  another  Treaty  Port  has  been  passed  en  route,  full  and  half  at  destination 


NUMBER  1904/3:  JULY  30,  1904  487 

Treaty  Port,  otherwise  full  only  at  said  Port;  (d)  Port  of  Call  to  Port  of  Call, 
if  a  Treaty  Port  is  passed  en  route,  full  at  said  Port  in  passing. 

7.  Tonnage  Dues  are  payable  once  every  four  months  at  the  Treaty  Port 
first  touched  at  after  expiry  of  Certificate. 

8.  Dues  and  Duties  are,  in  general,  payable  as  at  other  Treaty  Ports,  and 
Re-exports  and  goods  under  Transit  Certificates  entitled  to  usual  Customs  treat- 
ment. Native  goods,  if  shipped  to  a  Treaty  Port  and  subsequently  re-exported 
to  a  Foreign  Port  within  13  months,  with  no  unauthorised  change  of  package  and 
marks,  will  be  entitled  to  the  refund  of  any  Customs  Duty  paid  in  excess  of 
one  full  Export  Tariff  Duty. 

9.  Routes. — The  following  are  the  authorised  routes  to  the  West  River : — 
Foreign-going  steamers  proceeding  from  the  sea  direct  must  enter  either 

by  (a)  the  Motomoon  {"Broadway")  route;  or  by  (b)  the  Wangmoon  route, 
taking  the  Kerr  Channel  f  and  Junction  Channel  and  passing  into  the  West  River 
at  Fist  Cliffs.  Such  steamers  may  also  proceed  (c)  via  Canton,  in  which  case  they 
will  be  required,  together  with  local  river  steamers,  to  take  the  following  route 
on  leaving  Canton,  viz..  Hill  Passage,  Saiwan  Channel,  Tailung  Channel,  and 
Junction  Channel  (British  Admiralty  Chart  No.  2,562),  and  enter  the  West 
River  at  Fist  Cliffs.  Returning  abroad,  or  to  Canton,  the  same  routes  are  to 
be  adhered  to. 

10.  Miscellaneous. — The  Customs  officials  will  be  at  liberty  to  seal  the 
hatches  of  vessels  entering  or  trading  on  the  West  River,  and  seals  must  not 
be  broken  before  the  vessel  reaches  the  next  Port  or  Port  of  Call  at  which  she 
wishes  to  work  cargo.  Any  trading  vessel  falling  in  with  a  revenue  cruiser  or 
Customs  boat  is  to  produce  her  papers  for  inspection,  if  examination  of  them  is 
required ;  and  Customs  employes  may  be  put  on  board  vessels  to  search  them  or 
accompany  them  for  the  purpose  of  surveillance. 

11.  Penalties. — Vessels  taking  other  than  the  prescribed  routes  into  or  out 

from  the  West  River,  or  found  in  waters  between  Canton  and  Kongmoon  or 

the  Bogue  Passage  and  Kongmoon  anywhere  off  the  said  routes,  are  liable  to 

a  fine  not  exceeding  Tls.  500.     In  the  event  of  any  vessel  so  found,  or  discovered 

anywhere  on  the  West  River  and  routes  thereto  inside  Malowchow  or  Wangmoon 

Stations,  being  without  proper  papers  as  provided  for  by  the  present  Regulations, 

she  will  be  dealt  with  under  the  Treaty  Articles  penalising  clandestine  trade 

along  the  coast. 

Kongmoon 

Foreign-going  vessels  bound  out  and  failing  to  surrender  the  

Samshui 

Malowchow 

Pass  at are  liable  to  a  fine  not  exceeding  Tls.  100. 

Wangmoon 
Infringement  of  River  Port  Regulations  by  local  river  steamers  will  be  pun- 
ished by  the  infliction  of  penalties  in  force  at  other  Treaty  Ports.  For  a  second 
offence,  the  River  Pass  may  be  cancelled  and  the  steamer  refused  permission  to 
trade  on  the  West  River.  Unauthorised  opening  of  sealed  hatches  or  breaking 
of  seals  will  entail  liability  to  a  fine  not  exceeding  Hk.  Tls.  500. 

t  Sailam  Channel  proposed  to  be  substituted  for  Kerr  Channel. 


488  CHINA  TREATIES  AND  AGREEMENTS 

ARTICLE  VI. — B.  Small  Craft  (Lorchas,  Papicos,  Junks,  etc.)  en- 
titled TO  TRADE  AT  TREATY  PoRTS,  BUT  NOT  AT  PoRTS  OF  CaLL  NOR  AT  PASSENGER 

Stations  on  the  West  River. —  (a)  Lorchas,  etc.,  owned  by  Foreigners,  if 
provided  with  Registers  and  entitled  to  fly  national  flags,  are  required  to  take  out 
a  Special  River  Pass  either  through  the  Consulate  or  through  the  Customs 
direct  at  Kongmoon,  Samshui,  or  Canton,  if  proceeding  to  other  River  Treaty 
Ports :  they  will  report,  work  cargo,  pay  Duties,  and  observe  all  conditions 
as  regards  papers,  routes,  etc.,  and  be  subject  to  the  same  penalties  for  the 
infringement  of  rules  and  regulations  as  Foreign-going  steamers  on  the  West 
River. 

{h)  Papicos,  etc.,  owned  by  Foreigners,  but  not  provided  with  the  Registers 
or  entitled  to  fly  national  flags,  are  to  take  out  Customs  Registers  at  the  Port 
they  belong  to,  and  report,  work  cargo,  and  pay  Duties  in  the  same  way  as 
lorchas.  They  are  subject  to  the  same  penalties  for  the  infringement  of  rules 
and  regulations. 

{c.)  Chartered  Junks. — Chinese  junks  chartered  by  Foreigners  must  take 
out  special  junk  papers  at  the  Customs,  to  be  obtained  in  exchange  for  Bonds 
executed  at  and  deposited  with  the  Customs,  the  condition  of  the  Bond  being  that 
cargoes  are  bona  fide  Foreign  property  and  will  be  landed  and  pay  Duty  at  a 
Treaty  Port,  and  the  penalty  that  if  the  cargo  fails  to  be  so  landed  and  pay  Duty 
no  chartered  junk  will  thereafter  be  cleared  for  the  Foreigner  in  question.  Such 
junks  to  report,  work  cargo,  observe  all  conditions,  fulfil  all  requirements,  and 
pay  Duties  in  the  same  way  as  lorchas,  papicos,  etc. 

The  above  Regulations  are  open  to  revision  when  and  if  necessary. 

(Signed)  F.  W.  MAZE, 

Acting  Commissioner, 
Kongmoon. 
(Signed)         E.  V.  BRENAN, 

Acting  Commissioner, 
Samshui. 
(Signed)  R.  DE  LUCA, 

Acting  Commissioner, 
Canton. 
30th  July  1904. 


NUMBER  1904/4:  AUGUST  8,  1904  489 

NUMBER  1904/4. 

GREAT  BRITAIN  AND  PORTUGAL. 

Exchange  of  notes  respecting  the  reciprocal  protection  of  trademarks  in  China."^ — 

August  8,  1904. 

(1). — Mr.  Cartwright  to  Senhor  de  Lima. 

Your  Excellency,  Lisbon,  August  4,  1904. 

Under  an  Order  in  Council  of  the  2nd  February,  1899,t  it  is  open  to  a 
foreigner  whose  trade-mark  has  been  infringed  by  a  British  subject  in  China 
to  take  proceedings  against  the  latter  in  the  British  Consular  Court,  provided — 

1.  That  the  consent,  in  writing,  of  His  Majesty's  Minister  or  Charge 
d'Afifaires  be  obtained  to  the  prosecution ;  but 

2.  Such  consent  may  be  withheld  unless  His  Majesty's  Minister  or  Charge 
d'Afifaires  is  satisfied  that  effectual  provision  exists  for  the  punishment  in  Con- 
sular or  other  Courts  in  China  of  similar  acts  committeed  by  the  subjects  of 
the  State  or  Power  of  which  such  prosecutor  is  a  subject. 

By  correspondence  with  the  French,  German,  and  Italian  Representatives  in 
London,  it  has  been  ascertained  that  provision  exists  for  the  punishment  in  the 
Consular  Courts  of  France,  Germany,  and  Italy  in  China  of  subjects  of  those 
countries,  should  they  infringe  British  trade-marks,  and  the  necessary  information 
has  been  given  to  His  Majesty's  Representative  at  Peking,  and  to  the  Repre- 
sentatives there  of  the  three  countries  mentioned,  to  enable  them  to  carry  out 
the  arrangements  desired  by  their  Governments  for  the  mutual  protection  of 
their  trade-marks. 

I  have  the  honour  to  inform  your  Excellency  that,  in  communicating  the 
above  to  you,  I  have  been  instructed  by  the  Marquess  of  Lansdowne  to  inquire 
whether  the  Portuguese  Government  would  be  disposed  to  conclude  a  similar 
arrangement  with  his  Majesty's  Government. 

I  avail,  &c., 

Fairfax  L.  Cartwright. 


(2). — Senhor  de  Lima  to  Mr.  Cartzvright. 
(Translation.)  Lisbon,  August  8,  1904. 

I  am  in  receipt  of  the  note  by  which  you  communicate  to  me  the  desire  of 
the  Marquess  of  Lansdowne  to  know  whether  the  Portuguese  Government  would 
be  disposed  to  conclude  an  arrangement  with  His  Britannic  Majesty's  Govern- 

*  Text  and  translation  as  printed  in  Hertslet,  p.  600. 

t  For  the  relevant  articles  of  the  Order  in  Council  of  February  11,  1907,  replacing  the 
provisions  of  the  Order  in  council  here  cited,  see  note  to  the  Anglo-American  arrange- 
ment concerning  trademarks   in  China    (No.   1905/4,  post). 


490  CHINA  TREATIES  AND  AGREEMENTS 

ment  in  the  sense  of  assuring  mutual  protection  for  Portuguese  and  British  trade- 
marks in  China. 

In  reply,  I  have  the  honour  to  inform  you  that  the  Portuguese  Government 
have  no  objection  in  concluding  the  proposed  arrangement  in  such  a  manner  that, 
on  the  date  $  which  may  be  fixed  by  exchange  of  notes,  both  Governments  shall 
transmit  instructions  to  their  Diplomatic  Representatives  at  Peking,  for  the  pur- 
pose of  bringing  into  effect,  before  the  Portuguese  Consular  Courts,  offences  for 
infringement  by  Portuguese  subjects  of  British  trade-marks  duly  registered  in 
Portugal,  and,  reciprocally,  before  the  British  Consular  Courts,  offences  for  in- 
fringment  by  British  subjects  of  Portuguese  trade-marks,  duly  registered  in  the 
United  Kingdom,  in  conformity  with  the  International  Convention  of  the  20th 
March,  1883.§ 

I  avail,  &c., 

Wenceslau  de  Lima. 


NUMBER  1904/5. 

GREAT  BRITAIN  AND  THE  NETHERLANDS. 

Exchange  of  notes  respecting  the  reciprocal  protection  of  trademarks  in  China.* — 

September  7,  1904. 

(1). — Sir  H.  Howard  to  Baron  de  Lynden. 

M.  LE  MiNiSTRE,  The  Hague,  August  15,  1904. 

Under  a  British  Order  in  Council  of  the  2nd  of  February,  1899,t  it  is  open 
to  a  foreigner  whose  trade-mark  has  been  infringed  by  a  British  subject  in  China 
to  take  proceedings  against  the  latter  in  the  British  Consular  Court,  provided — 

1.  That  the  consent  in  writing  of  the  British  Minister  or  Charge  d'AfTaires 
be  obtained  to  the  prosecution ;  but 

2.  Such  consent  may  be  withheld  unless  the  British  Minister  or  Charge 
d' Affaires  is  satisfied  that  effectual  provision  exists  for  the  punishment  in  Con- 
sular or  other  Courts  in  China  of  similar  acts  committed  by  the  subjects  of  the 
State  or  Power  of  which  such  prosecutor  is  a  subject. 

By  correspondence  with  the  French,  German,  and  Italian  Representatives 
at  the  Court  of  St.  James,  it  has  been  ascertained  that  provision  exists  for  the 
punishment  in  the  Consular  Courts  of  France,  Germany,  and  Italy  in  China  of 
subjects  of  those  countries,  should  they  infringe  British  trade-marks,  and  the 

*  Text,  and  translation  from  the  French  text,  as  printed  in  Hertslet,  p.  602. 

jFor  the  relevant  articles  of  the  Order  in  Council  of  February  11,  1907,  replacing  the 
provisions  of  the  Order  in  Council  here  cited,  see  note  to  the  Anglo-American  arrangement 
concerning  trademarks  in  China   (No.  1905/4,  post). 

t  The  1st  October,  1904.  was  eventually  fixed  as  the  date  (Hertslet). 

§  "  Hertslet's  Commercial  Treaties,"  Vol.  17,  p.  401. 


NUMBER  1904/5:  SEPTEMBER  7,  1904  491 

necessary  information  has  been  given  to  His  Majesty's  Representatives  in 
Peking-,  and  to  the  Representatives  there  of  the  above-mentioned  countries  to 
enable  them  to  carry  out  the  arrangements  desired  by  their  Governments  for  the 
mutual  protection  of  their  trade-marks. 

In  view  of  these  arrangements  I  am  desired  by  the  Marquess  of  Lansdowne 
to  enquire  of  your  Excellency  whether  the  Netherland  Government  would  be 
disposed  to  conclude  a  similar  arrangement  with  His  Majesty's  Government. 

While  expressing  the  hope  that  I  may  receive  a  favourable  reply  in  this 
regard,  and  inclosing  copies  of  the  Order  in  Council  of  the  2nd  February,  1899, 
as  also  of  the  correspondence  which  took  place  last  year  with  the  Italian  Repre- 
sentative in  London  on  the  subject,  I  avail  myself,  &c., 

Henry  Howard. 


(2). — Baron  de  Lynden  to  Sir  H.  Howard. 
[Translation.] 
M.  LE  MiNiSTRE,  The  Hague,  September  7,  1904. 

By  your  communication  of  August  15  last  your  Excellency  was  so  good  as  to 
propose  to  me  that  we  arrive  at  an  understanding  in  regard  to  the  reciprocal 
protection  of  trade-marks  in  China. 

In  reply  I  have  the  honor  to  bring  to  the  knowledge  of  your  Excellency  the 
fact  that  the  Netherlands  law  protects  trade-marks  (i.e.,  marques  de  fabriqiie  et 
de  commerce)  duly  registered  in  the  country,  whatever  be  the  nationality  of 
their  proprietor, — and  that  not  only  when  infringements  have  been  committed  in 
the  country  itself,  but  also  when  they  have  been  committed  in  a  country  subject 
to  the  system  of  extraterritoriality,  such  as  China. 

The  British  Government  being  disposed  to  give  similar  instructions  to  its 
representative  in  China,  I  have  advised  the  Netherlands  Minister  in  Peking  that, 
in  case  a  trade-mark  belonging  to  a  British  subject  or  protege,  and  duly  regis- 
tered in  The  Netherlands,  should  be  counterfeited  by  one  of  its  nationals,  this 
infraction  of  the  Netherlands  law  should  be  prosecuted  before  the  competent 
consular  tribunal. 

Rquesting  your  Excellency  to  be  so  good  as  to  advise  me  of  the  action 
which  your  Government  may  have  taken  in  this  matter,  I  avail,  etc. 

Baron  Melvil  de  Lynden. 


492  CHINA  TREATIES  AND  AGREEMENTS 

NUMBER  1904/6. 

BELGIUM  AND  GREAT  BRITAIN. 

Exchange  of  notes  respecting  the  reciprocal  protection  of  trademarks  in  China* — 

September  30,  1904. 

(1). — Sir  C.  Phipps  to  Baron  de  Favereau. 

M.  LE  MiNisTRE,  Brussels,  September  15,  1904. 

I  did  not  fail  to  communicate  to  His  Majesty's  Government  your  Excel- 
lency's note  of  the  31st  ultimo,  in  which  you  notified  to  me  the  willingness  of  the 
Belgian  Government  to  come  to  an  agreement  with  His  Majesty's  Government 
upon  the  subject  of  mutual  protection  of  trade-marks  in  China. 

I  have  now  the  honour  to  inform  your  Excellency,  by  direction  of  the 
Marquess  of  Lansdowne,  that  His  Majesty's  Minister  at  Peking  has  been  in- 
formed of  the  readiness  of  the  Belgian  Government  to  conclude  with  His 
Majesty's  Government  an  arrangement  for  the  mutual  protection  of  British 
and  Belgian  trade-marks  in  China  similar  to  those  made  by  Belgium  with  other 
European  Powers,  and  that  Sir  E.  Satow  has  been  requested  to  issue  the  neces- 
sary instructions  to  His  Majesty's  Consular  officers  in  order  that  protection  may 
be  afforded  in  the  British  Consular  Courts  to  Belgian  trade-marks  should  they 
be  infringed  by  British  subjects. 

I  avail,  &c., 

CONSTANTINE  PhIPPS. 


(2). — Baron  de  Favereau  to  Sir  C.  Phipps. 
[Translation.] 
M.  LE  MiNiSTRE,  Brussels,  September  30.  1904. 

I  have  before  me  the  letter  that  your  Excellency  was  so  good  as  to  address 
to  me  on  September  15  last,  on  the  subject  of  the  reciprocal  protection  of  Belgian 
and  English  trademarks  in  China. 

This  communication  points  out  that  His  Britannic  Majesty's  Government 
has  given  the  necessary  instructions  in  order  that  the  consular  tribunals  of  Great 
Britain  shall  assure  legal  protection  to  trademarks,  belonging  to  Belgian  subjects 
(i.e.,  ressortissants  Beiges),  which  may  have  been  counterfeited  by  English 
nationals  (i.e.,  nationaux  Anglais). 

In  acknowledging  this  communication  to  your  Excellency,  I  have  the  honor  to 
advise  you  that  the  Government  of  the  King  will,  on  its  part,  assure  the  pro- 
tection, in  the  Chinese  Empire,  of  English  trade-marks  (i.e.,  marques  de  fabrique 

*  Text,  and  translation  from  French  text,  as  printed  in  Hertslet,  p.  603, 


NUMBER  1905/1 :  MARCH  22,  1905  493 

OH  de  commerce)  regularly  registered  in  Belgium,  which  may  have  been  counter- 
feited by  Belgians  or  Belgian  proteges. 

The  Belgian  Legation  in  Peking,  and  the  Belgian  consulates,  vice  consulates 
and  consular  agencies  in  China,  are  competent  to  entertain  claims  presented  to 
them  in  such  cases. 

I  have  taken  care  to  inform  our  minister  in  Peking,  as  well  as  our  consular 
representatives  in  China,  of  the  conclusion  between  Belgium  and  Great  Britain 
of  the  agreement  embodied  in  the  exchange  of  communications  which  has  taken 
place  between  the  British  Legation  and  my  department. 
I  avail,  etc. 

(For  Baron  de  Favereau) 
J.  DE  Trooz, 
Minister  of  the  Interior  and  of  Public  Instruction. 


NUMBER  1904/7. 

INTERNATIONAL  AND  CHINA. 

Convention  for  the  exemption  of  hospital  ships  in  time  of  zvar  from  the  payment 
of  all  dues  and  taxes  imposed  for  the  benefit  of  the  State. — December  21, 
1904. 

[This  convention  does  not  appear  to  possess  any  such  particular  interest  in  reference 
to  China  as  to  warrant  its  inclusion  in  the  present  compilation.  Translations  of  the  French 
texts  of  the  convention,  and  of  the  Final  Act  of  the  Conference,  as  signed  at  The  Hague 
on  December  21,   1904,  are  to  be   found  in  Malloy,  p.  2135.] 


NUMBER  1905/1. 

BELGIUM   (La  Societe  des  Mines  du  Luhan)  AND  CHINA 
(Chihli  Lincheng  Mining  Company). 

Contract  concerning  the  Lincheng  mines.* — March  22,  1905. 

AGREEMENT  made  between  H.  E.  Liang  Tun  Yen.  Superintendent  of  Cus- 
toms, appointed  by  H.  E.  Yuan  Shih  Kai,  Viceroy  of  Chihli,  in  his  capacity 
of  Director  General  of  the  new  Chinese  Company,  owners  and  concession- 
aries of  all  the  mines  situated  within  the  geological  coal  field  of  Lincheng 
in  the  subprefectures  of  Lincheng,  Neikiou  and  Kao-yi,  acting  on  behalf 

*  For  the  Peking-Hankow  (Luhan)  Railway  concession  in  favor  of  the  Societe  Etudes, 
see  No.  1898/13,  ante.    See  Note  to  this  document,  post,  p.  498. 


494  CHINA  TREATIES  AND  AGREEMENTS 

of  and  in  the  name  of  the  above  named  company  of  the  one  part,  and  Mr. 
Jean  Jadot,  Engineer-in-Chief,  Controller  of  the  Peking-Hankow  Railway 
or  the  "  Societe  d'Etudes  de  Chemins  de  Fer  en  Chine,"  Brussels,  who  are 
agents  acting  on  behalf  of  and  in  the  name  of  the  newly  to  be  formed 
"  Chihli  Licheng  Mining  Loan  Co."  or  the  "  Societe  des  Mines  du  Luhan  " 
at  Brussels  of  the  second  part. 

Whereby  it  has  been  agreed  as  follows :  the  said  Lincheng  Mining  Company 
being  hereinafter  referred  to  as  the  "  Chihli  Lincheng  Mining  Company  "  and  the 
said  "  Chihli  Lincheng  Mining  Loan  Company "  or  "  Societe  des  Mines  du 
Luhan  "  as  the  "  Luhan." 

Article  1. — In  order  to  develop  the  working  of  its  mines  in  the  best  and 
most  economical  way  with  the  help  of  the  Luhan  Railway,  near  to  which  these 
mines  are  located,  the  Chihli  Lincheng  Mining  Company  has  decided  to  contract 
a  loan  sufficient  to  enable  all  the  necessary  new  plant  to  be  provided. 

Article  2. — The  said  loan  amounting  to  three  million  francs  gold  (about 
taels  923,000)  shall  be  provided  for  by  the  Luhan. 

Article  3. — The  said  loan  and  the  interest  at  seven  per  cent  accruing  due 
thereon  constitute  the  first  charge  on  all  the  properties  and  assets  both  present 
and  future  of  the  Chihli  Lincheng  Mining  Company  which  are  warranted  free 
from  all  other  encumbrances. 

Article  4. — The  said  loan  shall  be  advanced  in  four  equal  instalments 
according  as  it  is  wanted,  at  dates  to  be  mutually  agreed  on  by  the  Chihli  Lincheng 
Mining  Company  and  the  Luhan.  The  installments  shall  be  paid  into  a  bank  to 
be  mutually  appointed. 

Article  5. — During  the  continuance  of  the  said  loan,  the  mines  shall  be 
worked  jointly  by  the  Chihli  Lincheng  Company  and  the  Luhan. 

The  Chihli  Lincheng  Mining  Company  shall  appoint,  by  mutual  agreement 
with  the  Luhan,  the  principal  Chinese  officials  and  in  particular  the  Chinese 
manager  and  a  Chinese  engineer. 

The  Luhan  shall  appoint,  by  mutual  agreement  with  the  Chihli  Lincheng 
Mining  Company,  the  foreign  staff  and  in  particular,  the  engineering  manager. 
All  projected  works  and  new  plant  as  well  as  all  accounts  must  be  approved  by 
the  two  managers,  who  must  in  everything  act  in  perfect  harmony.  Every 
formal  document  shall  be  signed  by  the  two  managers  who  shall  always  act  in 
the  name  of  and  on  account  of  the  Chihli  Lincheng  Mining  Company. 

Article  6. —  (a)  The  value  of  the  assets  brought  in  by  the  Chihli  Lin- 
cheng Mining  Company,  including  concessions,  lands,  pits,  buildings,  ma- 
chinery plant,  surveying  outlay,  &c.,  is  estimated  at  the  sum  of  five  hundred  thou- 
sand taels  (Tls.  500,000)  this  sum  of  Tls.  500,000  being  made  up  as  fol- 
lows : 

L  Four  hundred  and  eighty  thousand  taels  (Tls.  480,000)  for  the  conces- 
sions, lands,  buildings,  pits,  machinery,  and  the  whole  plant  now  on 
the  premises. 

2.  Twenty  thousand  taels  (Tls.  20,000)  to  refund  the  Chinese  authorities 
the  expense  incurred  by  them  in  prospecting. 

As  a  consideration  for  the  expense  incurred  by  the  Luhan  prior  to  this 


NUMBER  1905/1 :  MARCH  22,  1905  495 

agreement,  on  their  detailed  examination  of  the  mines,  a  sum  of  one  hundred  and 
thirty  thousand  francs   (Frs.  130,000)   is  to  be  credited  to  that  company. 

(&)  Of  the  sum  of  five  hundred  thousand  taels  the  agreed  value  of  the 
properties  brought  in  by  the  Chihli  Lincheng  Mining  Company,  a  sum  of  one 
hundred  and  fifty  thousand  taels  (Tls.  150,000)  shall  be  taken  from  the  loan  and 
paid  in  cash  as  follows : 

Fifty  thousand  taels  (Tls.  50,000)  immediately  after  this  agreement  has  been 
sanctioned  by  imperial  edict,  twenty  thousand  taels  (Tls.  20,000)  due  to  the  Chi- 
nese Government  being  included  in  this  payment. 

Fifty  thousand  taels  (Tls.  50,000)  on  the  taking  over  by  the  two  directors 
Chinese  and  European  of  all  the  properties  and  existing  mining  plant. 

And  fifty  thousand  taels  (Tls.  50,000)  in  two  months  time  after  the  second 
payment. 

The  remainder  of  the  amount  of  assets  brought  in  by  the  Chihli  Lincheng 
Mining  Company  not  paid  in  cash,  that  is  to  say,  three  hundred  and  fifty  thousand 
taels  (Tls.  350,000)  shall  form  part  of  the  share  capital  and  participate  in  the 
remuneration  specified  in  Article  7  below  mentioned. 

Of  the  sum  of  one  hundred  and  thirty  thousand  francs  (Frs.  130,000) 
credited  to  the  Luhan  and  the  value  of  what  they  bring  into  the  company,  one- 
half,  that  is  sixty-five  thousand  francs  shall  be  paid  in  cash,  on  the  properties  and 
existing  plant  being  taken  over  and  the  other  half,  namely  sixty-five  thousand 
francs,  shall  form  part  of  the  share  capital  and  participate  in  the  remuneration 
specified  in  Article  7  hereof. 

(c)  As  soon  as  the  imperial  sanction  has  been  given,  the  two  companies, 
namely  the  Chihli  Lincheng  Mining  Company  and  the  Luhan,  shall  immediately 
take  possession  of  all  the  lands,  buildings,  pits,  machinery  and  plant  in  existence 
and  the  present  working  shall  be  continued  in  the  best  manner  possible. 

Article  7. — The  annual  net  profits  of  the  undertaking  shall  be  applied  as 
follows : 

(a)  In  payment  of  the  amount  necessary  to  pay  interest  at  the  rate  of  seven 
per  cent.  (7%)  per  annum,  to  be  paid  annually,  on  the  gold  loan. 

(&)  After  the  above  payment,  in  providing  the  amount  necessary  to  pay 
a  dividend  at  the  rate  of  seven  per  cent.  (7%)  per  annum,  to  be  paid  annually, 
on  the  share  capital  of  the  undertaking,  amounting  to  three  hundred  and  fifty 
thousand  taels  (Tls.  350,000)  and  sixty-five  thousand  francs  (Frs.  65,000)  as 
stated  in  Article  6  hereof. 

(c)  Ten  per  cent.  (10%)  of  the  remaining  profits  shall  be  paid  to  the  Chihli 
Lincheng  Mining  Company  to  form  an  amortisation  fund. 

{d)  The  remaining  profits  shall  be  divided  equally  between  the  Chihli  Lin- 
cheng Mining  Company  and  the  Luhan. 

Article  8. — If,  during  the  period  of  construction  of  the  new  plants,  which 
is  estimated  at  a  maximum  to  be  two  years,  the  profits  of  working  with  the 
existing  plant  are  insufificient  to  provide  the  interest  on  the  loan  and  dividends 
on  the  share  capital,  the  amount  necessary  for  this  purpose  shall  be  taken  from 
the  amount  of  the  loan. 

It  is  agreed  that  the  loan  shall  bear  interest  only  on  the  instalments  as  and 


496  CHINA  TREATIES  AND  AGREEMENTS 

when  they  are  paid;  and,  during  the  period  of  construction  the  share  capital 
shall  receive  dividends  only  in  proportion  to  the  amounts  of  the  loan  paid  in  at 
that  time. 

Article  9. — The  loan  is  made  for  a  term  of  thirty  years  from  the  date  of  the 
imperial  sanction  being  given.  During  the  first  fifteen  years  the  interest  on  the 
loan  shall  be  paid  as  stated  in  Article  7.  From  the  sixteenth  year,  the  amount 
of  the  gold  loan,  i.e.  three  million  francs,  shall  be  repaid  at  the  rate  of  one- 
fifteenth  a  year,  i.e.  two  hundred  thousand  francs ;  the  redeemed  sums  not  bear- 
ing the  seven  per  cent,  interest.  During  this  term  {i.e.,  from  the  fifteenth  to  the 
last  year)  from  the  sixteenth  to  the  twentieth  year  the  profits  shall  be  divided  by 
half  as  specified  in  paragraph  (d),  Article  7,  and  from  the  twenty-first  to  thirtieth 
year,  only  forty  per  cent,  of  the  total  remaining  profits  shall  be  due  to  the 
Luhan. 

At  the  end  of  the  thirtieth  year  the  total  amount  of  the  gold  loan  shall  be 
fully  redeemed  and  the  sum  of  sixty-five  thousand  francs,  part  of  the  share  capi- 
tal as  per  Article  6,  shall  be  repaid  to  the  Luhan. 

At  that  term  all  connections  between  the  Chihli  Lincheng  Mining  Company 
and  the  Luhan  will  cease  and  this  contract  shall  be  void. 

Article  10. — At  the  end  of  the  fifteenth  year  the  Chihli  Lincheng  Mining 
Company  shall  have  the  right,  provided  they  give  one  year's  notice,  to  terminate 
this  agreement  on  the  payment  to  the  Luhan  a  sum  equal  to  the  total  amount  of 
the  loan,  as  well  as  the  sum  of  sixty-five  thousand  francs  (Frs.  65,000)  forming 
part  of  the  share  capital,  as  stated  in  Article  6,  plus  a  bonus  equal  to  fifteen 
times  the  average  profits  of  the  five  last  years  of  working  paid  to  the  Luhan  by 
virtue  of  paragraph  (d)  of  Article  7  hereof.  Provided  always  that  this  bonus 
shall  in  no  event  exceed  nine-tenths  of  the  amount  of  the  gold  loan. 

On  their  part,  at  the  end  of  the  term  of  fifteen  years,  the  Luhan  shall  have 
the  right,  provided  they  give  one  year's  notice,  to  terminate  this  agreement  and  in 
such  case,  the  Chihli  Lincheng  Mining  Company  shall  repay  them  the  amount  of 
the  loan  plus  the  sum  of  sixty-five  thousand  francs  (Frs.  65,000)  being  part  of 
the  share  capital,  but  no  bonus  shall  be  payable.  If  after  the  fifteenth  year 
neither  the  Chihli  Lincheng  Mining  Company  nor  the  Luhan  wish  to  sever  the 
combination  it  shall  continue  as  specified  in  Article  9. 

Article  IL — It  is  understood  and  agreed  that  the  loan  herein  provided  for 
shall  be  a  first  charge  upon  the  properties  and  assets  of  the  Chihli  Lincheng  Min- 
ing Company  only  in  case  such  properties  and  assets  should  prove  insul^cient  to 
repay  the  loan,  or  the  interest  thereon,  or  any  part  of  such  loan,  no  residual 
liability  shall  attach  to  the  Chinese  Government  or  authorities,  nor  the  members 
or  shareholders  of  the  said  company  beyond  their  interest  in  the  mines  them- 
selves. 

Article  12. — During  the  continuance  of  the  combination  between  the  Chihli 
Lincheng  Mining  Company  and  the  Luhan,  the  Chihli  Lincheng  Mining  Com- 
pany shall  not  be  entitled  to  enter  into  any  engagement  without  the  consent  of 
the  Luhan ;  and  other  things  being  equal,  preference  shall  be  given  to  the  Luhan 
at  the  expiration  of  the  fifteenth  year  to  take  up  any  other  foreign  loan  which 
the  Chihli  Lincheng  Mining  Company  wish  to  raise,  but  this  shall  not  apply  to 


NUMBER  1905/1 :  MARCH  22,  1905  497 

future  arrangements  which  could  be  made  with  Chinese  capitalists  at  the  expira- 
tion of  the  fifteenth  year  in  case  of  Article  10  coming  in  force. 

The  Luhan  shall  not  without  the  consent  of  the  Chihli  Lincheng  Mining 
Company,  transfer  its  right  or  shares  in  the  capital  to  any  other  society  or 
person. 

Article  13. — The  Luhan  Railway  undertakes  to  carry  the  coal  from  Lin- 
cheng on  a  preferential  tariff  which  shall  not  exceed  one  dollar  cent  (0.01  dol.) 
per  ton  per  mile,  plus  a  fixed  charge  of  fifteen  dollar  cents  per  ton,  for  all  coal 
sent  by  full  train  loads.  If  the  sterling  value  of  the  Mexican  dollar  falls  below 
two  francs,  the  tariff  shall  be  raised  in  proportion  to  the  fall  in  the  value  of  the 
dollar.  The  Luhan  Railway  shall  pay  for  all  coal  purchased  for  its  own  con- 
sumption at  seventy-five  per  cent,  of  the  usual  selling  price  of  the  coal  at  the 
mines. 

Article  14. — The  royalties  to  be  paid  to  the  Chinese  Government  and  to  the 
local  and  provincial  authorities  shall  not  exceed  in  the  aggregate  5%  (five  per 
cent.)  on  the  tonnage  extracted  from  the  mines.  This  tax  shall  be  paid  on  the 
basis  of  the  net  cost  of  the  coal  at  the  pit  mouth  being  one  tael  per  ton ;  duty  and 
likin  shall  be  the  same  as  paid  by  the  Chinese  Engineering  and  Mining  Company 
Limited,  namely  eighty-four  (84)  large  cash  per  ton  for  likin  and  ten  cents  taels 
(Tls.  0.10)  per  ton  for  duty.  Coal  sold  to  the  railways  and  other  Government 
undertakings  shall  only  pay  the  government  royalty.  Besides  the  likin  and 
royalty  no  other  duties  shall  be  payable  except  the  ordinary  land  tax.  It  is  agreed 
that,  in  the  event  of  other  coals  paying  in  the  Chihli  province  duties  lower  than 
those  above  mentioned  such  reduced  rates  shall  be  applied  to  the  coal  from  the 
Lincheng  mines. 

Article  15. — All  materials  and  other  things  destined  for  the  mines  shall 
pay  the  Imperial  Maritime  Customs  duty  but  shall  be  free  of  all  dues  or  likin. 

Article  16. — H.  E.  the  Viceroy  of  Chihli  gives  his  protection  and  support  to 
this  mining  undertaking ;  he  shall  exercise  full  authority  over  the  association  and 
his  orders  shall  be  obeyed  and  respected  as  far  as  they  are  not  contrary  to  the 
interests  of  the  undertaking. 

Article  17. — In  case  any  disputes  shall  arise  between  the  parties  hereto, 
each  of  them,  the  Chihli  Lincheng  Mining  Company  and  the  Luhan,  shall  appoint 
an  arbitrator  to  settle  the  difference  and  in  case  of  disagreement  between  the 
arbitrators,  an  umpire  shall  be  appointed  by  the  arbitrators,  whose  decisions  shall 
be  final. 

Article  i8. — This  agreement  is  drawn  up  in  six  copies  each  consisting  of  a 
Chinese  and  English  version.  The  Chinese  and  English  versions  have  been  care- 
fully compared  and  are  acknowledged  to  agree  in  every  particular,  whereof,  both 
shall  be  treated  authoritative.  The  six  copies  shall  be  signed  by  the  representa- 
tives of  the  two  contracting  companies.  They  shall  be  submitted  for  approval  to 
H.  E.  the  Viceroy  who  shall  affix  his  seal  thereto,  after  which  the  agreement  shall 
be  presented  for  imperial  sanction. 

One  set  shall  be  kept  in  the  Viceroy's  Yamen. 

One  set  shall  be  kept  in  the  Customs  Taotai's  Yamen. 

Two  sets  shall  be  kept  by  the  Chihli  Lincheng  Mining  Company. 


498  CHINA  TREATIES  AND  AGREEMENTS 

Two  sets  shall  be  kept  by  the  Luhan. 

Signed  and  sealed  on  the  twenty-second  day  of  March,  One  thousand  nine 
hundred  and  five  A.D. 

(sd.)  pp.pour  /,  Jadot  (sd.)     Liang  Tun  Yen. 

D.  Mamet.  (sealed) 


Note. 

It  is  understood  that  during  the  course  of  the  negotiations  for  this  contract,  letters  were 
exchanged  under  date  of  February  1,  1905,  of  which  the  purport  is  indicated  by  the  fol- 
lowing communication  in  behalf  of  the  Societe  des  Mines  du  Luhan: 

"  To  His  Excellency  Customs  Taotai  Liang,  Tientsin. 
"  Your  Excellency, 

"  I  have  the  honor  to  acknowledge  receipt  of  your  letter  of  this  date  confirming  our 
verbal  agreement  concerning  the  Lincheng  Mining  Contract  as  follows : 

"  '  Referring  to  our  recent  conversation,  I  now  beg  to  confirm  our  verbal  agreement  that 
in  case  a  contract  is  made  between  us  for  the  working  of  the  Lincheng  mines,  as  per  copy 
of  contract  now  under  negotiations  between  us,  there  shall  be  addressed  to  the  director 
general  of  the  Chihli  Lincheng  Mining  Company,  annually,  at  the  end  of  every  year,  a 
report  giving  a  detailed  account  of  works  carried  out  in,  and  in  connection  with  the  mines 
during  the  past  year  and  a  project  of  the  works  which  it  is  proposed  to  carry  out  during 
the  following  year.  The  details  given  in  these  reports  shall  be  given  with  sufficient  clear- 
ness to  show  the  character  of  the  work  done  and  to  be  done,  and  to  enable  the  director 
general  to  determine  whether  or  not  the  mining  work  is  being  done  to  the  best  interest  of 
the  property  and  the  due  conservation  thereof.  Any  objection  of  the  director  general  to 
proposed  work  shall  receive  careful  attention  from  the  representatives  of  the  Luhan 
(Societe  des  Alines  du  Luhan),  and  at  the  demand  of  the  director  general,  the  proposed 
work  shall  be  modified  to  conform  to  the  usage  of  the  best  mines. 

"  '  It  is  specially  agreed  that  in  the  working  of  the  mines,  due  care  shall  be  taken  for 
the  proper  development  and  conservation  thereof.  The  permanent  preservation  of  the 
mines  shall  be  constantly  kept  in  view,  and  under  no  circumstances  shall  a  desire  for 
increased  output  be  allowed  to  prejudice  the  value  of  the  property.' 

"  I  have  now  the  honor  to  confirm  this  agreement  and  to  state  that  the  provisions 
hereof  shall  be  binding  upon  the  engineer  and  manager  of  the  Luhan. 

"  I  am, 

"Your  Excellency's 

"  Most  obedient  servant, 

"  (sd.)  D.   M.\MET." 


NUMBER  1905/2. 

GREAT  BRITAIN  AND  CHINA. 

Convention  respecting  the  junction  of  the  Chinese  and  Burmese  telegraph  lines.* — 

May  23,  1905. 

Article   I. — The   Government   of    His   Majesty   the   King   of    the   United 
Kingdom  of  Great  Britain  and  Ireland,  Emperor  of  India,  and  the  Government 

♦Text  as  printed  in  Hertslef,  p.  195.  Printed  also  in  British  Treaty  Series  (1905), 
No.  22. 

This  convention  is  a  revision  of  that  of  September  6,  1894,  which  is  not  included  in 
the  present  compilation  but  is  printed  in  the  British  Treaty  Series  (1895),  No.  9,  and  in 
Hertslet,  p.  110. 


NUMBER  1905/2 :  ^L\Y  23,  1905  499 

of  His  Majesty  the  Emperor  of  China  with  a  view  to  facihtating  international 
telegraphic  communication  have  resolved  to  revise  the  existing  agreement  re- 
garding the  exchange  of  telegraphic  correspondence  over  the  lines  of  the  two 
states  on  the  frontier  of  Burma  and  Yiinnan. 

Article  II. — The  junction  on  the  frontier  remains  as  hitherto  between 
the  British  station  at  Bhamo  and  the  Chinese  station  at  Tengyueh  (Momein), 
and  an  intermediate  station  will  continue  to  be  maintained  at  Manwyne. 

Article  III. — The  Indian  and  the  Chinese  Administrations  shall  maintain 
in  good  condition  the  line  of  connection,  and  shall  exchange  the  correspondence 
by  wire  between  the  two  stations  named  in  Article  II,  or  between  any  other 
two  stations  hereafter  mutually  agreed  upon. 

Each  of  the  contracting  parties  shall  bear  the  expense  incurred  for  these 
purposes  on  its  own  territory,  and  will  take  care  that  the  boundaries  between  the 
territories  of  the  two  governments  are  scrupulously  respected. 

Article  IV. — The  rules  laid  down  in  the  Service  Regulations  of  the  Inter- 
national Telegraph  Convention  shall  be  observed  with  regard  to  the  technical 
treatment  of  telegrams  transmitted  over  the  line  of  connection  described  in 
Article  11. 

When  the  senders  of  telegrams  do  not  expressly  indicate  the  route  by  which 
they  wish  their  telegrams  to  be  forwarded,  it  is  understood  that  at  lower  rates  all 
limitrophe  correspondence  and  at  equal  rates  half  the  limitrophe  correspondence 
shall  be  forwarded  via  the  line  of  connection  described  in  Article  II,  provided 
that  the  alternative  routes  are  in  equally  good  working  order. 

Article  V. — Each  of  the  contracting  parties  fixes  the  charges  for  trans- 
mission of  telegrams  by  its  lines  up  to  the  frontier  of  its  own  territory. 

Article  VI. — The  following  charges  per  word  are  declared  for  corre- 
spondence exchanged  via  the  line  of  communication  described  in  Article  II : — • 

I.     Indian  Telegraph  Administration. 

A.  terminal  charges. 

For  Telegrams  exchanged  zvith  places  in  China.'f 

Francs. 

1.  From  Stations  in  Burma  to  the  Chinese  frontier   0.10 

2.  From  Stations  in  India  to  the  Chinese  frontier 0.35 

3.  From  Stations  in  Ceylon  to  the  Chinese  frontier   0.45 

For  Telegrams  exchanged  with  places  beyond  China.'f 

4.f  From  Stations  in  Burma  to  the  Chinese  frontier 0.575 

5.t  From  Stations  in  India  to  the  Chinese  frontier 0.825 

6.t  From  Stations  in  Ceylon  to  the  Chinese  frontier 0.940 


B.  transit  charges. 

Between  the  Chinese-Burmese  frontier  and  all  other  frontiers 0.35 

fHertslet    (p.    196)    notes   that  these   additions   were   made,   by   arrangement   with   the 
Chinese  Government,  in   1907. 


500  CHINA  TREATIES  AND  AGREEMENTS 

II.     China. 

A.    TERMINAL    CHARGES. 

1.  For  telegrams  exchanged  with  Europe  and  countries  beyond  Europe 

(except   America) 3.36 

2.  For  telegrams  exchanged  with  America 4.86 

3.  For  telegrams  exchanged  between  all  other  countries  on  the  one  side  and 

stations  on  the  Yangtze  or  south  of  the  Yangtze  on  the  other  side.  ...    1.00 

4.  For  telegrams  exchanged  between  all  other  countries  on  the  one  side 

and  stations  situated  to  the  north  of  the  Yangtze 1.50 

5.  (a)   For  telegrams  exchanged  between  Burma,  India,  and   Ceylon  on 

the  one  side  and  the  province  of  Yiinnan  on  the  other  side 0.50 

(b)  For  bond- fide  British  and  Chinese  Government  telegrams  between 
Burma,  India  and  Ceylon  on  the  one  side  and  the  province  of  Yiinnan 
on  the  other  side 0.25 

B.    TRANSIT  CHARGES. 

1.  For  telegrams  exchanged  between  Europe  and  countries  beyond  Europe 

(except  America)  on  the  one  side  and  all  countries  beyond  China  on 
the  other  side 3.36 

2.  For  telegrams  exchanged  between  America  on  the  one  side  and  all  other 

countries  beyond  China  on  the  other  side 4.86 

3.  For  all  other  telegrams  between  the  Burmese-Chinese  frontier  and — 

(a)  Shanghai  or  frontier  stations  south  of  the  Yangtze 1.25 

(b)  All  other  frontiers 1.50 

The  charges  established  for  telegrams  exchanged  between  China  on  the  one 
side,  and  Burma,  India,  and  Ceylon  on  the  other  side,  are  solely  for  corre- 
spondence actually  exchanged  between  the  named  neighbouring  countries,  and  the 
Chinese  European  and  American  correspondence  cannot  be  re-telegraphed  at 
these  rates  by  private  agencies  or  persons  at  intermediate  stations. 

If  during  the  course  of  operation  of  this  Convention  the  rates  of  China 
or  of  the  Telegraph  Companies  operating  in  China  be  diminished  for  telegrams 
exchanged  by  the  whole  of  China,  including  Hongkong,  with  Europe  and  the 
countries  beyond  Europe,  China  undertakes  simultaneously  and  in  the  same 
proportion  to  lower  her  present  terminal  and  transit  rates  for  such  telegrams 
on  their  transmission  along  the  Burma-Yiinnan  line. 

Article  VII. — The  checking  of  the  amount  of  correspondence  exchanged 
via  the  line  of  connection  shall  take  place  daily  by  wire  between  the  stations 
named  in  Article  II. 

The  settlement  of  accounts  shall  take  place  at  the  end  of  each  month  and 
the  resulting  balance  shall  be  paid  one  month  after  the  end  of  the  month  in  account 
to  the  Indian  Telegraph  Administration  at  Calcutta  or  to  the  Chinese  Telegraph 
Administration  at  Shanghai. 

The  month  shall  be  reckoned  according  to  the  European  calendar.     Tele- 


NUMBER  1905/3 :  JUNE  7,  1905  501 

grams  referring  to  the  settlement  of  accounts  shall  be  considered  as  service 
telegrams  and  transmitted  free  of  charge. 

Article  VIII. — The  collection  of  the  charges  at  all  the  stations  of  the  Chinese 
Telegraph  Administration,  according  to  the  rates  fixed  in  Article  VI  of  the  present 
Convention  in  gold  francs,  as  well  as  the  liquidation  of  the  mutual  accounts,  shall 
be  made  in  Mexican  dollars  according  to  the  actual  rate  of  exchange  between 
this  coin  and  the  franc. 

This  rate  of  exchange  shall  be  agreed  upon  between  the  Telegraph  Admin- 
istrations of  the  contracting  Governments  during  the  month  preceding  "each  quarter 
on  the  basis  of  the  average  rate  of  exchange  during  the  three  months  preceding 
that  during  which  the  rate  is  fixed. 

As  regards  out  payments  to  Telegraph  Administrations  beyond  China  and 
India  the  Chinese  and  Indian  Telegraph  Administrations  will  communicate  to 
each  other  their  amount  and  this  amount  the  two  Administrations  will  be  at 
liberty  to  collect  and  settle  at  such  rates  as  may  protect  them  from  loss. 

Article  IX. — The  present  Convention  shall  come  into  force  on  the  first 
day  of  June,  1905,  and  shall,  unless  otherwise  mutually  agreed  upon,  remain 
in  force  for  ten  years  and  thereafter  until  twelve  months  after  one  of  the 
contracting  parties  shall  have  given  notice  of  its  intention  to  modify  or  to 
abrogate  it. 

In  witness  whereof  the  Undersigned  duly  authorized  to  this  effect  have  signed 
the  present  Convention. 

Done  at  Peking  in  the  English  language  and  in  the  Chinese  language.  Three 
expeditions  duly  compared  and  found  to  be  in  agreement  have  been  signed  in 
each  of  these  languages  on  the  23rd  day  of  the  month  of  May,  1905,  correspond- 
ing with  the  20th  day  of  the  4th  moon  of  the  thirty-first  year  of  the  reign  of 
Kuang  Hsii. 

(L.S.)  Ernest   Satow  [Signature  and   Seal  of  the  Chinese   Pleni- 

potentiary] 


NUMBER  1905/3. 

INTERNATIONAL  AND  CHINA. 

Convention  for  the  creation  of  an  international  institute  of  agriculture. — June 

7,  1905. 

[The  text  of  this  convention  is  not  printed  here,  as  it  does  not  appear  to  possess  any 
such  particular  interest  in  reference  to  China  as  to  warrant  its  inclusion.  A  translation 
from  the  French  text  of  the  convention  as  concluded  at  Rome,  June  7,  1905,  is  printed  in 
Malloy,  p.  2140.] 


502  CHINA  TREATIES  AND  AGREEMENTS 

NUMBER  1905/4. 

GREAT  BRITAIN  AND  THE  UNITED  STATES. 

Exchange   of   notes  in  regard   to   the   reciprocal  protection   of   trade-marks  in 

China^—Jitne  28, 1905. 

British  Embassy, 
Lenox,  Mass.,  August  16,  1904. 
Sir  :  Under  an  Order  in  Council  of  the  2nd  February,  1899,t  it  is  open  to 
a  foreigner  whose  trade-mark  has  been  infringed  by  a  British  subject  in  China 
to  take  proceedings  against  the  latter  in  the  British  Consular  Court,  provided — 

(1)  That  the  consent  in  writing  of  His  Majesty's  Minister  or  Charge 
d' Affaires  be  obtained  to  the  prosecution ;  but 

(2)  Such  consent  may  be  withheld  unless  His  Majesty's  Minister  or  Charge 
d'Affaires  is  satisfied  that  effectual  provision  exists  for  the  punishment  in  Consular 
or  other  Courts  in  China  of  similar  acts  committed  by  the  subjects  of  the  State 
or  Power  of  which  such  prosecutor  is  a  subject. 

By  correspondence  with  the  French,  German  and  Italian  representatives  in 
London,  it  has  been  ascertained  that  provision  exists  for  the  punishment  in  the 
Consular  Courts  of  France,  Germany,  and  Italy  in  China  of  citizens  or  subjects 
of  those  countries  should  they  infringe  British  trade-marks,  and  the  necessary 
information  has  been  given  to  His  Majesty's  Representative  in  Peking  and  to 
the  Representatives  there  of  the  three  countries  mentioned  to  enable  them  to  carry 
out  the  arrangements  desired  by  their  Governments  for  the  mutual  protection  of 
their  trade-marks. 

I  am  instructed  by  His  Majesty's  Principal  Secretary  of  State  for  Foreign 
Affairs  to  enquire  whether  the  Government  of  the  United  States  would  be  disposed 
to  conclude  a  similar  arrangement  with  His  Majesty's  Government. 

I  have  the  honour  to  be,  with  the  highest  consideration,  sir,  your  most  obe- 
dient, humble  Servant, 

(Signed)  H.  M.  Durand. 

The  Honourable  John  Hay, 

Secretary  of  State,  etc.,  etc.,  etc. 


Department  of  State, 
Washington,  September  23,  1904. 
Excellency:  I  have  the  honor  to  acknowledge  the  receipt  of  your  note 
of  the   16th  ultimo  inquiring  whether  this  Government  would  be  disposed  to 
conclude  with  that  of  Great  Britain  an  agreement  providing  for  the  punishment 

*  Text  as  iprinted  in  U.  S.  Treaty  Series  (No  Number).    Printed  also  in  Hertslet,  p.  604; 
M alloy,  p.  800. 

t  See  Note  to  this  document,  posi,  p.  505. 


NUMBER  1905/4:  JUNE  28,  1905  503 

in  the  consular  courts  of  the  United  States  of  American  citizens  infringing 
British  trade-marks  in  China  and  for  the  punishment  in  the  Consular  courts 
of  Great  Britain  of  British  subjects  infringing  American  trade-marks  in  China. 

The  Government  of  the  United  States  is  of  the  opinion  that  some  arrange- 
ment of  this  sort  would  be  advantageous  to  its  citizens  doing  business  in  China, 
and  is  therefore  willing  to  enter  into  such  an  agreement  with  regard  to  China 
as  it  already  has  with  your  Government  for  the  reciprocal  protection  of  trade- 
marks in  Morocco.  Under  that  agreement  the  American  consular  courts  in 
Morocco  protect  British  subjects  against  the  infringement  by  American  citizens 
in  Morocco  of  such  of  their  trade-marks  as  have  been  duly  registered  in  the 
United  States,  and  the  British  consular  courts  afford  like  protection  to  American 
citizens  against  the  infringement  by  British  subjects  of  such  of  their  trade-marks 
as  have  been  duly  registered  in  Great  Britain. 

If  this  is  satisfactory  to  your  Government,  the  proposed  agreement  could  be 
effected  by  an  exchange  of  notes  as  in  the  case  of  Morocco. 

I  have  the  honor  to  be,  with  highest  consideration,  your  excellency's  most 
obedient  servant, 

Francis   B.    Loomis, 

Acting  Secretary. 

His  Excellency  the  Right  Honorable 

Sir  H.  M.  DuRAND,  G.C.M.G.,  K.C.S.I.,  K.C.I.E., 

etc.,  etc.,  etc. 


British   Embassy, 
Washington,  April  10,  1905. 

Sir,  I  communicated  to  His  Majesty's  Secretary  of  State  for  Foreign  Affairs 
your  note  of  September  23,  1904  relative  to  the  proposed  Agreement  between  His 
Majesty's  Government  and  the  United  States  Government  for  the  mutual  protec- 
tion of  British  and  American  Trade  Marks  in  China. 

I  am  now  in  receipt  of  a  despatch  from  Lord  Lansdowne  stating  that  His 
Majesty's  Government  agree  in  the  proposal  put  forward  in  that  note  that  an 
arrangement  should  be  come  to  between  the  two  Governments  with  regard  to 
China,  such  as  already  exists  between  them  for  the  reciprocal  protection  of 
Trade  Marks  in  Morocco. 

I  am  directed  to  inform  you  of  the  concurrence  of  His  Majesty's  Government 
in  the  proposal,  and  to  add  that  the  necessary  instructions  on  the  subject  will 
be  sent  to  His  Majesty's  Minister  at  Peking. 

I  have  the  honour  to  be,  with  high  consideration,  sir,  your  most  obedient, 

humble  servant, 

H.  M.  Durand. 

The  Honourable  Francis  B.  Loomis, 

Acting  Secretary  of  State,  etc.,  etc.,  etc. 


504  CHINA  TREATIES  AND  AGREEMENTS 

Department  of  State, 
Washington,  April  17,  1905. 
Excellency  :  I  have  the  honor  to  acknowledge  the  receipt  of  your  note  of 
the  10th  instant  informing  me  of  the  concurrence  of  his  Majesty's  Government 
in  the  proposal  made  by  this  Department's  note  of  September  23,  1904,  that  the 
agreement  between  the  Government  of  the  United  States  and  that  of  His  Britannic 
Majesty  for  the  mutual  protection  of  American  and  British  trade-marks  in  China, 
be  effected  by  an  exchange  of  notes,  as  was  done  in  the  case  of  the  reciprocal 
protection  of  trade-marks  in  Morocco,  and  that  the  necessary  instructions  on 
the  subject  would  be  sent  to  His  Majesty's  Minister  at  Peking. 

In  accordance  with  the  understanding  thus  reached,  instructions  have  this 
day  been  addressed  to  the  American  Minister  at  Peking  directing  him  to  effect 
the  exchange  of  notes  with  His  Majesty's  Minister  there. 

I  have  the  honor  to  be,  with  the  highest  consideration,  your  excellency's  most 
obedient  servant  (Signed)  Francis  B.  Loomis 

Acting  Secretary. 
His  Excellency  the  Right  Honorable 

Sir  H.  M.  DuRAND,  G.C.M.G.,  K.C.S.I.,  K.C.I.E., 

etc.,  etc.,  etc. 


American   Legation, 
Peking,  China,  June  28,  1905. 

Mr.  Minister  and  Dear  Colleague  :  The  Acting  Secretary  of  State  of  the 
United  States  has  informed  me  in  an  instruction  dated  April  17,  1905,  that  you 
have  been  authorized  by  your  Government  to  enter  into  a  reciprocal  agreement 
with  me  for  the  mutual  protection  of  trade-marks  registered  in  the  United  States 
and  Great  Britain  against  infringement  in  China  by  the  citizens  or  subjects  of  our 
respective  nations,  and  he  has  given  me  authority  to  effect  with  you  by  an  exchange 
of  notes  an  agreement  for  the  reciprocal  protection  of  American  and  British  trade- 
marks in  China. 

In  pursuance  of  the  general  agreement  reached  between  our  respective  govern- 
ments on  the  subject,  it  affords  me  much  satisfaction  to  agree  on  behalf  of  the 
government  of  the  United  States,  that  henceforth  trade-marks  of  British  subjects 
having  been  duly  registered  in  the  United  States  of  America,  will  be  protected 
against  infringement  by  such  persons  as  come  under  the  jurisdiction  of  the  United 
States  Consular  Courts  in  China,  in  which  effectual  provision  exists  for  the  pun- 
ishment of  such  infringements  by  American  citizens. 

I  have  the  honor  to  be,  my  dear  colleague,  your  obedient  servant, 

(Sgd.)  W.    W.    ROCKHILL. 


Peking,  June  28,  1905. 
Mr.  Minister  and  Dear  Colleague:  I  have  the  honour  to  acknowledge 
the  receipt  of  your  letter  of  this  date,  informing  me  that  you  have  been  authorized 


NUMBER  1905/4 :  JUNE  28,  1905 :  NOTE  505 

by  your  Government  to  effect  with  me  by  an  exchange  of  notes  an  agreement  for 
the  reciprocal  protection  of  American  and  British  trademarks. 

I  beg  to  thank  you  for  this  communication  and  to  assure  that  it  affords  me 
much  satisfaction  to  enter  into  this  reciprocal  agreement,  and  henceforth  protec- 
tion will  be  afforded  in  China  by  His  Britannic  Majesty's  Supreme  Court  for 
China  and  Corea  and  the  Provincial  Courts  to  trade-marks  of  citizens  of  the 
United  States  which  have  been  duly  registered  in  Great  Britain  in  conformity 
with  "  The  Patents,  Designs,  and  Trademarks  Acts,  1883  to  1888." 

xA.t  the  same  time  it  appears  necessary  to  mention  that  the  consent  in  writing 
of  His  Majesty's  Minister  or  Charge  d'Affaires  |  must  be  obtained  on  each 
occasion,  which  consent  will  be  given  as  a  matter  of  course  in  consequence  of 
the  assurance  contained  in  your  Note  under  reply  that  effectual  provision  exists 
for  the  punishment  in  the  United  States  Consular  Courts  in  China  of  infringe- 
ment, by  such  persons  as  come  under  the  jurisdiction  of  those  Courts,  of  the 
trade-marks  of  British  subjects  which  shall  have  been  duly  registered  in  the 
United  States  of  America. 

I  have  the  honour  to  be,  sir,  your  obedient  servant, 

(Sgd)  Ernest  Satow, 

His  Excellency,  the  Honourable  W.  W.  Rockhill, 

etc.,  etc.,  etc. 


Note. 

The  Order  in  Council  above  cited  has  been  repealed :  the  relevant  provisions  of  law 
are  embodied  in  the  Order  in  Council  of  February  11,  1907  (amending  the  China  and  Corea 
Order  in  Council  of  1904),  Articles  3  and  4  of  which  are  to  the  following  effect: 

British  Order  in  Council. — February  ii,  1907. 

"Article  3. — Any  Act  which,  if  done  in  the  United  Kingdom,  or  in  a  British 

Possession,  would  be  an  offence  against  any  of  the  following  Statutes  of  the  Imperial 
Parliament  or  Orders  in  Council,  that  is  to  say : — 

"(a)   'The  Merchandise   Marks  Act,   1887'; 

"(b)   'The  Patents,  Designs,  and  Trade  Marks  Acts,  1883  to   1902'; 

"(c)  'The   Trade    Marks   Act,   1905'; 

"(d)   Any  Statute  amending  or  substituted  for  any  of  the  above-mentioned   Statutes; 

"  (e)  Any  Act,  Statute,  or  Order  in  Council  for  the  time  being  relating  to  copyright, 
or  to  inventions,  designs,  or  trade-marks,  of  which  a  copy  is  kept  exhibited  in  the  public 
offices  of  the  Consulates  at  Shanghai  and  Seoul,  and  is  there  open  for  inspection  by  any 
person  at  all  reasonable  times;  shall,  if  done  by  a  British  subject  in  China  or  Corea,  be 
punishable  as  a  grave  offence  against  the  Principal  Order,  whether  such  act  is  done  in 
relation  to  any  property  or  right  of  a  British  subject,  or  of  a  foreigner  or  native,  or  other- 
wise howsoever. 

"  Provided : — 

"  (1)  That  no  person  shall  be  punished  under  this  Order  for  an  act  which  would  be 
an  offence  against  any  Act,  Statute,  or  Order  in  Council,  the  exhibition  of  which  is  required 
by  paragraph  (e)  above,  unless  such  exhibition  had  commenced  not  less  than  one  month 
before  the  act  took  place,  or  unless  the  person  offending  is  proved  to  have  had  express 
notice  of  such  Act,  Statute,  or  Order  in  Council. 


Jit  would  appear  that  by  Articles  3  and  4  of  the  Order  in  Council  of  February  11, 
1907  (quoted  above),  this  consent  is  no  longer  requisite. 


506  CHINA  TREATIES  AND  AGREEMENTS 

"  (2)  That  a  prosecution  by  or  on  behalf  of  a  prosecutor  who  is  not  a  British  subject 
shall  not  be  entertained,  unless  either  (a)  an  arrangement  is  in  force  between  His  Majesty's 
Government  and  the  Government  of  the  State  oi*  Power  to  which  the  prosecutor  belongs, 
or  (b)  the  Court  is  satisfied  that  effectual  provision  exists,  for  the  punishment  in  Consular 
or  other  Courts  in  China  or  Corea  of  similar  acts  committed  by  the  subjects  of  such  State 
or  Power  in  relation  to  or  affecting  the  interests  of  British  subjects.  Where  such  an 
arrangement  is  in  force  the  Minister  may  issue  a  notification  to  that  effect,  and  the  Court 
shall  take  judicial  notice  thereof. 

"  Article  4. — No  action  shall  be  brought  for  the  protection  of  any  copyright,  trade-mark, 
patent,  or  design  by  any  person  who  is  not  a  British  subject,  unless  either  (a)  an  arrange- 
ment is  in  force  between  His  Majesty's  Government  and  the  Government  of  the  State  or 
Power  to  which  the  plaintiff  belongs,  or  (b)  the  Court  is  satisfied  that  effectual  provision 
exists,  for  the  protection  in  Consular  or  other  Courts  in  China  or  Corea  of  the  rights  and 
interests  of  British  subjects  in  copyrights,  trade-marks,  patents,  and  designs  infringed  by 
the  subjects  of  such  State  or  Power. 

"  Where  such  an  arrangement  is  in  force  the  Minister  may  issue  a  notification  to  that 
effect,  and  the  Court  shall  take  judicial  notice  thereof."     (Hertslet,  p.  1097.) 


NUMBER  1905/5. 

GREAT  BRITAIN    (Pekin  Syndicate,  Limited)   AND  CHINA. 

Loati  agreement,  and  zvorking  agreement,  for  tJie  Taokozv-Chinghiia  Railway* — 

July  3,  1905. 

(I.) — Loan  Agreement 

Agreement  for  the  construction  of  a  railway  from  Taokow  to  Chinghua,  in 
the  Province  of  Honan,  made  between  H.  E.  Sheng  Hsuan-Huai,  Director-General 
of  Railways,  being  thereto  specially  authorized  by  the  Chinese  Government,  and 
George  Jamieson,  Esq.,  C.  M.  G.,  Agent  General  of  the  Pekin  Syndicate  Limited, 
also  being  fully  authorized  by  the  said  syndicate: 

1.— On  the  21st  Tvlay  1898  (Kwanghsu  24th  year  4th  Moon  2nd  day)  the 
Shansi  Bureau  of  Trade  signed  an  Agreement  with  the  Pekin  Syndicate  for 
working  coal  and  iron  in  the  five  following  places,  namely,  Yu  Hsien,  Pingting- 
Chow,  Luanfu,  Tsechowfu  and  Pingyangfu  in  the  province  of  Shansi  f  and  on 
the  21st  June  1898  (Kwanghsu  24th  year  5th  Moon  3rd  day)  the  Yu-Feng  Com- 
pany signed  a  mining  Agreement  with  said  Syndicate  for  mining  in  Honan  in 
the  neighborhood  of  Huai  Ching  and  north  of  the  Yellow  River.|  These  Agree- 
ments were  both  ratified  by  the  Tsungli  Yamen,  in  pursuance  of  an  Imperial 
Decree  dated  17th  May  1898  (Kwanghsu  24th  year  intercalary  3rd  Moon  27th 
day).  In  Article  17  of  said  Agreements  it  was  stated  that  the  Pekin  Syndicate 
on  notifying  the  Governor  of  the  province  should  be  permitted  to  build  a  railway 
to  connect  the  mines  with  a  main  line  or  with  water  navigation.  In  June  1902 
the  Pekin  Syndicate  began  to  open  coal  mines  in  Siu  Wu  Hsien  of  Honan  prov- 

*  Texts  as  printed  in  Wang,  pp.  325,  345.    Printed  also  in  F.  E.  Review,  vol.  5,  pp.  135, 
137,  and  Kent,  pp.  235,  240. 

t  Annexed  to  No.  1908/2,  post. 
t  No.  1898/12,  ante. 


NUMBER  1905/5 :  JULY  3,  1905  507 

ince  and  at  the  same  time  gave  notice  to  the  Governor  and  obtained  permission 
to  build  a  railway  from  the  said  mines  to  Taokow  a  port  on  the  Wei  River. 

The  British  Minister  has  now  applied  that  the  said  railway  be  put  under 
the  General  Administration  of  the  Imperial  Chinese  Railway  Company  and  the 
matter  having  been  arranged  in  consultation  with  the  Wai  Wu  Pu,  this  Agreement 
has  been  discussed  and  settled  between  the  Director-General  of  the  said  Imperial 
Chinese  Railway  Administration  and  the  said  Syndicate. 

The  line  from  Taokow  to  Tsechow  is  divided  into  two  sections  the  first  from 
Taokow  to  the  neighborhood  of  Chinghua  Chen  a  distance  of  90Y>  miles  the 
second  section  is  from  Chinghua  Chen  to  the  neighborhood  of  Tsechow  in  Shansi 
a  distance  of  38  miles  more  or  less. 

The  construction  of  the  first  section  has  been  undertaken  by  the  Pekin 
Syndicate  and  is  now  approaching  completion.  The  present  Agreement  deals 
specially  with  the  first  section  from  Taokow  to  Chinghua  Chen.  As  regards  the 
second  section  it  is  agreed  that  hereafter  when  the  Pekin  Syndicate  has  fixed 
a  date  for  opening  mines  in  the  neighborhood  of  Tsechow  a  supplementary 
Agreement  will  be  drawn  up  between  the  Director-General  and  the  Pekin  Syndi- 
cate to  provide  funds  for  construction,  etc.,  of  this  section  on  terms  in  conformity 
with  those  of  the  present  Agreement  for  the  Taokow  to  Chinghua  line  and  on 
basis  of  the  Russian  Cheng-Tai  Railway  Agreement,  said  terms  to  be  settled  at 
their  discretion.  The  cost  of  construction  of  the  line  from  Taokow  to  Chinghua 
Chen  including  rolling  stock  and  monies  Expended  by  the  Syndicate  as  estimated 
by  the  Chinese  Engineer  after  verification  of  the  proper  accounts  is  £614,600. 
But  in  order  to  provide  a  liberal  sum  to  meet  the  expenses  of  working  the  line 
until  it  is  fully  developed  and  the  interest  on  the  loan  the  Director-General  has 
fixed  the  amount  of  the  loan  at  £700,000  in  7000  bonds  of  ilOO  each.  This  loan 
is  to  bear  interest  at  5  per  cent  per  annum,  and  to  be  called  the  Chinese  Imperial 
Government  Honan  Railway  5  per  cent  (gold)  loan  of  1905. 

2. — Out  of  the  above  amount  of  £700,000  there  will  be  issued  to  the  Syndicate 
6829  bonds  of  £100  each  which  the  Syndicate  takes  firm  at  the  price  of  90  per 
cent  of  face  value  equivalent  to  £614,600  cash  in  order  to  refund  the  above 
amount  of  capital.  This  will  be  done  on  the  day  when  the  line  is  handed  over 
to  China  and  interest  on  the  bonds  will  accrue  from  date  of  issue. 

At  the  same  time  the  Syndicate  will  make  up  and  present  an  account  with 
vouchers  of  all  initial  expenditure  not  already  included  in  construction  account 
and  of  the  sums  provided  by  them  from  time  to  time  for  the  ordinary  working 
of  the  line  from  the  date  of  opening  to  traffic  to  the  time  of  handing  over  and 
request  the  General  Administration  to  examine  and  settle  it.  Any  loss  on  work- 
ing account  after  deducting  earnings  will  be  borne  half  and  half  by  each.  To 
the  amount  so  found  due  will  be  added  interest  on  capital  from  1st  January  1905 
to  the  date  of  handing  over  and  the  total  of  these  two  items  will  be  refunded 
to  the  Syndicate  by  the  further  issue  of  bonds  out  of  the  171  surplus  bonds  in 
hand  for  the  required  amount  reckoned  at  90  per  cent  of  face  value.  If  any 
bonds  still  remain  over  they  will  be  retained  by  the  Imperial  Chinese  Railway 
Administration  for  future  use.  If  after  the  line  is  taken  over  the  earnings 
of  the  line  are  insufficient  to  meet  the  payment  for  interest  and  refund  of  capital 


508  CHINA  TREATIES  AND  AGREEMENTS 

at  due  date  a  further  loan  may  be  obtained  from  the  Syndicate. §  These  bonds 
the  form  of  which  is  attached  to  this  contract  shall  be  signed  in  the  name  of 
the  Chinese  Government  by  the  Chinese  Minister  in  London. 

The  interest  coupons  will  be  paid  at  their  face  value  in  gold  in  London  on 
1st  of  July  and  the  1st  of  January  of  each  year.  Coupons  falling  due  and  paid 
will  be  collected  in  numerical  order  by  the  Syndicate  at  its  cost  and  handed  over 
to  the  Chinese  Minister  in  London. 

3. — The  loan  shall  be  redeemed  in  twenty  years  dating  from  the  tenth  year 
of  issue  by  annual  drawings  which  shall  be  held  in  London  at  the  office  of  the 
Pekin  Syndicate  in  conformity  with  the  schedule  hereto  annexed. 

The  drawings  will  be  held  on  the  2nd  Tuesday  of  January  of  each  year. 
The  first  of  such  drawings  shall  be  held  in  the  year  1916.  The  number  of  drawn 
bonds  at  each  drawing  will  be  published  ill  four  daily  newspapers  at  the  cost 
of  the  Syndicate. 

4. — Drawn  bonds  shall  be  paid  in  gold  at  their  face  value  at  the  date  when  the 
next  interest  falls  due.  Bonds  presented  for  payment  must  be  surrendered  along 
with  all  the  interest  coupons  not  yet  due.  In  case  of  shortage  the  sum  of  the 
missing  coupons  shall  be  deducted  from  the  capital  repayable.  Interest  on  the 
bonds  will  cease  on  the  date  when  the  latter  are  repayable.  Repaid  bonds  will  be 
collected  by  the  Pekin  Syndicate  at  its  cost  and  handed  over  to  the  Chinese 
Minister  in  London. 

5. — The  Chinese  Government  shall  not  be  at  liberty  before  the  year  1916  to 
augment  the  amount  of  the  annual  instalments  for  redemption  nor  to  repay  the 
whole  amount  of  the  loan  nor  to  convert  the  loan.  After  this  date  the  Chinese 
Government  shall  be  at  liberty  at  any  time  to  repay  the  whole  amount  of  the 
loan,  provided  however  that  until  the  expiry  of  the  Syndicate's  mining  conces- 
sions the  rates  then  in  force  for  the  conveyance  of  minerals  shall  not  be  arbi- 
trarily increased  to  the  detriment  of  the  Syndicate's  business.  On  the  other  hand 
the  Syndicate  after  having  settled  an  equitable  tariff  with  the  General  Adminis- 
tration based  on  the  practice  on  other  lines  shall  not  make  pretexts  to  lower  the 
rates  to  the  detriment  of  the  fund  available  for  payment  of  principal  and  interest. 

6. — Interest  coupons  and  drawn  bonds  shall  be  repayable  in  gold  in  London 
at  the  office  of  the  Pekin  Syndicate  or  of  such  bank  as  the  Syndicate  may  appoint 
for  that  purpose. 

7. — Payment  of  interest  and  repayment  of  the  bonds  forming  this  loan  are 
guaranteed  upon  the  general  revenue  of  the  Chinese  Government.  Further  by 
consent  of  the  Chinese  Government  the  Imperial  Chinese  Railway  Administration 
hereby  declares  that  the  net  earnings  of  the  said  section  of  railway  after  payment 
of  ordinary  working  expenses  are  specially  reserved  for  payment  of  interest 
and  repayment  of  the  said  bonds,  as  is  set  out  in  the  Working  Agreement  made 
between  the  said  Imperial  Chinese  Railway  Administration  and  the  Pekin  Syndi- 
cate, and  which  working  Agreement  is  to  be  taken  as  one  with  this  Contract. 
This  reserve  is  exclusively  for  the  purposes  above  set  forth  and  is  not  divertible 
until  the  final  extinction  of  the  bonds  of  this  loan. 

8. — The  Imperial  Chinese  Railway  Administration  after  having  taken  note 

§  See  Note  1  to  this  document,  post,  p.  515. 


NUMBER  1905/5 :  JULY  3,  1905  509 

of  the  net  receipts  authorises  the  Pekin  Syndicate  to  convert  the  amount  into 
gold  which  shall  be  done  on  the  most  favorable  terms  in  the  interest  of  the 
Chinese  Government  and  the  Imperial  Chinese  Railway  Administration  in  order 
to  assure  the  service  of  the  loan  at  the  next  half-yearly  period  of  payment.  The 
remittances  to  the  head  office  of  the  Pekin  Syndicate  in  London  shall  continue 
until  the  sum  necessary  for  the  whole  service  of  the  loan  at  the  next  half-yearly 
payment  has  been  realised  in  gold  and  so  that  the  service  of  the  loan  is  assured 
three  months  at  least  before  the  half-yearly  payment  falls  due. 

The  bank  in  which  such  sums  are  deposited  will  allow  the  best  interest 
obtainable  for  the  benefit  of  the  Imperial  Chinese  Railway  Administration.  The 
account  in  which  said  sums  stand  will  be  debited  twenty  days  in  advance  with 
all  the  payments  falling  due  at  any  half-yearly  period  as  provided  for  in  this 
Contract  whether  for  interest  repayment  of  capital  cost  of  transport  or  com- 
mission. 

9. — In  order  to  assure  more  fully  the  guarantee  now  given  for  the  loan,  the 
Imperial  Chinese  Railway  Administration  creates  in  favor  of  the  bonds  a  first 
mortgage  over  the  said  section  of  railway  line  its  permanent  way  rolling-stock 
and  earnings.  This  special  hypothecation  is  made  to  and  accepted  by  the  Pekin 
Syndicate  for  the  benefit  of  the  bondholders. 

In  case  the  Imperial  Chinese  Railway  Administration  shall  fail  to  carry 
out  the  engagements  entered  into  by  this  Contract  the  Pekin  Syndicate  can 
exercise  in  respect  to  the  said  railway  and  property  all  the  rights  and  powers 
which  they  are  entitled  to  exercise  resulting  from  this  special  hypothecation. 

10. — The  foregoing  stipulations  do  not  militate  against  the  responsibility  of 
the  Chinese  Government  in  regard  to  this  loan  as  specified  in  Article  7.  The 
Chinese  Government  will  devise  means  to  provide  the  amount  in  gold  necessary 
to  supply  the  deficiency  in  case  the  sums  accruing  from  the  net  earnings  of  the  said 
section  of  railway  and  paid  over  by  the  Chinese  Railway  Administration  are 
insufficient,  after  conversion  into  gold,  to  provide  at  least  three  months  ahead 
for  the  payment  falling  due  at  the  next  half-yearly  period. 

In  such  case  the  Chinese  Government  will  on  demand  place  at  the  disposal 
of  the  Pekin  Syndicate  fourteen  days  in  advance  of  the  due  date,  either  in  gold 
or  value  in  some  other  form  sufficient  to  produce  in  gold,  the  sum  which  the 
Syndicate  may  have  notified  as  being  necessary  to  meet  the  service  of  the  loan. 

11. — From  the  monies  thus  received  from  the  Imperial  Chinese  Railway 
Administration  or  from  the  monies  paid  over  by  the  Chinese  Government  the 
Pekin  Syndicate  shall  duly  set  aside  beforehand  the  sums  necessary  for  the  next 
service  of  the  loan  on  the  basis  of  the  requirements  of  the  last  preceding  half- 
year. 

12. — The  Chinese  Government  will  pay  to  the  Pekin  Syndicate  or  to  the 
bank  charged  with  the  service  of  the  loan  a  commission  of  one-fourth  of  1  per 
cent,  on  the  amount  of  interest  coupons  paid  that  is  £25  on  each  £10,000  and 
the  like  commission  on  all  the  bonds  drawn  for  payment  or  repaid  in  antici- 
pation of  the  due  date.  The  amount  of  this  commission  will  be  taken  from 
surplus  earnings  of  the  railway  if  there  are  any,  and  in  case  these  are  insufficient 
it  will  then  be  paid  by  the  Chinese  Government. 


510  CHINA  TREATIES  AND  AGREEMENTS 

13. — The  Chinese  Government  binds  itself  to  respect  and  cause  to  be  re- 
spected the  privileges  attaching  to  the  bonds  as  stipulated  for  in  the  present 
convention  and  to  maintain  the  bonds  themselves  the  interest  coupons  and 
operations  incident  to  the  service  of  the  loan  free  from  every  tax  and  impost 
of  whatsoever  nature. 

14. — Coupons  not  presented  for  payment  within  five  years  from  the  date 
when  they  fall  due  will  be  forfeited  for  the  benefit  of  the  Chinese  Government. 
In  the  case  of  drawn  bonds  the  term  within  which  payment  may  be  claimed 
is  thirty  years.  In  the  case  of  a  deceased  bondholder  the  right  will  pass  to  his 
heirs  executors  etc.  in  conformity  with  the  law  of  his  own  nationality.  Pay- 
ment of  the  coupons  and  repayment  of  bonds  will  be  made  whether  in  time  of 
war  or  peace  and  irrespective  of  whether  the  holder  belongs  to  a  hostile  or 
friendly  State. 

If  bonds  are  lost  stolen  or  destroyed  the  Chinese  Government  upon  satis- 
factory proof  of  the  facts  of  the  loss  and  the  title  of  the  claimant  will  authorise 
the  Pekin  Syndicate  to  issue  fresh  bonds  to  replace  those  lost,  at  the  expense  of 
the  Syndicate. 

15. — The  Chinese  Government  through  its  Representative  in  London  will 
take  the  necessary  steps  and  furnish  the  necessary  documents  so  as  to  enable 
the  bonds  to  be  officially  quoted  on  the  London  Stock  Exchange. 

16. — The  price  of  all  land  taken  up  for  the  railway  having  been  included  in 
the  loan,  the  Syndicate  will  in  the  first  place  hand  over  the  title-deeds  to  the 
Imperial  Chinese  Railway  Administration  so  that  a  list  may  be  made  which 
after  being  stamped  by  the  Magistrates  of  the  several  districts  concerned,  will  be 
retained  for  record.  The  Railway  Administration  will  then  return  the  deeds  to 
the  Syndicate  for  custody,  having  first  impressed  on  each  a  stamp  indicating 
that  they  are  not  to  be  sold  pledged  or  mortgaged.  When  the  term  has  expired 
or  when  the  loan  is  fully  repaid,  the  Syndicate  will  thereupon  hand  over  to  the 
Railway  Administration  all  the  original  title-deeds  to  be  held  by  them  as  owners 
of  the  property.  During  the  continuance  of  the  term  the  Syndicate  shall  not 
assign  the  deeds  to  others  whether  by  way  of  sale,  mortgage  or  pledge. 

17. — This  Agreement  and  the  rights  under  it  being  made  with  the  Pekin 
Syndicate  which  is  of  British  nationality,  the  said  Syndicate  besides  conform- 
ing as  hereby  required,  with  the  several  articles  of  the  Agreement  shall  not 
either  openly  or  secretly  alienate  the  said  rights  to  persons  of  another  nationality 
and  shall  not  substitute  persons  of  another  nationality  in  the  management  of  the 
railway  affairs.  A  breach  of  this  stipulation  will  entitle  the  Imperial  Chinese 
Railway  Administration  to  take  the  management  out  of  the  hands  of  the  Syndi- 
.  cate  and  entrust  it  to  another  company,  and  in  that  case  the  Syndicate  shall  have 
no  claim  for  compensation. 

The  foregoing  places  no  restriction  on  the  holding  of  shares  in  the  Pekin 
Syndicate  by  persons  of  another  nationality  nor  on  the  holding  of  bonds  of  this 
loan,  both  of  which  may  be  freely  bought  and  sold  on  the  market  at  the  con- 
venience of  the  holders. 

18. — In  the  accounts  of  this  section  there  has  been  included  an  item  for 
preliminary  survey  expenses,  as  also  the  cost  of  partial  surveys  of  the  second 


NUMBER  1905/5:  JULY  3,  1905  511 

section  which  have  already  been  made  by  the  Syndicate,  the  result  of  which  will 
be  submitted  to  the  Director-General. 

19. — All  plant  and  materials  necessary  for  the  repair  and  working  of 
the  line  will  be  purchased  by  the  Syndicate  as  agents,  but  in  placing  such  orders 
the  Syndicate  will  do  their  best  to  get  the  most  favorable  terms.  A  list  o'f  articles 
required  shall  be  submitted  to  the  Director-General,  for  approval,  before  the  order 
is  given. 

It  is  understood  that  articles  which  China  herself  can  manufacture,  if  quality 
and  price  are  the  same  are  not  to  be  ordered  from  abroad.  The  workshops  and 
mines  controlled  by  the  Director-General  Sheng  ought  more  especially  to  have 
the  preference  in  supply  of  such  articles  provided  that  in  quality  and  price 
the  articles  are  equivalent  to  what  can  be  imported  from  abroad.  By  price  is 
meant  the  cost  in  the  foreign  country  plus  freight  and  insurance.  All  materials 
imported  from  abroad  shall  be  exempt  from  customs  duty  and  from  likin  in 
transit  to  the  interior. 

20. — In  case  of  differences  of  opinion  arising  between  the  Pekin  Syndicate 
and  the  Chinese  Government  or  the  Imperial  Chinese  Railway  Administration 
the  matter  in  dispute  shall  be  discussed  and  settled  between  a  member  of  the 
Wai  Wu  Pu  and  the  British  Minister.  If  these  cannot  agree  the  Wai  Wu 
Pu  and  the  British  Minister  will  appoint  an  Arbitrator  whose  decision  will 
be  final. 

21. — This  Agreement  is  executed  in  duplicate,  one  copy  to  be  kept  by  the 
Imperial  Chinese  Railway  Administration  and  the  other  by  the  Pekin  Syndicate. 
In  case  of  doubt  or  ambiguity  of  meaning  between  the  two  texts  the  English 
version  shall  be  deemed  the  standard.  This  contract  shall  be  submitted  to  the 
Throne  by  the  proper  authority  who  will  request  ratification.  After  ratification 
the  Wai  Wu  Pu  will  officially  communicate  the  fact  to  the  British  Minister  at 
Peking  for  record  and  so  that  the  Syndicate  may  conform  to  the  articles  hereby 
agreed  upon. 

All  the  above  must  be  done  within  one  month  from  date  of  signature. 

Signed  and  sealed  at  Peking  the  3rd  July  1905. 

(Signed)  G.  Jamieson, 

Agent-General,  Pekin  Syndicate  Limited. 
(Sgd.)  Sheng  Hsuan-huai. 


512 


CHINA  TREATIES  AND  AGREEMENTS 


SCHEDULE  OF  AMORTISATION  OF  BONDS 


Years 

Bonds 
outstanding 

Bonds  drawn 

Interest 

Amount 
repaid 

Total 

1916 

8,000 

242 

40,000 

24,200 

64,200 

1917 

7.758 

254 

38,790 

25,400 

64,190 

1918 

7,504 

267 

37,520 

26,700 

64,220 

1919 

7,2y^ 

280 

36,185 

28,000 

64,185 

1920 

6,957 

299 

34,785 

29,300 

64,085 

1921 

6,664 

308 

2,Z,Z2^ 

30,800 

64,120 

1922 

6,356 

324 

31,780 

32,400 

64,180 

1923 

6,032 

341 

30,160 

34,100 

64.260 

1924 

5,691 

358 

28,455 

35,800 

64.255 

1925 

5,333 

376 

26,665 

37,600 

64,265 

1926 

4,957 

395 

24,785 

39,500 

64,285 

1927 

4,562 

414 

22,810 

41,400 

64,210 

1928 

4,148 

434 

20,740 

43,400 

64,140 

1929 

3,714 

456 

18,570 

45,600 

64,170 

1930 

3,258 

479 

16,290 

47,900 

64,190 

1931 

2,779 

503 

13,895 

50,300 

64,195 

1932 

2,276 

528 

11.380 

52,800 

64,180 

1933 

1,748 

554 

8,740 

55,400 

64,140 

1934 

1,194 

583 

5,970 

58,300 

64,270 

1935 

611 

611 

3,055 

61,100 

64,155 

(II.) — Working  Agreement. 

Working  agreement  between  H.  E. -Sheng  Director-General  of  Railways 
being  thereto  specially  authorized  by  the  Chinese  Government  and  G.  Jamieson, 
C.  M.  G.,  Agent-General  of  the  Pekin  Syndicate  Limited, 

1- — The  Imperial  Chinese  Railway  Administration  under  the  authority  of 
the  Imperial  Government  authorises  the  Pekin  Syndicate,  which  will  appoint  a 
General  Manager  for  the  purpose,  to  manage,  administer,  and  work  the  Taokow- 
Chinghua  section  of  railway  for  profit  on  behalf  of  the  said  Railway  Administra- 
tion. Notice  of  the  appointment  of  the  General  Manager  shall  be  communicated 
beforehand  to  the  Director-General  for  his  information,  and  confirmation. 

2. — As  soon  as  this  section  of  the  line  is  completed  the  Pekin  Syndicate 
will  report  to  the  Director-General,  and  after  being  definitely  taken  over  by 


NUMBER  1905/5:  JULY  3,  1905  513 

him  the  Pekin  Syndicate  will  take  charge  of  it  for  working.  The  section  is 
to  be  completely  provided  beforehand  with  all  the  rolling-stock  necessary  for 
working  as  also  with  a  supply  of  tools  furniture  and  funds  for  working  expenses. 
The  Pekin  Syndicate  or  its  delegate  in  conformity  with  the  stipulation  in  Article 
1  will  organize  the  service.  It  will  have  authority  to  engage  or  dismiss  officials 
and  servants,  and  as  to  their  salaries,  a  scale  thereof  will  be  drawn  up  beforehand 
for  submission  to  the  Director-General,  and  subsequent  alterations  will  also  be 
submitted  for  his  approval.  The  Syndicate  shall  also  purchase  all  articles  neces- 
sary for  the  maintenance  and  repair  of  the  line,  shall  fix  rates  for  goods  and 
passengers  in  accordance  with  the  railway  regulations  on  other  lines,  shall  receive 
all  the  earnings  and  pay  all  the  working  expenses  and  expenses  of  the  Imperial 
Chinese  Railway  Administration  relative  to  this  line  of  railway.  All  the  above 
working  details  must  be  submitted  beforehand  by  the  Pekin  Syndicate  or  its 
delegate  to  the  Director-General  of  Railways  and  settled  in  consultation. 

The  General  Administration  shall  have  the  fullest  power  to  examine  the 
details  of  income  and  expenditure  and  to  appoint  a  Representative  a  Cashier 
Accountant  and  an  Interpreter  who  will  be  associated  with  the  European  staff 
in  order  to  exercise  the  above-mentioned  power  of  examination.  The  salaries 
of  the  Representative  and  his  associates  above-mentioned  will  be  paid  from 
the  office  of  the  Tsechow-Taokow  Railway. 

The  Representative  shall  countersign  all  vouchers  for  payment.  Accounts 
will  be  rendered  monthly  to  the  General  Administration  in  English  and  Chinese 
one  copy  each  and  signed  by  the  respective  English  and  Chinese  officials. 

The  General  Administration  reserves  the  right  to  cause  the  dismissal  of  any 
employee  whatever  his  nationality  including  the  General  Manager  who  does 
not  perform  his  work  satisfactorily  or  is  guilty  of  misconduct  insubordination  or 
disrespect  towards  the  Chinese  authorities,  and  this  should  be  mentioned  in  the 
contracts  at  the  time  of  engagement  of  the  employee. || 

All  Chinese  Employees  whether  for  repairs  of  line  or  otherwise  will  be 
selected  by  the  Representative  of  the  Director-General  who  will  place  them 
under  the  executive  orders  of  the  General  Manager.  No  Chinese  officials  or 
servants  can  be  engaged  without  the  sanction  of  the  Director-General.  The 
expenses  of  the  Shanghai  Imperial  Railway  Administration  in  respect  to  this 
line  shall  be  paid  in  the  same  way  as  for  the  Luhan  Railway.  After  this  section 
is  finished  and  the  working  has  begun,  if  additional  rolling-stock  or  plant  is  re- 
quired or  if  improvement  or  extensions  of  the  line  or  stations  become  necessary, 
the  funds  for  the  same  shall  be  provided  by  the  office  of  the  Tsechow-Taokow 
Railway.  As  regards  orders  for  the  supply  of  materials  necessary  for  maintain- 
ing and  repairing  the  line  means  should  be  devised  to  place  the  same  at  Chinese 
workshops.  It  is  understood  that  the  mines  and  workshops  controlled  by  H.  E. 
Sheng  shall  have  the  preference  on  the  conditions  and  at  the  price  at  which  the 
articles  could  be  purchased  abroad.  By  price  is  meant  laying  down  price  in 
China. 

3. — In  the  event  of  military  operations  whether  due  to  foreign  war  or 
internal  disturbance  the  railway  will  give  the  preference  to  Chinese  Govern- 

II  See  Note  2  to  this  document,  post,  p.  516. 


514  CHINA  TREATIES  AND  AGREEMENTS 

ment  troops  stores  or  munitions  of  war  over  private  merchandise  in  conveyance 
over  the  Hne. 

Rates  to  be  charged  in  such  cases  shall  be  one-half  of  the  ordinary  rates 
and  in  such  matters  the  railway  will  carry  out  any  special  instructions  given  by 
the  Director-General.  Articles  tending  to  the  injury  of  the  Chinese  Government 
are  not  to  be  carried  on  the  line. 

In  case  of  famine  stores  for  relief  will  be  carried  at  half  rates. 

Special  arrangements  will  be  made  in  consultation  with  the  Representative 
of  the  Director-General  for  conveyance  of  local  authorities  or  members  of  the 
Imperial  Government  travelling  on  important  business  over  the  line.  Free  passes 
over  the  railway  shall  be  countersigned  by  the  Representative  of  the  Director- 
General. 

4. — From  the  net  earnings  of  the  line  after  paying  all  working  expenses 
the  Pekin  Syndicate  shall  retain  such  sums  as  are  necessary  to  meet  the  service 
of  the  loan  at  least  three  months  in  advance  of  the  next  half-yearly  payment. 
This  procedure  will  be  followed  until  the  whole  loan  is  finally  redeemed.  The 
sums  retained  will  be  paid  over  monthly  to  the  Pekin  Syndicate  or  to  the  bank 
appointed  for  that  purpose  by  the  Syndicate.  The  latter  will  convert  the  sums  so 
received  into  gold  at  the  best  rate  obtainable  in  order  to  be  used  for  the  service 
of  the  loan.  Information  as  to  this  will  be  given  from  time  to  time  to  the 
Director-General. 

When  by  means  of  monies  thus  paid  over  the  service  of  the  loan  is  assured 
the  Syndicate  will  set  apart  10  per  cent,  of  the  surplus  which  will  be  devoted 
to  building  up  a  reserve  fund  in  order  to  meet  the  cost  of  ordinary  or  extraordi- 
nary repairs  with  a  view  to  assure  the  working  of  the  line.  The  surplus  of  net 
earnings  still  remaining  will  be  paid  over  to  the  Imperial  Chinese  Railway 
Administration.  When  the  loan  is  all  repaid  in  accordance  with  the  next  follow- 
ing article  the  Syndicate  or  its  representative  will  hand  over  to  the  Repre- 
sentative of  the  Director-General  all  the  line  fixtures  rolling-stock  and  appurte- 
nances, the  whole  in  good  working  condition. 

5. — The  duration  of  the  present  contract  is  fixed  at  thirty  years  from  date 
of  signature.  If  however  on  the  expiry  of  that  date  the  loan  is  not  fully  paid 
ofif  the  term  of  the  contract  will  be  necessarily  extended  and  so  it  will  continue 
until  the  whole  loan  is  finally  redeemed.  But  if  the  loan  is  finally  redeemed 
before  the  due  date  the  present  working  contract  shall  become  null  and  void 
from  the  date  of  such  redemption. 

6. — The  Pekin  Syndicate  during  the  term  of  this  contract  for  the  working 
of  the  line,  shall  be  entitled  to  receive  from  the  Imperial  Chinese  Railway  Admin- 
istration on  making  up  the  yearly  accounts  20  per  cent,  of  the  surplus  profits 
of  each  year.  By  surplus  profits  is  meant  what  is  left  over  after  providing  for 
payment  of  interest  and  redemption  of  capital. 

7. — In  case  of  dispute  the  matter  is  to  be  settled  as  provided  in  Article 
20  of  the  principal  contract. 

8. — If  the  earnings  are  insufficient  to  meet  working  expenses  the  Imperial 
Chinese  Railway  Administration  will  provide  funds  so  as  to  enable  the  regular 
working  to  be  kept  up.    The  funds  thus  supplied  will  be  considered  as  a  tempo- 


NUMBER  1905/5:  JULY  3,  1905:  NOTES  515 

rary  advance  merely  and  to  be  paid  as  soon  as  the  income  exceeds  the  expenditure. 

9. — All  materials  and  suppHes  which  the  Syndicate  may  require  for  the 
working  maintenance  and  repair  of  the  line,  shall  if  imported  from  abroad  be 
exempt  from  Customs  duty  and  likin. 

10. — The  present  contract  is  drawn  up  in  two  copies  one  for  the  Imperial 
Chinese  Railway  Administration  and  the  other  for  the  Syndicate.  In  case  of 
doubt  or  difference  in  interpretation  of  the  contract  the  English  version  shall 
be  deemed  the  standard. 

This  Contract  shall  be  submitted  to  the  Throne  for  ratification  by  the  proper 
authorities  and  when  the  Imperial  sanction  has  been  obtained,  it  will  be  communi- 
cated by  the  Wai  \Vu  Pu  in  an  official  despatch  to  the  British  Alinister. 

Signed  and  sealed  at  Peking  the  3rd  July  1905. 

(Signed)  G.   Jamieson, 

Agent-General,  Pekin  Syndicate,  Limited. 
(Sgd.)  Sheng. 


Note  1. 

In  this  connection,  see  the  following  exchange  of  letters  as  printed  in  Wang,  p.  355. 

Exchange  of  Letters  regarding  Supplementary  Taokow-Chinghua  Railway  Loan. — 

July  2,  1905. 

"IMPERIAL  CHINESE  RAILWAY  ADMINISTRATION. 

"Fa  Hua  Sze,  Peking,   1st  July,   1905. 
"  (TRANSLATION) 
"G.  Jamieson,  Esq.,  G.M.G., 
Agent  General, 

Pekin  Syndicate  Ltd., 
Peking. 
"Dear  Sir, 

"With  reference  to  our  discussion  which  we  held  here  at  the  above  address  on  the 
20th  and  29th  June  1905  concerning  the  supplementary  loan  as  stipulated  in  the  2nd  Article 
of  the  Loan  Agreement  of  the  Taokow-Chinghua  Railway  which  reads,  'If  after  the  line 
is  taken  over  the  earnings  of  the  line  are  insufficient  to  meet  the  payment  for  interest  and 
refund  of  capital  at  due  date  a  further  loan  may  be  obtained  from  the  Syndicate,'  I  have 
now  received  instructions  from  the  Wai  Wu  Pu  to  the  effect  that  in  the  event  of  insuf- 
ficiency, the  loan  further  obtained  from  the  Syndicate  must  not  exceed  £100,000,  the  Bonds 
for  such  loan  will  be  deposited  with  the  Imperial  Chinese  Railway  Administration ;  when 
any  portion  of  this  loan  is  required,  the  Pekin  Syndicate  on  a  month's  notice,  will  be 
prepared  to  take  the  bonds  issued  for  such  portion  and  furnish  the  money  required  which 
the  Imperial  Chinese  Railway  Administration  will  hand  to  the  Imperial  Bank  of  China  for 
deposit  before  it  is  used;  in  case,  however,  that  money  is  not  required  in  time  to  come,  the 
Railway  Administration  will  be  at  liberty  to  diminish  the  amount  of  this  supplementary 
loan.  I  hope,  therefore,  that  you  will  send  me  a  reply  to  the  above  effect  so  that  it  may 
be  annexed  to  the  Agreement. 
"  I  remain, 

Dear  Sir. 

Yours  faithfully, 

(Signed)  Sheng  Hsuan  Huai, 

Director-General." 


516  CHINA  TREATIES  AND  AGREEMENTS 

"  PEKIN  SYNDICATE  LIMITED. 

"Peking,  July  2nd,  1905. 
"  His  Excellency  Sheng  Kung  Pao, 

"  Director-General  of  Railways,  &c. 
"  Your  Excellency, 

"  I  beg  to  acknowledge  receipt  of  Your  Excellency's  letter  of  1st  July  stating  that  you 
had  received  instructions  from  the  Wai  Wu  Pu  that  the  further  loan  mentioned  in  Article  2 
of  Loan  Agreement  should  not  exceed  £100,000  the  bonds  to  be  deposited  with  the  Railway 
Administration  and  the  Syndicate  to  be  prepared  to  take  the  bonds  and  furnish  money  as 
required  on  a  month's  notice,  &c. 

"  I  beg  to  state  in  reply  that  I  accept  these  terms,  it  being  understood  that  the  money 
is  exclusively  for  the  use  of  the  Taokow-Chinghua  Railway  and  the  bonds  will  be  taken 
at  90  per  cent  of  face  value. 

"  I  have  the  honour  to  be, 
Your  Excellency's, 

Most  obedient  humble  servant, 

(Signed)  G.  Jamieson, 

Director  and  Agent  General." 


Note  2. 

In  Wang,  p.  359,  is  printed  the  following  letter  in  regard  to  this  provision : 

"  PEKIN  SYNDICATE  LIMITED. 

"  Peking,  July  29,  1905. 
"  His  Excellency  Sheng  Kung  Pao, 

"  Director  General  of   Railways. 
"  Your  Excellency, 

"  In  reference  to  the  stipulation  in  Art.  2  of  Working  Agreement  that  in  agreements 
with  employees  of  the  Railway  it  is  to  be  stated  that  they  are  liable  to  dismissal  if  they 
do  not  perform  their  work  satisfactorily  or  are  guilty  of  misconduct,  &c.,  I  beg  to  say 
that  this  will  be  done  in  drawing  up  future  agreements.  As  regards  the  present  staff  they 
will  be  informed  by  circular  that  this  provision  exists,  but  their  agreements  being  already 
signed  cannot  be  altered.  These  agreements  however  are  only  for  short  periods  of  2  or  3 
years. 

"  I  have  the  honour  to  be,  * 

"  Your   Excellency's, 

"  Most  obedient  humble  servant, 

"  (Signed)  G.  Jamieson, 

"Director  and  Agent  General." 


NUMBER  1905/6. 

GREAT  BRITAIN  AND  JAPAN. 

Agreement  respecting  the  integrity  of  China,  the  general  peace  of  Eastern  Asia 
and  India,  and  the  territorial  rights  and  special  itttercsts  of  the  parties  in 
those  regiotis.* — August  12, 1905. 

Preamble. 
The  Governments  of  Great  Britain  and  Japan,  being  desirous  of  replacing 
the  Agreement  concluded  between  them  on  the  30th  January,  1902,t  by  fresh 

*  Text  as  printed  in  British  Parliamentary  Paper,  Japan,  1905,  No.  2.  Printed  also  in 
British  Treaty  Series,  1905,  No.  25;  Traites  et  Conventions,  p.  464;  Hertslet,  p.  606;  Recueil, 
p.  736;  Am.  Int.  Law  Journal,  Supplement,  vol.  1,  p.  15;  For.  Rcl.,  1905,  p.  488.  See  Note 
to  this  document,  post,  p.  518. 

t  No.  1902/2,  ante. 


NUMBER  1905/6:  AUGUST  12,  1905  517 

stipulations,  have  agreed   upon   the   following  Articles,   which   have    for  their 
object: — 

(a)  The  consolidation  and  maintenance  of  the  general  peace  in  the  regions 
of  Eastern  Asia  and  of  India ; 

(b)  The  preservation  of  the  common  interests  of  all  Powers  in  China  by 
insuring  the  independence  and  integrity  of  the  Chinese  Empire  and  the  principle 
of  equal  opportunities  for  the  commerce  and  industry  of  all  nations  in  China; 

(c)  The  maintenance  of  the  territorial  rights  of  the  High  Contracting 
Parties  in  the  regions  of  Eastern  Asia  and  of  India,  and  the  defence  of  their 
special  interests  in  the  said  regions : — 

Article  I. — It  is  agreed  that  whenever,  in  the  opinion  of  either  Great 
Britain  or  Japan,  any  of  the  rights  and  interests  referred  to  in  the  preamble 
of  this  Agreement  are  in  jeopardy,  the  two  Governments  will  communicate 
with  one  another  fully  and  frankly,  and  will  consider  in  common  the  measures 
which  should  be  taken  to  safeguard  those  menaced  rights  or  interests. 

Article  II. — If  by  reason  of  unprovoked  attack  or  aggressive  action,  wher- 
ever arising,  on  the  part  of  any  other  Power  or  Powers  either  Contracting  Party 
should  be  involved  in  war  in  defence  of  its  territorial  rights  or  special  interests 
mentioned  in  the  preamble  of  this  Agreement,  the  other  Contracting  Party  will 
at  once  come  to  the  assistance  of  its  ally,  and  will  conduct  the  war  in  common, 
and  make  peace  in  mutual  agreement  with  it. 

Article  III. — Japan  possessing  paramount  political,  military,  and  economic 
interests  in  Corea,  Great  Britain  recognizes  the  right  of  Japan  to  take  such  meas- 
ures of  guidance,  control,  and  protection  in  Corea  as  she  may  deem  proper  and 
necessary  to  safeguard  and  advance  those  interests,  provided  always  that  such 
measures  are  not  contrary  to  the  principle  of  equal  opportunities  for  the  com- 
merce and  industry  of  all  nations. 

Article  IV. — Great  Britain  having  a  special  interest  in  all  that  concerns  the 
security  of  the  Indian  frontier,  Japan  recognizes  her  right  to  take  such  measures 
in  the  proximity  of  that  frontier  as  she  may  find  necessary  for  safeguarding 
her  Indian  possessions. 

Article  V. — The  High  Contracting  Parties  agree  that  neither  of  them 
will,  without  consulting  the  other,  enter  into  separate  arrangements  with  an- 
other Power  to  the  prejudice  of  the  objects  described  in  the  preamble  of  this 
Agreement. 

Article  VI. — As  regards  the  present  war  between  Japan  and  Russia,  Great 
Britain  will  continue  to  maintain  strict  neutrality  unless  some  other  Power  or 
Powers  should  join  in  hostilities  against  Japan,  in  which  case  Great  Britain  will 
come  to  the  assistance  of  Japan,  and  will  conduct  the  war  in  common,  and  make 
peace  in  mutual  agreement  with  Japan. 

Article  VII. — The  conditions  under  which  armed  assistance  shall  be  afforded 
by  either  Power  to  the  other  in  the  circumstances  mentioned  in  the  present  Agree- 
ment, and  the  means  by  which  such  assistance  is  to  be  made  available,  will  be 
arranged  by  the  Naval  and  Military  authorities  of  the  Contracting  Parties,  who 
will  from  time  to  time  consult  one  another  fully  and  freely  upon  all  questions 
of  mutual  interest. 


518  CHINA  TREATIES  AND  AGREEMENTS 

Article  VIII. — The  present  Agreement  shall,  subject  to  the  provisions  of 
Article  VI.,  come  into  effect  immediately  after  the  date  of  its  signature,  and 
remain  in  force  for  ten  years  from  that  date. 

In  case  neither  of  the  High  Contracting  Parties  should  have  notified  twelve 
months  before  the  expiration  of  the  said  ten  years  the  intention  of  terminating 
it,  it  shall  remain  binding  until  the  expiration  of  one  year  from  the  day  on  which 
either  of  the  High  Contracting  Parties  shall  have  denounced  it.  But  if,  when 
the  date  fixed  for  its  expiration  arrives,  either  ally  is  actually  engaged  in  war, 
the  alliance  shall,  ipso  facto,  continue  until  peace  is  concluded. 

In  faith  whereof  the  Undersigned,  duly  authorized  by  their  respective 
Governments,  have  signed  this  Agreement  and  have  affixed  thereto  their  Seals. 

Done  in  duplicate  at  London,  the  12th  day  of  August,  1905. 

(L.S.)  Lansdowne, 

His  Britannic  Majesty's  Principal  Secretary  of  State  for  Foreign  Affairs. 

(L.S.)  Tadasu  Hayashi, 

Etivoy  Extraordinary  and  Minister  Plenipotentiary  of  His  Majesty 

the  Emperor  of  Japan  at  the  Court  of  St.  James. 


Note. 

This  agreement  was  replaced  by  that  of  July  13,  1911  (No.  1911/7,  post).  It  was  for- 
warded to  the  British  Ambassador  at  St.  Petersburg  under  cover  of  a  dispatch  dated 
September  6,  1905,  reading  as  follows : 

"  Foreign  Office,  September  6,  1905. 

"  Sir, — I  enclose,  for  your  Excellency's  information,  a  copy  of  a  new  Agreement  con- 
cluded between  His  Majesty's  Government  and  that  of  Japan  in  substitution  for  that  of  the 
30th  January,  1902.  You  will  take  an  early  opportunity  of  communicating  the  new  Agree- 
ment to  the   Russian   Government. 

"  It  was  signed  on  the  12th  August,  and  you  will  explain  that  it  would  have  been 
immediately  made  public  but  for  the  fact  that  negotiations  had  at  that  time  already  com- 
menced between  Russia  and  Japan,  and  that  the  publication  of  such  a  document  whilst  those 
negotiations  were  still  in  progress  would  obviously  have  been  improper  and  inopportune. 

"  The  Russian  Government  will,  I  trust,  recognize  that  the  new  Agreement  is  an  inter- 
national instrument  to  which  no  exception  can  be  taken  by  any  of  the  Powers  interested  in 
the  affairs  of  the  Far  East.  You  should  call  special  attention  to  the  objects  mentioned  in  the 
preamble  as  those  by  which  the  policy  of  the  Contracting  Parties  is  inspired.  His  Majesty's 
Government  believe  that  they  may  count  upon  the  good  will  and  support  of  all  the  Powers 
in  endeavouring  to  maintain  peace  in  Eastern  Asia,  and  in  seeking  to  uphold  the  integrity 
and  independence  of  the  Chinese  Empire  and  the  principle  of  equal  opportunities  for  the 
commerce  and  industry  of  alt  nations  in  that  country. 

"  On  the  other  hand,  the  special  interests  of  the  Contracting  Parties  are  of  a  kind  upon 
which  they  are  fully  entitled  to  insist,  and  the  announcement  that  those  interests  must  be 
safeguarded  is  one  which  can  create  no  surprise,  and  need  give  rise  to  no  misgivings. 

"  I  call  your  especial  attention  to  the  wording  of  Article  II.,  which  lays  down  dis- 
tinctly that  it  is  only  in  the  case  of  an  unprovoked  attack  made  on  one  of  the  Contracting 
Parties  by  another  Power  or  Powers,  and  when  that  Party  is  defending  its  territorial 
rights  and  special  interests  from  aggressive  action,  that  the  other  Party  is  bound  to  come 
to  its  assistance. 

"Article  III.,  dealing  with  the  question  of  Corea,  is  deserving  of  especial  attention. 
It  recognizes  in  the  clearest  terms  the  paramount  position  which  Japan  at  this  moment 
occupies  and  must  henceforth  occupy  in  Corea,  and  her  right  to  take  any  measures  which 
she  may  find  necessary  for  the  protection  of  her  political,  military,  and  economic  interests 
in  that  country.  It  is,  however,  expressly  provided  that  such  measures  must  not  be  con- 
trary to  the  principle  of  equal  opportunities  for  the  commerce  and  industry  of  other  nations. 
The  new  Treaty  no  doubt  differs  at  this  point  conspicuously   from  that  of   1902.     It  has, 


NUMBER  1905/7:  AUGUST  29.  1905  519 

however,  become  evident  that  Corea,  owing  to  its  close  proximity  to  the  Japanese  Empire 
and  its  inability  to  stand  alone,  must  fall  under  the  control  and  tutelage  of  Japan. 

"  His  Majesty's  Government  observe  with  satisfaction  that  this  point  was  readily  con- 
ceded by  Russia  in  the  Treaty  of  Peace  recently  concluded  \vith  Japan,  and  they  have  every 
reason  to  believe  that  similar  views  are  held  by  other  Powers  with  regard  to  the  relations 
which  should  subsist  between  Japan  and  Corea. 

"  His  IMajesty's  Government  venture  to  anticipate  that  the  alliance  thus  concluded, 
designed  as  it  is  with  objects  which  are  purely  peaceful  and  for  the  protection  of  rights 
and  interests  the  validity  of  which  cannot  be  contested,  will  be  regarded  with  approval  by 
the  Government  to  which  you  are  accredited.  They  are  justified  in  believing  that  its  con- 
clusion may  not  have  been  without  effect  in  facilitating  the  settlement  by  which  the  war 
has  been  so  happily  brought  to  an  end,  and  they  earnestly  trust  that  it  may,  for  many  years 
to  come,  be  instrumental  in  securing  the  peace  of  the  world  in  those  regions  which  come 
within  its  scope. 

"  I  am,  &c.,  (Signed)  Lansdowne. 

A  similar  despatch  was  addressed  to  the  British  Ambassador  at  Paris. 


NUMBER  1905/7. 

THE   UNITED    STATES    (American   China   Development   Company)    AND 

CHINA. 

Agreement  to  sell  the  Canton-Hankozv  Railway* — August  29,  1905. 

This  29th  of  August,  1905,  Chang,  Hukuang  Viceroy,  representative  of  the 
three  provinces  of  Hunan,  Hupeh,  and  Kwantung,  and  Liang,  Envoy  to  the 
United  States  of  America  and  Mexico,  acting  on  behalf  of  the  Government 
of  the  Chinese  Empire,  party  of  the  first  part;  and  the  China  Development 
Company,  of  the  State  of  New  Jersey,  U.  S.  A.,  party  of  the  second  part ;  enter 
into  the  following  agreement: — 

Whereas,  by  an  Agreement  of  the  14th  April  1898,  made  at  Washington, 
U.  S.  A.,  and  by  a  supplementary  agreement  on  13th  July  1900,  the  party  of  the 
second  part  was  invested  with  power  to  construct  in  the  Empire  of  China  a 
railway  from  Hankow  city  to  Canton  city,  together  with  the  right  to  operate  the 
same;  and  Whereas,  previous  to  the  7th  of  June  1905,  the  Imperial  Chinese 

*  For  the  texts  of  the  contracts  of  April  14,  1898,  and  July  13,  1900,  granting  the  con- 
cession for  the  Canton-Hankow  (or  Yiieh-Han)  Railway,  see  Rockhill,  p.  252;  and 
in  connection  with  them,  see  (in  Rockhill,  p.  345,  and  in  China,  1899,  No.  1,  p.  322)  the 
memorandum  of  agreement  between  the  British  and  Chinese  Corporation  and  the  American 
China  Development  Comtpany  in  regard  to  participation  in  railway  business  in  China, 
signed  February  1,  1899,  but  subsequently  determined  in  accordance  with  the  provisions  of 
its  7th  Article. 

In  reference  to  the  cancellation  of  the  concession,  see  For.  ReL,  1905,  pp.  124  et  seq. 

See  the  agreement  between  the  Viceroy  of  the  Hu-Kuang  and  the  Government  of  Hong- 
kong for  a  loan  of  £1,100,000  for  the  redemption  of  the  concession  (No.  1905/9,  post). 

The  construction  of  the  Canton-Hankow  Railway  has  not  yet  been  completed.  The 
southern  portion  of  the  line,  within  the  Province  of  Kuangtung,  is  owned  by  a  provincial 
railway  company,  which  has  carried  construction  from  Canton  to  the  vicinity  of  Shiuchow, 
about  seventy  miles  south  of  the  boundary  between  Kuangtung  and  Hunan.  The  northern 
section,  lying  within  Hupeh  and  Hunan,  is  included  under  the  Hukuang  Railway  loan  agree- 
ment of  May  20,  1911  (No.  1911/5,  post)  ;  the  line  is  in  operation  from  Wuchang  (on  the 
Yangtsze  River,  opposite  Hankow)  to  Chuchow  (about  forty  miles  south  of  Changsha), 
leaving  approximately  two  hundred  miles  to  be  constructed  in  the   Province  of  Hunan. 


520  CHINA  TREATIES  AND  AGREEMENTS 

Government  cancelled  the  two  agreements  or  the  special  powers  aforesaid,  de- 
clarinet  its  determination  itself  to  deal  with  the  railroad  in  the  said  agreement 
referred  to  and  duly  notified  the  party  of  the  second  part  of  said  cancellation 
of  the  agreement  above  mentioned;  and  Whereas,  the  two  parties  to  the  agree- 
ment have  agreed  that  the  amount  as  such  compensation  to  be  paid  by  the  party 
of  the  first  part  to  the  party  of  the  second  part  shall  be  Six  Million,  seven  hundred 
and  fifty  thousand  American  Gold  Dollars;  Now  the  terms  decided  upon  are 
set  forth  in  a  preliminary  contract  as  follows : — 

Preliminary  contract  agreed  upon  between  the  Imperial  Chinese  Gov- 
ernment and  the  China  Development  Company  of  the  United  States  of 
America : — 

Whereas  the  Chinese  Government  cancels  and  annuls  the  special  powers 
for  building  the  Yueh-han  Railway  and  its  agreement  and  does  not  authorize 
the  China  Development  Co.  to  proceed  with  the  railway  work,  but  is  willing 
to  pay  compensation  at  a  fair  rate,  this  compensation  is  fixed  at  a  total  sum  of 
Gold  $6,750,000.00.  The  Chinese  Government  may  take  over  and  control  all 
the  Development  Company's  property  in  China,  the  railway  already  built,  the 
railroad  materials,  surveys  and  plans,  special  mining  powers,  together  with  all 
powers  and  privileges  in  China  thereunto  appertaining,  whether  express  or  implied, 
whatsoever  absolutely.  The  Chinese  Government  loan  bonds  already  taken  up 
by  the  Development  Company,  apart  from  the  $2,222,000.00  already  sold,  shall 
all  be  returned  to  the  Chinese  Government's  custody.  As  regards  the  $2,222,000 
already  sold,  the  buyers  may  either  retain  or  return  them  at  their  option  and  if  the 
buyers  choose  to  retain  them  either  wholly  or  in  part,  the  amount,  at  the  rate  of  $90 
per  $100  shall  be  deducted  from  the  total  sum  of  $6,750,000.  Provided  in  any  case 
the  $55,550  of  interests  accrued  thereon  and  due  on  these  $2,222,000  bonds  upon 
1st  May  1905  must  be  duly  paid  by  the  Chinese  Government  within  three  months 
from  the  date  of  these  presents,  the  Chinese  Government  must  pay  an  instalment 
amounting  to  two  millions  of  the  total  sum  of  6}i  millions  of  dollars  and  the 
balance  within  six  months  of  the  said  date  unto  the  China  Development  Com- 
pany. It  is  agreed  that  the  said  payments  shall  be  duly  provided  by  the  Chinese 
Government  which  shall  on  each  instalment  pay  in  addition  interest  at  the  rate 
of  5%  per  annum  from  the  first  day  of  May  1905  to  the  date  of  the  payment 
of  the  same. 

The  foregoing  agreement  requires  confirmation  by  the  Chinese  Government 
and  the  Development  Company's  shareholders  to  render  it  binding. 
Signed  this  7th  of  June  1905  by 

Foster  Roots, 

YiNG   KO-LAN. 

And  whereas,  the  shareholders  of  the  party  of  the  second  part  did  on  the 
29th  of  August  1905  in  meeting  assembled  duly  confirm  the  foregoing  preliminary 
contract  and  a  majority  of  the  shareholders  and  directors  of  the  said  party  of 
the  second  part  have  authorized  the  carrying  out  of  the  foregoing  preliminary 
agreement,  the  managers  of  the  party  of  the  second  part  are  able  to  complete 
the  Agreement  necessary  for  the  carrying  out  of  this  contract. 


NUMBER  1905/7:  AUGUST  29,  1905  521 

And  whereas,  a  decree  of  H.  M.,  the  Emperor  of  China,  has  duly  confirmed 
the  above  draft  and  appointed  Chang,  Hukuang  Viceroy,  and  Liang,  Envoy, 
to  carry  out  the  original  contract,  Now  therefore  the  two  parties  agree  as 
follows : 

The  party  of  the  first  part  agrees  to  give  to  the  party  of  the  second  part 
American  Gold  Dollars  6^  millions  together  with  interest  at  5%  per  annum 
from  1st  May  1905  to  date  of  payment  whether  one  or  several  in  the  manner 
following,  that  is  to  say  on  or  before  7th  September  1905  there  shall  be  paid 
two  millions  and  the  balance  on  or  before  December  1905  by  the  party  of  the 
first  part  at  New  York  in  American  Gold  Dollars  to  the  party  of  the  second 
part  in  full  from  the  party  of  the  first  part,  the  party  of  the  second  part  shall 
thereupon  be  fully  divested  of  all  the  special  powers  arising  from  all  agreements 
aforesaid  and  any  and  every  demand  which  on  account  of  the  cancellation 
of  such  agreements  aforesaid  could  be  made  on  the  Imperial  Chinese  Government. 
And  in  accordance  with  the  above  arrangement,  the  party  of  the  second 
part  shall  return  in  full  to  the  party  of  the  first  part  the  property  in  China 
of  the  China  Development  Company,  the  railroad  complete,  the  railroad 
materials,  plans,  surveys,  all  special  mining  powers  together  with  all  property 
in  China  of  the  China  Development  Company  whatsoever  whether  express  or 
implied. 

The  two  parties  to  this  agreement  both  are  desirous  that  the  Imperial  Govern- 
ment of  China  shall  take  over  full  control  of  the  property  in  China  accruing  to 
the  party  of  the  second  part  under  each  of  the  above  referred  agreements,  but 
they  mutually  declare  that  until  payment  of  the  final  instalment,  all  present 
conditions  shall  remain  unchanged  and  the  status  and  privileges  of  the  party  of 
the  second  part  shall  not  on  any  account  of  this  agreement  be  altered.  They 
mutually  declare  further  that  the  party  of  the  second  part  shall  within  forty  days 
from  date  hereof  notify  the  party  of  the  first  part  of  the  retention  or  delivery 
to  the  party  of  the  first  part  of  the  $2,222,000  of  loan  bonds  of  the  Imperial 
Chinese  Government  already  sold.  Should  the  holder  or  holders  of  such  bonds 
not  inform  the  party  of  the  second  part  in  due  time  of  his  or  their  determination, 
the  said  holder  or  holders  shall  thereby  be  taken  to  have  elected  to  retain  the  loan 
bonds  and  the  party  of  the  first  part  shall  be  at  liberty  for  every  bond  retained 
at  the  rate  of  90  cents  to  the  $  to  deduct  from  the  final  payment  the  amount 
thereof.  The  party  of  the  first  part  agrees  to  pay  on  the  loan  bonds  already 
sold  the  interest  from  the  1st  May  1905  due  up  to  or  before  the  7th  September 
1907  and  further  to  pay  principal  and  interest  when  due  to  the  holders  of  all 
loan  bonds  retained,  and  it  is  mutually  agreed  that  the  preliminary  Agreement 
of  7th  June  1905  having  been  recognized  as  valid  by  both  parties  shall  be 
thoroughly  carried  out. 

On  the  day  and  year  just  above  mentioned  the  party  of  the  first  part 
through  Hukuang  Viceroy  Chang  and  Envoy  Liang  in  virtue  of  Imperial  Decree 
sign  this  agreement  in  duplicate  and  the  party  of  the  second  part  through 
the  General  Manager  and  Secretary  of  the  said  Company  sign  this  Agree- 
ment in  duplicate  and  affix  the  seal  of  the  said  Company  in  token  of 
good  faith. 


522  CHINA  TREATIES  AND  AGREEMENTS 

Signed  by  Hukuang  Viceroy  Chang,  representing  Hunan,  Hupeh  and  Kwang- 
tung,  by  Liang,  Envoy. 

By  General  Manager  of  the  China  Development  Company, 

Whittier. 

By  Secretary  of  the  China  Development  Company, ? 

Witnesses : 

YiNG  KO-LAN 

Foster. 


NUMBER  1905/8. 

RUSSIA  AND  JAPAN. 
Treaty  of  peace  * — September  5,  1905. 

His  Majesty  the  Emperor  of  Japan  on  the  one  part,  and  His  Majesty  the 
Emperor  of  all  the  Russias  on  the  other  part,  animated  by  the  desire  to  restore 
the  blessings  of  peace  to  Their  countries  and  peoples,  have  resolved  to  conclude 
a  Treaty  of  Peace,  and  have,  for  this  purpose,  named  Their  Plenipotentiaries,  that 
is  to  say : 

His  Majesty  the  Emperor  of  Japan: 

His  Excellency  Baron  Komura  Jutaro,  Jusammi,  Grand  Cordon  of  the 
Imperial  Order  of  the  Rising  Sun,  His  Minister  for  Foreign  Alifairs,  and 

His  Excellency  M.  Takahira  Kogoro,  Jusammi,  Grand  Cordon  of  the  Im- 
perial Order  of  the  Sacred  Treasure,  His  Envoy  Extraordinary  and  Minister 
Plenipotentiary  to  the  United  States  of  America; 

and  His  Majesty  the  Emperor  of  all  the  Russias: 

His  Excellency  M.  Serge  Witte,  His  Secretary  of  State  and  President  of 
the  Committee  of  Ministers  of  the  Empire  of  Russia,  and 

His  Excellency  Baron  Roman  Rosen,  Master  of  the  Imperial  Court  of 
Russia  and  His  Ambassador  Extraordinary  and  Plenipotentiary  to  the  United 
States  of  America; 

Who,  after  having  exchanged  their  full  powers  which  were  found  to  be  in 
good  and  due  form,  have  concluded  the  following  Articles: 

Article  I. — There  shall  henceforth  be  peace  and  amity  between  Their 
Majesties  the  Emperor  of  Japan  and  the  Emperor  of  all  the  Russias  and  between 
Their  respective  States  and  subjects. 

Article  II. — The  Imperial  Russian  Government,  acknowledging  that  Japan 
possesses  in  Corea  paramount  political,  military  and  economical  interests,  engage 

♦English  text  as  printed  in  Traitcs  et  Conventions,  p.  585.  Printed  also,  in  French 
text,  on  p.  97  of  the  Orange  Book  containing  protocols  of  the  Portsmouth  peace  conference, 
published  by  the  Russian  Ministry  for  Foreign  Affairs,  St.  Petersburg,  1906;  Hertslet,  p. 
608;  Recueil,  p.  741.    See  Note  to  this  document,  post,  p.  527. 


NUMBER  1905/8:  SEPTEMBER  5,  1905  523 

neither  to  obstruct  nor  interfere  with  the  measures  of  guidance,  protection  and 
control  which  the  Imperial  Government  of  Japan  may  find  it  necessary  to  take 
in  Corea. 

It  is  understood  that  Russian  subjects  in  Corea  shall  be  treated  exactly  in 
the  same  manner  as  the  subjects  or  citizens  of  other  foreign  Powers,  that  is  to 
say,  they  shall  be  placed  on  the  same  footing  as  the  subjects  or  citizens  of  the 
most  favoured  nation. 

It  is  also  agreed  that,  in  order  to  avoid  all  cause  of  misunderstanding,  the 
two  High  Contracting  Parties  will  abstain,  on  the  Russo-Corean  frontier,  from 
taking  any  military  measure  which  may  menace  the  security  of  Russian  or 
Corean  territory. 

Article  III. — Japan  and  Russia  mutually  engage: 

1.  To  evacuate  completely  and  simultaneously  Manchuria  except  the  terri- 
tory affected  by  the  lease  of  the  Liao-tung  Peninsula,  in  conformity  with  the 
provisions  of  additional  Article  I.  annexed  to  this  Treaty;  and 

2.  To  restore  entirely  and  completely  to  the  exclusive  administration  of 
China  all  portions  of  Manchuria  now  in  the  occupation  or  under  the  control  of  the 
Japanese  or  Russian  troops,  with  the  exception  of  the  territory  above  mentioned. 

The  Imperial  Government  of  Russia  declare  that  they  have  not  in  Man- 
churia any  territorial  advantages  or  preferential  or  exclusive  concessions  in 
impairment  of  Chinese  sovereignty  or  inconsistent  with  the  principle  of  equal 
opportunity. 

Article  IV. — Japan  and  Russia  reciprocally  engage  not  to  obstruct  any 
general  measures  common  to  all  countries,  which  China  may  take  for  the  develop- 
ment of  the  commerce  and  industry  of  Manchuria. 

Article  V. — The  Imperial  Russian  Government  transfer  and  assign  to  the 
Imperial  Government  of  Japan,  with  the  consent  of  the  Government  of  China, 
the  lease  of  Port  Arthur,  Talien  and  adjacent  territory  and  territorial  waters 
and  all  rights,  privileges  and  concessions  connected  with  or  forming  part  of  such 
lease  and  they  also  transfer  and  assign  to  the  Imperial  Government  of  Japan 
all  public  works  and  properties  in  the  territory  affected  by  the  above  mentioned 
lease. 

The  two  High  Contracting  Parties  mutually  engage  to  obtain  the  consent 
of  the  Chinese  Government  mentioned  in  the  foregoing  stipulation. 

The  Imperial  Government  of  Japan  on  their  part  undertake  that  the  pro- 
prietary rights  of  Russian  subjects  in  the  territory  above  referred  to  shall  be 
perfectly  respected. 

Article  VI. — The  Imperial  Russian  Government  engage  to  transfer  and 
assign  to  the  Imperial  Government  of  Japan,  without  compensation  and  with 
the  consent  of  the  Chinese  Government,  the  railway  between  Chang-chun  (Kuan- 
cheng-tzu)  and  Port  Arthur  and  all  its  branches,  together  with  all  rights,  privi- 
leges and  properties  appertaining  thereto  iji  that  region,  as  well  as  all  coal  mines 
in  the  said  region  belonging  to  or  worked  for  the  benefit  of  the  railway. 

The  two  High  Contracting  Parties  mutually  engage  to  obtain  the  consent 
of  the  Government  of  China  mentioned  in  the  foregoing  stipulation. 

Article  VII. — Japan  and  Russia  engage  to  exploit  their  respective  railways 


524  CHINA  TREATIES  AND  AGREEMENTS 

in  Manchuria  exclusively  for  commercial  and  industrial  purposes  and  in  no  wise 
for  strategic  purposes. 

It  is  understood  that  that  restriction  does  not  apply  to  the  railway  in  the 
territory  affected  by  the  lease  of  the  Liao-tung  Peninsula. 

Article  VIII. — The  Imperial  Governments  of  Japan  and  Russia,  with  a  view 
to  promote  and  facilitate  intercourse  and  traffic,  will,  as  soon  as  possible,  con- 
clude a  separate  convention  for  the  regulation  of  their  connecting  railway  services 
in   Manchuria.f 

Article  IX. — The  Imperial  Russian  Government  cede  to  the  Imperial  Gov- 
ernment of  Japan  in  perpetuity  and  full  sovereignty,  the  southern  portion  of  the 
Island  of  Saghalien  and  all  islands  adjacent  thereto,  and  all  public  works  and 
properties  thereon.  The  fiftieth  degree  of  north  latitude  is  adopted  as  the  north- 
ern boundary  of  the  ceded  territory.  The  exact  alignment  of  such  territory  shall 
be  determined  in  accordance  with  the  provisions  of  additional  Article  II.  annexed 
to  this  Treaty. 

Japan  and  Russia  mutually  agree  not  to  construct  in  their  respective  pos- 
sessions on  the  Island  of  Saghalien  or  the  adjacent  islands,  any  fortifications  or 
other  similar  military  works.  They  also  respectively  engage  not  to  take  any 
military  measures  which  may  impede  the  free  navigation  of  the  Straits  of  La 
Perouse  and  Tartary. 

Article  X. — It  is  reserved  to  the  Russian  subjects  inhabitants  of  the  ter- 
ritory ceded  to  Japan,  to  sell  their  real  property  and  retire  to  their  country ;  but, 
if  they  prefer  to  remain  in  the  ceded  territory,  they  will  be  maintained  and  pro- 
tected in  the  full  exercise  of  their  industries  and  rights  of  property,  on  condition 
of  submitting  to  Japanese  laws  and  jurisdiction.  Japan  shall  have  full  liberty  to 
withdraw  the  right  of  residence  in,  or  to  deport  from,  such  territory,  any  in- 
habitants who  labour  under  political  or  administrative  disability.  She  engages, 
however,  that  the  proprietary  rights  of  such  inhabitants  shall  be  fully 
respected. 

Article  XI.$ — Russia  engages  to  arrange  with  Japan  for  granting  to  Japa- 
nese subjects  rights  of  fishery  along  the  coasts  of  the  Russian  possessions  in  the 
Japan,  Okhotsk  and  Behring  Seas. 

It  is  agreed  that  the  foregoing  engagement  shall  not  affect  rights  already 
belonging  to  Russian  or  foreign  subjects  in  those  regions. 

Article  XII. § — The  Treaty  of  Commerce  and  Navigation  between  Japan 
and  Russia  having  been  annulled  by  the  war,  the  Imperial  Governments  of  Japan 
and  Russia  engage  to  adopt  as  the  basis  of  their  commercial  relations,  pending  the 
conclusion  of  a  new  treaty  of  commerce  and  navigation  on  the  basis  of  the 
Treaty  which  was  in  force  previous  to  the  present  war,  the  system  of  reciprocal 
treatment  on  the  footing  of  the  most  favoured  nation,  in  which  are  included 
import  and  export  duties,  customs  formalities,  transit  and  tonnage  dues,  and  the 

t  Such  a  convention  was  concluded  June  13,  1907   (No.  \907/9,  post). 

t  A  fisheries  convention  was  concluded  between  Japan  and  Russia  on  July  28,  1907. 

§  A  treaty  of  commerce  and  navigation,  with  separate  articles,  protocol  and  exchange 
of  notes  attached  thereto,  and  a  protocol  relating  to  certain  Japanese  and  Russian  con- 
sulates, were  concluded  between  Japan  and  Russia  on  July  28,  1907.  See  also  the  political 
convention  of  July  30,  1907   (No.  1907/11,  post). 


NUMBER  1905/8:  SEPTEMBER  5,  1905  525 

admission  and  treatment  of  the  agents,  subjects  and  vessels  of  one  country  in  the 
territories  of  the  other. 

Article  XIII. — As  soon  as  possible  after  the  present  Treaty  comes  into 
force,  all  prisoners  of  war  shall  be  reciprocally  restored.  The  Imperial  Govern- 
ments of  Japan  and  Russia  shall  each  appoint  a  special  Commissioner  to  take 
charge  of  prisoners.  All  prisoners  in  the  hands  of  one  Government  shall  be 
delivered  to  and  received  by  the  Commissioner  of  the  other  Government  or  by  his 
duly  authorized  representative,  in  such  convenient  numbers  and  at  such  convenient 
ports  of  the  "delivering  State  as  such  delivering  State  shall  notify  in  advance  to 
the  Commissioner  of  the  receiving  State. 

The  Governments  of  Japan  and  Russia  shall  present  to  each  other,  as  soon 
as  possible  after  the  delivery  of  prisoners  has  been  completed,  a  statement  of  the 
direct  expenditures  respectively  incurred  by  them  for  the  care  and  maintenance 
of  prisoners  from  the  date  of  capture  or  surrender  up  to  the  time  of  death  or  de- 
livery. Russia  engages  to  repay  to  Japan,  as  soon  as  possible  after  the  exchange 
of  the  statements  as  above  provided,  the  diflference  between  the  actual  amount 
so  expended  by  Japan  and  the  actual  amount  similarly  disbursed  by  Russia. 

Article  XIV. — The  present  Treaty  shall  be  ratified  by  Their  Majesties  the 
Emperor  of  Japan  and  the  Emperor  of  all  the  Russias.  Such  ratification  shall, 
with  as  little  delay  as  possible  and  in  any  case  not  later  than  fifty  days  from  the 
date  of  the  signature  of  the  Treaty,  be  announced  to  the  Imperial  Governments 
of  Japan  and  Russia  respectively  through  the  French  Minister  in  Tokio  and  the 
Ambassador  of  the  United  States  in  Saint  Petersburg  and  from  the  date  of  the 
later  of  such  announcements  this  Treaty  shall  in  all  its  parts  come  into  full 
force. 

The  formal  exchange  of  the  ratifications  shall  take  place  at  Washington  as 
soon  as  possible. || 

Article  XV. — The  present  treaty  shall  be  signed  in  duplicate  in  both  the 
English  and  French  languages.  The  texts  are  in  absolute  conformity,  but  in  case 
of  discrepancy  in  interpretation,  the  French  text  shall  prevail. 

In  witness  whereof,  the  respective  Plenipotentiaries  have  signed  and  affixed 
their  seals  to  the  present  Treaty  of  Peace. 

Done  at  Portsmouth  (New  Hampshire)  this  fifth  day  of  the  ninth  month 
of  the  thirty-eighth  year  of  Meiji,  corresponding  to  the  twenty-third  day  of 
August  (fifth  September)  one  thousand  nine  hundred  and  five. 

(Signed)     Jutaro  Komura.   [l.s.]  (Signed)     Serge  Witte.    [l.s.] 

(Signed)     K.  Takahira.  [l.s.]  (Signed)     Rosen,    [l.s.] 


ADDITIONAL  ARTICLES. 

In  conformity  with  the  provisions  of  Articles  III.  and  IX.  of  the  Treaty  of 
Peace  between  Japan  and  Russia  of  this  date,  the  undersigned  Plenipotentiaries 
have  concluded  the  following  additional  Articles : — 

II  Ratifications  were  exchanged  at  Washington,  November  25,  1905. 


526  CHINA  TREATIES  AND  AGREEMENTS 

I. — To  Article  III. 

The  Imperial  Governments  of  Japan  and  Russia  mutually  engage  to  com- 
mence the  withdrawal  of  their  military  forces  from  the  territory  of  Manchuria 
simultaneously  and  immediately  after  the  Treaty  of  Peace  comes  into  operation, 
and  within  a  period  of  eighteen  months  from  that  date,  the  Armies  of  the  two 
countries  shall  be  completely  withdrawn  from  Manchuria,  except  from  the  leased 
territory  of  the  Liao-tung  Peninsula. 

The  forces  of  the  two  countries  occupying  the  front  positions  shall  be  first 
withdrawn. 

The  High  Contracting  Parties  reserve  to  themselves  the  right  to  maintain 
guards  to  protect  their  respective  railway  lines  in  Manchuria.  The  number  of 
such  guards  shall  not  exceed  fifteen  per  kilometre  and  within  that  maximum 
number,  the  Commanders  of  the  Japanese  and  Russian  Armies  shall,  by  common 
accord,  fix  the  number  of  such  guards  to  be  employed,  as  small  as  possible  having 
in  view  the  actual  requirements. 

The  Commanders  of  the  Japanese  and  Russian  forces  in  Manchuria  shall 
agree  upon  the  details  of  the  evacuation  in  conformity  with  the  above  principles, 
and  shall  take  by  common  accord  the  measures  necessary  to  carry  out  the 
evacuation  as  soon  as  possible  and  in  any  case  not  later  than  the  period  of 
eighteen  months. 

II. — To  Article  IX. 

As  soon  as  possible  after  the  present  Treaty  comes  into  force,  a  Com- 
mission of  Delimitation,  composed  of  an  equal  number  of  members  to  be  appointed 
respectively  by  the  two  High  Contracting  Parties,  shall  on  the  spot,  mark  in  a 
permanent  manner  the  exact  boundary  between  the  Japanese  and  Russian  pos- 
sessions on  the  Island  of  Saghalien.  The  Commission  shall  be  bound,  so  far  as 
topographical  considerations  peiimit,  to  follow  the  fiftieth  parallel  of  north 
latitude  as  the  boundary  line,  and  in  case  any  deflections  from,  that  line  at  any 
points  are  found  to  be  necessary,  compensation  will  be  made  by  correlative  deflec- 
tions at  other  points.  It  shall  also  be  the  duty  of  the  said  Commission  to  prepare 
a  list  and  description  of  the  adjacent  islands  included  in  the  cession  and  finally 
the  Commission  shall  prepare  and  sign  maps  showing  the  boundaries  of  the  ceded 
territory.  The  work  of  the  Commission  shall  be  subject  to  the  approval  of  the 
High  Contracting  Parties. 

The  foregoing  additional  Articles  are  to  be  considered  as  ratified  with  the 
ratification  of  the  Treaty  of  Peace  to  which  they  are  annexed. 

Portsmouth,  the  5th  day,  9th  month,  38th  year  of  Meiji,  corresponding  to 

23rd  August, 

the 1905. 

5th  September, 

(Signed)     Jutaro  Komura.  (Signed)     Serge  Witte. 

(Signed)     K.  Takahira.  (Signed)     Rosen. 


NUxMBER  1905/8:  SEPTEMBER  5,  1905:  NOTE  527 

Note. 

In  connection  with  this  treaty  see  also  the  protocol  of  armistice  signed  at  Portsmouth 
September  1,  1905,  as  follows:  ' 

Protocol  of  Armistice  between  Japan  and  Russia.— September  i,  1905. 

"The  undersigned  Plenipotentiaries  of  Japan  and  Russia  duly  authorised  to  that  effect 
by  their  Governments  have  agreed  upon  the  following  terms  of  armistice  between  the  bel- 
ligerents, pending  the  coming  into  force  of  the  Treaty  of  Peace : — 

"1.  A  certain  distance  (zone  of  demarcation)  shall  be  fixed  between  the  fronts  of  the 
armies  of  the  two  Powers  in  Manchuria  as  well  as  in  the  region  of  the  Tomamko  (Tumen). 

"2.  The  naval  forces  of  one  of  the  belligerents  shall  not  bombard  territory  belonging 
to  or  occupied  by  the  other. 

"3.    Maritime  captures  will  not  be  suspended  by  the  armistice. 

"4.  During  the  term  of  the  armistice  reinforcements  shall  not  be  dispatched  to  the 
theatre  of  war.  Those  which  are  en  route  shall  not  be  dispatched  to  the  north  of  Mukden 
on  the  part  of  Japan  and  to  the  south  of  Harbin  on  the  part  of  Russia. 

"  5.  The  commanders  of  the  armies  and  fleets  of  the  two  Powers  shall  determine  in 
common  accord  the  conditions  of  the  armistice  in  conformity  with  the  provisions  above 
enumerated. 

"6.  The  two  Governments  shall  give  orders  to  their  commanders  immediately  after 
the  signature  of  the  Treaty  of  Peace  in  order  to  put  this  protocol  in  execution. 

"  Portsmouth,  1st  September,  1905. 

"(Signed.)         "  Jutaro  Komura, 
"  K.  Takahira. 
"  Serge  Witte. 
"  Rosen." 

(Translation  from  the  French  text  printed  on  p.  96  of  the  Russian  Orange  Book  con- 
taining protocols  of  the  Portsmouth  peace  conference;   St.  Petersburg,  1906.) 

For  the  protocol  of  military  armistice  arranged  between  the  respective  commanders  on 
September  13,  1905,  and  the  protocol  of  naval  armistice  of  September  18,  1905   see  For  Rel 
1906,  p.  1085. 

On  October  30,  1905,  the  respective  military  authorities  concluded  the  following  Protocol 
of  the  procedure  in  withdrawing  troops  of  the  Japanese  and  Russian  Armies  from  Man- 
churia, and  transferring  the  Railways  : 

Protocol  concerning  Withdrawal  of  Japanese  and  Russian  Armies  from  Manchuria, 
and  Transfer  of  Railways. — October  30,  1905. 

"Article  I.— The  following  agreement  has  been  concluded  in  accordance  with  the  sup- 
plementary agreement  relating  to  Article  III  of  the  treaty  of  peace  between  Japan  and 
Russia  at  Portsmouth  on  September  5  of  this  year   (August  2c>)  : 

"  1.  The  Japanese  troops  occupying  the  front  positions  in  Manchuria  shall  be  with- 
drawn within  the  zone  of  Fakumen,  Chinchiatung,  Changtu,  Weiyanpaomen,  and  Fushun 
by  December  31  (18),  1905.  The  Russian  troops  occupying  the  front  positions  in  Man- 
churia shall  be  withdrawn  within  the  zone  of  Itunchou,  Yekhotien  Weitzukou,  Pamiencheng, 
and  Shanchengtzu  by  the  same  date. 

"2.  By  June  1  (INIay  19),  1906,  the  Japanese  troops  shall  be  withdrawn  to  the  line  of 
Fakumen,  Tieling,  and  Fushun  and  to  the  south  thereof,  and  the  Russian  troops  to  the  line 
of  Shanchengtzu,  Kungshunglieng  Railway  Station,  Itunchou,  and  to  the  north  thereof. 

"3.  By  August  1  (July  19),  1906,  the  Japanese  troops  shall  be  withdrawn  to  the  Hne  of 
Hsinmintun.  Mukden,  and  Fushun,  and  to  the  south  thereof ;  and  the  Russian  troops  to  the 
line  of  Shanhotun,  Kuanchengtzu,  and   Palipu,  and  to  the  north  thereof. 

"4.  Neither  of  the  two  contracting  powers  shall  have  more  than  250,000  combatants  in 
Manchuria  after  April  15  (April  2),  or  75,000  after  October  15  (October  2),  1906.  Both 
contracting  powers  are  required  to  complete  the  withdrawal  of  their  troops  bv  Aoril  IS 
(April  2),  1907.  f       y       y 

"  5.  In  accordance  with  supplementary  agreement  I  to  the  treaty  of  peace,  the  number 
of  guards  to  protect  their  respective  railways  in  Manchuria  shall  be  15  per  kilometer  on  the 
average. 

"  Article  II.— For  the  purpose  of  transferring  the  railways,  each  of  the  two  contracting 
powers  shall  appoint  a  commission  consisting  of  three  persons  selected  from  officers  and 
experts  belonging   to   the   section   of   military   communication. 

"  The  said  commission  shall  commence  its  work  between  April  10  and  20,  1906  (new 
calendar)  ;  and  the  place  and  time  of  meeting  shall  be  determined  later. 

"  The  transfer  and  receiving  of  railways  south  of  Kuanchengtzu  Station  and  those  at 
Kuanchengtzu  Station,  as  well  as  north  thereof,  shall  be  completed  before  June  1  (May  19), 
1906,  and  August  1   (July  19),  1906,  respectively. 


528  CHINA  TREATIES  AND  AGREEMENTS 

"  The  determination  of  the  extreme  northern  point  of  the  railways  to  be  transferred 
to  Japan  shall  be  left  to  diplomatic  negotiations. 

"The  undersigned,  having  been  duly  empowered  by  the  commanders  in  chief  of  the 
Japanese  and  Russian  armies,  hereby  certify  that  they  have  made  this  protocol  in  duplicate 
in  both  the  Japanese  and  the  Russian  languages,  and  that  each  side  keeps  a  text  each  in  the 
Japanese  and  the  Russian  Languages. 

"Done  at  Sz-ping-kai  Railway  Station  on  October  30  (17),  1905. 

"  (Signed)  Major-General    Yasumasa    Fukushima, 

Staif  of  the  Japanese  Army  in  Manchuria. 
"  (Signed)  Major-General  Olanovsky, 

Second  in  Command  of  the  Staff  of  the  Russian  Army  in  Manchuria." 

(For.  Rcl.  of  the  U.  S.,  1906,  p.  189.) 

An  accompanying  memorandum  relating  to  the  crossing  of  the  neutral  zone  between  the 
Japanese  and  Russian  armies  is  to  be  found  in  For.  Rel.,  1906,  p.  188. 

With  particular  reference  to  the  transfers  provided  for  in  Articles  5  and  6,  see  the 
treaty  between  Japan  and  China,  December  22,  1905  (No.  1905/18,  post).  See  also  the 
political  conventions  between  Japan  and  Russia  of  July  30,  1907  (No.  1907/11,  post),  July 
4,  1910  (No.  1910/1,  post),  and  July  3,  1916  (No.  1916/9,  post). 


NUMBER  1905/9. 

GREAT  BRITAIN   (Government  of  Hongkong)  AND  CHINA. 

Agreement  for  a  loan  for  the  redemption  of  the  Canton-Haiikozv  Railway  con- 
cession.^— September  9,  1905. 

This  Agreement  is  made  between  His  Excellency  Chang,  Junior  Guardian 
of  the  Heir  Apparent,  Viceroy  of  the  Hukuang  Provinces  of  China  of  the  one 
part  and  the  Government  of  Hongkong  of  the  other  part. 

The  Viceroy  has  been  imperially  appointed  to  devise  means  for  the  resump- 
tion of  the  Canton-Hankow  Railway  and  the  present  loan  has  been  referred  to  the 
Throne  and  His  Majesty  the  Emperor  of  China  has  issued  a  Decree  approving  of 
the  Agreement  being  made  by  the  Viceroys  of  the  Hukuang  and  Liangkuang  and 
the  Governor  of  Hunan  for  themselves  and  their  successors  in  office. 

Whereas  the  Viceroy  is  charged  with  the  settlement  of  all  questions  con- 
cerning the  Hankow-Canton  Railway  and  for  this  purpose  is  in  need  of  funds 
to  redeem  the  Concession  for  the  building  thereof  heretofore  granted  to  an 
American  company,  and  whereas  the  Viceroy  has  officially  applied  to  the  Gov- 
ernment of  His  Britannic  Majesty  for  financial  assistance  to  buy  back  the  shares 
in  the  said  American  company  and  so  perform  the  said  special  charge  laid  upon 
His  Excellency  and  whereas  the  Government  of  Hongkong  has  agreed  at  the 
instance  of  the  Government  of  His  Britannic  Majesty  to  aflford  His  Excellency 
the  Viceroy  the  assistance  applied  for 

It  is  now  agreed  as  follows : — 

1. — The  Government  of  Hongkong  agrees  to  lend  to  the  three  provinces  of 

*  Text  as  printed  in  Wang,  p.  537  (omitting  the  schedule  of  payments  of  interest  and 
repayment  of  principal). 

For  the  agreement  for  the  sale  of  the  American  China  Development  Company's  con- 
cession, August  29,  1905,  sec  No.  1905/7,  ante. 

See  Note  to  this  document,  post,  p.  530. 


NUMBER  1905/9 :  SEPTEMBER  9,  1905  529 

Hupei,  Hunan  and  Kuangtung  the  siini  of  one  million  one  hundred  thousand 
pounds  sterling  payable  as  set  forth  in  Clause  7  below.  The  exact  division  of 
the  responsibility  for  this  sum  will  be  settled  and  announced  later. 

2. — The  term  of  the  loan  shall  be  ten  years  calculated  from  the  sixth  day 
of  October  1905  and  repayment  of  principal  shall  be  made  by  ten  equal  instal- 
ments of  Pounds  one  hundred  and  ten  thousand  (£110,000)  each  commencing 
on  the  sixth  day  of  October  1906,  provided  that  at  any  time  after  the  payment  of 
the  fifth  annual  instalment  the  three  Provinces  shall  be  at  liberty  on  giving  six 
calendar  months  notice  beforehand  to  pay  off  the  whole  amount  of  the  principal 
then  outstanding  with  interest  up  to  the  date  of  such  paying  off  only  and  there- 
upon this  Agreement  shall  cease  and  terminate. 

3. — Interest  on  the  loan  shall  be  paid  at  the  rate  of  four  and  a  half  per  cent, 
calculated  half-yearly  on  the  amount  of  principal  from  time  to  time  outstanding. 

4. — All  payments  of  interest  and  repayments  of  principal  shall  be  made  in 
accordance  with  the  amounts  and  dates  of  the  schedule  attached  to  this  Agree- 
ment to  the  Treasurer  of  Hongkong  at  Hongkong  in  sterling  sight  drafts  or  in  the 
equivalent  of  sterling  amount  at  the  option  of  the  Government  of  Hongkong. 

5. — This  Loan  shall  be  secured  by  a  first  mortgage  on  the  Opium  Revenues 
of  the  three  Provinces  of  Hupei,  Hunan  and  Kuangtung  and  shall  as  regards 
security  for  principal  and  interest  rank  before  any  Loan  hereafter  raised  on  the 
security  of  those  revenues  and  the  priority  of  this  Loan  shall  be  expressly  stated 
in  any  agreement  for  such  subsequent  loan  secured  wholly  or  in  part  on  the 
said  Opium  Revenues.  Should  hereafter  the  Opium  Revenues  of  the  three 
Provinces  not  suffice  to  meet  payments  the  Viceroy  of  Hukuang  may  agree  with 
the  Hunan  and  Kuangtung  Governments  which  province's  quota  is  insufficient 
and  such  province  shall  supplement  the  above  Opium  Revenues  by  other  revenues 
for  the  service  of  the  present  Loan ;  but  in  case  of  default  with  regard  to  pay- 
ments of  interest  or  repayment  of  principal  of  the  present  Loan  the  Viceroy 
may  be  called  upon  by  His  Britannic  Majesty's  Government  to  agree  with  Kuang- 
tung and  Hunan  which  province  is  in  default  and  that  province  shall  appropriate 
and  place  under  administration  of  Imperial  Maritime  Customs  further  approved 
revenues  as  its  security. 

6. — This  Loan  shall  be  further  secured  by  deposit  with  His  Britannic 
Majesty's  Consul-General  at  Hankow  of  sterling  Likin  yearly  Bonds  equal  in 
value  altogether  to  the  total  amount  of  the  Loan,  principal  and  interest,  sealed 
by  the  Viceroy  of  the  Hukuang  Provinces  and  countersigned  by  the  foreign  Com- 
missioner of  Customs  at  Hankow.  In  the  event  of  the  money  to  meet  a  payment 
of  interest  or  instalment  of  principal  not  being  handed  to  the  Hongkong  Treas- 
urer at  Hongkong  on  due  date  these  Likin  Bonds  shall  become  available  for  the 
payment  of  likin  in  the  Hukuang  Provinces  and  Kuangtung;  and  the  provincial 
authorities  shall  be  instructed  accordingly. 

7. — Of  the  proceeds  of  this  Loan  the  Government  of  Hongkong  on  the  6th 
day  of  October  1905  shall  remit  £400,000  to  the  Hongkong  and  Shanghai  Bank 
Hankow  to  the  credit  of  the  Viceroy  Chang  and  shall  on  the  said  6th  day  of 
October  1905  also  remit  £700,000  to  New  York  to  the  credit  of  the  Chinese 
Minister  His  Excellency  Liang;  and  the  Hongkong  Government  may  require 


530  CHINA  TREATIES  AND  AGREEMENTS 

from  the  Viceroy  through  His  Britannic  Majesty's  Consul  General  at  Hankow 
such  evidence  as  he  may  deem  satisfactory  of  the  due  employment  of  the  funds 
for  the  object  stated. 

8. — Before  the  execution  of  this  Agreement  the  Viceroy  has  reported  to  the 
Throne  and  obtained  an  Imperial  Decree  approving  and  sanctioning  this  Loan 
Agreement  which  Decree  will  be  communicated  to  His  Britannic  Majesty's  Minis- 
ter at  Peking  by  the  Wai  Wu  Pu  officially. 

9. — The  Viceroy  has  by  telegraph  consulted  the  Viceroy  of  the  Liang- 
kuang  who  has  replied  consenting  to  the  pledging  of  the  Opium  Revenues  of 
Kuangtung  and  to  the  terms  of  this  Agreement  so  far  as  they  affect  that  Province. 

10. — This  Agreement  is  executed  in  six  parts  in  English  and  Chinese  one 
copy  to  be  retained  by  the  Hukuang  Viceroy,  one  copy  by  the  Canton  Viceroy, 
one  copy  by  the  Hunan  Governor,  one  copy  by  the  Government  of  Hongkong, 
one  copy  by  His  Britannic  Majesty's  Minister  at  Peking  and  one  copy  by  His 
Britannic  Majesty's  Consul-General  at  Hankow. 

In  the  event  of  any  doubt  arising  as  to  the  interpretation  of  the  Contract 
the  English  text  shall  rule. 

Signed  at  Wuchang  by  the  contracting  parties  this  eleventh  day  of  the 
eighth  moon  of  the  year  thirty  one  of  the  Reign  Kuang  Hsii  being  the  ninth 
day  of  September  1905,  Western  Calendar. 

H.  B.  M.'s  Consul  General,  Hankow, 
for  the  Government  of  Hongkong, 
[Signature  and  Seal] 

Viceroy 

[Signature  and  Seal] 


Note. 

It  is  understood  that,  in  connection  with  this  agreement,  Viceroy  Chang  Chih-tung  on 
September  9,  1905,  gave  to  the  British  Consul  General  at  Hankow  (Mr.  Everard  H.  Eraser) 
a  letter  of  which  the  following  is  a  translation : 

Letter  of  Hukuang  Viceroy  regarding  Preference  to  British  Nationals  in  Railway 
Construction  in  Hupeh  and  Hunan. — September  g,  1905. 

"  In  view  of  your  services  in  obtaining  for  me  the  present  loan  for  the  redemption  of 
the  Canton-Hankow  Railway  and  the  very  fair  terms  on  which  it  has  been  arranged,  I  have 
the  honor  to  give  the  following  assurance  which  binds  the  viceroys  and  governors  of  the 
three  provinces  of  Hupeh,  Hunan,  and  Kuangtung  and  their  successors  in  office  who  have 
power  to  deal  with  railways : 

"  As  regards  funds  for  the  future  construction  of  the  Canton-Hankow  Railway,  in 
case  it  is  necessary  to  borrow  abroad  in  addition  to  the  amount  China  may  herself  pro- 
vide, the  first  application  shall  be  made  to  England,  and  if  the  British  tender  is,  as  regards 
interest  and  issue  price,  equal  to  the  tenders  of  other  countries,  British  financiers  shall  have 
the  first  option  of  undertaking  the  business ;  if  in  the  above  and  other  respects  the  tenders 
of  other  countries  are  fairer  and  more  favorable  than  England's,  China  will  be  free  to  choose 
the  fairest  and  most  favorable  and  make  other  arrangements  for  borrowing. 

"  If  funds  for  constructing  the  Canton-Hankow  Railway  have  been  borrowed  from 
England,  then  for  the  machinery  and  materials  required  for  that  line,  apart  from  what 
China  has  of  her  own  making,  if  bought  abroad,  British  firms  and  works  shall  first  be 
applied  to,  and  if  their  tenders  are  of  similar  cost  to  those  made  by  other  countries'  firms 
and  works,  the  British  works  shall  have  the  first  option  of  undertaking  the  orders;  if  the 
wares  of  other  countries  are  excellent  and  the  price  moderate,  China  shall  be  free  to  con- 
tract for  purchase  from  the  most  suitable. 


NUMBER  1905/10:  SEPTEMBER  27,  1905  531 

"  Beyond  this,  if  within  the  jurisdiction  of  Hupeh  and  Hunan  there  are  other  railway 
construction  enterprises  which  likewise  necessitate  loans  from  abroad,  they  shall  be  dealt 
with  on  the  system  set  forth  above  as  applicable  to  the  Canton-Hankow  Railway  loans. 

"With  regard  to  the  engineers  needed  for  the  construction  of  the  railways,  I  declare 
that  one-half  will  be  of  the  nation  that  lends  the  funds  and  the  other  half  will  be  Japa- 
nese. The  work  will  be  divided  into  sections  for  undertaking,  and  each  nation  will  attend 
to  its  own  business.  China  will  retain  control  as  regards  all  railway  companies,  their  em- 
ployees, selection  of  land,  management  of  lines,  and  running  of  cars;  the  engineers  will 
only  attend  to  the  affairs  of  the  requisite  works  within  their  sections  and  may  not  inter- 
fere in  anything  else. 

"  I  am  communicating  officially  with  the  officers  concerned,  and  I  have,  etc.,  etc. 

"  (Seal  of  Hukuang  Viceroy.)  " 

Under  date  of  June  21,  1918,  it  is  understood,  the  Chinese  Ministry  for  Foreign  Affairs 
had  occasion  to  address  to  the  British  Legation  in  Peking  a  note  in  which  it  was  stated 
that,  "  with  reference  to  the  note  formerly  given  the  British  Consul  at  Hankow  by  the 
Hukuang  Viceroy,  it  is  clearly  stated  in  Article  2  of  the  Hongkong  agreement  that  when 
the  capital  and  interest  have  been  paid  the  agreement  shall  be  cancelled.  The  note  referred 
to  was  an  addendum  to  the  said  agreement.  The  capital  and  interest  specified  in  the 
agreement  have  long  been  paid,  and  so  the  agreement  has  now  no  force ;  so  any  addendum  to 
the  agreement  has  also  ceased  to  have  force." 


NUMBER  1905/10. 

INTERNATIONAL  AND  CHINA. 
Nezv  agreement  for  the  Huangpu  conservancy."^ — September  27,  1905. 

The  Chinese  Government,  being  desirous  of  substituting  for  the  terms  of  the 
Protocol  of  1901,  having  reference  to  the  estabUshment  of  a  River  Board  for  the 
Huangpu  and  the  functions  and  revenues  of  such  Board,  a  new  method  of  pro- 
cedure whereby  the  Chinese  Government  itself  will  undertake  the  work  and  defray 
the  M'hole  of  the  expense  thereof ;  and  the  Powers  signatory  to  the  final  Protocol 
having  assented  to  this  proposition,  the  following  conditions  have  been  agreed 
upon : — 

Article  I. — The  Customs  Taotai  and  the  Commissioner  of  Customs  at 
Shanghai  are  entrusted  with  the  general  management  of  the  work  of  improving 
the  course  of  the  Huangpu  and  of  ameliorating  the  condition  of  the  bar,  both 
at  this  and  the  other  side  of  Woosung,  as  well  as  of  the  maintenance  of  such 
works. 

With  regard  to  the  river  and  sanitary  police,  lighting  and  buoying,  pilot 
service,  etc.,  the  former  regulations  will  continue  to  be  in  force. 

Article  II. — Three  months  after  signature  of  the  present  agreement  China 
will  herself  select  an  engineer  experienced  in  matters  of  river  conservancy,  and 
if  a  majority  of  the  representatives  of  the  Powers  signatory  to  the  final  Protocol 
consider  that  the  engineer  thus  chosen  possesses  the  requisite  qualifications,  China 
will  immediately  appoint  him  to  undertake  the  work. 

*  Translation   from  the  French  text  as  printed  in   U.  S.   Treaty  S-crics   (No  Number). 

French  text  printed  also  in  Customs,  Vol.  I,  p.  342;  Traitcs  et  Conventions,  p.  200; 
Hertslet,  p.  199 ;  other  translation  in  Malloy,  p.  2013,  and  U.  S.  Treaty  Series. 

In  connection  with  this  agreement  see  also  the  final  protocol  of  September  7,  1901, 
for  the  settlement  of  the  disturbances  of  1900  (No.  1901/3,  ante),  and  the  Huangpu  regu- 
lations attached  thereto  as  Annex  No.  17 ;  also  the  Huangpu  agreement  of  April  9,  1912 
(with  the  supplementary  article  of  1915)    (No.  1912/6,  post). 


532  CHINA  TREATIES  AND  AGREEMENTS 

In  case,  after  commencement  of  the  works,  it  should  be  necessary,  for  rea- 
sons considered  vaHd  by  a  majority  of  the  Ministers  interested,  to  take  steps  to 
replace  him,  the  selection  and  appointment  of  the  new  engineer  would  be  effected 
in  the  same  manner  as  above  mentioned. 

Article  III. — All  contracts  for  undertaking  the  whole  or  part  of  the  river 
conservancy  works,  for  purchase  of  material  or  of  machinery,  etc.,  shall  be  sub- 
mitted to  public  tender  and  awarded  to  the  party  offering  the  most  advantageous 
terms. 

Article  IV. — Every  three  months  a  detailed  report  upon  the  work  done  and 
a  statement  of  expenses  incurred  will  be  drawn  up  and  submitted  for  examina- 
tion to  the  Consular  Body  at  Shanghai. 

Article  V. — The  sanction  of  the  Taotai  and  of  the  Commissioner  of  Cus- 
toms in  Shanghai  will  be  required  for  constructing  wharves  and  jetties  as  well 
as  for  the  establishment  of  all  pontoons  or  floating  houses  in  the  river. 

Article  VI. — The  Taotai,  and  the  Commissioner  of  Customs  at  Shanghai 
will  have  the  right  to  expropriate  the  existing  permanent  moorings  and  to  estab- 
lish a  system  of  public  moorings  in  the  river. 

Article  VII. — The  sanction  of  the  Taotai  and  of  the  Commissioner  of 
Customs  will  be  necessary  for  the  prosecution  of  all  dredging  and  other  work. 

Article  VIII. — The  Taotai  and  Commissioner  of  Customs  will  have  the 
right  to  acquire  all  land,  situated  outside  the  foreign  concessions,  necessary  for 
the  execution  of  the  work  of  improving  and  conserving  the  Huangpu,  and  to  dis- 
pose of  the  said  land.  If,  in  this  connection,  it  should  be  considered  necessary  to 
expropriate  land,  and  if  such  land  should  be  the  property  of  foreigners,  the  price 
therefor  will  be  determined  by  a  commission  composed  of : — 

(1)  A  person  selected  by  the  Consular  authority  having  jurisdiction  over 
the  owner. 

(2)  A  person  selected  by  the  Taotai  and  the  Commissioner  of  Customs. 

(3)  A  person  selected  by  the  Dean  of  the  Consular  Body. 

Should  the  Dean  of  the  Consular  body  be  also  the  Consul  of  the  proprietor, 
the  third  member  of  the  Commission  would  be  chosen  by  the  Consul  next  in 
seniority  to  the  Dean. 

The  Consul  having  jurisdiction  over  the  party  interested  will  give  effect  to  the 
decision  of  the  commission. 

In  case  of  Chinese  property,  the  Customs  will  proceed  to  estimate  and  settle 
the  price,  and  will  carry  out  the  decision  under  analogous  conditions. 

Riparian  landowners,  Chinese  as  well  as  foreigners,  will  have  the  right  of 
preference  in  the  purchase  or  lease  of  all  accretions  of  land  in  front  of  their 
properties  by  the  deposits  effected  in  improving  the  river  channel.  The  price 
at  which  such  lands  may  be  acquired  will  be  fixed  by  a  commission  constituted 
similarly  to  that  described  in  the  preceding  paragraph,  or  according  to  the  case, 
by  the  Custom  authorities. 

Article  IX. — The  Chinese  Government  takes  upon  itself  the  whole  of  the 
expense  of  the  river  improvement,  without  levying  any  tax  or  contribution  either 
.  upon  riparian  property  or  upon  trade  or  navigation. 

Article  X. — China  specifies,  and  gives  as  guarantee  for  the  total  expense 


NUMBER  1905/10:  SEPTEMBER  27,  1905 


533 


of  the  river  improvement  works,  the  whole  of  the  duties  on  opium  of  Szechuen 
and  of  Soochoufu  in  Kiangsu.  In  conformity  with  the  provisions  of  the  Protocol 
of  1901,  she  will  devote  annually  to  these  works,  and  for  twenty  years,  the  sum 
of  460,000  Haikuan  taels. 

If  during  the  course  of  any  year  after  commencement  of  the  works,  the  pur- 
chase of  material  or  machines,  etc.,  should  necessitate  exceptional  expenditure, 
China,  in  order  to  meet  it,  may  raise  a  loan  by  means  of  bonds  secured  on  the 
revenue  derived  from  the  above-mentioned  opium  duties. 

For  the  amortisation  and  the  service  of  this  loan  as  well  as  fbr  expense's 
of  all  kinds  connected  with  the  execution  of  the  works  or  with  the  maintenance 
of  the  works  already  completed,  China  will  furnish  annually  a  minimum  of 
460,000  Haikuan  taels. 

The  provincial  authorities  concerned  will  remit  this  sum  by  equal  monthly 
payments  into  the  hands  of  the  Taotai  and  Commissioner  of  Customs  at  Shanghai. 

Should  the  revenues  indicated  become  insufficient,  the  Chinese  Government 
must  provide  the  sum  specified  from  other  sources. 

Article  XI. — If  the  works  should  not  be  prosecuted  with  diligence,  care, 
and  economy,  the  Consular  Body,  acting  upon  a  majority  of  votes,  may  notify  the 
Taotai  and  the  Commissioner  of  Customs  of  the  fact  and  request  them  to  in- 
struct the  engineer  to  take  the  necessary  remedial  measures :  should  the  execu- 
tion of  the  v/orks  continue  to  be  unsatisfactory,  the  Consular  Body  may,  in  the 
same  way,  recommend  the  dismissal  of  the  engineer  as  well  as  the  selection  and 
appointment  of  another  in  the  manner  set  forth  in  Article  II. 

In  case  the  Taotai  and  the  Commissioner  of  Customs  at  Shanghai  should 
not  act  upon  these  representations,  the  Consular  Body  may  lay  the  matter  before 
the  representatives  of  the  Powers  interested. 

Article  XII. — When  the  present  articles  have  been  discussed,  agreed  upon 
and  signed,  the  regulations  contained  in  paragraph  B  of  Article  XI,  and  in 
Annex  17  of  the  Protocol  of  1901,  shall  be  suspended,  but,  if  China  should 
fail  to  furnish  annually  sufficient  funds,  in  accordance  with  this  new  agreement, 
in  such  manner  that  the  execution  of  the  works  should  be  thereby  impeded,  or, 
should  she  omit  to  conform  to  any  other  essential  stipulation  of  the  present 
arrangement,  the  original  provisions  of  the  Protocol  of  1901  and  of  Annex  17 
thereto,  will  immediately  come  again  into  force. 

Peking,  September  27th,  1905. 

A.    VON    MUMM 
A.    VON    ROSTHORN 

E.   DE   Gaiffier 
Manuel  de  Carcer 
w.  w.  rockhill 

G.    DUBAIL 

Ernest  Satow 
C,  Baroli 

Y.    UCHIDA 

A.  J.  Citters 

G.    KOZAKOW 


[l.s.] 

[l.s.] 

[l.s.] 

[l.s.] 

[l.s.] 

[Signature  of 

[l.s.] 

Prince  Ch'ing.] 

[l.s.] 

[l.s.] 

[l.s.] 

[l.s.] 

[Seal  of  the 

[l.s.] 

Wai-Wu-Pu.] 

534  CHINA  TREATIES  AND  AGREEMENTS 


NUMBER  1905/11. 

GREAT  BRITAIN  (British  &  Chinese  Corporation,  Limited,  Pekin  Syndicate, 

Limited,  Yangtze  Valley  Company,  Limited,  and  Chinese  Central  Railways, 

Limited)  AND  FRANCE  (Banque  de  ITndo-Chine,  etc.) 

Agreement  in  regard  to  the  construction  of  certain  raihvays* — October  2,  1905. 

'Memorandum  of  agreement  made  the  2nd  day  of  October  1905  Between  Carl 
Meyer  of  4  &  5  King  William  Street  in  the  City  of  London  on  behalf  of  a  body 
of  English  capitalists  consisting  of  the  British  and  Chinese  Corporation  Limited, 
the  Pekin  Syndicate  Limited  and  the  Yangtze  Valley  Company  Limited  (who 
with  their  successors  and  assigns  are  hereinafter  called  "  the  British  Group  ")  of 
the  first  part  Stanislas  Simon  of  15  bis  Rue  Laffitte  Paris  in  the  Republic  of 
France  on  behalf  of  a  body  of  French  capitalists  consisting  of  the  Banque 
de  ITndo-Chine,  the  Comptoir  Nationale  d'Escompte  de  Paris,  the  Societe 
Generale,  the  Regie  Generale  de  Chemins  de  Fer  and  Messieurs  N.  J.  &  S. 
Bardac  (who  with  their  successors  and  assigns  are  hereinafter  called  "the 
French  Group ")  of  the  second  part  and  the  Chinese  Central  Railways 
Limited  (hereinafter  called  "the  Company")  of  the  third  part.  Whereas 
the  Company  was  registered  as  a  Company  with  limited  liability  under  the 
Imperial  British  Companies  Acts  1862  to  1900  on  the  7th  January  1904. 
And  whereas  the  said  Company  was  formed  by  two  of  the  parties  forming 
the  British  Group  for  the  purpose  of  acquiring  and  dealing  with  con- 
cessions and  other  rights  in  connection  with  railways  in  China  and  elsewhere 
and  for  other  purposes  mentioned  in  the  Memorandum  of  Association  of  the 
Company.  And  whereas  there  have  been  issued  to  the  British  Group  50,000 
shares  of  il  each  on  which  the  sum  of  8s.  per  share  has  been  called  and  paid  up. 
And  whereas  the  Company  is  at  present  entitled  to  the  benefit  of  two  agreements 
short  particulars  whereof  are  set  forth  in  the  schedule  hereto  and  which  refer  to 
Railways  proposed  to  be  constructed  from  Pukou  to  Tientsin  and  from  Pukou 
to  Sinyang  respectively.  And  whereas  the  Company  has  been  for  some  time  past 
negotiating  to  obtain  a  concession  and  other  rights  in  connection  with  a  Railway 
from  the  Hankow-Sinyang  District  to  Chengtu  in  the  province  of  Szechuen  and 
the  French  Group  have  been  for  some  time  past  negotiating  to  obtain  a  concession 
and  other  rights  in  connection  with  a  Railway  from  the  Hankow-Sinyang  District 
to  Chengtu  and  they  have  thereby  come  into  competition  with  each  other.    And 

*  Text  as  printed  in  F.  E.  Review,  vol.  10,  p.  305. 

In  connection  with  this  agreement  see  the  Anglo-German  bankers'  agreement  of  Sep- 
tember 2,  1898  (attached  to  the  Agreement  between  Germany  and  Great  Britain  defining 
their  mutual  policy  in  China,  October  16.  1900,  No.  1900/5,  ante)  ;  and  the  agreement  among 
the  British  &  Chinese  Corporation,  Chinese  Central  Railways,  Banque  de  I'lndo-Chine, 
Deutsch-Chinesische  Eisenbahn  Gesellschaft,  and  "  American  Group,"  November  10,  1910 
(No.  1910/5,  post). 

See  also  the  Tientsin-Pukow  Railway  Loan  Agreement  of  January  13.  1908  (No.  1908/1, 
post),  the  Hukuang  Railway  Loan  Agreement  of  May  20,  1911  (No.  1911/5,  post),  and 
the  Pukow-Sinyang  Railway  Loan  Agreement  of  November  14,  1913   (No.  1913/12,  post). 


NUMBER  1905/11 :  OCTOBER  2,  1905  535 

whereas  for  the  purpose  of  putting  an  end  to  such  competition  the  Company  and 
the  French  Group  have  agreed  to  associate  themselves  together  in  the  manner  and 
on  the  terms  hereinafter  appearing.  And  whereas  it  is  an  essential  term  of  the 
agreement  that  the  British  Group  and  the  French  Group  shall  so  far  as  regards 
matters  within  the  scope  of  the  Company's  objects  do  all  in  their  power  to  oppose 
and  defeat  all  competition  with  the  Company.  Now  these  presents  witness  that  it 
is  hereby  agreed  by  and  between  the  parties  hereto  as  follows : 

1.  The  capital  of  the  Company  shall  be  forthwith  increased  by  the  creation 
of  1,000  Deferred  Shares  of  £1  each  which  shall  be  entitled  to  receive  between 
them  one-half  the  surplus  profits  of  each  year  (which  the  Directors  may  deter- 
mine to  divide)  after  there  shall  have  been  paid  by  way  of  dividend  or  bonus  to 
the  holders  of  the  shares  other  than  the  Deferred  Shares  a  sum  equal  to  the 
nominal  amount  of  such  shares  and  also  to  rank  pari  passu  in  any  return  of  capital 
in  a  winding-up  or  otherwise  until  the  full  amount  paid  up  on  all  the  shares  of 
the  Company  for  the  time  being  issued  shall  have  been  returned  and  thereafter  to 
receive  one-half  of  any  surplus  assets  and  on  the  terms  that  each  deferred  share 
shall  upon  a  poll  confer  100  votes  in  respect  thereof  upon  the  holder  thereof. 

2.  Of  the  said  deferred  shares  550  numbered  1  to  550  inclusive  shall  be  forth- 
with allotted  to  the  British  Group  and  the  remaining  450  numbered  551  to  1,000 
inclusive  shall  be  issued  to  the  French  Group.  All  the  shares  so  allotted  shall  be 
paid  up  in  cash  at  once. 

3.  There  shall  also  be  allotted  in  the  proportions  below  mentioned  to  the 
French  Group  or  to  persons  nominated  by  them  whose  pecuniary  responsibility 
shall  be  undoubted  the  remaining  50,000  shares  of  the  original  share  capital  and 
there  shall  be  forthwith  called  and  paid  up  on  each  such  share  the  sum  of  8s.  and 
all  calls  thereafter  made  on  the  said  shares  shall  be  paid  in  due  course.  Of  the 
said  50,000  shares  7,500  shall  be  allotted  to  the  Compagnie  Internationale 
d'Orient  or  their  nominees  (hereinafter  called  the  Belgian  Group)  and  2,500 
shares  out  of  such  7,500  shall  be  transfered  or  the  benefit  thereof  made  over  to 
the  Yangtze  Valley  Company  Limited  on  such  terms  and  conditions  as  the  British 
Group  shall  think  fit.  Of  the  50,000  shares  held  by  the  British  Group  or  their 
nominees  5,000  have  been  already  transferred  to  the  Belgian  Group  and  in  the 
event  of  certain  American  capitalists  to  be  approved  of  by  the  British  Group 
(hereinafter  referred  to  as  "the  American  Group")  agreeing  within  twelve 
months  from  the  date  hereof  as  to  which  time  shall  be  of  the  essence  of  the 
contract  to  accept  such  participation  but  not  a  smaller  orie  in  the  Company  the 
British  Group  shall  transfer  or  make  over  the  benefit  of  a  further  7,500  shares 
out  of  their  50,000  shares  to  the  American  Group  but  only  upon  such  terms 
and  conditions  as  the  British  Group  shall  think  fit  and  in  the  event  of  the  American 
Group  not  agreeing  within  the  time  aforesaid  to  participate  as  aforesaid  the 
British  Group  shall  transfer  2,500  out  of  the  said  7,500  shares  to  the  French 
Group  and  shall  retain  the  remaining  5,000  shares  for  themselves  so  that  in  the 
event  of  the  American  Group  not  participating  the  said  100,000  shares  will  be 
held  as  to  45,000  by  the  British  Group  or  their  nominees  as  to  45,000  by  the 
French  Group  or  their  nominees  and  as  to  10,000  by  the  Belgian  Group  or  their 
nominees.  None  of  the  said  100.000  shares  shall  save  as  aforesaid  be  sold  trans- 
ferred mortgaged  or  otherwise  dealt  with  without  the  consent  of  the  British  and 


536  CHINA  TREATIES  AND  AGREEMENTS 

PVench  Groups  for  a  period  of  five  years  from  the  date  hereof  and  before  the 
transfer  of  the  shares  aforesaid  to  the  Belgian  and  American  Groups  agreements 
to  the  like  eflfect  to  this  Clause  shall  be  entered  into  by  them  and  by  the  Belgian 
Group  also  relating  to  the  shares  already  transferred  to  them  as  aforesaid. 

4.  The  number  of  Directors  of  the  Company  shall  be  increased  to  18  of 
whom  9  shall  be  from  time  to  time  appointed  by  the  holders  of  the  550  deferred 
shares  numbered  1  to  550  inclusive  or  of  a  majority  of  them  and  the  remaining 
9  shall  be  from  time  to  time  appointed  by  the  holders  of  the  remaining  450 
deferred  shares  numbered  551  to  1000  inclusive  or  of  a  majority  of  them. 

5.  The  9  Directors  from  time  to  time  appointed  by  the  holders  of  the  said 
550  Deferred  Shares  shall  be  appointed  a  permanent  committee  of  the  Board 
sitting  in  London  and  the  9  Directors  from  time  to  time  appointed  by  the  holders 
of  the  said  450  Deferred  Shares  shall  be  appointed  a  permanent  committee  of  the 
board  sitting  in  Paris,  but  all  resolutions  of  the  said  Committees  in  London  and 
Paris  shall  be  subject  in  all  respects  to  the  control  of  the  Board  of  Directors 
of  the  Company  and  to  all  resolutions  of  the  Board  affirming  disaffirming  or  other- 
wise dealing  with  the  same  directly  or  indirectly. 

6.  The  Chairman  of  the  Board  and  also  any  person  temporarily  appointed 
to  preside  in  his  absence  at  a  meeting  of  the  Board  or  of  the  Company  shall  be  a 
natural-born  or  naturalized  British  subject  and  be  from  time  to  time  elected  by 
the  Directors  appointed  by  the  holders  of  the  said  550  deferred  shares  out  of  the 
directors  appointed  by  the  holders  of  such  shares  and  such  Chairman  or  other 
person  shall  in  addition  to  any  votes  he  may  already  possess  have  a  casting 
vote  at  such  meeting  of  the  Board  and  of  the  Company.  Meetings  of  the  Board 
shall  be  held  in  London  or  in  Paris  as  may  be  determined  by  the  Board.  The 
General  Meetings  of  the  Company  shall  be  held  in  London.  The  Chairman  of  the 
Paris  Committee  shall  be  appointed  by  the  members  of  such  Committee  and  the 
Chairman  of  the  London  Committee  shall  be  the  Chairman  of  the  Board  of 
Directors  of  the  Company. 

7.  The  French  Group  shall  forthwith  on  the  execution  hereof  vest  in  the 
Company  the  benefit  of  all  negotiations  entered  into  by  or  on  its  behalf  in  regard 
to  the  said  concessions  and  rights  in  competition  with  the  British  Group  and  all 
surveys  made  in  connection  therewith  and  shall  give  to  the  company  all  documents 
and  information  in  its  possession  relating  thereto  and  the  Company  shall  there- 
upon repay  to  the  French  Group  such  a  sum  as  in  the  opinion  of  the  Board 
of  Directors  of  the  Company  shall  represent  the  amount  of  the  expenses  incurred 
by  the  French  Group  therein  and  properly  attributable  thereto. 

8.  The  engineers  and  other  European  employes  engaged  upon  the  said  rail- 
way from  Pukou  to  Chengtu  and  of  each  railway  that  may  be  formed  or  con- 
trolled by  the  Company  (other  than  the  said  railway  from  Pukou  to  Tientsin) 
shall  so  far  as  possible  be  in  equal  proportions  of  British  and  French  nationalities 
and  all  orders  for  materials  rolling  stock  and  plant  and  all  contracts  for  construc- 
tion of  the  said  railways  (other  than  as  aforesaid)  shall  be  divided  in  equal 
proportions  between  British  and  French  manufacturers  and  contractors. 

9.  It  shall  also  be  an  essential  term  of  the  contract  that  no  change  shall  be 
made  in  the  character  or  political  status  of  the  Company  or  of  any  railways  formed 
or   controlled   by   the   Company.      All    concessions    and    other   like    rights    and 


NUMBER  1905/11 :  OCTOBER  2,  1905  537 

privileges  obtained  by  or  for  the  Company  shall  be  taken  in  the  name  of  the 
Company. 

10.  All  companies  that  may  be  formed  by  or  under  the  auspices  of  the 
Company  or  in  connection  with  any  railways  or  other  concerns  in  which  it  is 
interested  shall  be  Chinese  Companies.  If  that  should  appear  undesirable  the 
said  Companies  shall  be  of  the  same  character  as  the  Company  and  similar 
provisions  to  those  herein  contained  in  relation  to  the  political  character  and 
status  of  the  Company  shall  apply  to  each  company  so  formed. 

11.  The  British  and  French  Groups  shall  respectively  agree  that  so  long 
as  they  hold  any  shares  in  the  Company  respectively  they  will  respectively  use 
their  best  endeavors  to  oppose  and  defeat  any  schemes  competing  with  the 
Company's  main  business. 

12.  The  voting  power  of  the  British  and  French  Groups  and  of  their 
nominees  in  respect  of  the  shares  of  the  Company  for  the  time  being  held  by 
them  or  on  their  behalf  shall  be  used  against  and  shall  not  be  used  in  favor  of  any 
resolutions  which  may  tend  to  contravene  the  provisions  of  this  present  contract 
and  the  Directors  of  the  Company  shall  be  authorised  to  disregard  all  votes  given 
in  contravention  of  this  clause. 

13.  No  share  shall  be  transferred  out  of  the  names  of  the  British  French 
Belgian  or  American  Group  or  their  nominees  to  any  companies  or  persons  except 
upon  the  terms  that  such  companies  or  persons  shall  bind  themselves  by  the  terms 
of  this  agreement  and  the  Board  shall  refuse  to  register  all  transfers  made  in 
contravention  of  this  agreement. 

14.  The  Articles  of  Association  of  the  Company  shall  be  altered  in  such 
manner  as  to  give  effect  to  the  provisions  of  this  agreement. 

In  witness  whereof  the  said  parties  to  these  presents  have  hereunto  set  their 
hands  the  day  and  year  first  above  written. 


THE  SCHEDULE  ABOVE  REFERRED  TO. 

6th  January,  1899. — Preliminary  Agreement  of  this  date  made  between  His 
Excellency,  Sheng  Director-General  of  the  Imperial  Chinese  Railway  Adminis- 
tration, acting  under  the  authority  of  the  Tsung-li  Yamen  of  the  one  part,  and 
the  British  firm  of  Jardine  Matheson  &  Co.,  for  themselves  and  on  behalf  of 
the  Hongkong  and  Shanghai  Banking  Corporation,  of  the  other  part,  jointly 
representing  a  British  Syndicate  adopting  the  terms  of  the  Preliminary  Agreement 
signed  by  the  above  mentioned  contracting  parties  on  the  13th  day  of  May,  1898,t 
for  the  financing  constructing  and  working  of  a  railway  from  Shanghai  to  Nan- 
king as  a  Preliminary  Agreement  for  the  construction  and  working  of  a  railway 
from  Pukou  to  Sinyang  in  the  provinces  of  Kiangsu  Nganhui  and  Honan. 

18th  May,  1899. — An  Agreement  of  this  date  %  made  between  their  Excellen- 
cies Hsu  and  Chang  duly  authorized  to  act  on  behalf  of  the  Imperial  Government 

t  Printed  as  an  annex  to  the  Shanghai-Nanking  Railway  Loan  agreement  of  July  9, 
1903  (No.  1903/2,  ante). 

t  Printed  as  an  annex  to  the  Tientsin-Pukow  Railway  Loan  agreement  of  January  13, 
1908  (No.  1908/1,  post). 


538  CHINA  TREATIES  AND  AGREEMENTS 

of  China  of  the  one  part  and  (a)  The  Deutsch-Asiatische  Bank  (b)  the  Hong- 
kong and  Shanghai  Banking  Corporation  for  themselves  and  on  behalf  of 
Messieurs  Jardine  Matheson  &  Co.  as  joint  Agents  for  the  British  and  Chinese 
Corporation  Limited  thereinafter  called  '*  the  Syndicate "  for  the  provision 
jointly  by  the  Deutsch-Asiatische  Bank  and  the  British  and  Chinese  Corporation 
of  a  loan  and  for  the  construction  and  working  of  a  railway  from  Tientsin  to 
the  Yangtze  Kiang. 

(Signed)  Carl  Meyer. 

Witness  to  the  signature  of  Carl  Meyer  on  behalf  of  the  British  Group 
Walter  S.  Henderson, 

Sol''.,  31  Lombard  Street,  London. 

(Signed)  S.  Simon. 

Witness   to   the   signature   of    Stanislas    Simon   on   behalf    of   the   French 
Group 

(Signed)  Tho.  Gilbert, 

Secretary,  Chinese  Central  Railways. 
Witness  to  the  signature  of  Thomas  Gilbert  for  and  on  behalf  of  the  Chinese 
Central  Railways  Limited, 
Walter  S.  Henderson, 

SoV.,  31  Lombard  Street,  London. 


NUMBER  1905/12. 

FRANCE  AND  THE  UNITED  STATES. 

Exchange  of  notes  in  regard  to  the  reciprocal  protection  of  trade-marks  in 

China.*— October  3,  1905. 

American  Legation, 
Peking,  China,  October  3,  1905. 
Mr.  Minister  and  dear  Colleague  :  The  Government  of  the  United  States 
being  desirous  of  reaching  an  understanding  with  the  Government  of  the  French 
Republic  for  the  reciprocal  protection  against  infringement  in  China  by  citizens 
of  our  respective  nations  of  trade  marks  duly  registered  in  the  United  States  and 
France,  I  am  authorized,  by  the  Secretary  of  State  of  the  United  States,  to  inform 
you  that  effectual  provision  exists  in  American  Consular  Courts  in  China  for  the 
trial  and  punishment  of  all  persons  subject  to  the  jurisdiction  of  the  United  States 
who  may  be  charged  with  and  found  guilty  of  infringing  in  any  way  trade  marks 

*  Texts  (and  translation)  as  printed  in  U.  S.  Treaty  Series  (No  Number).  Printed 
also  in  Malloy,  p.  545. 

See  also  the  Exchange  of  notes  in  regard  to  the  reciprocal  protection  of  French  and 
American  copyrights  in  China,  December  27,  1911    (No.  1911/14,  post). 


NU^IBER  1905/12:  OCTOBER  3,  1905  539 

of  persons  subject  to  the  jurisdiction  of  France  which  have  been  duly  registered 
in  the  United  States. 

I  beg  that  you  will  kindly  inform  me  whether  American  citizens  are  entitled 
to  the  same  legal  remedies  in  the  Consular  Courts  of  France  in  China  as  regards 
the  protection  from  infringement  of  their  trade  marks  duly  registered  in 
France. 

I  have  the  honor  to  be,  My  dear  Colleague,  Your  obedient  servant, 

W.    W.    ROCKHILL. 

His  Excellency  Monsieur  Dubail, 

etc.,  etc.,  etc. 


[Translation.] 


Legation  of  the  French  Republic  in  China, 

Peking,  October  3,  1905. 

Mr.  Minister  and  dear  Colleague:  By  your  despatch  of  this  day  Your 
Excellency  has  been  pleased  to  inform  me  that  the  Government  of  the  United 
States  of  America  being  desirous  of  reaching  an  understanding  with  the  Govern- 
ment of  the  Republic  for  the  reciprocal  protection  of  trade  marks,  you  have  been 
authorized  to  state  to  me  that  the  American  Consular  Courts  in  China  are  com- 
petent in  all  matters  relating  to  the  counterfeiting  of  trade  marks  by  persons 
under  the  jurisdiction  of  the  United  States. 

Any  complaint  made  by  a  person  under  French  jurisdiction  to  an  American 
Consular  Court  for  the  purpose  of  securing  against  persons  under  American  juris- 
diction protection  for  a  trade  mark  duly  registered  in  the  United  States  of 
America  will  be  heard  by  said  courts  in  first  instance  and  on  appeal  by  the 
competent  courts. 

I  have  the  honor  to  confirm  to  Your  Excellency  this  declaration  which 
responds  to  the  request  I  had  made  you. 

So  as  to  perfect  the  understanding  thus  arrived  at  by  both  countries  I  am 
authorized  to  state  on  my  side  to  Your  Excellency  that  the  Government  of  the 
Republic  will  willingly  insure  in  China  protection  for  duly  registered  American 
trade  marks  which  may  be  counterfeited  by  persons  under  French  jurisdiction. 

To  that  end  French  Consular  Courts  in  China,  for  complaints  in  first  instance, 
and  the  Court  of  Saigon,  for  appeals,  will  be  competent  to  hear  all  such  cases 
presented  by  persons  under  American  jurisdiction. 

Please  accept,  Mr.  Minister  and  dear  Colleague,  the  assurance  of  my  highest 
consideration. 

G.  Dubail. 


Peking,  January  22,  1906. 
Mr.  Minister  and  dear  Colleague  :  In  connection  with  the  notes  which  I 
had  the  honor  to  exchange  with  Your  Excellency  on  October  3,  1905,  looking  to 
the  reciprocal  protection  from  infringement  by  our  respective  nationals  in  China 


540  CHINA  TREATIES  AND  AGREEMENTS 

of  trade  marks  belonging  to  them  I  duly  transmitted  copies  of  the  same  to  my 
Government. 

In  reply  the  Secretary  of  State  has  called  to  my  attention,  as  possibly  mis- 
leading, the  use  made  in  my  note  to  you  of  the  word  "  punishment  "  by  our  Con- 
sular Courts  in  China  of  American  citizens  who  may  have  infringed  in  China  trade 
marks  the  property  of  persons  under  the  jurisdiction  of  France. 

In  view  of  the  fact  that  there  is  no  statute  in  the  United  States  making  the 
infringement,  conterfeiting,  etc.  of  a  trade  mark  a  criminal  offense,  and  that 
effectual  provision  exists  by  a  civil  action  for  damages  by  the  owner  of  a  trade 
mark,  my  Government  is  of  the  opinion  that  the  word  "  punishment "  should  be 
understood  to  refer  to  a  civil  action  only,  and  not  to  a  criminal  procedure,  as  might 
be  inferred  from  the  use  of  the  word  in  question  without  the  present  explanation 
added  thereto. 

I  beg  leave  to  call  Your  Excellency's  attention  to  the  above  provision  of  our 
law,  so  that  nothing  in  my  note  of  October  3,  last,  may  be  construed  as  conflicting 
therewith. 

I  avail  myself  of  this  opportunity  to  renew  to  Your  Excellency  the  assurances 
of  my  highest  consideration. 

W.    W.    ROCKHILL. 

To  His  Excellency  M.  Dubail, 

etc.,  etc.,  etc. 


NUMBER  1905/13. 

THE  NETHERLANDS  AND  THE  UNITED  STATES. 

Exchange  of  notes  in  regard  to  the  reciprocal  protection  of  trade-marks  in 

China.""— October  23,  1905. 

[American  Legation,  Peking,^  October  23,  1905. 
Mr.  Minister  and  dear  Colleague  :  The  Government  of  the  United  States 
being  desirous  of  reaching  an  understanding  with  the  Government  of  the  Nether- 
lands for  the  reciprocal  protection  against  infringement  in  China  by  citizens  of 
our  respective  nations  of  trade  marks  duly  registered  in  the  United  States  and 
the  Netherlands,  I  am  authorized  by  the  Secretary  of  State  of  the  United  States 
to  inform  you  that  effectual  provision  exists  in  American  Consular  Courts  in 
China  for  the  trial  and  punishment  of  all  persons  subject  to  the  jurisdiction  of 
the  United  States  who  may  be  charged  with  and  found  guilty  of  infringing  in 
any  way  trade  marks  of  persons  subject  to  the  jurisdiction  of  the  Netherlands 
which  have  been  duly  registered  in  the  United  States. 

*  Text   (and  translation)   as  printed  in   U.  S.   Treaty  Series    (No  Number).     Printed 
also  in  Malloy,  p.  273. 


NUMBER  1905/13:  OCTOBER  23,  1905  541 

I  beg  that  you  will  kindly  inform  me  whether  American  citizens  are  entitled 
to  the  same  legal  remedies  in  the  Consular  Courts  of  the  Netherlands  in  China 
as  regards  the  protection  from  infringement  of  their  trade  marks  duly  registered 
in  the  Netherlands. 

I  have  the  honor  to  be,  My  dear  Colleague,  Your  obedient  servant, 

W.    W.    ROCKHILL. 

His  Excellency,  Monsieur  van  Citters, 

etc.,  etc.,  etc. 


[Translation.] 

Royal  Legation  of  the  Netherlands, 

Peking,  China,  October  23,  1905. 

Mr.  Minister  and  dear  Colleague:  Under  date  of  the  23d  of  October, 
1905,  Your  Excellency  was  pleased  to  inform  me  by  your  note  numbered  173 
that  the  Government  of  the  United  States  of  America  was  desirous  of  reaching  an 
agreement  with  the  Government  of  the  Netherlands  concerning  the  reciprocal  pro- 
tection of  trade  marks  in  China.  You  added  that  you  had  been  authorized  to 
declare  that  the  American  Consular  Courts  in  China  had  jurisdiction  in  all  matters 
concerning  the  infringement  of  trade  marks  by  persons  under  the  jurisdiction  of 
the  United  States,  and  that  consequently  complaints  made  by  any  person  subject 
to  the  jurisdiction  of  the  Consular  Courts  of  the  Netherlands,  in  China,  to  an 
American  Consular  Court,  for  the  purpose  of  securing  from  persons  subject  to 
the  jurisdiction  of  the  United  States  protection  for  trade  marks  duly  registered  in 
the  United  States  of  America,  would  be  tried  before  said  courts  in  First  Instance 
and  on  appeal  by  the  competent  Courts. 

In  reply  to  this  communication  I  have  the  honor  to  inform  Your  Excellency 
that  my  Government  accepts  with  pleasure  the  above  agreement  and  has  directed 
me  to  do  so  by  the  present  note. 

The  Minister  of  Foreign  Affairs  at  The  Hague  has  furthermore  authorized 
me  to  state  on  my  part  that  the  laws  of  the  Netherlands  protect  duly  registered 
trade  marks  regardless  of  the  nationality  of  the  owner,  and  that,  not  only  when 
infringements  have  been  committed  in  the  country  itself,  but  when  they  have  been 
committed  in  a  country  subject  to  exterritoriality,  as  in  China. 

Consequently  the  Consular  Courts  of  the  Netherlands  in  China  will  take 
cognisance  in  First  Instance,  and  the  Courts  of  Justice  in  Amsterdam  and  Batavia 
on  Appeal,  of  any  complaints  made  to  them  on  this  subject  by  persons  subject  to 
the  jurisdiction  of  the  United  States. 

I  avail  myself  of  this  opportunity  to  add  that  for  the  object  of  putting  the 
above  agreement  into  effect  I  have  written  to  the  Consular  Officials  of  the 
Netherlands  in  China,  giving  them  the  necessary  instructions,  and  I  would  be 
pleased  if  you  would  inform  me  what  action  you  have  taken  to  this  end. 

I  avail  myself  of  this  opportunity  to  renew  to  Your  Excellency  the  assurances 
of  my  high  consideration. 

A.  J.  Citters. 

His  Excellency,  W.  W.  Rockhill, 

etc.,  etc.,  etc. 


542  CHINA  TREATIES  AND  AGREEMENTS 

Peking,  January  22,  1906. 

Mr.  Minister  and  dear  Colleague:  In  connection  with  the  notes  which 
I  had  the  honor  to  exchange  with  Your  Excellency  on  October  23,  1905,  looking 
to  the  reciprocal  protection  from  infringement  by  our  respective  nationals  in 
China  of  trade  marks  belonging  to  them  I  duly  transmitted  copies  of  the  same  to 
my  Government. 

In  reply  the  Secretary  of  State  has  called  to  my  attention,  as  possibly  mislead- 
ing, the  use  made  in  my  note  to  you  of  the  word  "  punishment "  by  our  Consular 
Courts  in  China  of  American  citizens  who  may  have  infringed  in  China  trade 
marks  the  property  of  persons  under  the  jurisdiction  of  The  Netherlands. 

In  view  of  the  fact  that  there  is  no  statute  in  the  United  States  making  the 
infringement,  counterfeiting,  etc.  of  a  trade  mark  a  criminal  offense,  and  that 
effectual  provision  exists  by  a  civil  action  for  damages  by  the  owner  of  a  trade 
mark,  my  Government  is  of  the  opinion  that  the  word  "  punishment  '*  should  be 
understood  to  refer  to  a  civil  action  only,  and  not  to  a  criminal  procedure,  as 
might  be  inferred  from  the  use  of  the  word  in  question  without  the  present  ex- 
planation added  thereto. 

I  beg  leave  to  call  Your  Excellency's  attention  to  the  above  provision  of  our 
law,  so  that  nothing  in  my  note  of  October  23rd,  last,  may  be  construed  as  con- 
flicting therewith. 

I  avail  myself  of  this  opportunity  to  renew  to  Your  Excellency  the  assurances 
of  my  highest  consideration. 

W    ,W.    ROCKHILL, 

To  His  Excellency  A.  J.  van  Citters, 

etc.,  etc.,  etc. 


NUMBER  1905/14. 

BELGIUM  AND  THE  UNITED  STATES. 

Exchange  of  notes  in  regard  to  the  reciprocal  protection  of  trade-marks  in 
China.''— November  27,  1905. 

[American  Legation,  Peking,]  November  27,  1905. 
Mr.  Charge  d'affaires  and  dear  Colleague:  The  Government  of  the 
United  States  being  desirous  of  reaching  an  understanding  with  the  Government 
of  Belgium  for  the  reciprocal  protection  against  infringement  in  China  by  citizens 
of  our  respective  nations  of  trade  marks  duly  registered  in  the  United  States  and 
Belgium,  I  am  authorized  by  the  Secretary  of  State  of  the  United  States  to  inform 
you  that  effectual  provision  exists  in  American  Consular  Courts  in  China  for  the 
trial  and  punishment  of  all  persons  subject  to  the  jurisdiction  of  the  United  States 

♦Texts   (and  translation)   as  printed  in  U.  S.  Treaty  Series   (No  Number).     Printed 
also  in  Malloy,  p.  111. 


NUMBER  1905/14:  NOVEMBER  27,  1905  543 

who  may  be  charged  with  and  found  guilty  of  infringing  in  any  way  trade  marks 
of  persons  subject  to  the  jurisdiction  of  Belgium  which  have  been  duly  registered 
in  the  United  States. 

I  beg  that  you  will  kindly  inform  me  whether  American  citizens  are  entitled 
to  the  same  legal  remedies  in  the  Consular  Courts  of  Belgium  in  China  as  regards 
the  protection  from  infringement  of  their  trade  marks  duly  registered  in  Belgium. 

I  have  the  honor  to  be,  my  dear  Colleague,  Your  obedient  servant, 

W.    W.    ROCKHILL. 

Mr.  DE  Prelle  de  la  Nieppe, 
etc.,  etc.,  etc. 


[Translation.] 

November  27,  1905. 

Mr.  Minister:  I  have  had  the  honor  of  receiving  Your  Excellency's  note 
of  this  date  regarding  the  mutual  protection  of  Belgian  and  American  trade  marks 
in  China. 

It  is  stated  in  this  communication  that  the  Government  of  the  United  States 
of  America  has  given  such  instructions  to  the  American  Consular  Courts  as  are 
sufficient  to  insure  the  legal  protection  of  trade  marks  the  property  of  Belgian 
subjects  which  have  been  duly  registered  in  the  United  States. 

While  acknowledging  to  Your  Excellency  the  receipt  of  this  communication 
I  have  the  honor  to  inform  you  that  the  Royal  Government  in  like  manner 
guarantees  in  the  Chinese  Empire  the  protection  of  American  trade  marks  duly 
registered  in  Belgium,  if  counterfeited  by  Belgian  subjects. 

The  Royal  Legation  and  the  Consulates,  Vice-Consulates  and  Consular 
Agencies  in  China  are  competent  to  take  cognizance  of  actions  brought  before 
them  in  the  matter. 

I  have  informed  our  Consular  representatives  in  China  of  the  agreement 
arrived  at  between  Belgium  and  the  United  States  of  America  which  is  set  forth 
by  this  interchange  of  correspondence  between  us. 

I  avail  myself  of  this  occasion  to  present  to  Your  Excellency  the  assurance 
of  my  high  esteem. 

Edm.  de  Prelle. 

His  Excellency  W.  W.  Rockhill, 
etc.,  etc.,  etc. 


Peking,  January  22,  1906. 

Mr.  Minister  and  dear  Colleague  :  In  connection  with  the  notes  which  I 
had  the  honor  to  exchange  with  Your  Excellency  on  November  27,  1905,  looking 
to  the  reciprocal  protection  from  infringement  by  our  respective  nationals  in 
China  of  trade  marks  belonging  to  them  I  duly  transmitted  copies  of  the  same 
to  my  Government. 

In  reply  the  Secretary  of  State  has  called  to  my  attention,  as  possibly  mislead- 


544  CHINA  TREATIES  AND  AGREEMENTS 

ing,  the  use  made  in  my  note  to  you  of  the  word  "  punishment "  by  our  Consular 
Courts  in  China  of  American  citizens  who  may  have  infringed  in  China  trade 
marks  the  property  of  persons  under  the  jurisdiction  of  Belgium. 

In  view  of  the  fact  that  there  is  no  statute  in  the  United  States  making  the 
infringement,  counterfeiting,  etc.  of  a  trade  mark  a  criminal  ofifense,  and  that 
effectual  provision  exists  by  a  civil  action  for  damages  by  the  owner  of  a  trade 
mark,  my  Government  is  of  the  opinion  that  the  word  "  punishment "  should  be 
understood  to  refer  to  a  civil  action  only,  and  not  to  a  criminal  procedure,  as  might 
be  inferred  from  the  use  of  the  word  in  question  without  the  present  explanation 
added  thereto. 

I  beg  leave  to  call  Your  Excellency's  attention  to  the  above  provision  of  our 
law,  so  that  nothing  in  my  note  of  November  27,  last,  may  be  construed  as  con- 
flicting therewith. 

I  avail  myself  of  this  opportunity  to  renew  to  Your  Excellency  the  assur- 
ances of  my  highest  consideration. 

W.    W.    ROCKHILL. 

To  His  Excellency 

Edmond  de  Prelle  de  la  Nieppe, 
etc.,  etc.,  etc. 


•      NUMBER  1905/15. 

GERMANY  AND  THE  UNITED  STATES. 

Exchange  of  notes  in  regard  to  the  reciprocal  protection  of  trade-marks  in 
China.* — December  6,  1905. 

[American  Legation,  Peking,']  December  6,  1905. 

Mr.  Minister  and  dear  Colleague  :  The  Government  of  the  United  States 
being  desirous  of  reaching  an  understanding  with  the  Government  of  Germany 
for  the  reciprocal  protection  against  infringement  in  China  by  citizens  and  sub- 
jects of  our  respective  nations  of  trade  marks  duly  registered  in  the  United  States 
and  Germany,  I  am  authorized  by  the  Secretary  of  State  of  the  United  States  to 
inform  you  that  effectual  provision  exists  in  American  Consular  Courts  in  China 
for  the  trial  and  punishment  of  all  persons  subject  to  the  jurisdiction  of  the 
United  States  who  may  be  charged  with  and  found  guilty  of  infringing  in  any  way 
trade  marks  of  persons  subject  to  the  jurisdiction  of  Germany  which  have  been 
duly  registered  in  the  United  States. 

I  beg  that  you  will  kindly  inform  me  whether  American  citizens  are  entitled 

*  Texts   (and  translation)   as  printed  in  U .  S.  Treaty  Series   (No  Number).     Printed 
also  in  Malloy,  p.  560. 


NUMBER  1905/15 :  DECEMBER  6,  1905  545 

to  the  same  legal  remedies  in  the  Consular  Courts  of  Germany  in  China  as  regards 
the  protection  from  infringement  of  their  trade  marks  duly  registered  in  Germany. 
I  have  the  honor  to  be,  Mr.  Minister  and  dear  Colleague,  Your  obedient 
servant, 

W.    W.    ROCKHILL. 

His  Excellency,  Baron  von  Mumm, 
etc.,  etc.,  etc. 


[Translation.] 

Imperial  German  Legation, 
Peking,  December  6,  1905. 

Mr.  Minister  :  I  have  the  honor  to  acknowledge  the  receipt  of  your  letter 
of  this  date  informing  me  that  you  have  been  authorized  by  your  Government  to 
effect  with  me,  by  an  exchange  of  notes,  an  agreement  for  the  reciprocal  protection 
against  infringement  in  China  by  citizens  and  subjects  of  our  respective  nations 
of  trade  marks  duly  registered  in  Germany  and  the  United  States. 

You  furthermore  inform  me  that  effectual  provision  exists  in  American 
Consular  Courts  in  China  for  the  trial  and  punishment  of  all  persons  subject  to 
the  jurisdiction  of  the  United  States  who  may  be  charged  with  and  found  guilty 
of  infringing  in  any  way  trade  marks  of  persons  subject  to  the  jurisdiction  of 
Germany  which  have  been  duly  registered  in  the  United  States. 

I  have  the  honor  to  inform  you  in  reply  that  I  have  been  authorized  by  the 
Chancellor  of  the  German  Empire  to  enter  into  this  reciprocal  agreement,  and 
to  state  that  German  Consular  Courts  in  China  are  empowered  under  the  German 
law  for  the  protection  of  trade  marks  of  May  12th,  1894,  to  prosecute  and  punish 
all  persons  subject  to  their  jurisdiction  for  infringement  of  trade  marks  the 
property  of  persons  coming  under  the  jurisdiction  of  the  United  States  when  duly 
registered  in  Germany. 

Furthermore,  for  the  purpose  of  putting  this  arrangernent  into  effect,  I  am 
authorized  and  ready  to  instruct  the  German  Consular  representatives  in  China 
in  accordance  therewith,  subject  to  your  taking  similar  action. 

I  avail  myself  of  this  opportunity  to  renew  the  assurances  of  my  highest 
consideration. 

A.  V.  Mumm. 

Hon.  \V.  W.  Rockhill, 

etc.,  etc.,  etc. 


Peking,  January  22,  1906. 
Mr.  Minister  and  dear  Colleague:  In  connection  with  the  notes  which  I 
had  the  honor  to  exchange  with  Your  Excellency  on  December  6,  1905,  looking  to 
the  reciprocal  protection  from  infringement  by  our  respective  nationals  in  China 
of  trade  marks  belonging  to  them  I  duly  transmitted  copies  of  the  same  to  my 
Government. 


546  CHINA  TREATIES  AND  AGREEMENTS 

In  reply  the  Secretary  of  State  has  called  to  my  attention,  as  possibly  mis- 
leading, the  use  made  in  my  note  to  you  of  the  word  *'  punishment "  by  our  Con- 
sular Courts  in  China  of  American  citizens  who  may  have  infringed  in  China  trade 
marks  the  property  of  persons  under  the  jurisdiction  of  Germany. 

In  view  of  the  fact  that  there  is  no  statute  in  the  United  States  making  the 
infringement,  counterfeiting,  etc.  of  a  trade  mark  a  criminal  offense,  and  that 
effectual  provision  exists  by  a  civil  action  for  damages  by  the  owner  of  a  trade 
mark,  my  Government  is  of  the  opinion  that  the  word  "  punishment  "  should  be 
understood  to  refer  to  a  civil  action  only,  and  not  to  a  criminal  procedure,  as  might 
be  inferred  from  the  use  of  the  word  in  question  without  the  present  explanation 
added  thereto. 

I  beg  leave  to  call  Your  Excellency's  attention  to  the  above  provision  of  our 
law,  so  that  nothing  in  my  note  of  December  6th,  last,  may  be  construed  as 
conflicting  therewith. 

I  avail  myself  of  this  opportunity  to  renew  to  Your  Excellency  the  assurances 
of  my  highest  consideration. 

W.   W.   ROCKHILL. 

To  His  Excellency  Baron  von  Mumm, 
etc.,  etc.,  etc. 


NUMBER  1905/16. 

DENMARK  AND  GREAT  BRITAIN. 

Exchange  of  notes  in  regard  to  the  reciprocal  protection  of  trade-marks  in 
China.* — December  11,  1905. 

Note  of  Count  Raben-Levetzau  to  Mr.  Johnstone. 

Ministry  for  Foreign  Affairs,  Copenhagen,  November  11,  1905. 

M.  LE  MiNISTRE, 

In  asking  me,  in  your  note  of  August  23  last,  whether  the  Danish  tribunals 
in  China  are  authorized  to  punish  Danish  subjects  who  may  have  infringed 
British  trademarks  (i.e.,  marques  de  fabrique  ct  de  commerce  Britanniques)  in 
China,  you  informed  me  that  your  Government,  so  soon  as  it  may  have  received 
an  affirmative  reply  to  this  question,  will  take  the  measures  necessary  to  permit 
of  the  prosecution,  before  the  British  Consular  Courts,  of  British  subjects  vio- 
lating Danish  trademarks  (i.e.,  marques  de  fabrique  et  de  commerce  Danoises). 

In  consideration  of  the  foregoing,  I  have  the  honor  to  inform  you  that  the 
Danish  laws  relating  to  the  protection  of  trademarks  (i.e.,  marques  de  fabrique  et 
de  commerce)  are  generally  applicable  to  Danish  subjects  in  China,  and  that 
instructions  have  just  been  sent  to  the  Consul  of  Denmark  at  Shanghai,  the 

*  Translation  from  the  French  text  as  printed  in  Hcrtslct,  p.  614. 


NUMBER  1905/17:  DECEMBER  18,  1905  547 

Danish  Consular  Judge  for  all  China,  authorizing  him  to  protect  British  trade- 
marks, duly  registered  in  Denmark,  against  infringements  by  Danish  subjects 
in  China,  to  the  same  extent  as  Danish  marks  of  the  same  character. 

Begging  you  to  report  the  foregoing  to  your  Government,  I  allow  myself  to 
express  the  hope  of  receiving  soon  a  note  informing  me  of  the  dispatch  to  the 
British  Minister  at  Peking  of  the  instructions  necessary  to  assure  reciprocity,  and 
making  possible  the  punishment,  by  the  British  tribunals  in  China,  of  British 
subjects  violating  Danish  trademarks. 

I  avail,  etc. 

(Signed)  Raben-Levetzau. 


Note  of  Mr.  Chilton  to  Count  Raben-Levetzau. 

Copenhagen,  December  11,  1905. 
M.  LE  Ministre, 

With  reference  to  your  Excellency's  note  to  Sir  A.  Johnstone  of  the  11th 
ultimo,  respecting  the  protection  of  British  trademarks,  duly  registered  in  Den- 
mark, against  infraction  by  Danish  subjects  in  China,  I  have  the  honor  to  inform 
your  Excellency  that  His  Majesty's  Minister  at  Peking  has  been  requested  to 
issue  the  necessary  instructions  to  His  Majesty's  Consular  Officers  in  China  in 
order  that  similar  protection  may  be  extended  to  Danish  trademarks  should  they 
be  infringed  by  British  subjects. 

I  avail,  etc. 

(Signed)  H.  G.  Chilton. 


NUMBER  1905/17. 

ITALY  AND  THE  UNITED  STATES. 

Exchange  of  notes  in  regard  to  the  reciprocal  protection  of  trade-marks  in 
China  * — December  18,  1905. 

{American  Legation,  Peking,]  December  18,  1905. 
Mr.  Minister  and  dear  Colleague  :  The  Government  of  the  United  States 
being  desirous  of  reaching  an  understanding  with  the  Government  of  Italy  for 
the  reciprocal  protection  against  infringement  in  China  by  citizens  and  subjects 
of  our  respective  nations  of  trade  marks  duly  registered  in  the  United  States 
and  Italy,  I  am  authorized  by  the  Secretary  of  State  of  the  United  States  to 
inform  you  that  effectual  provision  exists  in  American  Consular  Courts  in  China 
for  the  trial  and  punishment  of  all  persons  subject  to  the  jurisdiction  of  the 

*  Texts    (and  translation)   as  printed  in   U.  S.  Treaty  Series   (No   Number).     Printed 
also  in  Malloy,  p.  991. 


548  CHINA  TREATIES  AND  AGREEMENTS 

United  States  who  may  be  charged  with  and  found  guilty  of  infringing  in  any 
way  trade  marks  of  persons  subject  to  the  jurisdiction  of  Italy  which  have  been 
duly  registered  in  the  United  States. 

I  beg  that  you  will  kindly  inform  me  whether  American  citizens  are 
entitled  to  the  same  legal  remedies  in  the  Consular  Courts  of  Italy  in  China  as 
regards  the  protection  from  infringement  of  their  trade  marks  duly  registered  in 
Italy. 

I  have  the  honor  to  be,  Mr.  Minister  and  dear  Colleague,  Your  obedient 
servant, 

W.   W.   ROCKHILL. 

His  Excellency,  Monsieur  Carlo  Baroli, 
etc.,  etc.,  etc. 


[Translation.] 

Peking,  December  18,  1905. 

Mr.  Minister:  I  have  the  honor  to  acknowledge  the  receipt  of  your 
note  of  to-day's  date  by  which  you  inform  me  that  you  have  been  authorized 
by  your  Government  to  conclude  an  arrangement  with  the  Italian  Legation  by 
means  of  an  exchange  of  notes,  for  the  reciprocal  protection  in  China  of  American 
and  Italian  trade  marks,  and  that  hereafter  infringements  of  trade  marks  the 
property  of  Italian  subjects  and  duly  registered  in  the  United  States  by  persons 
subject  to  the  jurisdiction  of  American  Consular  Courts  in  China  will  be  tried  by 
the  latter  according  to  law. 

Having  been  duly  authorized  thereto  by  the  Royal  Government,  I  am  pleased 
to  inform  you  that  hereafter  infringements  of  trade  marks  of  American  citizens, 
duly  registered  in  Italy,  by  persons  subject  to  the  jurisdiction  of  the  Italian 
Consular  Courts  in  China  will  in  first  instance  be  tried  according  to  the  law  by 
said  Courts  and  on  appeal  by  the  Royal  Court  of  Appeals  of  Ancona. 

Please  accept,  etc.,  etc. 

C.  Baroli. 


Peking,  January  22,  1906. 

Mr.  Minister  and  dear  Colleague  :  In  connection  with  the  notes  which  I 
had  the  honor  to  exchange  with  Your  Excellency  on  December  18,  1905,  looking 
to  the  reciprocal  protection  from  infringement  by  our  respective  nationals  in 
China  of  trade  marks  belonging  to  them  I  duly  transmitted  copies  of  the  same 
to  my  Government. 

In  reply  the  Secretary  of  State  has  called  to  my  attention,  as  possibly 
misleading,  the  use  made  in  my  note  to  you  of  the  word  "  punishment  "  by  our 
Consular  Courts  in  China  of  American  citizens  who  may  have  infringed  in  China 
trade  marks  the  property  of  persons  under  the  jurisdiction  of  Italy. 

In  view  of  the  fact  that  there  is  no  statute  in  the  United  States  making 
the  infringement,  counterfeiting,  etc.  of  a  trade  mark  a  criminal  offense,  and  that 
effectual  provision  exists  by  a  civil  action  for  damages  by  the  owner  of  a  trade 


NUMBER  1905/18 :  DECEMBER  22,  1905  549 

mark,  my  Government  is  of  the  opinion  that  the  word  "  punishment "  should  be 
understood  to  refer  to  a  civil  action  only,  and  not  to  a  criminal  procedure,  as 
might  be  inferred  from  the  use  of  the  word  in  question  without  the  present  explan- 
ation added  thereto. 

I  beg  leave  to  call  Your  Excellency's  attention  to  the  above  provision  of  our 
law,  so  that  nothing  in  my  note  of  December  18,  last,  may  be  construed  as 
conflicting  therewith. 

I  avail  myself  of  this  opportunity  to  renew  to  Your  Excellency  the  assurances 
of  my  highest  consideration. 


To  His  Excellency  Carlo  Baroli, 

etc.,  etc.,  etc. 


W.    W.    ROCKHILL. 


NUMBER  1905/18. 

JAPAN  AND  CHINA. 
Treaty  and  additional  agreement  relating  to  Manchuria."^ — December  22,  1905*, 

His  Majesty  the  Emperor  of  Japan  and  His  Majesty  the  Emperor  of  China, 
desiring  to  adjust  certain  matters  of  common  concern  growing  out  of  the  Treaty 
of  Peace  between  Japan  and  Russia  of  September  5th,  1905,  have  resolved  to 
conclude  a  Treaty  with  that  object  in  view  and  have  for  that  purpose  named 
Their  Plenipotentiaries,  that  is  to  say : 

His  Majesty  the  Emperor  of  Japan: 

Baron  Komura  Jutaro,  Jusammi,  Grand  Cordon  of  the  Imperial  Order  of  the 
Rising  Sun,  Minister  for  Foreign  Affairs  and  Special  Ambassador  of  His 
Majesty,  and 

Uchida  Yasuya,  Jushii,  Second  Class  of  the  Imperial  Order  of  the  Rising 
Sun,  His  Majesty's  Envoy  Extraordinary  and  Minister  Plenipotentiary;  and 

His  Majesty  the  Emperor  of  China: 

Prince  Ching,  Presiding  Minister  for  Foreign  Affairs,  Councillor  of  State 
and  Plenipotentiary  of  His  Majesty, 

Chu  Hung-chi,  Minister  for  Foreign  Affairs,  Councillor  of  State  and 
Plenipotentiary  of  His  Majesty,  and 

Yuan  Shih-kai,  Viceroy  of  the  Province  of  Chihli,  Junior  Guardian  of  the 

*  Japanese  official  translation.  Printed  also  in  Hertslct,  p.  391 ;  Customs,  Vol.  II,  p.  636; 
Recueil,  p.  754;  For.  Rel.  1906,  p.  995. 

In  connection  with  this  Treaty  and  additional  agreement,  see  also  the  Russo-Japanese 
treaty  of  peace,  signed  at  Portsmouth,  September  5,  1905  (No.  1905/8.  ante)  ;  also  the  Russo- 
Japanese  conventions  of  July  30,  1907  (No.  1907/11,  post),  July  4,  1910  (No.  1910/1,  post), 
and  July  3,  1916  (No.  1916/9,  post)  see  also  the  Sino-Japanese  treaty  and  Exchanges  of 
notes  respecting  South  Manchuria  and  Eastern  Inner  Mongolia,  May  25,  1915  (No.  1915/8, 
post).    See  also  Note  1  to  this  document,  post,  p.  554. 


550  CHINA  TREATIES  AND  AGREEMENTS 

Heir-Apparent,  Minister  Superintendent  of  Trade  for  the  Northern  Ports  and 
Plenipotentiary  of  His  Majesty; 

Who,  after  having  exchanged  their  full  powers  which  were  found  to  be  in 
good  and  due  form,  have  agreed  upon  and  concluded  the  following  Articles : 

Article  I. — The  Imperial  Chinese  Government  consent  to  all  the  transfers 
and  assignments  made  by  Russia  to  Japan  by  Articles  V  and  VI  of  the  Treaty 
of  Peace  above  mentioned. 

Article  II. — The  Imperial  Japanese  Government  engage  that  in  regard 
to  the  leased  territory  as  well  as  in  the  matter  of  railway  construction  and  ex- 
ploitation, they  will,  so  far  as  circumstances  permit,  conform  to  the  original 
agreements  concluded  between  China  and  Russia.  In  case  any  question  arises 
in  the  future  on  these  subjects,  the  Japanese  Government  will  decide  it  in  con- 
sultation with  the  Chinese  Government. 

Article  III. — The  present  Treaty  shall  come  into  full  force  from  the  date 
of  signature.  It  shall  be  ratified  by  Their  Majesties  the  Emperor  of  Japan  and 
the  Emperor  of  China  and  the  ratifications  shall  be  exchanged  at  Peking  as  soon 
as  possible,  and  not  later  than  two  months  from  the  present  date.f 

In  witness  whereof,  the  respective  Plenipotentiaries  have  signed  this  Treaty 
in  duplicate  in  the  Japanese  and  Chinese  languages  and  have  thereto  affixed 
their  seals. 

Done  at  Peking,  this  twenty-second  day  of  the  twelfth  month  of  the  thirty- 
eighth  year  of  Meiji,  corresponding  to  the  twenty-sixth  day  of  the  eleventh  moon 
of  the  thirty-first  year  of  Kuang  Hsii. 

(Signed)  Baron  Komura  Jutaro,     [l.  s.] 

Jusammi,    Grand    Cordon    of   the   Imperial   Order   of 
the  Rising  Sun,  Minister  for  Foreign  Affairs  and 
Special  Ambassador  of  His  Majesty  the  Emperor  of 
Japan. 
(Signed)  Uchida  Yasuya,     [l.  s.] 

Jiishii,  Second  Class  of  the  Imperial  Order  of  the  Rising 
Sun,   Envoy   Extraordinary   and   Minister  Plenipo- 
tentiary of  His  Majesty  the  Emperor  of  Japan. 
(Signed)  Prince  Ching,     [l.  s.] 

Presiding  Minister  for  Foreign  Affairs,  Councillor  of 
State    and    Plenipotentiary    of    His    Majesty    the 
Emperor  of  China. 
(Signed)  Chu   Hung-chi,     [l.  s.] 

Minister  for  Foreign  Affairs,  Councillor  of  State  and 
Plenipotentiary    of   His   Majesty    the    Emperor   of 
China. 
(Signed)  Yuan  Shih-kai,     [l.  s.] 

Viceroy  of  the  Province  of  Chihli,  Junior  Guardian 
of  the  Heir-Apparent,  Minister  Superintendent  of 
Trade  for  the  Northern  Ports  and  Plenipotentiary 
of  His  Majesty  the  Emperor  of  China. 

t  Ratifications  were  exchanged  at  Peking,  January  23,  1906. 


NUMBER  1905/18:  DECEMBER  22,  1905  551 

ADDITIONAL  AGREEMENT. 

The  Governments  of  Japan  and  China,  with  a  view  to  regulate,  for  their 
guidance,  certain  questions  in  which  they  are  both  interested  in  Manchuria,  in 
addition  to  those  provided  for  in  the  Treaty  signed  this  day,  have  agreed  as 
follows : 

Article  I. — The  Imperial  Chinese  Government  agree  that  as  soon  as  pos- 
sible after  the  evacuation  of  Manchuria  by  the  Japanese  and  Russian  forces,  the 
following  cities  and  towns  in  Manchuria  will  be  opened  by  China  herself  as 
places  of  international  residence  and  trade : 
In  the  Province  of  Shengking : 

Fenghwangcheng ;    Liaoyang;    Hsinmintun;   Tiehling;   Tungkiangtzu 
and  Fakumen. 
In  the  Province  of  Kirin : 

Changchun    (Kuanchengtzu)  ;    Kirin;    Harbin;    Ninguta;    Hunchun 
and  Sanhsing. 
In  the  Province  of   Heilungkiang : 

Tsitsihar ;  Hailar ;  Aihun  and  Manchuli4 
Article  II. — In  view  of  the  earnest  desire  expressed  by  the  Imperial 
Chinese  Government  to  have  the  Japanese  and  Russian  troops  and  railway 
guards  in  Manchuria  withdrawn  as  soon  as  possible,  and  in  order  to  meet  this 
desire,  the  Imperial  Japanese  Government,  in  the  event  of  Russia  agreeing  to 
the  withdrawal  of  her  railway  guards,  or  in  case  other  proper  measures  are 
agreed  to  between  China  and  Russia,  consent  to  take  similar  steps  accordingly. 
When  tranquillity  shall  have  been  reestablished  in  Manchuria  and  China  shall 
have  become  herself  capable  of  afifording  full  protection  to  the  lives  and  property 
of  foreigners,  Japan  will  withdraw  her  railway  guards  simultaneously  with 
Russia. 

Article  III. — The  Imperial  Japanese  Government,  immediately  upon  the 
withdrawal  of  their  troops  from  any  regions  in  Manchuria,  shall  notify  the 
Imperial  Chinese  Government  of  the  regions  thus  evacuated,  and  even  within 
the  period  stipulated  for  the  withdrawal  of  troops  in  the  Additional  Articles  of 
the  Treaty  of  Peace  between  Japan  and  Russia,  the  Chinese  Government  may 
send  necessary  troops  to  the  evacuated  regions  of  which  they  have  been  already 
notified  as  above  mentioned,  for  the  purpose  of  maintaining  order  and  tranquillity 
in  those  regions.  If,  in  the  regions  from  which  Japanese  troops  have  not  yet 
been  withdrawn,  any  villages  are  disturbed  or  damaged  by  native  bandits,  the 
Chinese  local  authorities  may  also  dispatch  a  suitable  military  force  for  the 
purpose  of  capturing  or  dispersing  those  bandits.  Such  troops,  however,  shall 
not  proceed  within  twenty  Chinese  li  from  the  boundary  of  the  territory  where 
Japanese  troops  are  stationed. 

Article  IV. — The    Imperial   Government   of   Japan   engage   that    Chinese 

t  On  September  10,  1906,  Tiehling,  Tungkiangtzu  and  Fakumen  were  declared  open  by 
China.  On  October  8,  1906,  Hsinmintun  was  opened :  on  January  14,  1907,  Changchun, 
Kirin,  Harbin  and  Tsitsihar.  On  June  28,  1907,  Fenghwangcheng,  Liaoyang,  Ninguta,  Hun- 
chun, Sanhsing,  Hailar,  and  Aihun  were  opened. 

See  the  Experimental  Regulations  for  the  collection  of  duty  on  goods  shipped  to  the 
new  ports  in  Manchuria,  November  19,  1907  (No.  1907/19,  post). 


552  CHINA  TREATIES  AND  AGREEMENTS 

public  and  private  property  in  Manchuria,  which  they  have  occupied  or  ex- 
propriated on  account  of  mihtary  necessity,  shall  be  restored  at  the  time  the 
Japanese  troops  are  withdrawn  from  Manchuria  and  that  such  property  as  is  no 
longer  required  for  military  purposes  shall  be  restored  even  before  such  with- 
drawal.§ 

Article  V. — The  Imperial  Chinese  Government  engage  to  take  all  necessary 
measures  to  protect  fully  and  completely  the  grounds  in  Manchuria  in  which 
the  tombs  and  monuments  of  the  Japanese  officers  and  soldiers  who  were  killed 
in  war  are  located. 

Article  VI. — The  Imperial  Chinese  Government  agree  that  Japan  has  the 
right  to  maintain  and  work  the  military  railway  line  constructed  between  Antung 
and  Mukden  and  to  improve  the  said  line  so  as  to  make  it  fit  for  the  conveyance 
of  commercial  and  industrial  goods  of  all  nations. ||  The  term  for  which  such 
right  is  conceded  is  fifteen  years  from  the  date  of  the  completion  of  the  improve- 
ments above  provided  for.  The  work  of  such  improvements  is  to  be  completed 
within  two  years,  exclusive  of  a  period  of  twelve  months  during  which  it  will 
have  to  be  delayed  owing  to  the  necessity  o£  using  the  existing  line  for  the  with- 
drawal of  troops.  The  term  of  the  concession  above  mentioned  is  therefore  to 
expire  in  the  49th  year  of  Kuang  Hsii.^  At  the  expiration  of  that  term,  the 
said  railway  shall  be  sold  to  China  at  a  price  to  be  determined  by  appraisement 
of  all  its  properties  by  a  foreign  expert  who  will  be  selected  by  both  parties. 
The  conveyance  by  the  railway  of  the  troops  and  munitions  of  war  of  the 
Chinese  Government  prior  to  such  sale  shall  be  dealt  with  in  accordance  with 
the  regulations  of  the  Eastern  Chinese  Railway.*  Regarding  the  manner  in 
which  the  improvements  of  the  railway  are  to  be  efifected,  it  is  agreed  that  the 
person  undertaking  the  work  on  behalf  of  Japan  shall  consult  with  the  Com- 
missioner dispatched  for  the  purpose  by  China.  The  Chinese  Government  will 
also  appoint  a  Commissioner  to  look  after  the  business  relating  to  the  railway  as 
is  provided  in  the  Agreement  relating  to  the  Eastern  Chinese  Railway.  It  is 
further  agreed  that  detailed  regulations  shall  be  concluded  regarding  the  tariffs 
for  the  carriage  by  the  railway  of  the  public  and  private  goods  of  China. 

Article  VII. — The  Governments  of  Japan  and  China,  with  a  view  to  pro- 
mote and  facilitate  intercourse  and  traffic,  will  conclude,  as  soon  as  possible,  a 
separate  convention  for  the  regulation  of  connecting  services  between  the  rail- 
way lines  in  South  Manchuria  and  all  the  other  railway  lines  in  China. f 

Article  VIII. — The  Imperial  Chinese  Government  engage  that  all  materials 
required  for  the  railways  in  South  Manchuria  shall  be  exempt  from  all  duties, 
taxes  and  likin. 

Article  IX, — The  methods  of  laying  out  the  Japanese  Settlement  at  Yingkou 
in  the  Province  of  Shengking,  which  has  already  been  opened  to  trade,  and  at 

*  Under  date  of  October  30,  1911,  an  agreement  on  this  subject  was  concluded,  of  which 
the  translation  is  given  in  Note  2  to  this  document,  f^osf,  p.  574. 

t  See  the  agreement  of  September  4.  1909  (No.  1909/9.  post).  Art.  V. 

§  See,  in  connection  with  Articles  TI,  III  and  IV,  the  Agreement  for  the  rendition  of 
Yingkou,  December  5,  1906  (No.  1906/10,  post). 

II  See  Memorandum  concerning  the  reconstruction  of  the  Antung-Mukden  Railway, 
August  19,  1909  (Xo.  1909/8,  post);  and  the  Sino-Japanese  agreement  of  September  4, 
1909,  Art.  4   (No.  1909/9,  post). 

^  i.e.,  1923-4.  See,  however,  the  exchange  of  Notes  between  Japan  and  China.  May  25, 
1915,  concerning  the  extension  of  the  terms  of  this  and  other  leases  (No.  1915/8;  post, 
p.  1221). 


NUMBER  1905/18:  DECEMBER  22,  1905  553 

Antung  and  Mukden  in  the  same  Province,  which  are  still  unopen  although 
stipulated  to  be  opened,  shall  be  separately  arranged  and  determined  by  officials 
of  Japan  and  China. 

Article  X. — The  Imperial  Chinese  Government  agree  that  a  joint-stock 
company  of  forestry  composed  of  Japanese  and  Chinese  capitalists  shall  be 
organized  for  the  exploitation  of  the  forests  in  the  regions  on  the  right  bank  of  the 
River  Yalu  and  that  a  detailed  agreement  shall  be  concluded  in  which  the  area 
and  term  of  the  concession  as  well  as  the  organization  of  the  com.pany  and  all 
regulations  concerning  the  joint  work  of  exploitation  shall  be  provided  for4 
The  Japanese  and  Chinese  shareholders  shall  share  equally  in  the  profits  of  the 
undertaking. 

Article  XI. — The  Governments  of  Japan  and  China  engage  that  in  all  that 
relates  to  frontier  trade  between  Manchuria  and  Corea  most  favoured  nation 
treatment  shall  be  reciprocally  extended.§ 

Article  XII. — The  Governments  of  Japan  and  China  engage  that  in  all 
matters  dealt  with  in  the  Treaty  signed  this  day  or  in  the  present  Agreement  the 
most  favourable  treatment  shall  be  reciprocally  extended. 

The  present  Agreement  shall  take  effect  from  the  date  of  signature.  When 
the  Treaty  signed  this  day  is  ratified,  this  Agreement  shall  also  be  considered 
as  approved. 

In  witness  whereof,  the  Undersigned,  duly  authorized  by  their  respective 
Governments,  have  signed  the  present  Agreement  in  duplicate  in  the  Japanese  and 
Chinese  languages  and  have  thereto  affixed  their  seals. 

Done  at  Peking,  this  22nd  day  of  the  12th  month  of  the  38th  year  of  Meiji, 
corresponding  to  the  26th  day  of  the  11th  moon  of  the  31st  year  of  Kuang  Hsu. 
(Signed)  Baron  Komura  Jutaro,     [l.  s.] 

Jusammi,  Grand  Cordon  of  the  Imperial  Order  of  tJie  Ris- 
ing Sun,  Minister  for  Foreign  Affairs  and  Special  Ambassa- 
dor of  His  Majesty  the  Emperor  of  Japan. 
(Signed)  Uchida  Yasuya,     [l.  s.] 

Jushii,  Second  Class  of  the  Imperial  Order  of  the  Rising 
Sun,  Envoy  Extraordinary  and  Minister  Plenipotentiary  of 
His  Majesty  the  Emperor  of  Japan. 
(Signed)  Prince  Ching,     [l.  s.] 

Presiding  Minister  for  Foreign  Affairs,  Councillor  of  State 
and  Plenipotentiary  of  His  Majesty  the  Emperor  of  China. 
(Signed)  Chu  Hung-chi,     [l.  s.] 

Minister  for  Foreign  Affairs,  Councillor  of  State  and  Pleni- 
potentiary of  His  Majesty  the  Emperor  of  China. 
(Signed)  Yuan  Shih-kai,     [l.  s.] 

Viceroy  of  the  Province  of  Chihli,  Junior  Guardian  of  the 
Heir-Apparent,  Minister  Superintendent  of  Trade  for  the 
Northern  Ports  and  Plenipotentiary  of  His  Majesty  the 
Emperor  of  China. 

tSee  the  agreement  of  May  14,  1908  (No.  1908/8,  post),  and  regulations  dated  Septem- 
ber 11,  1908. 

§  See  the  arrangement  relating  to  the  reduction  of  customs  duties  on  goods  transported 
by  the  Antung-Mukden  Railway,  May  29,  1913  (No.  1913/7,  post). 


554  CHINA  TREATIES  AND  AGREEMENTS 

Note  I. 

It  has  been  stated  that,  to  the  treaty  and  additional  agreement  here  printed,  were 
attached  certain  secret  protocols  of  which  the   following  summary  has  been  given : 

Summary  of  alleged  Secret  Protocols  to  Sino-Japanese  Treaty  of  December  22,  1905. 

"  Whereas  the  protocols  of  the  Conference  recently  held  between  the  Plenipotentiaries 
of  Japan  and  China  with  regard  to  Manchuria  are  to  be  kept  strictly  secret  in  deference 
to  the  desire  of  the  Chinese  Government,  only  such  portions  of  those  Protocols  as  possess  the 
character  of  executory  agreements  are  given  in  the  following  summary : 

"  1.  The  railway  between  Changchun  and  Kirin  will  be  constructed  by  China  with 
capital  to  be  raised  by  herself.  She,  however,  agrees  to  borrow  from  Japan  the  insufficient 
amount  of  capital,  which  amount  being  about  one-half  of  the  total  sum  required.  The 
contract  concerning  the  loan  shall,  in  due  time,  be  concluded,  following,  mutatis  mutandis, 
the  loan  contract  entered  into  between  the  board  of  the  Imperial  Railways  of  North  China 
and  the  Anglo-Chinese  Syndicate.  The  term  of  the  loan  shall  be  twenty-five  years,  redeem- 
able in  yearly  instalments. 

"2.  The  military  railway  constructed  by  Japan  between  Mukden  and  Hsinmintun 
shall  be  sold  to  China  at  a  price  to  be  fairly  determined  in  consultation  by  Commis- 
sioners appointed  for  the  purpose  by  the  two  Governments.  China  engages  to  recon- 
struct the  line,  making  it  her  own  railway,  and  to  borrow  from  a  Japanese  corporation 
or  corporations  one  half  of  the  capital  required  for  the  portion  of  the  line  east  of 
Liao-ho  for  a  term  of  eighteen  years  repayable  in  yearly  instalments,  and  a  contract 
shall  be  concluded,  for  the  purpose  foWowing,  mutatis  mutandis,  the  loan  contract 
entered  into  between  the  Board  of  the  Imperial  Railways  of  North  China  and  the 
Anglo-Chinese    Syndicate. 

"  All  the  other  military  railways  in  different  localities  shall  be  removed  with  the 
evacuation    of   the    regions. 

"  3.  The  Chinese  Government  engage,  for  the  purpose  of  protecting  the  interest  of 
the  South  Manchurian  Railway,  not  to  construct,  prior  to  the  recovery  by  them  of  the 
said  railway,  any  main  line  in  the  neighborhood  of  and  parallel  to  that  railway,  or  any 
branch   line   which   might   be   prejudicial   to   the   interest   of   the   above-mentioned    railway. 

"  4.  China  declares  that  she  will  adopt  sufficient  measures  for  securing  Russia's 
faithful  observance  of  the  Russo-Chinese  treaties  with  regard  to  the  railways  which 
Russia  continues  to  possess  in  the  northern  part  of  Manchuria,  and  that  it  is  her  inten- 
tion, in  case  Russia  acts  in  contravention  of  such  treaty  stipulations,  to  approach  her 
strongly  with  a  view  to  have  such  action   fully  rectified. 

"  5.  When  in  the  future,  negotiations  are  to  be  opened  between  Japan  and  Russia 
for  regulation  of  the  connecting  railway  services  (Article  VIII  of  the  Treaty  of  Peace 
between  Japan  and  Russia),  Japan  shall  give  China  previous  notice.  China  shall  com- 
municate to  Russia  her  desire  to  take  part  in  the  negotiations  through  commissioners 
to  be  despatched  by  her  on  the  occasion,  and  Russia  consenting  shall  participate  in 
such   negotiations. 

"  6.  With  regard  to  the  mines  in  the  Province  of  Fengtien,  appertaining  to  the 
railway,  whether  already  worked  or  not,  fair  and  detailed  arrangements  shall  be  agreed 
upon    for   mutual   observance. 

"7.  The  affairs  relating  to  the  connecting  services  as  well  as  those  of  common  con- 
cern in  respect  of  the  telegraph  lines  in  the  Province  of  Fengtien  and  the  cables  be- 
tween Port  Arthur  and  Yentai  shall  be  arranged  from  time  to  time  as  necessity  may 
arise  in  consultation  between  the  two  countries. 

"  8.  The  regulations  respecting  the  places  to  be  opened  in  Manchuria,  shall  be 
made  by  China  herself,  but  the  Japanese  Minister  at  Peking  must  be  previously  con- 
sulted   regarding    the    matter. 

"9.  If  no  objection  be  offered  on  the  part  of  Russia  respecting  to  the  navigation 
of  the  Sungari  (by  Japanese  vessels),  China  shall  consent  to  such  navigation  after 
negotiations. 

"  10.  The  Chinese  Plenipotentiaries  declare  that  immediately  after  the  withdrawal 
of  the  Japanese  and  Russian  troops  from  Manchuria,  China  will  proceed  to  take,  in 
virtue  of  her  sovereign  right,  full  administrative  measures  to  guarantee  peace  in  that 
region  and  endeavor,  by  the  same  right,  to  promote  good  and  remove  evil  as  well  as 
steadily  to  restore  order,  so  that  the  residents  of  that  region,  natives  and  foreigners,  may 
equally  enjoy  the  security  of  life  and  occupation  under  the  perfect  protection  of  the 
Chinese  Government.  As  to  the  means  of  restoring  order,  the  Chinese  Government  are 
to  take  by  themselves  all  adequate  measures. 

"  11.  While  relations  of  intimate  friendship  subsisted  as  at  the  present  time  be- 
tween China  and  Japan,  Japan  and  Russia  had  unfortunately  engaged  in  war  and 
fought  in  the  territory  of  China.  But  peace  has  now  been  reestablished  and  hostihties 
in  Manchuria  have  ceased.  And  while  it  is  undeniable  that  Japanese  troops,  before 
their  withdrawal,  have  the  power  of  exercising  the  rights  accruing  from  military  occupa- 
tion,  the   Chinese   Government   declare   that   certain  Japanese   subjects   in    Manchuria   have 


NUMBER  1905/18:  DECEMBER  22,  1905:  NOTES  555 

recently  been  observed  to  sometimes  interfere  with  the  local  Chinese  administration  and 
to   inflict  damage  to  public  and   private   property  of   China. 

"  The  Japanese  Plenipotentiaries,  considering  that,  should  such  interference  and 
infliction  of  damage  have  been  carried  beyond  military  necessity,  they  are  not  proper 
acts,  declare  that  they  will  communicate  the  purport  of  the  above  declaration  of  the 
Chinese  Government  to  the  Government  of  Japan,  so  that  proper  steps  may  be  taken 
for  controlling  Japanese  subjects  in  the  Province  of  Fengtien  and  promote  the  friendly 
relations  between  the  two  nations,  and  also  for  preventing  them  in  future,  from  interfer- 
ing with  the  Chinese  administration  or  inflicting  damage  to  public  or  private  property 
without   military   necessity. 

"  12.  In  regard  to  any  public  or  private  property  of  China  which  may  have  been 
purposely  destroyed  or  used  by  Japanese  subjects  without  any  military  necessity,  the 
Governments  of  the  two  countries  shall  respectively  make  investigations  and  cause  fair 
reparation  to  be  made. 

"  13.  When  the  Chinese  local  authorities  intend  to  despatch  troops  for  the  pur- 
pose of  subduing  native  bandits  in  the  regions  not  yet  completely  evacuated  by  Japanese 
troops,  they  shall  not  fail  to  previously  consult  with  the  Commander  of  the  Japanese 
troops    stationed    in    those    regions    so    that    all    misunderstandings    may    be    avoided. 

"  14.  The  Japanese  Plenipotentiaries  declare  that  the  Railway  Guards  stationed 
bet^yeen  Changchun  and  the  boundary  line  of  the  leased  territory  of  Port  Arthur  and 
Talien,  shall  not  be  allowed,  before  their  withdrawal,  to  unreasonably  interfere  with 
the  local  administration  of  China  or  to  proceed  without  permission  beyond  the  limits 
of   the    railway. 

"  15.  Chinese  local  authoritites,  who  are  to  reside  at  Inkou,  shall  be  aDpwed,  even 
before  the  withdrawal  of  the  Japanese  troops,  to  proceed  to  that  place  and  transact  their 
official  business.  The  date  of  their  departure  is  to  be  determined,  as  soon  as  possible 
after  the  definite  conclusion  of  this  Treaty,  by  the  Japanese  Minister  to  China  in  con- 
sultation with  the  Waiwupu.  As  there  is  still  in  that  place  a  considerable  number  of 
Japanese  troops,  quarantine  regulations  as  well  as  regulations  for  the  prevention  of 
contagious  diseases,  shall  be  established  by  the  authorities  of  the  two  countries  in 
consultation    with    each    other    so    that    epidemics    may    be    avoided. 

"  16.  The  revenue  of  the  Maritime  Customs  at  Yingkou  shall  be  deposited  with 
the  Yokohama  Specie  Bank  and  delivered  to  the  Chinese  local  authorities  at  the  time 
of  evacuation.  As  to  the  revenue  of  the  native  Customs  at  that  place  and  the  taxes 
and  imposts  at  all  other  places,  which  are  to  be  appropriated  for  local  expenditures,  a 
statement  of  receipts  and  expenditures  shaM  be  delivered  to  the  Chinese  local  au- 
thorities   at   the   time    of    evacuation." 

The  exploitation  of  the  railways  in  Manchuria  was  entrusted  by  the  Japanese 
Government  to  the  South  Manchuria  Railway  Joint  Stock  Company  by  an  imperial  ordi- 
nance of  June  7,  1906,  of  which  the  translation  (from  the  Japanese  text  as  officially 
promulgated)    is    as    follows: 

Japanese  Imperial  Ordinance  sanctioning  Organization  of  South  Manchuria  Railway 

Company. — June  7,  1906. 

"We  hereby  sanction  the  organization  of  the  South  Manchuria  Railway  Joint  Stock 
Company  and  cause  the  following  Ordinance  to  be  promulgated. 

(Sign  Manual) 
(Privy  Seal) 
"  June  7,  1906. 

"  (Countersigned)  Marquis  Kimmochi  Saionji, 

I\Iinistcr  President  of  State. 
"  (Countersigned)  Isaburo   Yamagata, 

Minister  of  State  for  Communications. 

imperial  ordinance  no.  142,  june  7,  1906. 

"  Article  I. — The  Government  shall  cause  the  organization  of  the  South  Manchuria 
Railway  Joint  Stock  Company  for  the  purpose  of  engaging  in  railway  traffic  in  Manchuria. 

"  Article  II. — The  shares  of  the  company  shall  all  be  registered  [signed]  and  may  be 
owned  only  by  the  Japanese  and  Chinese  Governments  or  by  subjects  of  Japan  and  China. 

"  Article  III. — The  Japanese  Government  may  offer  its  Manchurian  railways,  and  their 
appurtenances,  and  its  coal-mines  in  Manchuria,  as  the  capital  to  be  furnished  by  the 
Government. 

"  Article  IV. — iThe  company  may  divide  the  new  shares  to  be  raised  into  several 
issues  to  be  floated  at  different  times,  but  the  amount  of  the  first  issue  shall  not  be  less  than 
one-fifth    of    the    whole   amount. 

"  Article  V. — The  first  payment  upon  the  shares  need  not  exceed  one-tenth  of  the 
value  of  the  shares.  . 


556  CHINA  TREATIES  AND  AGREEMENTS 

"  Article  VI. — The  company  shall  establish  its  head-office  at  Tokio  and  a  branch  office 
at  Dalny. 

"  Article  VII. — The  company  shall  have  a  president,  a  vice-president,  four  or  more 
directors  and  from  three  to  five  inspectors. 

"  Article  VIII. — The   president   shall    represent   the   company   and    manage    its    affairs. 

"  The  vice-president  shall  perform  the  president's  duties  when  the  latter  is  prevented 
from  discharging  them,  and  shall  act  as  president  when  the  latter  post  is  vacant. 

"  The  vice-president  and  directors  shall  assist  the  president  in  his  duties  and  shall  take 
charge  of  various  departments  of  the  company's  business. 

'■  The  inspectors  shall  examine  the  business  of  the  company. 

"Article  IX. — The  Government,  subject  to  the  Imperial  sanction,  shall  appoint  the 
president  and  vice-president,  whose  terms  of  office  shall  be  five  years. 

"  The  Government  shall,  appoint  the  directors  from  among  those  shareholders  who 
own  fifty  or  more  shares.    The  term  of  office  shall  be  four  years. 

"  The  inspectors  shall  be  elected  from  among  the  shareholders  at  a  general  meeting 
of  the  latter.    The  term  of  office  shall  be  three  years. 

"  Article  X. — The  amount  of  compensation  and  allowances  of  the  president,  vice- 
president  and  directors  shall  be  fixed  by  the  Government. 

"  Article  XI. — The  president,  vice-president  and  directors  of  the  company  shall  not 
engage  in  any  other  business  or  trade,  under  any  name  whatsoever,  during  their  terms 
of  office,  except  by  special  permission  of  the  Government. 

"  Article  XII. — The  Government  shall  appoint  supervisors  for  the  South  Manchuria 
Railway  Joint  Stock  Company  to  supervise  the  business  of  the  company. 

"  The  supervisors  may  at  any  time  examine  the  company's  business  and  inspect  their 
safes,  books,  documents  and  any  other  articles  belonging  to  the  company. 

"  The  supervisors,  whenever  they  may  deem  it  necessary,  may  order  the  company  to 
report  on  the  various  accounts  and  the  condition  of  the  company's  business. 

"  The  supervisors  may  attend  the  general  meetings  of  the  shareholders  of  the  company, 
or  any  other  meetings,  and  express  their  opinions,  but  shall  not  be  entitled  to  vote. 

"Article  XIII. — The  Government  may  issue  such  orders  as  may  be  necessary  to 
superintend  the  business  of  the  company. 

"  Article  XIV. — In  case  the  decisions  of  the  company  or  the  conduct  of  its  officers 
are  in  violation  of  laws  and  regulations  or  of  the  object  of  the  company,  or  are  detrimental 
to  the  public  welfare,  or  fail  to  carry  out  the  orders  of  the  Government  office  under  whose 
jurisdiction  the  company  is,  the  Government  may  cancel  the  said  decisions  or  dismiss  the 
officers  concerned. 

"  Article  XV. — When  the  Government  deems  it  necessary,  it  may  apply  to  the  com- 
pany the  provisions  of  the  laws  and  regulations  relating  to  railways  in  Japan. 

"  In  the  case  referred  to  in  the  preceding  paragraph  the  Government  shall  inform 
the  company  in  advance  as  to  the  laws  and  regulations  to  be  so  applied. 

"  Article  XVI. — When  not  otherwise  provided  for  in  this  Ordinance,  the  provisions  of 
the  Commercial  Code  and  its  Supplementary  Laws  and  Regulations  shall  be  applied. 

"  Article  XVII. — The  provisions  of  Imperial  Ordinance  No.  366  [Relates  to  the  con- 
struction of  railways  in  foreign  countries  by  Japanese  companies.]  of  1900,  shall  not  be 
applied  to  the  company  that  is  to  be  organized  in  accordance  with  this  Ordinance. 

"  supplementary  rules. 

"  Article  XVIII. — The  Government  shall  appoint  a  commission  to  transact  all  busi- 
ness relating  to  the  organization  of  the  South   Manchuria  Railway  Joint   Stock   Company. 

"Article  XIX. — The  organizing  commission  shall  draw  up  the  company's  articles  of 
association,  and  after  the  said  articles  have  been  approved  by  the  Government,  shall  open 
the  subscriptions  for  the  first  issue  of  shares. 

"  Article  XX. — When  the  first  issue  of  the  company's  shares  has  been  subscribed,  the 
commission  shall  present  to  the  Government  the  subscription  list  and  apply  for  permission 
to  organize  the  company. 

"  Article  XXI. — When  the  permission  referred  to  in  the  preceding  Article  has  been 
given,  the  organizing  commission  shall,  without  delay,  call  for  the  first  instalment  upon 
each  share. 

"  When  the  first  instalment  referred  to  in  the  preceding  Article  has  been  paid  in,  the 
commission  shall,  without  delay,  call  a  general  meeting  for  organization. 

"  Article  XXII. — At  the  close  of  the  first  general  meeting  the  organizing  commission 
shall  turn  over  its  business  to  the  President  of  the  South  Manchuria  Railway  Joint  Stock 
Company." 

The  following  are  the  translations  (from  the  official  Japanese  texts)  of  the  govern- 
ment order  of  August  1,  1906,  concerning  the  South  Manchuria  Railway  Company,  and 
of  the  articles  of  incorporation  of  that  company: 


NUMBER  1905/18:  DECEMBER  22,  1905:  NOTES  557 

Japanese  Government  Order  regarding  South  Manchuria  Railway  Company.— 

August  I,  1906. 

"  To  Masatake  Terauchi,  Chairman  of  the  Organizing  Commission  of  the  South  Man- 
churia Railway  Joint  Stock  Company,  And  eighty  other  members  of  the  Commission: 

"  The  following  orders  are  hereby  given  respecting  the  several  matters  relating  to  the 
organization  of  the  South  Manchuria  Railway  Joint  Stock  Company,  all  matters  per- 
taining to  the  management  of  which  have  been  entrusted  to  the  Commission. 

"  August  1,  1906. 

"  ISABURO    YaMAGATA, 

Minister  of   Communications. 
"  YosHiRO  Sakatani,  LL.  D., 

Minister  of  Finance. 
"  Viscount  Tadasu  Hayashi, 

Minister  for  Foreign  Affairs. 

"  Article  1. — In  accordance  with  the  Additional  Agreement  of  the  Japan-China  Treaty 
relating  to  Manchuria,  signed  on  December  22nd,  1905,  the  Company  shall  engage  in  the 
traffic  of  the   following  railways : 
"  Tairen-Changchun. 
"  Nankuanling-Port  Arthur. 
"  Tafangshen-Liushutun. 
"  Tashichiao-Yingkow. 
"  Yentai-Yentai  Coal  jNIine. 
"  Sukiatun-Fushun. 
"  Mukden-Antunghsien. 

"  Article  2. — The  railways  mentioned  in  the  preceding  Article  shall  be  changed  to  the 
4  feet  8.5  inch  gauge  within  three  (3)  years  counting  from  the  day  on  which  the  com- 
pany commences  its  operations. 

■■  On  the  Tairen-Changchun  Railway  the  tracks  between  Tairen  and  Sukiatun  [near 
Mukden]  shall  be  doubled. 

"  Article  3. — The  company  shall  make  the  various  arrangements  necessary  for  the 
lodging  and  meals  of  the  passengers,  as  well  as  for  the  storage  of  goods  at  the  principal 
stations  on  the  line. 

"  At  the  points  on  the  harbors  and  bays  touched  by  the  railways  the  necessary  arrange- 
ments shall  be  made  for  connecting  water  and  land  transportation. 

"  Article  4. — For  the  convenience  and  the  profit  of  the  railways,  the  company  may 
engage  in  the  following  accessory  lines  of  business  : 

"  ^Mining,  especially  the  operation  of  the  coal-mines  at  Fushun  and  Yentai. 

"  Water  transportation. 

"  Electrical  enterprises. 

"  Sale   on   commission   of   the   principal   goods   carried   by   the    railways. 

"  Warehousing. 

"  Business   relating  to   the   land   and   buildings   on   the   land   attached   to   the   railways. 

"  In  addition,  any  business  for  which  Government  permission  has  been  given. 

"  Article  5. — The  company  shall,  subject  to  the  permission  of  the  Government,  make 
the  necessary  arrangements  for  engineering  works,  education,  sanitation,  etc.  within  the 
area  of  lands  used  for  the  railways  and  the  accessory  lines  of  business. 

"  Article  6. — To  defray  the  expenses  necessary  for  the  arrangements  mentioned  in  the 
preceding  Article,  the  company  may,  subject  to  the  permission  of  the  Government,  collect 
fees  of  those  who  live  within  the  area  of  lands  used  for  the  railways  and  the  accessory 
lines  of  business,  or  make  any  other  assessments  for  necessary  expenses. 

"  Article  7. — The  total  amount  of  the  company's  capital  stock  shall  be  200  million  Yen, 
of  which  100  million  Yen  shall  be  furnished  by  the  Imperial  [Japanese]  Government. 

"  -Article  8. — The  capital  to  be  furnished  by  the  Government  mentioned  in  the  pre- 
ceding Article  shall   consist  of  the   following  properties : 

"  The  existing  railways. 

"  All  properties  belonging  to  the  railways,  except  those  in  the  leased  territory  specially 
designated  by  the  Government. 

"  The  coal  mines  at  Fushun  and  Yentai. 

"  Article  9. — The  rolling  stock  now  being  used  by  the  Government,  and  the  rails  as 
well  as  the  accessories  of  the  Mukden-Antunghsien  temporary  railway,  shall  be  sold  to 
the  company  at  a  reasonable  price. 

"  Article  10. — The  shares  not  owned  by  the  Government  shall  be  open  to  subscription 
by  Japanese  and  Chinese  subjects. 

"Article  11. — ^When  the  dividend  of  the  company  for  any  business  year  is  less  than  six 
(6)  per  cent  per  annum  on  the  paid  amount  for  the  shareholders  other  than  the  Govern- 
ments of  Japan  and  China  (hereafter  to  be  styled  merely  'the  shareholders'),  the  Gov- 
ernment shall  supply  the  deficiency  for  a  period  of  fifteen   (15)  years  only,   (or  for  thirty 


558  CHINA  TREATIES  AND  AGREEMENTS 

(30)  business  years  if  the  calendar  year  be  divided  into  two  business  years),  commencing 
from  the  day  of  the  registration  of  the  company's  establishment.  However,  the  amount 
of  money  to  be  furnished  by  the  Government  to  supply  the  deficiency  referred  to  shall, 
under  no  circumstances,  exceed  six  (6)  per  cent  per  annum  on  the  capital  paid  in  by  the 
shareholders. 

"  Article  12. — When  the  dividend  of  the  company  for  any  business  year  does  not 
exceed  six  (6)  per  cent  per  annum  on  the  capital  paid  in  by  the  shareholders,  the  dividend  on 
the  shares  ovi^ned  by  the  Government  need  not  be  paid. 

"  The  shares  owned  by  the  Chinese  Government  shall  be  dealt  with  in  a  similar  way  to 
those  owned  by  the  Imperial  Government. 

"  Article  13. — The  Government  shall  guarantee  the  payment  of  interest  on  the  de- 
bentures which  the  company  may  issue  for  the  reconstruction  of  the  railways,  or  for  the 
operation  of  the  accessory  business,  and  on  those  which  the  company  may  issue  for  con- 
solidating or  redeeming  these  debentures.  The  Government  shall,  if  necessary,  guarantee 
the  repayment  of  the  principal. 

"  The  amount  of  the  face  value  of  the  debentures  to  be  guaranteed  by  the  Government 
shall  not  exceed  the  amount  remaining  when  the  capital  paid  in  by  the  shareholders  other 
than  the  Government  is  subtracted  from  the  total  of  the  capital  subscribed  by  them  [shall 
not  exceed  the  difference  between  the  capital  subscribed  and  the  amount  paid  in]. 

"  The  debentures  mentioned  in  the  first  paragraph  shall  be  redeemed  within  twenty- 
five  (25)  years  counting  from  the  year  of  their  issuance. 

"  Article  14. — For  the  debentures  issued  in  accordance  with  the  provisions  in  the  first 
paragraph  of  the  preceding  Article,  the  Government  shall  supply  the  amount  correspond- 
ing to  the  interest  on  the  debentures.  _ 

"When  the  dividend  on  the  capital  paid  up  by  the  shareholders  exceeds  six  (6) 
per  cent  per  annum,  the  surplus  shall  first  be  applied  to  the  payment  of  the  interest  on  the 
debentures.    However,  in  this  case  the  amount  of  surplus  shall  be  deducted. 

"Article  15. — When  there  is  any  surplus  after  paying  the  interest  on  the  debentures, 
as  mentioned  in  the  preceding  Article,  out  of  the  profits  of  the  company's  business,  the 
said  surplus  shall  be  apportioned  to  the  shares  owned  by  the  Governments  of  Japan  and 
China  until  the  rate  is  equal  on  the  respective  amounts  paid  up  by  all  shareholders. 

"  Article  16. — The  money  to  be  supplied  by  the  Government,  as  provided  for  in  Articles 
11  and  14,  shall  bear  interest  at  six  (6)  per  cent  per  annum.  The  interest  shall  be  added 
annually  to  the  principal,  and  the  total  shall  be  the  company's  indebtedness  to  the  Govern- 
ment. 

"When  the  dividend  for  all  the  shares  exceeds  ten  (10)  per  cent  per  annum,  the  sur- 
plus shall  be  devoted  to  the  redemption  of  the  company's  debt  mentioned  in  the  preceding 
paragraph. 

"  Article  17. — Any  surplus  of  funds  raised  by  means  of  the  debentures  mentioned 
in  Article  13  shall  be  deposited  with  the  Division  of  Deposits  in  the  Department  of  Finance. 

"  Article  18. — The  company  shall  determine  estimates  of  the  capital  to  be  paid  up  and 
the  debentures  to  be  floated  during  each  business  year,  their  face  value,  issuing  price,  rate 
of   interest,   date  of   issuance   et  cetera,  and   shall   receive  the   Government's   approval. 

"  Article  19. — The  company  shall  determine  the  regulations  relating  to  its  finances  and 
business,  and  shall  secure  the  Government's  approval. 

"  When  the  company  desires  to  alter  the  regulations  mentioned  in  the  preceding  para- 
graph and  the  articles  of  incorporation,  similar  steps  shall  be  taken. 

"  Article  20. — The  plans  of  the  company's  business,  the  estimate  of  the  cost  of  opera- 
tion, the  budget  of  income  and  expenditures  connected  with  the  company's  business,  the 
settlement  of  the  same  and  the  rate  of  the  dividend  for  each  business  year  shall  be  sub- 
mitted to  the  Government  for  approval.  When  the  company  desires  to  alter  the  foregoing 
items,  similar  steps  shall  be  taken. 

"  Article  21. — At  the  designation  of  the  Government  the  company  shall  report  on  the 
following  matters : 

"  The  present  condition  of  the  cost  of  operation  as  well  as  the  income  and  expenditures 
connected  with  the  company's  business. 

"  The  actual  condition  of  the  company's  work  in  general. 

"  Article  22. — Without  the  permission  of  the  Government  the  company  shall  not  dispose 
of  its  principal  rights  and  properties ;  nor  give  the  same  for  security. 

"  Article  23. — When  the  Government  deems  it  necessary,  it  may  order  the  freight 
charges  to  be  reduced,  but  only  under  special  conditions. 

"  Article  24. — The  Government  may,  when  it  deems  necessary,  order  the  company  to 
make  new  works  arrangements  or  modify  the  existing  ones. 

"  Article  25. — At  the  designation  of  the  Government  the  company  shall  be  under  obliga- 
tion at  any  time  to  place  the  railways,  land  and  any  other  articles  at  the  service  of  the  Gov- 
ernment. 

"  Article  26. — The  Articles  and  paragraphs  relating  to  the  funds  to  be  supplied  by  the 
Government  and  the  Government  guarantees  mentioned  in  the  present  order  shall  be  con- 
firmed upon  the  approval  of  the  Imperial  Diet." 


NUMBER  1905/18:  DECEMBER  22,  1905:  NOTES  559 

"THE  ARTICLES  OF  INCORPORATION  OF  THE  SOUTH  MANCHURIA  RAIL- 
WAY JOINT  STOCK  COMPANY. 

"  Chapter  I. — General  provisions. 

"  Article  1. — This  company  shall  be  called  the  South  IManchuria  Railway  Joint  Stock 
Company  and  is  established  in  accordance  with  Imperial  Ordinance  No.  142  of  1906  and  in 
obedience  to  the  Order  of  the  Imperial  Japanese  Government. 

"  Article  2. — The  liability  of  the  shareholders  of  this  company  is  limited  to  the  value 
of  the  share^s  owned  by  them. 

"  Article  3. — This  company  shall  establish  its  head-office  at  Tokyo  and  its  branch 
office  at  Tairen  [Dalny]. 

"Article  4. — The  objects  of  this  company  are  as  follows: 
.  "I.    To  engage  in  the  transportation  business  of  the  following  railways  in  Alanchuria: 
"  Tairen-Changchun  Railway. 
"  Nankuanling-Port  Arthur  Railway. 
"  Tafangshin-Liushutun  Railway. 
"  Tashichiao-Yingkow  Railway. 
"  Yentai-Yentai  Coal-Mine  Railway. 
"  Sukiatun-Fushun  Railway. 
"  Mukden-Antunghsien  Railway. 
"  II.    To   engage  in   the   following  lines   of   accessory  business    for  the   benefit  of   the 
railways : 

"  Mining,  especially  the  operation  of  the  coal  mines  at  Fushun  and  Yentai. 
"  Water  transportation. 
"  Electrical  enterprises. 
"  Warehousing. 

"  Business  relating  to  the  land  and  buildings  on  the  land  attached  to  the  railways. 
"  Any  other  business  for  which  the  permission  of  the  Government  may  be  given. 
"  Article  5. — The  capital  of  this  company  shall  be  200,000,000  Yen.  However,  the 
amount  of  the  first  subscription  of  shares  shall  be  Yen  20.000,000,  not  including  the  shares 
to  be  owned  by  the  Imperial  Japanese  Government.  The  second  and  subsequent  sub- 
scriptions shall  be  opened  from  time  to  time,  as  necessity  may  require,  upon  the  resolution 
of  a  general  meeting  of  the  shareholders. 

"  Article  6. — The  public  notices  of  this  company  shall  be  published  in  the  newspapers 
in  which  the  public  notices  of  the  court  of  law  are  published  to  whose  jurisdiction  the 
company  is  subject  in  Tokyo  [the  location  of ^  the  head-office],  and  in  the  newspapers  in 
which  the  public  notices  of  the  Government  General  of  Kwantung  are  published  at  Tairen. 

"  Chapter  II. — Shares. 

"  Article  7. — The  share  certificates  of  this  company  shall  all  be  registered,  and  each  share 
shall  be  two  hundred  (200)  Yen. 

"  Article  8. — The  certificates  of  shares  of  this  company  shall  be  of  the  following  seven 
denominations : 

"  One-share  certificates 

"  Five-share  certificates 

"  Ten-share  certificates 

"  Fifty-share  certificates 

"  One  hundred-share  certificates 

"  One  thousand-share  certificates 

"  Ten  thousand-share  certificates 

"  Article  9. — The  certificates  of  shares  of  this  company  shall  bear  the  name  of  the 
company,  the  date  of  registration,  the  total  amount  of  capital,  the  amount  of  each  share, 
the  amount  paid  up,  and  the  number  of  the  certificate.  They  shall  bear  the  signature  and 
seal  of  the  President. 

"  Article  10. — As  to  the  payments  upon  the  shares,  twenty  (20)  Yen  per  share  shall 
be  paid  in  at  the  first  call.  For  the  second  and  subsequent  calls  on  the  shares,  the  Presi- 
dent shall  determine  the  amount  to  be  paid  in  as  well  as  the  time  of  payment,  and  notice 
of  the  same  shall  be  sent  to  each  shareholder  at  least  sixty  (60)  days  in  advance.  How- 
ever, each  call  on  the  shares  shall  not  exceed  twenty   (20)   Yen  per  share. 

"  Article  11. — If  a  shareholder  fails  to  make  payment  by  the  date  fixed  for  payment 
on  the  shares,  delay  interest  shall  be  charged  him  at  the  rate  of  four  (4)  sen  per  day  per 
one  hundred   (100)  Yen  on  the  amount  due. 

"  Article  12. — If  a  shareholder  fails  to  make  payment  within  fifteen  (15)  days  from 
the  date  fixed  for  the  first  payment  on  the  shares,  the  company  may  demand  that  payment 
be  made  within  thirty  days;  and  if  the  money  is  not  paid  in  by  that  time  the  company  may 
notify  him  that  his  rights  as  a  shareholder  of  this  company  shall  be  forfeited. 


560  CHINA  TREATIES  AND  AGREEMENTS 

"  In  the  case  mentioned  in  the  previous  paragraph,  where  rights  are  lost,  the  applica- 
tion money  previously  paid  shall  not  be  refunded. 

"Article  13. — If  at  the  second  and  subsequent  calls  on  the  shares  a  shareholder  fails 
to  make  payment  within  fifteen  (15)  days  after  the  date  fixed  for  payment,  the  company 
may  notify  such  shareholder  that  payment  must  be  made  within  thirty  (30)  days,  and  that, 
in  the  case  of  failure  to  comply,  his  rights  as  a  shareholder  of  this  company  shall  be 
forfeited. 

"  When,  in  the  case  mentioned  in  the  previous  paragraph,  a  shareholder  has  forfeited 
his  rights  as  such,  the  company  shall  notify  each  assignor  [i.e.,  one  who  has  previously  held 
the  shares]  of  shares  that  payment  must  be  made  within  fifteen  (15)  days,  and  the  assignor 
who  first  pays  the  amount  in  arrears  shall  acquire  the  shares.  If  no  assignor  pays,  the 
company  shall  sell  the  shares  at  auction.  If  the  amount  realized  by  the  auction  is  not 
sufficient  to  cover  the  amount  in  arrears,  the  previous  shareholder  shall  be  required  to  make 
good  the  deficit.  If  the  previous  shareholder  does  not  make  good  within  fourteen  (14)  days, 
the  company  shall  demand  performance  of  the  assignors. 

"  Article  14. — The  liability  of  the  assignors  mentioned  in  the  preceding  Article  is  extin- 
guished after  two  years  from  the  time  when  the  assignment  was  entered  in  the  Register 
of  Shareholders. 

"  Article  15. — If  a  company  or  any  other  legal  person,  public  or  private,  owns  the 
shares  of  this  company,  it  shall  appoint  its  representative  and  have  his  name  entered  in 
the  Register  of  Shareholders  of  this  company.  If  shares  are  held  by  two  or  more  persons 
in  common,  they  are  required  to  appoint  one  person  to  exercise  their  rights  as  shareholder. 
Persons  holding  shares  in  common  are  jointly  and  severally  liable  to  the  company  for  the 
payment  upon  the  shares. 

"  Article  16.— rWhen  shares  are  to  be  assigned,  the  parties  concerned  shall  make  a 
written  statement  in  accordance  with  the  form  prescribed  by  this  company  and  apply  for 
the  alteration  of  the  certificates  of  shares.  However,  when  a  person  inherits  shares  by 
virtue  of  succession,  bequest  or  any  decision  rendered  by  a  court  of  law,  such  person  is 
required  to  attach  to  the  statement  referred  to  a  certificate  of  the  census  official  or  other 
documents  as  evidence  that  the  company  may  deem  necessary. 

"  The  assignment  of  any  share  shall  not  be  valid  unless  the  name  and  domicile  of  the 
assignee  are  entered  in  the  Register  of  Shareholders  and  the  name  of  the  said  assignee  is 
entered  on  the  share  certificate  in  question. 

"  Article  17. — Should  any  certificate  of  shares  be  destroyed,  mutilated  or  lost,  the 
shareholder  may  apply  for  a  new  certificate  of  shares  by  presenting  to  the  company  a  state- 
ment giving  the  facts  in  the  case  and  signed  by  two  or  more  persons  as  guarantors.  How- 
ever, in  case  of  loss,  a  public  notice  to  that  effect  shall  be  given  at  the  expense  of  the 
applicant,  and  the  new  certificate  of  shares  shall  be  issued  only  when  no  objection  is  raised 
within  sixty   (60)   days  from  the  date  of  tlie  said  public  notice. 

"Article  18. — If  any  shareholder  wishes  to  change  the  denominations  of  his  certificates 
of  shares,  the  said  certificates  shall  be  presented  to  the  company  together  with  the  appli- 
cation. 

"  Article  19. — For  the  registration  of  a  change  of  an  owner's  name  on  a  certificate  of 
shares,  the  issue  of  a  new  certificate  of  shares  or  the  alteration  of  the  denomination  of  a 
certificate  of  shares,  the  prescribed  fees  of  the  company  shall  be  collected  from  the 
applicant. 

"  Article  20. — During  a  period  not  exceeding  thirty  (30)  days  immediately  preceding 
each  ordinary  general  meeting  of  shareholders,  the  company  shall  suspend  the  assignment 
of  shares. 

"  Chapter  III. — Shareholders. 

"Article  21. — The  shareholders  of  this  company  shall  be  limited  to  the  Governments 
of  Japan  and  China,  and  the  subjects  of  Japan  and  China. 

"  Article  22. — The  Imperial  Japanese  Government  shall  furnish  the  following  proper- 
ties as  capital,  and  the  company  shall  deliver  to  the  Government  five  hundred  thousand 
(500,000)  shares,  amounting  to  Yen  100,000,000,  which  is  the  value  of  the  said  properties: 

"  The  existing  railways  (except  the  rolling  stock  now  actually  in  use,  as  well  as  the 
rails  and  accessories  of  the  Mukden-Antunghsien  temporary  railway). 

"  All  properties  attached  to  the  railways  referred  to,  except  such  properties  within  the 
leased  territory  as  may  be  designated  by  the  Government. 

"  The  coal-mines  at  Fushun  and  Yentai. 

"  Article  23. — Each  shareholder  shall  have  the  right  to  one  vote  for  each  share  owned 
by  him. 

"  Article  24. — The  shareholders  and  their  legal  representatives  shall  report  to  the  com- 
pany their  domiciles,  names  and  a  copy  of  their  legal  seals,  when  they  acquire  shares. 
When  any  alteration  in  the  above  facts  has  taken  place,  similar  measures  shall  be  taken. 


NUMBER  1905/18:  DECEMBER  22,  1905:  NOTES  561 

"  Chapter  IV. — General  meeting. 

"  Article  25. — An  ordinary  general  meeting  shall  be  called  by  the  President  twice 
every  year  in  the  months  of  June  and  December.  An  extraordinary  general  meeting  shall 
be  called  by  the  President  when  the  President  or  the  Inspectors  deem  it  necessary  to  do  so, 
or  when  the  shareholders  owning  at  least  one-tenth  or  more  of  the  total  number  of  shares 
have  presented  a  request  to  that  effect,  stating  the  object  of  the  general  meeting  and  the 
reasons  for  calling  the  same.  When  the  shareholders  have  requested  a  general  meeting  to 
be  called,  the  President  shall  take  stepi  for  calling  the  same  within  fourteen  (14)  days. 

"  Article  26. — The  discussion  at  a  general  meeting  shall  be  confined  to  the  subjects 
previously  announced. 

"  Article  27. — The  date,  time  and  place  of  a  general  meeting  shall  be  determined  by 
the  President,  and  a  notice  to  that  effect  shall  be  sent  out  to  the  shareholders  at  least  thirty  . 
(30)   days  in  advance  of  such  meeting. 

"  Article  28. — The  President  shall  act  as  chairman  of  a  general  meeting. 

"Article  29. — The  shareholders  may  appoint  only  shareholders  of  this  company  as  their 
representatives,  and  their  powers  of  attorney  shall  be  presented  to  the  company. 

"  Article  30. — The  chairman  of  the  general  meeting  shall  be  allowed  to  exercise  his 
right  to  vote  as  a  shareholder. 

"Article  31. — Resolutions  of  a  general  meeting  shall  be  adopted  by  a  majority  vote 
of  the  shareholders  present.    In  case  of  a  tie,  the  chairman  shall  have  the  casting  vote. 

"  Article  32. — The  issuance  of  company  debentures  or  amendments  to  the  Articles  of 
Incorporation  shall  be  decided  by  a  majority  vote,  with  more  than  one-half  of  the  total 
number  of  shareholders  and  also  of  shareholders  representing  a  half  or  more  of  the  capital 
stock  present. 

"  If,  in  the  case  mentioned  in  the  preceding  paragraph  the  necessary  quorum  is  not 
present,  a  provisional  decision  may  be  made  by  a  majority  of  the  shareholders  present. 
A  notification  giving  the  essential  details  of  the  said  provisional  decision  shall  be  sent  to 
each  shareholder,  and  another  general  meeting  shall  be  called  in  not  less  than  one  month. 

"  At  the  second  general  meeting  the  said  provisional  decision  shall  be  confirmed  or 
rejected  by  a  majority  vote  of  the  shareholders  present. 

"  Article  33. — The  minutes  of  a  general  meeting  shall  be  recorded  in  the  Proceedings 
of  the  general  meetings,  and  the  same  shall  bear  the  signatures  and  seals  of  the  President 
and  chief  officers  present. 

"  Article  34. — The  chairman  of  the  general  meeting  may  adjourn  the  meeting  or 
change  the  place  of  meeting.  The  discussion  at  an  adjourned  meeting  shall  be  confined  to 
the  subjects  on  which  no  decision  was  made  at  the  preceding  meeting. 

"  Chapter  V. — Chief  officers. 

"  Article  35. — The  chief  officers  of  this  company  shall  be  as  follows : 

President     1 

Vice-President    •  •   1 

Directors    4  or  more 

Inspectors    3  to  5 

"  Article  36. — The  term  of  office  of  the  President  and  Vice-President  shall  be  five 
years,  and  they  shall  be  appointed  by  the  Government  subject  to  the  Imperial  sanction. 

"  The  term  of  office  of  the  Directors  shall  be  four  years,  and  they  shall  be  appointed 
by  the  Government  from  among  those  who  own  fifty  (50)   shares  or  more. 

"  The  term  of  office  of  the  Inspectors  shall  be  three  years,  and  they  are  to  be  elected 
by  the  shareholders  at  a  general  meeting  of  the  shareholders. 

"  Article  37. — The  remunerations  and  allowances  of  the  President,  Vice-President  and 
Directors  shall  be  determined  by  the  Government. 

"  The  remuneration  of  the  Inspectors  shall  be  determined  by  a  resolution  of  a  general 
meeting  of  the  shareholders. 

"  Article  38. — The  Directors  are  required,  during  their  term  of  office,  to  deposit  with 
the  Inspectors  fifty  (50)  shares  of  the  company  owned  by  them.  These  shares  shall  not 
be  returned  to  their  owners  even  on  their  retirement  from  office  until  all  affairs  transacted 
during  their  term  of  office  shall  have  been  approved  at  a  general  meeting. 

"  Article  39. — In  the  event  of  the  office  of  any  Inspector  becoming  vacant,  an  extraor- 
dinary general  meeting  of  the  shareholders  shall  be  called  for  the  purpose  of  a  by-election, 
and  the  new  Inspector  shall  hold  office  during  the  remainder  of  the  term  of  office  of  his 
predecessor. 

"  However,  a  by-election  may  be  postponed  until  the  next  general  meeting  of  the  share- 
holders, except  when  the  number  of  Inspectors  has  decreased  to  two  or  less. 

"  Article  40. — The  President  shall  represent  the  company  and  have  general  control  of 
all  its  affairs. 


562  CHINA  TREATIES  AND  AGREEMENTS 

"  The  Vice-President  shall  represent  the  President  when  he  is  prevented  from  discharg- 
ing his  official  duties,  and  shall  act  as  President  when  that  office  is  left  vacant. 

■'  The  Vice-President  and  the  Directors  shall  assist  the  President,  and  each  shall  take 
charge  of  a  part  of  the  business  of  the  company. 

"  The  Inspectors  shall  inspect  the  affairs  of  the  company. 

"Article  41. — During  their  respective  terms  of  office  the  President,  Vice-President 
and  Directors  shall  not  engage  in  any  other  occupation  or  business  under  any  name  what- 
ever without  the  permission  of  the  Government. 

"  Article  42. — The  President  shall  keep  at  the  head-office  as  well  as  the  branch  office 
copies  of  the  Articles  of  Incorporation  and  of  the  Record  of  Resolutions  of  the  general 
meetings  of  shareholders.  He  shall  also  keep  at  the  head-office  the  Register  of  Share- 
holders and  the  Ledger  of  Debentures. 

"  Article  43. — The  President  shall  submit  the  following  documents  to  the  Inspectors 
seven  (7)  days  in  advance  of  the  date  set  for  the  ordinary  general  meeting  of  shareholders; 

"  (1)  An  inventory  of  the  company's  properties. 

"  (2)  A  balance  sheet. 

"  (3)  A  report  on  the  company's  works. 

"  (4)   An  account  of  the  profits  and  losses. 

"  (5)   Proposals  relating  to  the  reserve  funds  and  to  the  dividends. 

"  Article  44. — The  President  shall  have  in  readiness  at  the  head-office  before  the  day 
of  an  ordinary  general  meeting  of  the  shareholders  the  documents  mentioned  in  the  pre- 
ceding Article  and  the  Inspectors'  report. 

"Article  45. — The  President  shall  submit  to  an  ordinary  general  meeting  of  the  share- 
holders the  documents  mentioned  in  Article  43  and  obtain  its  approval. 

"  The  President  shall  publish  the  balance  sheet  when  he  has  obtained  the  approval 
mentioned  in  the  preceding  paragraph. 

"  Article  46. — The  Inspectors  are  required  to  examine  the  documents  to  be  submitted 
by  the  President  to  a  general  meeting  of  shareholders  and  to  report  their  views  at  the 
said  meeting. 

"  Article  47. — The  Inspectors  may  at  any  time  demand  the  President  to  report  on 
the  business  of  the  company,  and  may  examine  the  management  of  its  affairs  and  the  con- 
dition of  its  properties. 

"  Chapter  VI. — Supervisors. 

"  Article  48. — The  Supervisors  of  the  South  Manchuria  Railway  Joint  Stock  Conv 
pany  may  at  any  time  inspect  the  arrangements  of  the  company's  work,  or  examine  the 
safes  and  books  of  the  company,  as  well  as  the  various  documents  and  articles  belonging 
to  it. 

"  The  Supervisors  may,  whenever  they  deem  it  necessary,  order  the  company  to  report 
on  the  various  business  accounts  and  the  condition  of  the  company. 

"  The  Supervisors  may  attend  the  general  meetings  of  the  shareholders  or  any  other 
meetings  and  express  their  opinions,  but  they  are  not  entitled  to  vote. 

"  Chapter  VII. — Accounts. 

"  Article  49. — The  account  of  this  company  shall  be  settled  by  dividing  a  year  into 
two  periods.  From  April  to  September  of  every  year  shall  be  the  first  half  year  and  from 
October  to  the  following  March  shall  be  the  second  half  year. 

"Article  50. — This  company  shall  set  aside  as  a  reserve  fund  one-twentieth  (1/20)  or 
more  of  the  profits,  whenever  they  are  apportioned,  until  the  reserve  fund  amounts  to  one- 
fourth   (1/4)  of  the  capital. 

"  Special  reserve  funds  other  than  that  provided  for  in  the  preceding  paragraph  shall 
be  determined  by  a  resolution  of  a  general  meeting. 

"  Article  51. — The  dividends  to  the  shareholders  shall  be  paid  according  to  the 
Register  of  Shareholders  as  it  stands  on  June  1  and  December  1. 

"  Article  52. — When  the  dividend  of  the  company  for  any  business  year  is  less  than 
six  (6)  per  cent  per  annum  on  the  paid  up  capital  for  the  shareholders  other  than  the 
Governments  of  Japan  and  China  (hereafter  to  be  styled  merely  'the  shareholders'),  the 
Imperial  Japanese  Government  shall  supply  the  deficiency  for  a  period  of  fifteen  (15)  years 
commencing  from  the  day  of  the  registration  of  the  company's  establishment.  However, 
the  amount  of  money  to  be  supplied  by  the  Government  shall,  under  no  circumstances, 
exceed  six  (6)  per  cent  per  annum  on  the  capital  paid  in  by  the  shareholders. 

"  Article  53. — When  the  dividend  of  the  company  does  not  exceed  six  (6)  per  cent  per 
annum  on  the  capital  paid  in  by  the  shareholders,  the  dividend  on  the  shares  owned  by  the 
Government  need  not  be  paid. 

"  The  shares  owned  by  the  Chinese  Government  shall  be  dealt  with  in  a  similar  way 
to  those  owned  by  the  Imperial  Japanese  Government. 

"  Article  54. — The   payment   of   interest   on   the   debentures   which   the   company   may 


NUMBER  1905/18:  DECEMBER  22,  1905:  NOTES  563 

issue  for  the  reconstruction  of  the  railways,  or  for  the  operation  of  the  accessory  business, 
and  on  those  which  the  company  may  issue  for  consolidating  or  redeeming  old  debentures, 
shall  be  guaranteed  by  the  Imperial  Japanese  Government. 

"  The  reimbursement  of  the  principal  may  also,  if  necessary,  be  guaranteed  by  the  Impe- 
rial Japanese  Government.  The  amount  of  the  face  value  of  the  debentures  to  be  guar- 
anteed by  the  Imperial  Japanese  Government  shall  not  exceed  the  amount  remaining  when 
the  capital  paid  in  by  the  shareholders  other  than  the  Imperial  Japanese  Government  is 
subtracted  from  the  total  of  the  capital   (Yen  100,000,000)   subscribed  by  them. 

"  The  debentures  mentioned  in  the  first  paragraph  of  this  Article  shall  be  redeemed 
within  twenty-five   (25)  years. 

"  Article  55. — For  the  debentures  issued  in  accordance  with  the  provisions  of  the  first 
paragraph  of  the  preceding  Article,  the  Government  shall  supply  the  amount  corresponding 
to  the  interest  on  the  debentures. 

"  When  the  dividend  on  the  capital  paid  up  by  the  shareholders  exceeds  six  (6)  per 
cent  per  annum,  the  surplus  shall  first  be  applied  to  the  payment  of  the  interest  on  the 
debentures.  However,  in  this  case  the  amount  of  surplus  shall  be  deducted  from  the  money 
to  be  supplied  by  the  Government  mentioned  in  the  preceding  paragraph. 

"  Article  56. — When  there  is  any  surplus  after  paying  the  interest  on  the  debentures, 
as  mentioned  in  the  preceding  Article,  out  of  the  profits  of  the  company's  business,  the 
said  surplus  shall  be  apportioned  to  the  shares  owned  by  the  Governments  of  Japan  and 
China  until  the  rate  is  equal  on  the  respective  amounts  paid  up  by  all  shareholders. 

"  Article  57. — The  money  to  be  supplied  by  the  Imperial  Japanese  Government,  as  pro- 
vided for  in  Articles  52  and  55,  shall  bear  interest  at  six  (6)  per  cent  per  annum.  The 
interest  shall  be  added  annually  to  the  principal,  and  the  total  shall  be  the  company's  indebt- 
edness to  the  Imperial  Japanese  Government. 

"When  the  dividend  for  all  shares  exceeds  ten  (10)  per  cent  per  annum,  the  surplus 
shall  be  devoted  to  the  redemption  of  the  company's  debt  mentioned  in  the  preceding 
paragraph. 

"  Chapter  VIII. — Expenses  for  organising  the  company. 

"  Article  58. — The  expenses  for  organizing  the  company  shall  not  exceed  50,000  Yen. 
"  Of  the  amount  mentioned  in  the  preceding  paragraph  that  advanced  by  the  Govern- 
ment shall  be  reimbursed  by  the  company. 

"  Supplementary  Article. 

"  Article  59. — The  provisions  in  Articles  52  to  57  shall  be  confirmed  upon  being 
approved  by  the  Imperial  Diet." 

Under  date  of  July  31,  1917,  were  issued  the  following  imperial  ordinances  regard- 
ing the  organization  of  the  South  Manchuria  Railway  Company,  and  the  turning  over  to 
its  management  of  the  Korean  (Chosen)  system  of  railways: 

Organization  of  the  South  Manchuria  Railway  Company. 

"  (Imperial  Ordinance  No.  89,  July  31,  1917). 

"  [Translation]. 

"Imperial  Ordinance  No.  142  of  1906  shall  be  revised  as  follows: — 
"  In  Article  7,  '  One  President,  One  Vice  President,'  shall  be  revised  to  '  the  Chairman 
of  Directors.' 

"  Article  8,  paragraphs  one  to  four,  shall  be  revised  as  follows : 

The  Chairman  of  Directors  on  behalf  of  the  Company  shall  execute  the  affairs  of 
the  Company  according  to  the  orders  of  the  Governor  General  of  Kwantung 
Province.  When  the  Chairman  of  Directors  is  prevented  (from  attending  office) 
a  Director  designated  by  the  Government  shall  represent  him  in  the  discharge  of 
his  duty. 
"In  Articles  9  to  11  '  President' and  Vice  President'  shall  be  revised  to  'Chairman 
of  Directors.'  " 

"  Supplementary  Rule.  This  Ordinance  shall  be  effective  from  the  date  of  its  promulga- 
tion." 

Concerning  the  turning  over  of  the  operation  of  the  Railways  under  the  jurisdiction 
of  the  Government  General  of  Chosen. 

"  (Imperial  Ordinance  No.  90,  July  31,  1917). 

"  [Translation]. 

"The  Governor  General  of  Chosen  may  intrust  to  the  South  Manchuria  Railway  Com- 
pany the  construction,  improvement,  preservation  and  operation  of  the  railways  and  the 
undertakings  connected  therewith  under  his  jurisdiction. 


564  CHINA  TREATIES  AND  AGREEMENTS 

"  In  the  cases  mentioned  in  the  preceding  paragraph,  the  Governor  General  of  Chosen 
may  issue  necessary  orders  to  or  make  necessary  arrangements  with  the  South  Manchuria 
Railway  Company  for  the  carrying  out  of  the  undertakings  intrusted  to  it  or  cause  the 
officials  to  inspect  the  undertakings. 

"  Supplementary  Rule.  This  Ordinance  shall  be  effective  from  the  date  of  its  promul- 
gation." 

Abolition  of  the  Bureau  of  Railways  in  the  Chosen  Government  General. 

"  (Imperial  Ordinance  No.  79,  July  31,  1917). 
"  [Translation]. 

"  The  Organization  of  the  Bureau  of  Railways  in  the  Chosen  Government  General  is 
hereby  abolished. 

"  Supplementary  Rule.  This  Ordinance  shall  be  effective  from  the  date  of  its  promul- 
gation." 

The  President  of  the  South  Manchuria  Railway  Company  (Baron  Shimpei  Goto) 
published  in  Company  Order  No.  14,  dated  September  28,  1907,  a  notification  of  the  adoption 
of  the  following  regulations  concerning  councils  of  the  branch  offices  of  the  South  Manchuria 
Railway : 

Regulations    concerning    Councils    of    the    Branch    OfBces    of   the    South    Manchuria 

Railway. 

"  Article  1. — If  necessary,  the  South  Manchuria  Railway  Company  may  establish 
councils  in  each  settlement,  appointed  by  the  Company  from  among  the  residents  of  the 
district  contributing  to  the  public  expenses  of  the  Branch  Office.  The  above  council  shall 
be  appointed  by  the  President. 

"  Article  2. — The  positions  on  the  council  shall  be  honorary  and  the  term  of  service 
shall  be  one  year. 

"  The  President  may  dismiss  the  councils  if  necessary. 

"  A  member  of  the  council  appointed  to  fill  a  vacancy  shall  serve  during  the  remainder 
of  the  term  of  his  predecessor. 

"  Article  3. — 'Should  a  member  of  the  council  move  out  of  the  district,  he  shall  lose  his 
place  on  the  council. 

"  Article  4. — The  purpose  of  the  meetings  of  the  council  is  to  answer  such  inquiries 
as  the  Chief  may  consider  it  necessar}'  to  present  to  it. 

"  Article  5. — The  Chief  shall  make  regulations  governing  the  meetings  of  the  council 
and  other  necessary  rules  for  the  enforcement  of  this  order,  subject  to  the  approval  of  the 
President." 

At  the  same  time,  a  similar  Company  Order  (No.  15)  was  issued  in  regard  to  Taxes 
and  Charges  in  the  leased  land  of  the  South  Manchuria  Railway  Company; 

Company  Order  concerning  Taxes  and  Charges  in  the  Leased  Land  of  the  South 

Manchuria  Railway  Company. 

"Article  1. — Taxes  in  the  Leased  Land  are  classified  as  follows: 
I.    House  Tax. 
II.    Miscellaneous  Tax. 

"  Article  2. — The  classes  and  rates  of  the  taxes  are  to  be  fixed  by  the  Chief  of  the 
Branch  Office  of  the  Railway  Company  and  must  be  sanctioned  by  the  President.  In 
case  they  are  to  be  increased  or  changed  this  shall  be  done  by  the  Chief  of  the  Branch 
Office  in  the  same  way. 

"  Article  3. — The  house  tax  is  to  be  levied  according  to  the  condition  of  persons  resid- 
ing in  the  settlements. 

"  Article  4. — The  miscellaneous  tax  is  levied  on  Geisha,  prostitutes,  waitresses,  dancers, 
female  attendants  in  restaurants,  jesters,  carriages,  jinrikishas,  bicycles,  carts,  boats,  music 
halls,  amusement  halls  (pool  rooms,  shooting  galleries,  etc.),  theaters  and  butchers.  If  the 
Chief  of  the  Branch  Office  desires  to  levy  the  miscellaneous  tax  on  any  other  occupations 
or  things  besides  those  above  mentioned  he  shall  ask  the  permission  of  the  President. 
For  the  taxes  on  Geisha,  prostitutes,  waitresses,  dancers,  restaurant  attendants  and  jesters 
their  employers  shall  be  held  responible. 

"  Article  5. — Taxes  will  be  levied  on  persons  staying  in  one  settlement  more  than 
three  months  according  to  the  number  of  days  that  they  have  been  there. 

"  Article  6. — Taxes  shall  be  levied  for  each  half-year  and  shall  be  collected  four 
times,  viz..  on  April  1st,  July  1st,  October  1st  and  January  1st,  and  if  any  person  shall 
establish  his  residence  in  the  middle  of  a  quarter  taxes  shall  be  levied  on  him  proportion- 
ately from  the  first  of  the  month  in  which  he  arrived.  IMonthly  taxes  "shall  be  levied 
according  to  the  condition  of  the  tax  payer  at  the  beginning  of  the  month. 


NUMBER  1905/18:  DECEMBER  22,  1905:  NOTES  565 

"  Any  person  becoming  liable  to  taxation  before  the  middle  of  the  month  shall  be 
required  to  pay  the  full  amount  for  the  month,  and  if  after  the  middle  of  the  month,  half 
of  the  full  amount  shall  be  levied. 

"  Per  diem  taxes  shall  be  levied  according  to  the  number  of  days.  If  any  person  shall 
become  unexpectedly  free  from  liability  to  taxation,  or  shall  transfer  his  residence  to 
another  place,  the  taxes  already  paid  shall  not  be  refunded. 

"  Article  7. — If  the  Chief  of  the  Branch  Office  desires  to  fix  any  new  tax  rates  he 
must  request  the  sanction  of  the  President. 

"  Article  8. — Officials  shall  have  the  right  to  enter  houses  or  private  offices  and  inspect 
books  or  other  things  whenever  they  consider  it  necessary  for  the  purpose  of  taxation. 

"  Article  9. — In  cases  where  special  circumstances  exist,  the  Chief  of  the  Branch  Office 
may,  with  the  sanction  of  the  President,  remit  part  or  the  whole  of  the  tax. 

"Article  10. — In  the  case  of  property  or  business  held  in  joint  ownership,  the  owners 
or  partners  shall  be  held  jointly  and  severally  responsible  for  the  taxes  and  other  charges. 

"  Article  11. — Persons  using  or  owning  land  or  buildings  in  the  railway  settlement  and 
not  residing  themselves  in  the  settlement  must  have  a  manager  or  appoint  some  person 
who  is  qualified  to  deal  with  matters  concerned  with  the  payment  of  taxes,  and  who  may 
be  held  responsible  for  anything  that  may  happen,  and  said  person  shall  be  a  resident  of 
the  settlement. 

"  Article  12. — Charges  fixed  by  the  Chief  of  the  Branch  Office  must  be  sanctioned  by 
the  President,  and  in  case  the  rates  are  to  be  decreased  or  changed  the  same  procedure 
shall  be  followed. 

"  Article  13. — Persons  neglecting  to  pay  their  taxes  or  charges  on  the  date  set  by  the 
official  concerned  shall  be  dealt  with  in  accordance  with  regulations  to  be  specially  issued. 

"  Article  14. — The  Chief  of  the  Branch  Office  may  establish  a  public  fund  for  the 
residents  in  the  settlement.  This  public  fund  shall  be  established,  managed  and  liquidated 
as  the  President  may  direct. 

"  Article  IS. — The  Chief  of  the  Branch  Office,  may,  with  the  sanction  of  the  President, 
make  such  regulations  as  he  thinks  necessary  to  enforce  these  regulations." 

As  to  the  establishment  of  an  office  of  the  Chinese  maritime  customs  at  Dairen  (Dalny)  ; 
see  the  agreement  of  May  30,  1907  (No.  1907/6,  post). 

For  translations  of  the  Japanese  ordinances,  under  date  of  July  31,  1906,  relating 
to  the  organization  of  the  government-general  of  the  Leased  Territory  of  Kwantung,  see 
For.  Rel.,  1906,  pp.  1051-9.  The  following  are  extracts  from  the  translations  there  printed, 
with  Certain  subsequent  amendments : 

Organization  of  the  Government-General  of  Kwantung. 

"  Imperial  Ordinance  No.  196. 

"Article  1. — In  the  Province  of  Kwantung  there  shall  be  established  the  Government- 
General  of  Kwantung  (Kwantung  Totoku  Fu). 

"  Article  2. — For  the  Government-General  of  Kwantung  there  shall  be  appointed  a 
Governor-General  of  Kwantung   (Kwantung  Totoku). 

"  The  Governor-General  shall  govern  the  Province  of  Kwantung,  and  shall  take  charge 
of  the  protection  and  supervision  of  the  railway  lines  in   South   Manchuria. 

"  The  (jovernor-General  shall  supervise  the  affairs  of  the  South  Manchuria  Railway 
Joint  Stock  Company. 

"Article  3. — The  Governor-General  shall  be  of  the  shin  nin  [appointed  directly  by 
the  Emperor]   rank  and  shall  be  a  general  or  a  lieutenant-general  of  the  Imperial   Army. 

"  Article  4. — The  Governor-General  shall  command  the  troops  under  his  jurisdiction 
and  shall  have  control  of  various  political  matters  under  the  supervision  of  the  Minister 
for  Foreign  Affairs. 

"  Article  5. — By  virtue  of  a  special  commission  the  Governor-General  shall  take  charge 
of  the  affairs  to  be  negotiated  with  the  Chinese  provincial  authorities. 

"  Article  6.— The  Governor-General  shall  be  subject  to  the  Minister  of  War  with  ref- 
erence to  matters  of  military  administration  and  the  personal  affairs  of  the  soldiers  and  of 
those  connected  with  the  Army;  to  the  Chief  of  the  General  Staff  with  reference  to  plans 
of  operation  and  mobilization;  to  the  Superintendent  of  Education  in  the  Army  with  ref- 
erence to  military  education.  .  •     .  • 

"  Article  7.— The  Governor-General  may,  by  virtue  of  the  authority  invested  in  him 
ex  officio  or  by  special  authorization,  issue  ordinances,  including  penal  regulations  for 
imprisonment  not  exceeding  one  year  or  fine  not  exceeding  two  hundred   (200)  yen. 

"  Article  8.— For  the  maintenance  of  the  public  welfare  and  order,  the  Governor- 
General  may,  on  special  occasions  requiring  urgent  measures,  issue  ordinances  including 
penal  regulations  exceeding  the  limitations  mentioned  in  the  preceding  Article. 

"  The  ordinances  mentioned  in  the  preceding  paragraph  shall,  immediately  after  their 
promulgation,  be  reported  to  the  Emperor,  through  the  Minister  for  Foreign  Affairs,  for 
the  Imperial  sanction. 


566  CHINA  TREATIES  AND  AGREEMENTS 

"  In  case  the  said  ordinances  should  not  be  sanctioned  by  the  Emperor,  the  Governor- 
General  shall  immediately  give  public  notice  that  they  are  not  valid  thereafter. 

"  Articxe  9. — The  Governor-General  shall  take  charge  of  the  defence  of  the  territory 
within  the  limits  of  his  jurisdiction. 

"  Article  10. — When  the  Governor-General  deems  it  necessary  for  the  maintenance  of 
the  welfare  and  order  of  the  territory  under  his  jurisdiction,  or  for  the  protection  or  super- 
vision of  the  railway  lines,  he  may  employ  military  force. 

"  In  the  case  mentioned  in  the  preceding  paragraph,  the  fact  shall  be  immediately 
reported  to  the  Minister  for  Foreign  Affairs,  the  Minister  of  War  and  the  Chief  of  the 
General  Staff. 

"Article  11. — When  the  Governor-General  discovers  that  any  order  or  measure  of 
the  Government  offices  under  his  jurisdiction  is  contrary  to  the  prescribed  regulations,  or 
is  injurious  to  the  public  mterests,  or  has  transgressed  the  authority  vested  in  them,  he 
may  suspend  the  said  order  or  measure,  or  annul  it. 

"  Article  12. — The  Governor-General  shall  control  the  officials  under  his  jurisdiction. 
With  reference  to  the  promotion  and  dismissal  of  civil  officials  of  the  sonin  [appointed  by 
the  Cabinet  and  reported  to  the  Emperor]  rank,  he  shall  report  to  the  Emperor,  through 
the  Minister  for  Foreign  Affairs  and  the  Prime  Minister.  With  reference  to  the  promotion 
or  dismissal  of  civil  officials  of  the  hannin  [appointed  by  heads  of  departments]  rank  and 
those  lower,  the  Governor-General  shall  act  entirely  at  his  own  discretion. 

"Article  15. — [As  amepded  by  Imperial  Ordinance  No.  2,  January  10,  1908].  A  Gov- 
ernor-General's Secretariat  shall  be  established  in  the  Government-General  of   Kwantung, 

"  In  the  Governor-General's  Secretariat  there  shall  be  established  a  section  of  Private 
Secretaries,  a  Section  of  Documents  and  a  Section  of  Foreign  Affairs ;  and  their  respective 
functions  shall  be  determined  by  the  Governor-General. 

"  There  shall  be  an  Adjutant  in  the  Governor-General's  Secretariat  to  take  charge  of 
confidential  matters. 

"  The  Adjutant  shall  be  an  army  officer  between  the  ranks  of  colonel  and  lieutenant. 

"  Article  16. — There  shall  be  a  Civil  Administration  Department  and  a  Military  Depart- 
ment in  the  Government-General  at  Kwantung. 

"The  regulations   for  the  Military  Department  shall  be  determined  separately. 

"  Article  17. — The  Civil  Administration  Department  shall  take  charge  of  all  admin- 
istrative affairs  except  those  pertaining  to  military  administration. 

"  Article  18. — The  following  four  bureaus  and  one  office  shall  be  established  in  the 
Civil  Administration  Department  and  their  respective  functions  shall  be  determined  by 
the  Governor-General : 

"  Bureau  of  Miscellaneous  Affairs, 

"  Bureau  of  Police, 

"  Bureau  of  Financial  Affairs, 

"  Prison  Office. 

******  *** 

"  Article  20. — Branches  of  the  Civil  Administration  Office  and  of  the  Prison  Office 
shall  be  established  in  important  places  in  order  to  divide  the  duties  of  the  Civil  Admin- 
istration and  Prison  Offices.  Their  location,  names  and  jurisdiction  shall  be  determined 
by  the  Governor-General. 

"  Article  21. —  [As  amended  by  Imperial  Ordinance  No.  2,  January  10,  1908.]  The 
Government-General  of  Kwantung  shall  have  the  following  personnel : 

"  Chief  Civil  Administrator,  chokunin  rank 1 

"  Director  of  Foreign  Affairs,  chokunin  or  sonin  rank 1 

"Director  of  Police  Affairs,  chokunin  or  sonin  rank 1 

"  Councillors,   soiim   rank 2 

"  Secretaries,    sonin    rank 6 

"  Chiefs  of  the  Civil  Administration  Offices,  sonin  rank 3 

"  Private  Secretary,  sonin  rank 1 

"  Experts,    sonin    rank 18 

"  Police   Inspectors,  sonin   rank 6 

"  Governor  of  Prisons,  sonin  rank 1 

"  Translators,  sonin   rank 3 


"Clerks   

"  Police  Sergeants  ... 
"  Assistant  Experts  . . 

"  Jailers  

"  Prison  Physicians  . . 
"  Student   Translators 


220  hannin  rank 


NUMBER  1905/18:  DECEMBER  22,  1905:  NOTES  567 

"  Consular  officials  stationed  in  South  Manchuria  may,  in  addition  to  their  regular  posi- 
tions, be  appointed  as  Secretaries  (of  the  Government-General). 

"  Article  22. — The  Chief  Civil  Administrator  shall  assist  the  Governor-General  and 
have  control  of  the  affairs  of  the  Civil  Administration  Department. 

"  The  Director  of  Foreign  Affairs  shall,  as  the  Chief  of  the  Section  of  Foreign  Affairs 
in  the  Governor-General's  Secretariat,  take  charge  of  Foreign  Affairs  under  the  instructions 
of  the  Governor-General. 

"  The  Director  of  Pohce  Affairs  shall,  as  the  Chief  of  the  Section  of  Police  Affairs 
in  the  Civil  Administration  Department,  take  charge  of  police  affairs  under  the  instructions 
of  his  superiors. 

******  **:^ 

"  Article  24.— [As  amended  by  Imperial  Ordinance  No.  2,  January  10,  1908.]  The 
secretaries  shall  be  either  the  chiefs  of  the  bureaus  or  members  of  the  same,  and  shall 
take  charge  of  matters  under  the  instructions  of  their  superiors. 

"  Those  consular  officials  who  hold  additional  positions  as  secretaries  (of  the  Govern- 
ment-General) shall  take  charge  of  police  affairs  along  the  railway  lines  under  the  instruc- 
tions of  their  superiors. 

"  Article  25. — The  Chiefs  of  the  Civil  Administration  Offices  shall,  under  the  direc- 
tion and  control  of  the  Governor-General,  enforce  laws  and  ordinances,  and  control  the 
administrative  affairs  within  their  respective  districts. 

"  Article  26. — With  reference  to  the  administrative  affairs  within  their  respective  dis- 
tricts, the  Chiefs  of  the  Civil  Administration  Offices  may,  by  virtue  of  the  authority  vested 
in  them  ex  officio  or  by  special  authorization,  issue  ordinances  applying  to  the  whole  or  a 
part  of  their  districts,  including  penal  regulations,  imposing  fines  not  exceedng  ten  (10) 
yen  and  detention. 

"  Article  27. — When  military  force  is  needed  for  maintaining  tranquillity  within  their 
respective  districts,  the  Chiefs  of  the  Civil  Administration  Offices  shall  report  the  fact  to 
the  Governor-General.  But  for  extraordinary  emergencies  they  may  immediately  demand 
the  dispatch  of  troops  from  the  commanders  of  neighboring  garrisons. 

**^;f:^:^  **;f; 

"  Article  31. — The  Experts  shall  take  charge  of  technical  arts  under  the  instructions 
of  their  superiors. 

[Articles  32-43  omitted.] 

"Supplementary  Article. — This  Ordinance  shall  take  effect  on  September  1,  1906." 

Organization    of    the    Post    and    Telegraph    Office    of    the    Government-General    of 

Kwantung. 

Imperial  Ordinance  No.  197. 

"  Article  1. — The  Post  and  Telegraph  Office  of  the  Government-General  of  Kwantung 
shall  belong  to  the  Civil  Administration  Department  of  the  Government  of  Kwantung,  and 
shall  take  charge  of  affairs  relating  to  posts,  telegraphs,  and  telephones. 

"  Article  2. — The  Post  and  Telegraph  Office  shall  have  the  following  personnel : 

"  Chief 1 

"  Secretaries  of  Communications,  sontn  rank 3 

"  Assistant  Secretaries,  sonin  rank 18 

"  Experts  (operators,  engineers,  &c),  sonin  rank 4 

"  Clerks  of   Communications 1 

"  Assistant  Experts 1^506  hannin  rank 

"  Assistant   Clerks J 

"  Article  3. — The  Chief  of  the  Post  and  Telegraph  Office  shall  be  a  Secretary,  and 
he  shall  control  the  affairs  of  the  office  under  the  instructions  of  his  superiors. 

******  **♦ 

"  Article  9. — Branches  of  the  Post  and  Telegraph  Office  shall  be  established  in  impor- 
tant places  in  order  to  take  charge  of  a  portion  of  the  affairs  of  the  Post  and  Telegraph 
Office. 

"  The  location,  names,  and  jurisdiction  of  the  branch  offices  shall  be  determined  by 
the  Governor-General  of  Kwantung. 

"  Article  10.— The  Chiefs  of  the  branch  offices  shall  be  officials  of  higher  rank 
(kotokan)  or  of  hannin  rank.  [Kotokan  includes  both  chokunin  and  sonin  officials,  but 
in  this  case  those  of  sonin  rank  only  are  meant.] 

"  Supplementary  Article.— This  Ordinance  shall  take  effect  on  September  1,  1906." 


568  CHINA  TREATIES  AND  AGREEMENTS 


Regulations  relating  to  the  Military  Department  of  the  Government-General  of 

Kwantung. 

"  Imperial  Ordinance  No.  204. 

"  Article  1. — The  Military  Department  of  the  Government-General  of  Kwantung  shall 
take  charge  of  all  military  affairs  within  the  jurisdiction  of  the  Governor-General  of 
Kwantung. 

"  Article  2. — The  Military  Department  of  the  Government-General  of  Kwantung  shall 
be  composed  of  the  following  sections: 

''le^lionjf  idjutants,    [^hese  two  sections  constitute  the  '  Bakuryo,' 

"  Section  of  Judges, 

"  Section  of  Administration, 

"  Section  of  Army  Surgeons, 

"  Section  of  Veterinary  Surgeons. 

"  Article  3. — The  Chief  of  Staff  shall  assist  the  Governor-General  of  Kwantung,  par- 
ticipate in  important  military  affairs,  supervise  the  promulgation  and  enforcement  of  orders, 
and  take  charge  of  the  supervision  of  all  affairs  in  the  Alilitary  Department  of  the  Gov- 
ernment-General of  Kwantung. 

"  Article  4. — The  officers  and  those  ranking  as  such  in  the  Sections  of  Staffs  and 
Adjutants  (Bakuryo)  shall,  under  the  direction  of  the  Chief  of  Staff,  take  charge  of  the 
affairs  assigned  to  them. 

"  Article  5. — The  Chief  Judge  shall  be  subject  to  the  Governor-General  of  Kwantung 
and  shall  take  charge  of  judicial  affairs  in  the  army. 

"Article  6. — The  Chief  of  the  Section  of  Administration  shall  be  subject  to  the 
Governor-General  of  Kwantung  and  shall  supervise  the  finances  and  administration  of  the 
various  detachments  stationed  in  the  Province  of  Kwantung.  He  shall  control  matters 
relating  to  constructions  on  land  for  the  army  (except  national  defences  and  railway),  as 
well  as  the  personal  affairs  and  education  of  the  officers  and  those  under  them  in  the 
Section  of  Administration.  He  shall  take  special  charge  of  the  barracks  and  other  new 
temporary  work.  However,  with  reference  to  the  supervision  of  the  financial  affairs  and 
the  plans  of  constructions  on  land,  he  shall  be  directly  subject  to  the  Minister  of  War. 
With  reference  to  the  personal  affairs  and  education  of  the  officers  and  those  under  them 
in  the  Section  of  Administration,  he  shall  be  subject  to  the  Chief  of  the  Bureau  of  Admin- 
istration in  the  Department  of  War. 

"  The  Chief  of  the  Section  of  Administration  shall  control  the  finances  and  admin- 
istration of  the  detachments  not  governed  by  the  Section  of  Administration  in  the  respective 
army  divisions;  but  according  to  the  location  of  the  detachments  stationed  in  the  Province,, 
these  matters  may  be  referred  to  the  Section  of  Administration  in  the  army  divisions. 

"  Article  7. — The  Chief  of  the  Section  of  Army  Surgeons  shall  be  subject  to  the 
Governor-General  of  Kwantung  and  shall  supervise  the  sanitary  affairs  of  the  detach- 
ments stationed  in  the  Province.  He  shall  also  control  the  personal  affairs  and  education 
of  the  officers  and  those  under  them  in  the  Section  of  Sanitation,  as  well  as  matters  relat- 
ing to  sanitary  materials.  However,  he  shall  also  be  subject  to  the  Chief  of  the  Bureau 
of  Medical  Affairs  in  the  Department  of  War. 

"  Article  8. — The  Chief  of  the  Section  of  Veterinary  Surgeons  shall  be  subject  to  the 
Governor-General  of  Kwantung  and  shall  supervise  sanitary  affairs  relating  to  military 
horses.  He  shall  control  the  personal  affairs  and  education  of  the  officers  and  those  imder 
them  in  the  Section  of  Veterinary  Surgeons,  as  well  as  matters  relating  to  veterinary  sur- 
geons' materials  and  farriery.  However,  he  shall  also  be  subject  to  the  Chief  of  the 
Bureau  of  Military  Affairs  in  the  Department  of  War. 

''  Article  9. — Matters  to  be  reported  to  the  Governor-General  by  the  various  Chiefs  of 
Sections  shall  first  be  submitted  to  the  Chief  of  Staff  for  approval. 

"  Article  10.-— The  members  of  the  Sections  of  Judges,  Administration,  Army  Sur- 
geons and  Veterinary  Surgeons,  shall  engage  in  the  work  assigned  to  them  under  the 
instructions  of  their  respective  chiefs. 

"  Article  11. — The  non-commissioned  officers  and  civil  officials  of  the  hannin  rank 
shall  engage  in  their  work  under  the  instructions  of  their  superiors. 

"Supplementary  Article. — This  Ordinance  shall  take  effect  September  1,  1906." 

Imperial  Ordinance  No.  5.  of  January  10,  1908,  provided  that  "  The  Police  Officials  of 
the  Government-General  of  Kwantung  may,  in  addition  to  their  regular  positions,  be 
appointed  as  Police  Officials  attached  to  the  Imperial  Consulates  in  South  Manchuria." 

The  following  Japanese  ordinances  of  July  31,  1917,  also  concern  the  organization  of  the 
Government-General  of  the  leased  territory: 


NUMBER  1905/18 :  DECEMBER  22,  1905 :  NOTES  569 

Organization  of  the  Foreign  Office. 

"  (Imperial  Ordinance  No.  76,  of  July  31,  1917). 

"  [Translation]. 

"  The  following  revision  is  made  in  the  organization  of  the  Foreign  Office : — 
"In  Article  1,  Paragraph  2  shall  be  revised  as  follows: — 

The  Minister  for  Foreign  Affairs  shall  direct  and  supervise  the  Governor-General 

of  Kwantung  Province  in  matters  respecting  diplomacy. 
"  In   Article   5,   '  And  the  business   pertaining  to   Kwantung   Province '   shall  be    sup- 
pressed. 

"Supplementary  Rule. — This  Ordinance  shall  be  effective  from  the  date  of  its  promul- 
gation." 

Organization  of  the  Kwantung  Government-General. 

"  (Imperial  Ordinance  No.  82,  of  July  31,  1917). 

"  [Translation]. 

"The  following  revision  is  made  in  the  Organization  of  the  Kwantung  Government- 
General  : — 

[Several  items  of  minor  importance  have  not  been  translated]. 

"Article  2. — The  Governor-General  shall  exercise  jurisdiction  over  Kwantung  Prov- 
ince and  shall  have  control  of  the  protection  and  supervision  of  the  railway  lines  in  South 
Manchuria,  and  shall  have  charge  of  the  operation  of  the  South  Manchuria  Railway 
Company. 

"  Article  4. — The  Governor  General  shall  have  command  of  the  army  under  his  juris- 
diction and  shall  control  all  political  affairs  under  the  supervision  of  the  Minister  President 
of  the  Cabinet :  provided,  however,  that  in  matters  respecting  diplomacy  he  shall  be  under 
the  supervision  of  the  Minister  for  Foreign  Affairs. 

"Supplementary  Rule. — This  Ordinance  shall  be  effective  from  the  date  of  its  promul- 
gation." 

Appointment  of  Consular  Officers  in  Manchuria. 

"  (Imperial  Ordinance  No.  88,  of  July  31,  1917). 

"  [Translation]. 

"  Consuls  and  Vice  Consuls  stationed  in  Manchuria  shall  be  appointed  from  persons 
who  have  been  employed  for  two  years  or  more  in  the  office  of  the  high  civil  administrator, 
or  from  learned  and  experienced  men  who  have  been  engaged  in  business  in  Alanchuria 
for  five  years  or  more  and  are  approved  by  the  Examining  Board  for  the  Diplomatic  and 
Consular  Service. 

"  Clerks  at  Consulates  in  Manchuria  may  be  appointed  from  persons  who  have  been 
officers  of  the  Hannin  grade  for  two  years  or  more  in  the  offices  of  the  Kwantung  Gov- 
ernment-General, or  from  persons  of  sufficient  education  who  have  been  in  the  service  of 
the  South  Manchuria  Railway  as  clerks  for  three  years  or  more  and  have  been  approved 
by  the  Examining  Board  for  the  Ordinary  Civil  Service. 

"Supplementary  Rule. — This  Ordinance  shall  be  effective  from  the  date  of  its  promul- 
gation." 

Further  changes  in  the  organization  of  the  government  of  the  Kwantung  Leased 
Territory  were  promulgated  by  an  Imperial  Ordinance  of  April  12th,  1919,  thus  translated 
from  the  Official  Gazette  of  that  date : 

Organization  of  the  Government  of  Kwantung. 
"  (Imperial  Ordinance  No.  94,  April  12,  1919.) 

"  1. — The  Kwantung  Government  shall  be  established  in  Kwantung  Province. 

"2. — The  Kwantung  Government  shall  have  a  governor  (Chokan). 

"  The  Governor  of  Kwantung  shall  have  jurisdiction  over  Kwantung  Province,  and 
shall  exercise  control  over  the  policing  of  the  railway  lines  in  South  Manchuria. 

"  The  Governor  of  Kwantung  shall  supervise  the  business  of  the  South  Manchurian 
Railway  Company. 

"  3. — The  Governor  of  Kwantung  shall  be  of  the  Shinnin  rank. 


570  CHINA  TREATIES  AND  AGREEMENTS 

"  When  a  military  officer  is  appointed  as  Governor  of  Kwantung  he  shall  assume,  in 
addition,  the  command  of  the  Kwantung  army. 

"  4. — The  Governor  of  Kwantung  shall  carry  on  administrative  business  under  the 
supervision  of  the  Prime  Minister;  but  with  reference  to  international  affairs  he  shall  be 
under  the  supervision  of  the  Foreign  Minister. 

"  5. — The  Governor  of  Kwantung  may  in  accordance  with  his  administrative  powers 
or  with  special  delegation  of  authority  issue  orders,  the  infringement  of  which  may  be 
punished  by  him  with  imprisonment  not  to  exceed  one  year  or  with  a  fine  not  to  exceed 
one  hundred  yen. 

"  5, — In  case  urgent  measures  are  necessary  for  the  preservation  of  peace  and  order, 
the  Governor  of  Kwantung  may  issue  orders  attaching  penalties  exceeding  the  limitations 
of  the  foregoing  article. 

"Orders  which  have  been  issued  in  accordance  with  the  provisions  of  the  foregoing 
paragraph  shall  be  submitted  for  Imperial  sanction  immediately  through  the  Prime  Min- 
ister. If  Imperial  sanction  is  not  obtained  the  Governor  of  Kwantung  shall  immediately 
give  notice  that  the  orders  are  in  future  invalid. 

"  7. — When  the  Governor  of  Kwantung  deems  it  necessary  for  the  preservation  of  peace 
and  order  within  the  districts  under  his  jurisdiction  or  for  the  protection  of  the  railway 
lines,  he  may  request  the  Commander  of  the  Kwantung  army  for  the  use  of  military  forces. 

"  8_ — When  the  Governor  of  Kwantung  deems  that  an  order  issued  or  a  measure 
adopted  by  an  office  under  his  jurisdiction  is  contrary  to  the  rules,  injurious  to  public 
welfare  or  exceeds  official  authority,  he  may  suspend  or  cancel  the  order  or  measure. 

"  9. — The  Governor  of  Kwantung  shall  assume  control  over  all  officials  under_  his 
jurisdiction ;  the  appointment  or  dismissal  of  officials  of  the  Sonin  rank  shall  be  submitted 
through  the  Prime  Minister  for  Imperial  sanction,  and  the  appointment  or  dismissal  of 
officials  of  the  Hannin  rank  shall  be  effected  at  his  own  discretion. 

"  10. — The  Governor  of  Kwantung  shall  submit  through  the  Prime  Minister  for  Im- 
perial sanction  the  decoration  of  officials  under  him. 

"  11. — The  Governor  of  Kwantung  shall  be  empowered  to  discipline  the  officials  under 
him.  He  shall  submit  through  the  Prime  Minister  for  Imperial  sanction  the  dismissal  of 
Chokiiiiin  and  Sonin  officials. 

"  12. — There  shall  be  established  in  the  Kwantung  Government  a  Governor's  Secretariat 
and  sections  of  civil  and  foreign  affairs.  The  Governor  shall  determine  the  apportioning 
of  work  in  the  Governor's  Secretariat  and  the  sections  of  civil  and  foreign  affairs. 

"  13. — The  Kwantung  Government  shall  be  divided  into  two  districts  in  each  of  which 
an  office  of  civil  affairs  shall  be  established.  The  Governor  of  Kwantung  shall  determine 
their  location,  names  and  boundaries  of  jurisdiction. 

"  14. — Branch  civil  offices  shall  be  established  at  important  points  in  order  to  dis- 
tribute the  work  of  civil  offices.  The  Governor  of  Kwantung  shall  determine  their  location, 
names  and  boundaries  of  jurisdiction. 

"  15. — In  the  Government  of  Kwantung  the  following  officials  shall  be  appointed : 

Chief  Secretary  Chokunin  rank- 

Chief  of  Section  of  Civil  Affairs 

"  Foreign  Affairs 

One  Councillor  _  Sonin  rank. 

Seven  Secretaries  (one  of  whom  may  be  of  the  Chokunin  rank) 

Police  Officer,  one 

Private  Secretary,  one 

Educational  Officer,  one 

Nine  Engineers 

Nine  Police  officers 

Two  translators 

Clerks 

School  officers 

Police  officers 

Engineers'  assistants 

Translators'  assistants 

Police  assistants  99  " 

"  The  position  of  Chief  of  the  Section  of  Civil  Affairs,  Chief  Secretary,  and  Chief  of 
the  Section  of  Foreign  Affairs  shall  be  filled  by  the  Consul  General  at  Mukden. 

"  The  positions  of  secretaries  may  be  filled  as  additional  posts  by  consuls  in  South 
Manchuria. 

"  The  Government  of  Kwantung  shall  have  an  adviser  for  communications.  This  posi- 
tion shall  be  filled  by  the  President  of  the  South  Manchuria  Railway  Company." 

[The  remaining  24  articles  deal  with  the  duties  of  these  various  officials.] 

"  Supploncniary  Rides. — This  ordinance  shall  be  effective  from  the  date  of  its  pro- 
mulgation. 

"  The  Organization  of  the  Kwantung  Government  General  is  hereby  abolished." 


>173  Hannin  rank 


NUMBER  1905/18:  DECEMBER  22,  1905:  NOTES  571 

[The  remaining  supplementary  rules  provide  for  the  appointment  of  secretaries  and 
other  officials  of  the  former  Kwantung  Government  General  in  the  new  organizations,  the 
substitutions  of  the  new  terms  for  the  old,  etc.] 

The  following  regulations  for  the  control  of  foreign  residents  in  Kwantung  were  issued 
by  the  Governor-General  under  date  of   September   1,   1906: 

Regulations  for  Control  of  Residents  in  Kwantung,  September  i,  1906. 

"  Articxe  1. — The  term  '  Residents '  in  the  present  Regulations  signifies  persons  who 
visit  or  reside  in  Kwantung. 

"  Article  2. — Any  person  who  establishes  his  residence  in  Kwantung  shall  report  the 
fact,  within  five  days,  to  the  Civil  Administration  Office  or  the  Branch  Office  concerned, 
stating  his  name,  domicile  (or  nationality  in  the  case  of  a  foreigner),  status,  calling,  age', 
and  whether  he  is  the  head  or  a  member,  inmate  or  employee,^  of  a  family,  as  well  as  the 
locality_  of  his  residence.  A  similar  notice  shall  be  given  when  any  person  has  changed 
his  residence. 

"The  aforesaid  notice  shall  be  made  in  the  case  of  a  member  or  inmate  of  a  family 
by  the  head  of  that  family  or  household  and  in  the  case  of  an  employee  by  his  employer. 

"  Article  3.— Foreigners  (excepting  Chinese)  shall  be  permitted  until  further  notice 
to  reside  and  lease  or  own  real  property  only  within  the  town  limits  of  Tairen  and  Port 
Arthur. 

"  Article  4. — When  a  birth  or  death  or  change  in  residence,  or  other  matters  relating 
to  family  registration  or  in  matters  whereof  notice  is  required  to  be  made  occurs  in  the 
family  or  household  of  a  resident,  notice  shall  be  given  within  five  days  to  the  Civil 
Administration  Office  or  its  Branch  Office  concerned  by  the  head  or  a  member  of  such 
family  or  household. 

"Article  5. — If  any  resident  is  deemed  likely  to  injure  public  tranquility  or  morals, 
the  Chief  of  the  Civil  Administration  Office  concerned  may  prohibit  his  residence  within 
the  jurisdiction  limits  of  the  Government  of  Kwantung  for  a  period  of  more  than  one 
year  and  not  exceeding  three  years. 

"  Article  6. — Any  person  who  has  been  prohibited  residence  in  Kwantung  shall  within 
five  days,  leave  the  jurisdiction  limits  of  the  Government  of  Kwantung.  If,  however, 
proper  reason  is  found  to  exist  for  his  inability  to  leave  within  the  prescribed  period  the 
Chief  of  the  Administration  Office  concerned  may  grant  him  temporary  suspension  of  the 
prohibition,  receiving  or  not  receiving  from  him  a  reasonable  money  security. 

"Article  7. — If  any  person  to  whom  temporary  suspension  has  been  granted  as  in 
the  preceding  Article  again  behaves,  within  the  prescribed  period,  in  such  a  manner  as  to 
fall  under  Art.  5,  the  suspension  granted  shall  be  cancelled  and  the  security  confiscated. 

"  Article  8. — If  any  person  who  has  been  prohibited  residence  in  Kwantung,  is  found 
to  have  remarkably  improved  in  his  conduct,  the  Chief  of  the  Civil  Administration  Office 
concerned  may  at  any  time  cancel  his  prohibition. 

"Article  9. — If  any  person  who  has  been  prohibited  residence  in  Kwantung  has  any 
objection  to  the  prohibition,  he  may,  within  three  days  from  the  day  on  which  he  was  so 
prohibited,  apply  to  the  Governor-General  through  the  Chief  of  the  Civil  Administration 
Office  concerned   for  a  countermand  of  the  prohibition. 

"  Even  in  such  case  the  execution  of  the  order  of  prohibition  shall  not  be  suspended. 

"  Article  10. — Any  person  who  violates  Art.  2  or  Art.  4  shall  be  liable  to  a  fine  not 
exceeding  thirty  yen  or  to  detention  or  a  police  fine. 

"Article  11. — If  any  person  does  not  leave  within  the  period  prescribed  for  his  leaving 
or  within  the  term  of  temporary  suspension  granted  him  or  returns  before  the  prescribed 
period  of  prohibition  expires,  he  shall  be  liable  to  imprisonment  not  exceeding  six  months 
or  to  a  fine  not  exceeding  two  hundred  yen. 

"  Article  12. — Necessary  rules  besides  the  provisions  of  the  present  Regulations  shall  be 
established  by  the  Chief  of  the  Civil  Administration  Office. 

"Supplementary  Rules. — In  regard  to  the  residence  and  travel  of  Russian  subjects, 
rules  hitherto  obtaining  shall  remain  in  force  for  the  time  being. 

"  The  present  Regulations  shall  take  effect  from  the  date  of  publication. 

"  The  Regulations  for  the  control  of  vessels  sailing  to  and  from  Tairen  Wan  and  of 
residents  in  Kwantung,  Military  Ordinance  issued  on  the  7th  September,  1905,  and  the 
Detailed  Rules  for  the  Operation  of  those  Regulations,  Ordinance  No.  1  of  the  Civil 
Administration  Office  of  Kwantung,  are  hereby  rescinded. 

"  Kwantung  Government-General, 

"Port  Arthur,  September  1st,  1906   (39th  year  Meiji,  9th  month,  1st  day). 

"  (Sgd.)  Baron  Yoshim.xr.a  Oshim.4, 

Governor  General." 

Further  regulations  controlling  foreigners  were  established  by  Government  Order  No. 
16,'  March  20,  1918,  as  follows : 


572  CHINA  TREATIES  AND  AGREEMENTS 

Regulations  controlling  Foreigners  in  Kwantung,  March  20,  1918. 

"  Article  I. — Foreigners  who  are  considered  to  come  under  one  of  the  following  classi- 
fications may  be  excluded  or  deported  from  the  Kwantung  Leased  Territory  or  the  South 
Manchuria  Railway  settlements,  by  the  chief  of  the  civil  administration,  chief  of  the 
branch  civil  administration,  or  chief  of  the  police  station  concerned: 

"  1.    One  who  has  no  passport,  or  nationality  certificate. 

"2.  One  who  acts  against  the  mterest  of  the  empire,  or  who  may  be  suspected  of  acting 
for  the  enemy. 

"  3.    One  who  is  likely  to  disturb  the  public  peace  or  to  deprave  public  morals. 

"  4.    Paupers  and  professional  beggars. 

"  5.  Persons  suffering  from  contagious  diseases  or  other  diseases  of  dangerous  nature 
for  public  health. 

"  6.  Imbeciles,  feeble-minded  persons,  indigent  persons,  or  who  are  likely  to  become 
a  public  burden. 

"  The  passport  or  nationality  certificate  mentioned  in  classification  1  of  the  above 
paragraph  must  have  been  issued  by  the  authorities  of  the  bearer's  country;  must  have  a 
photograph  of  the  bearer  attached,  and  must  have  been  visaed  by  an  Ambassador,  Min- 
ister, or  consular  officer  of  the  Empire  in  that  country. 

"Article  II. — The  requirements  of  classification  1  of  the  first  paragraph  of  Article  I 
shall  not  be  enforced  against  the  subject  or  citizen  of  a  country  which  does  not  require 
passports  of  subjects  of  the  Empire. 

"Article  III. — Subjects  of  enemy  countries  are  not  allowed  to  enter  or  reside  in  the 
Kwantung  Leased  Territory  or  the  South  Manchuria  Railway  settlements ;  but  this  will 
not  be  applied  to  those  who  were  allowed  to  do  so  by  one  of  the  officers  mentioned  in  the 
first  paragraph  of  Article  I. 

"  Article  IV. — A  foreigner  shall  exhibit  his  passport,  nationality  certificate  or  permit  to 
the  police  authorities  upon  their  request,  and  must  make  a  true  statement  in  reply  to  their 
inquiries  regarding  classification  as  found  in  the  first  paragraph  of  Article  I,  and  other  neces- 
sary matters. 

"  Article  V. — A  person  who  contravenes  the  last  Article,  or  unlawfully  received  or 
attempted  to  receive  a  permit,  may  be  forbidden  to  enter  or  be  deported  from  the  Kwantung 
Leased  Territory  or  the  South  Manchuria  Railway  settlements  by  the  chief  of  the  civil 
administration,  chief  of  the  branch  civil  administration,  or  chief  of  the  police  station  con- 
cerned. 

"  Article  VI. — These  regulations  shall  not  be  applied  to  an  ambassador,  minister,  their 
suites,  consular  officers  and  staff,  and  their  families,  nor  to  those  who  are  on  official  business 
of  the  treaty  Powers. 

"  Nor  shall  they  apply  to  the  crew  of  ships  of  the  treaty  Powers  entering  the  ports  of 
the  Kwantung  Leased  Territory. 

Supplementary. 

"  Article  VII. — These  regulations  shall  be  enforced  from  the  date  of  publication. 

"  Article  VIII. — A  person  who  is  on  his  way  to  the  Kwantung  Leased  Territory  or 
the  South  Manchuria  Railway  settlements,  and  who  cannot  get  a  passport  or  nationality 
certificate,  or  its  visa  prescribed  in  Article  I,  shall  not  have  classification  1,  paragraph  1, 
of  Article  I  applied  to  him." 

Regulations  relative  to  vessels  sailing  to  and  from  the  port  of  Tairen  were  also  issued 
by  the  Governor-General  on  September  1,  1906,  as  follows : 

Regulations  relating  to  Vessels  sailing  to  and  from  Tairen,  September  i,  1906. 

"  Art.  I. — Vessels  are  not  permitted  to  sail  to  and  from  any  port  with  the  exception  of 
the  Port  of  Tairen.  This  does  not  apply  to  Chinese  junks  and  steamers  and  sailing  vessels 
navigating  along  the  coast  of  Kwantung. 

"  Art.  II. — Vessels  shall  embark  or  land  their  passengers  and  crew,  and  load  or  dis- 
charge their  cargo  at  places  designated  by  the  Chief  of  the  Civil  Administration  Office 
concerned. 

"  Art.  III. — The  master  of  a  ship  shall  immediately  on  her  entrance  to  a  port,  report 
the  fact,  to  the  Civil  Administration  Office,  its  Branch  Office,  or  Police  Authorities  concerned, 
setting  forth  the  following  details : 

"  1.   Kind  of  ship. 

"  2.    Ship's  name  and  signal  code. 

"  3.    Owner's  name. 

"  4.    Port  of  Registry. 

"5.    Gross  and  registered  tonnage  or  number  of  koku. 

"6.    Fore  and  aft  draft. 

"7.    Names  of  the  crew. 


NUMBER  1905/18:  DECEMBER  22,  1905:  NOTES  573 

"8.  Description,  quantity  and  value  of  the  goods  and  the  place  where  they  were 
freighted. 

"9.    Passenger's  name,  domicile,  residence,   status,  calling  and  age. 

"  10.    Ports  of  departure  and  call  and  dates  thereof. 

"11.    Sail  time  and  destination. 

"  12.    Accidents  during  the  voyage. 

"  Art.  IV.— Vessels  entering  the  Port  of  Tairen  shall  not  communicate  with  other  ves- 
sels or  land  their  passengers,  crew  or  cargo  before  they  have  undergone  health  examination. 

"Art.  V. — If  a  vessel  entering  a  port  has  had  any  case  of  contagious  disease  on  board 
during  the  voyage,  or  departed  from  or  arrived  via  places  affected  with  such  disease,  or  has 
any  person  on  board  who  had  communicated  with  any  vessel  so  infected,  she  shall  hoist 
a  quarantine  signal  before  her  entrance  to  the  port  (in  the  case  of  the  Port  of  Tairen, 
anchoring  beyond  IVz  nautical  miles  from  shore)  and  await  directions  of  the  Authorities 
concerned. 

"  The  quarantine  signal  shall  be  a  yellow  flag  hoisted  at  the  fore  of  a  vessel  in  the 
daytime  and  at  night  a  red  and  a  white  light  displayed  together. 

"Art  VI. — If  a  case  of  any  contagious  disease  occurs  on  board  a  ship  in  port  she 
shall  hoist  the  quarantine  signal,  and  report  the  fact  to  the  quarantine  or  Police  Authorities, 
and  until  the  completion  of  quarantine  or  disinfection,  she  shall  not  be  permitted  to  leave  the 
port,  to  communicate  with  another  vessel  or  to  land  her  passengers  or  cargo. 

"Art.  VII. — If  cases  provided  for  in  the  two  preceding  Articles  occur  at  a  port  with- 
out a  quarantine  station,  the  vessel  shall,  when  ordered  by  the  police  authorities,  immedi- 
ately proceed  to  a  port  having  such  a  station,  to  be  put  under  quarantine. 

"  Art  VIII. — The  provisions  of  the  three  preceding  Articles  do  not  apply  to  military 
hospital  ships. 

"  Art.  IX. — Each  vessel  at  anchor  in  a  port  shall  fly  her  national  flag  in  the  daytime 
and  at  night  shall  display  lights  in  accordance  with  the  Law  for  Preventing  Collisions  at  Sea. 

"  Art.  X. — The  master  of  a  ship  shall,  5  hours  before  her  departure,  report  to  the  Civil 
Administration  Office,  its  Branch  Office,  or  Police  Authorities  concerned,  the  fact,  setting 
forth  the  following  details : — 

"  1.    Day  and  hour  of  departure. 

"  2.    Kind  of  vessel. 

"  3.    Ship's  name. 

"  4.    Description,  quantity,  value  and  place  of  entry  of  the  cargo. 

"  5.    Each  passenger's  name,  domicile,  residence,  status,  calling  and  age. 

"  6.    Ports  of  destination  and  call  and  expected  dates  of  arrival  and  call. 

"  Art.  XI. — The  Chief  of  the  Civil  Administration  Office  concerned  may,  when  he 
deems  it  necessary,  cause  proper  officers  to  inspect  vessels  or  order  suspension  of  the 
embarkation  and  landing  of  their  passengers  and  crews,  or  the  loading  and  discharging  of 
their  cargoes. 

"  Art.  XII. — Any  person  violating  any  one  of  Arts.  IV.,  V.,  VI.,  and  VII.  shall  be 
liable  to  a  fine  not  exceeding  one  hundred  yen. 

"  Any  person  violating  Arts.  III.,  IX.,  or  X.  or  refusing  inspection,  or  disobeying  the 
orders  provided  in  Art.  XI.  shall  be  liable  to  a  fine  not  exceeding  fifty  yeJi. 

"  Art.  XIII. — Necessary  rules  not  provided  for  in  the  present  Regulations  shall  be 
established  by  the  Chief  of  the  Civil  Administration  Office. 

"Supplementary  Rules. — In  regard  to  the  sailing  of  Russian  vessels,  rules  hitherto 
obtaining  shall  remain  in  force  for  the  time  being. 

"  The  present  regulations  shall  take  effect  from  the  date  of  publication. 

"  (Sgd)  Baron  Yoshimas.a  Oshima, 

Governor-General. 
"  Kwantung  Government-General. 
"Port  Arthur,  September  1,  1906   (39th  year  Meiji,  9th  month,  1st  day)." 

An  ordinance  regulating  the  opening  of  Port  Arthur  was  issued  on  July  1,  1910,  as 
follows : 

Ordinance  regulating  Opening  of  Port  Arthur,  July  i,  igio. 

"  Art.  I. — Japanese  and  foreign  ships  and  warships  may  enter  West  Harbor  of  Port 
Arthur  provided  they  observe  the  Port  Arthur  Harbor  Regulations. 

"  Art.  II. — The  Governor-General  of  Kwantung  may  make  necessary  provisions  and 
dispositions,  provided  they  do  not  conflict  with  the  provisions  of  the  law  respecting  the 
defence  work  zone  of  Kwantung  Province  and  the  Port  Arthur  Harbor  Regulations,  within 
the  limits  of  Port  Arthur :  with  regard  to  matters,  however,  specially  designated  by  the 
Minister  President,  he  must  previously  consult  with  the  Commander-in-Chief  of  the  Port 
Arthur  Naval   Station. 

"Additional  Article. — The  present  Ordinance  shall  come  into  force  on  the  day  of  its 
promulgation." 


574  CHINA  TREATIES  AND  AGREEMENTS 

Note  2. 
Arrangement  for  Conveyance  of  Chinese  Government  Stores  by  Antung-Mukden 

Railway,  October  30,  igii. 

"  Arrangements  have  been  made  between  the  Chinese  Government  and  the  So  Jth  Man- 
churia Railway  Company  for  the  conveyance  of  Chinese  Government  stores,  etc.,  over  the 
Antung-Mukden  Line  at  a  reduced  scale  of  charges. 

"  1.  Charges  for  carrying  Chinese  military  stores,  materials  and  machinery  will  be  agreed 
upon  at  the  time  of  conveyance. 

"2.  Half  charges  will  be  levied  for  the  conveyance  of  arms,  ammunition,  horses  and 
uniforms. 

"3.  Half  charges  will  be  levied  for  the  conveyance  of  Chinese  convicts  and  their 
accompanying  guards. 

"4.    Bona  fide  students  will  be  carried  at  half  rates. 

"  5.  The  charges  for  transporting  Chinese  Government  laborers  will  be  decided  upon 
at  the  time  of  transportation. 

"  6.  Goods  for  public  benefit  and  foodstuffs  for  the  relief  of  famine-stricken  districts 
will  be  conveyed  free  of  charge. 

"  The  Chinese  text  of  the  above  agreement  is  to  be  considered  as  the  ruling  text. 

"  Signed  on  October  30,  1911,  by  His  Excellency,  Hsij  T'ing  Lin,  Commissioner  for 
Foreign  Affairs,  Mukden,  and  Yuan  Hui  Ho,  Secretary  of  the  Board  of  Posts  and  Com- 
munications, for  the  Chinese;  and  Mr.  C.  Koike,  Consul  General  for  Japan,  [and?] 
the  Vice-President  and  Manager  of  the  South  Manchuria  Raihvay  Company,  for  the 
Japanese." 


NUMBER  1906/1. 

GERMANY  AND   GREAT   BRITAIN. 

Exchange    of    notes    respecting    the    reciprocal    protection  of    trade-marks    in 

China* — March  26,  ipo6. 

(1). — Sir  Edward  Grey  to  Count  Metternich. 

Foreign  Office,  March  23,  1906. 
Your  Excellency, 

With  reference  to  our  recent  conversations  respecting  the  mutual  protec- 
tion of  British  and  German  trade-marks  in  China,  I  have  the  honour  to  state 
that  under  the  Order  in  Council  of  the  2nd  February,  1899,1  it  is  open  to  a  German 
whose  trade-mark  has  been  infringed  by  a  British  subject  in  China  to  take  pro- 
ceedings against  the  latter  in  the  British  Court,  provided — 

1.  That  the  consent  in  writing  of  His  Majesty's  Minister  or  Charge  d'Affaires 
be  obtained  to  the  prosecution  ;  but 

2.  Such  consent  may  be  withheld  unless  His  Majesty's  Minister  or  Charge 
d'Affaires  is  satisfied  that  effectual  provision  exists  for  the  punishment  in  the 
German  Consular  Court  of  German  subjects  infringing  British  trade-marks. 

I  have  the  honour  to  inform  your  Excellency  that  it  is  not  open  to  doubt  that 
in  practice  the  consent  of  the  British  Minister  would  be  given  in  any  and  every 
case  where  full  reciprocity  could  be  and  was  granted  by  Germany. 

*  Text  (and  translation)  as  printed  in  Hertslet,  p.  616. 

t  For  the  relevant  articles  of  the  Order  in  Council  of  February  11,  1907,  replacing  the 
provisions  of  the  Order  in  Council  here  cited,  see  note  to  the  Anglo-American  arrangement 
concerning  trade-marks  in  China   (No.  1905/4,  ante). 


NUMBER  1906/1 :  MARCH  26,  1906  575 

His  Majesty's  Representative  at  Peking  will  be  instructed  accordingly,  as 
soon  as  the  German  Government  inform  His  Majesty's  Government  that  it  is 
open  to  British  subjects  to  take  proceedings  before  the  German  Consular  Courts 
in  China  against  persons  subject  to  German  Consular  jurisdiction  who  infringe 
trade-marks  duly  registered  in  Germany,  and  that  the  German  Consuls  in  China 
have  received  instructions  in  that  sense. 

I  have,  &c., 

Edward  Grey. 

(2). — Count  Metternich  to  Sir  Edward  Grey. 

[Translation.] 

German  Embassy,  London,  March  26,  1906. 
Your  Excellency, 

I  have  the  honour  to  acknowledge  the  receipt  of  your  Excellency's  note  of 
the  23rd  instant,  in  which  you  state  that  it  is  open  to  a  German  subject  in  China 
to  take  proceedings  in  the  competent  British  Consular  Court  against  a  British 
subject  for  infringement  of  his  trade-marks,  provided  that  the  British  diplomatic 
Representative  in  Peking  gives  his  consent  thereto  in  writing.  This  consent 
will,  according  to  the  contents  of  your  Excellency's  note  above  mentioned,  be 
accorded  without  doubt  in  every  case,  provided  that  reciprocity  is  given. 

In  reply  to  your  Excellency's  note  I  am  directed  by  my  Government  to 
state  that  the  Imperial  German  Law  for  the  protection  of  trade-marks  of  the 
12th  May,  1894  ("  Reichsgesetzblatt,"  p.  441),  is  in  force  in  the  districts  where 
there  are  German  Consular  Courts  [§  19  of  the  German  Law  on  Consular  Juris- 
diction of  the  7th  April,  1900  ("  Reichsgesetzblatt,"  p.  213)],  and  that,  moreover, 
the  German  Consular  Judges  in  China  are  authorized  to  take  legal  proceedings 
against  persons  subject  to  their  jurisdiction  who  make  unauthorized  use  of  a 
trade-mark  duly  registered  in  Germany  in  favour  of  a  British  subject. 

The  German  Consuls  in  China  will  be  furnished  with  instructions  in  ac- 
cordance with  the  foregoing. 

I  have,  &c., 

P.  Metternich. 


576  CHINA  TREATIES  AND  AGREEMENTS 

NUMBER  1906/2. 

GREAT  BRITAIN  AND  CHINA. 

Convention  respecting  Tibet  (to  zvhich  is  annexed  the  convention  between  the 
United  Kingdom  and  Tibet,  signed  at  Lhasa,  September  y,  1^04).* — April 
27, 1906. 

Whereas  His  Majesty  the  King  of  Great  Britain  and  Ireland  and  of  the 
British  Dominions  beyond  the  Seas,  Emperor  of  India,  and  His  Majesty  the 
Emperor  of  China  are  sincerely  desirous  to  maintain  and  perpetuate  the  rela- 
tions of  friendship  and  good  understanding  which  now  exist  between  their  re- 
spective Empires; 

And  whereas  the  refusal  of  Tibet  to  recognise  the  validity  of  or  to  carry 
into  full  effect  the  provisions  of  the  Anglo-Chinese  Convention  of  March  17 
1890  t  and  Regulations  of  December  5th  1893  %  placed  the  British  Government 
under  the  necessity  of  taking  steps  to  secure  their  rights  and  interests  under  the 
said  Convention  and  Regulations ; 

And  whereas  a  Convention  of  ten  articles  was  signed  at  Lhasa  on  Sep- 
tember 7th  1904  on  behalf  of  Great  Britain  and  Tibet,  and  was  ratified  by  the 
Viceroy  and  Governor-General  of  India  on  behalf  of  Great  Britain  on  November 
11th,  1904,  a  declaration  on  behalf  of  Great  Britain  modifying  its  terms  under 
certain  conditions  being  appended  thereto; 

His  Britannic  Majesty  and  His  Majesty  the  Emperor  of  China  have  resolved 
to  conclude  a  Convention  on  this  subject  and  have  for  this  purpose  named  Pleni- 
potentiaries, that  is  to  say: — 

His  Majesty  the  King  of  Great  Britain  and  Ireland: 

Sir  Ernest  Mason  Satow,  Knight  Grand  Cross  of  the  Most  Distinguished 
Order  of  Saint  Michael  and  Saint  George,  His  said  Majesty's  Envoy 
Extraordinary  and  Minister  Plenipotentiary  to  His  Majesty  the  Emperor 
of  China ; 

and  His  Majesty  the  Emperor  of  China: 

His    Excellency   Tong    Shoa-yi,    His    said    Majesty's    High    Commissioner 

Plenipotentiary  and  a  Vice-President  of  the  Board  of  Foreign  Affairs ; 

who  having  communicated  to  each  other  their  respective  full  powers  and  finding 

them  to  be  in  good  and  true  form  have  agreed  upon  and  concluded  the  following 

Convention  in  six  articles : — 

Article  I. — The  Convention  concluded  on  September  7th  1904  by  Great 
Britain  and  Tibet,  the  texts  of  which  in  English  and  Chinese  are  attached  to  the 

*  Text  as  printed  in  British  Tr-eaty  Series,  1906,  No.  9.  Printed  also  in  Customs,  Vol.  I, 
p.  652;  Hertslet,  202. 

In  connection  with  this  convention  see  also  the  convention  between  Great  Britain  and 
Russia,  August  31,  1907  (No.  1907/16,  post). 

See  also  Note  1  to  this  document,  post,  p.  581. 

t  For  this  Convention,  see  Hertslet,  p.  92. 

t  For  these  Regulations,  see  ibid.,  p.  96. 


NUMBER  1906/2:  APRIL  21,  1906  5/7 

present  Convention  as  an  annexe,  is  hereby  confirmed,  subject  to  the  modifica- 
tion stated  in  the  declaration  appended  thereto,  and  both  of  the  High  Contracting 
Parties  engage  to  take  at  all  times  such  steps  as  may  be  necessary  to  secure  the 
due  fulfilment  of  the  terms  specified  therein. 

Article  II. — The  Government  of  Great  Britain  engages  not  to  annex 
Tibetan  territory  or  to  interfere  in  the  administration  of  Tibet.  The  Government 
of  China  also  undertakes  not  to  permit  any  other  foreign  State  to  interfere  with 
the  territory  or  internal  administration  of  Tibet. 

Article  III. — The  concessions  which  are  mentioned  in  Article  9  (c?)  of  the 
Convention  concluded  on  September  7th  1904  by  Great  Britain  and  Tibet  are 
denied  to  any  state  or  to  the  subject  of  any  state  other  than  China,  but  it  has 
been  arranged  with  China  that  at  the  trade  marts  specified  in  Article  2  of  the 
aforesaid  Convention  Great  Britain  shall  be  entitled  to  lay  down  telegraph  lines 
connecting  with  India. 

Article  IV. — The  provisions  of  the  Anglo-Chinese  Convention  of  1890  and 
Regulations  of  1893  shall,  subject  to  the  terms  of  this  present  Convention  and 
annexe  thereto,  remain  in  full  force. 

Article  V. — The  English  and  Chinese  texts  of  the  present  Convention 
have  been  carefully  compared  and  -found  to  correspond  but  in  the  event  of 
there  being  any  difference  of  meaning  between  them  the  English  text  shall  be 
authoritative. 

Article  VL — This  Convention  shall  be  ratified  by  the  Sovereigns  of  both 
countries  and  ratifications  shall  be  exchanged  at  London  within  three  months 
after  the  date  of  signature  by  the  Plenipotentiaries  of  both  Powers. § 

In  token  whereof  the  respective  Plenipotentiaries  have  signed  and  sealed  this 
Convention,  four  copies  in  English  and  four  in  Chinese. 

Done  at  Peking  this  twenty-seventh  day  of  April,  one  thousand  nine  hundred 
and  six,  being  the  fourth  day  of  the  fourth  month  of  the  thirty-second  year  of 
the  reign  of  Kuang-hsii. 

(L.S.)  Ernest    Satow. 

(Signature  and  Seal  of  the  Chinese 
Plenipotentiary.) 


Annex. 

Convention  between  the  Governments  of  Great  Britain  and  Tibet  signed  at 
Lhasa  on  the  7th  September  1904. 

Declaration  signed  by  His  Excellency  the  Viceroy  and  Governor-General  of 
India  on  behalf  of  the  British  Government  and  appended  to  the  ratified  Conven- 
tion of  the  7th  September  1904. 

§  Ratifications  were  exchanged  at  London,  July  2'h,  1906. 


578  CHINA  TREATIES  AND  AGREEMENTS 

Convention  between  the  Governments  of  Great  Britain  and  Tibet. 
[Signed  also  in  Chinese.] 

Whereas  doubts  and  difficulties  have  arisen  as  to  the  meaning  and  validity 
of  the  Anglo-Chinese  Convention  of  1890,  and  the  Trade  Regulations  of  1893, 
and  as  to  the  liabilities  of  the  Tibetan  Government  under  these  agreements ;  and 
Whereas  recent  occurrences  have  tended  towards  a  disturbance  of  the  relations 
of  friendship  and  good  understanding  which  have  existed  between  the  British 
Government  and  the  Government  of  Tibet ;  and  Whereas  it  is  desirable  to  restore 
peace  and  amicable  relations,  and  to  resolve  and  determine  the  doubts  and  diffi- 
culties as  aforesaid,  the  said  Governments  have  resolved  to  conclude  a  Conven- 
tion with  these  objects,  and  the  following  articles  have  been  agreed  upon  by 
Colonel  F.  E.  Younghusband,  CT.E.,  in  virtue  of  full  powers  vested  in  him  by 
His  Britannic  Majesty's  Government  and  on  behalf  of  that  said  Government,  and 
Lo-Sang  Gyal-Tsen,  the  Ga-den  Ti-Rimpoche,  and  the  representatives  of  the 
Council,  and  the  three  monasteries,  Se-ra,  Dre-pung  and  Ga-den,  and  of  the 
ecclesiastical  and  lay  officials  of  the  National  Assembly  on  behalf  of  the  Govern- 
ment of  Tibet. 

I. — The  Government  of  Tibet  engages  to  respect  the  Anglo-Chinese  Con- 
vention of  1890  and  to  recognize  the  frontier  between  Sikkim  and  Tibet,  as 
defined  in  Article  I  of  the  said  Convention,  and  to  erect  boundary  pillars  accord- 
ingly. 

II. — The  Tibetan  Government  undertakes  to  open  forthwith  trade  marts  to 
which  all  British  and  Tibetan  subjects  shall  have  free  right  of  access  at  Gyantse 
and  Gartok,  as  well  as  at  Yatung. 

The  Regulations  applicable  to  the  trade  mart  at  Yatung,  under  the  Anglo- 
Chinese  Agreement  of  1893,  shall,  subject  to  such  amendments  as  may  hereafter 
be  agreed  upon  by  common  consent  between  the  British  and  Tibetan  Govern- 
ments, apply  to  the  marts  above  mentioned. 

In  addition  to  establishing  trade  marts  at  the  places  mentioned,  the  Tibetan 
Government  undertakes  to  place  no  restrictions  on  the  trade  by  existing  routes, 
and  to  consider  the  question  of  establishing  fresh  trade  marts  under  similar 
conditions  if  development  of  trade  requires  it. 

III. — The  question  of  the  amendment  of  the  Regulations  of  1893  is  reserved 
for  separate  consideration,  and  the  Tibetan  Government  undertakes  to  appoint 
fully  authorized  delegates  to  negotiate  with  representatives  of  the  British  Govern- 
ment as  to  the  details  of  the  amendments  required. || 

IV. — The  Tibetan  Government  undertakes  to  levy  no  dues  of  any  kind  other 
than  those  provided  for  in  the  tariff  to  be  mutually  agreed  upon. 

V. — The  Tibetan  Government  undertakes  to  keep  the  roads  to  Gyantse  and 
Gartok  from  the  frontier  clear  of  all  obstruction  and  in  a  state  of  repair  suited  to 
the  needs  of  the  trade,  and  to  establish  at  Yatung,  Gyantse,  and  Gartok,  and  at 
each  of  the  other  trade  marts  that  may  hereafter  be  established,  a  Tibetan  Agent 
who  shall  receive  from  the  British  Agent  appointed  to  watch  over  British  trade 

II  See  Note  2  to  this  document,  post,  p.  582. 


NUMBER  1906/2:  APRIL  27,  1906  579 

at  the  marts  in  question  any  letter  which  the  latter  may  desire  to  send  to  the 
Tibetan  or  to  the  Chinese  authorities.  The  Tibetan  Agent  shall  also  be  responsible 
for  the  due  delivery  of  such  communications  and  for  the  transmission  of 
replies. 

VI. ^ — As  an  indemnity  to  the  British  Government  for  the  expense  incurred 
in  the  despatch  of  armed  troops  to  Lhasa,  to  exact  reparation  for  breaches  of 
treaty  obligations,  and  for  the  insults  offered  to  and  attacks  upon  the  British 
Commissioner  and  his  following  and  escort,  the  Tibetan  Government  engages  to 
pay  a  sum  of  pounds  five  hundred  thousand — equivalent  to  rupees  seventy-five 
lakhs — to  the  British  Government. 

The  indemnity  shall  be  payable  at  such  place  as  the  British  Government 
may  from  time  to  time,  after  due  notice,  indicate  whether  in  Tibet  or  in  the  British 
districts  of  Darjeeling  or  Jalpaiguri,  in  seventy-five  annual  instalments  of  rupees 
one  lakh  each  on  the  1st  January  in  each  year,  beginning  from  the  1st  January 
1906. 

VII. — As  security  for  the  payment  of  the  above-mentioned  indemnity,  and 
for  the  fulfilment  of  the  provisions  relative  to  trade  marts  specified  in  Articles 
II,  III,  IV  and  V,  the  British  Government  shall  continue  to  occupy  the  Chumbi 
valley  until  the  indemnity  has  been  paid  and  until  the  trade  marts  have  been 
effectively  opened  for  three  years,  whichever  date  may  be  the  later. 

VIII. — The  Tibetan  Government  agrees  to  raze  all  forts  and  fortifications 
and  remove  all  armaments  which  might  impede  the  course  of  free  communica- 
tion between  the  British  frontier  and  the  towns  of  Gyantse  and  Lhasa. 

IX. — The  Government  of  Tibet  engages  that,  without  the  previous  consent 
of  the  British  Government — 

(a)  no  portion  of  Tibetan  territory  shall  be  ceded,  sold,  leased,  mortgaged 
or  otherwise  given  for  occupation,  to  any  Foreign  Power ; 

(b)  no  such  Power  shall  be  permitted  to  intervene  in  Tibetan  affairs; 
{c)  no  Representatives  or  Agents  of  any  Foreign  Power  shall  be  admitted 

to  Tibet ; 

(d)  no  concessions  for  railways,  roads,  telegraphs,  mining  or  other  rights, 
shall  be  granted  to  any  Foreign  Power,  or  to  the  subject  of  any  Foreign  Power. 
In  the  event  of  consent  to  such  concessions  being  granted,  similar  or  equivalent 
concessions  shall  be  granted  to  the  British  Government ; 

(e)  no  Tibetan  revenues,  whether  in  kind  or  in  cash,  shall  be  pledged  or 
assigned  to  any  Foreign  Power,  or  to  the  subject  of  any  Foreign  Power. 

X. — In  witness  whereof  the  negotiators  have  signed  the  same,  and  affixed 
thereunto  the  seals  of  their  arms. 

Done  in  quintuplicate  at  Lhasa,  this  7th  day  of  September  in  the  year  of 
our  Lord  one  thousand  nine  hundred  and  four,  corresponding  with  the  Tibetan 
date,  the  27th  day  of  the  seventh  month  of  the  Wood  Dragon  year. 

II  In  connection  with  this  and  the  following  Article,  see  the  Declaration  of  the  Viceroy 
of  India,  September  7,  1904,  annexed  to  this  convention. 


580 

Tibet  Frontier 


CHINA  TREATIES  AND  AGREEMENTS 


F.   E.   YOUNGHUSBAND,    CoL, 

British  Commissioner. 


Commission. 

Seal  of  British 
Commissioner. 


Seal  of  the  Dalai 
Lama,  affixed 
by  the  Ga-den 
Ti-Rimpoche. 


Seal  of 

Seal  of  the 

Seal  of  Sera 

Seal  of 

Seal  of  National 

Council. 

Dre-pung 
Monastery. 

Monastery. 

Ga-den 
Monastery. 

Assembly. 

In  proceeding  to  the  signature  of  the  Convention,  dated  this  day,  the  repre- 
sentatives of  Great  Britain  and  Tibet  declare  that  the  EngHsh  text  shall  be  binding. 

Tibet  Frontier 


F.   E.   YoUNGHUSBAND,   Col., 

British  Commissioner. 


Commission. 

Seal  of  British 
Commissioner. 


Seal  of  the  Dalai 
Lama,  affixed 
by  the  Ga-den 
Ti-Rimpoche. 


Seal  of 

Seal  of  the 

Seal  of  Sera 

Seal  of 

Seal  of  National 

Council. 

Dre-pung 

Monastery. 

Monastery. 

Ga-den 
Monastery. 

Assembly. 

Ampthill, 
Viceroy  and  Governor-General  of  India. 


This  Convention  was  ratified  by  the  Viceroy  and  Governor-General  of  India 
in  Council  at  Simla  on  the  eleventh  day  of  November,  a.d.,  one  thousand  nine 
hundred  and  four. 

S.  M.  Eraser, 
Secretary  to  the  Government  of  India, 
Foreign  Department. 


NUMBER  1906/2:  APRIL  27,  1906:  NOTES  581 

Declaration  signed  by  his  Excellency  the  Viceroy  and  Governor-General  of  India 
and  appended  to  the  ratified  Convention  of  7th  September  1904. 

His  Excellency  the  Viceroy  and  Governor-General  of  India,  having  ratified 
the  Convention  which  was  concluded  at  Lhasa  on  7th  September  1904  by  Colonel 
Younghusband,  CLE.,  British  Commissioner  for  Tibet  Frontier  Matters,  on 
behalf  of  His  Britannic  Majesty's  Government;  and  by  Lo-Sang  Gyal-Tsen,  the 
Ga-den  Ti-Rimpoche,  and  the  representatives  of  the  Council,  of  the  three  monas- 
teries Sera,  Drepung,  and  Ga-den,  and  of  the  ecclesiastical  and  lay  officials  of 
the  National  Assembly,  on  behalf  of  the  Government  of  Tibet,  is  pleased  to 
direct  as  an  act  of  grace  that  the  sum  of  money  which  the  Tibetan  Government 
have  bound  themselves  under  the  terms  of  Article  VI  of  the  said  Convention  to 
pay  to  His  Majesty's  Government  as  an  indemnity  for  the  expenses  incurred  by 
the  latter  in  connection  with  the  despatch  of  armed  forces  to  Lhasa,  be  reduced 
from  Rs.  75,00,000  to  Rs.  25,00,000;  and  to  declare  that  the  British  occupation  df 
the  Chumbi  valley  shall  cease  after  the  due  payment  of  three  annual  instal- 
ments of  the  said  indemnity  as  fixed  by  the  said  Article,  provided,  however,  that 
the  trade  marts  as  stipulated  in  Article  II  of  the  Convention  shall  have  been 
effectively  opened  for  three  years  as  provided  in  Article  VI  of  the  Convention; 
and  that,  in  the  meantime,  the  Tibetans  shall  have  faithfully  complied  with  the 
terms  of  the  said  Convention  in  all  other  respects.* 

Ampthill, 
Viceroy  and  Governor-General  of  India. 

This  declaration  was  signed  by  the  Viceroy  and  Governor-General  of  India 
in  Council  at  Simla  on  the  eleventh  day  of  November,  a.d.,  one  thousand  nine 
hundred  and  four. 

S.  M.  Eraser, 
Secretary  to  the  Government  of  India 
Foreign  Department. 


Note  1. 

In  the  Statesman's  Year  Book,  1916,  p.  805,  appears  the  statement  that  "  A  conference 
in  which  he  [the  Dalai  Lama]  is  represented  opened  in  Simla  on  October  13,  1913,  with 
representatives  of  the  Chinese  and  Indian  Governments  in  order  to  negotiate  a  Tripartite 
Agreement  regulating  the  future  relations  of  Tibet  with  China  and  India. 

"  After  prolonged  negotiations  a  provisional  agreement  was  reached  on  April  27th, 
1914,  when  a  Convention  in  11  Articles,  accompanied  by  an  exchange  of  notes  in  7  Articles, 
was  initialled  by  the  three  representatives.  This  agreement  provides  that  Tibet  shall  for 
administrative  purposes  be  defined  as  Outer  and  Inner  Tibet,  in  accordance  with  boundaries 
shown  on  a  map  affixed  to  the  Convention,  Inner  Tibet  being  that  portion  of  Tibet 
adjacent  to  China.  It  stipulates  that  Tibet  forms  part  of  Chinese  territory,  and  is  under 
Chinese  suzerainty.  It  recognizes  the  autonomy  of  Outer  Tibet,  engages  on  the  part 
of  England  and  China  to  abstain  from  interference  in  the  administration  of  Outer 
Tibet;  China  undertaking  not  to  convert  Tibet  into  a  Chinese  province,  and  engaging  that 
Outer  Tibet  shall  not  be  represented  in  any  future  Chinese  Parliament.  China  engages  not 
to   send  troops   into    Outer   Tibet,   nor   to   station    civil   or   military   oflficers,   nor   establish 


*  Hertslet  (p.  622)  notes  that  the  final  instalment  of  the  indemnity  was  paid  on  January 
27,  1908,  and  that  the  Chumbi  Valley  was  evacuated  on  February  8,  1908. 


582  CHINA  TREATIES  AND  AGREEMENTS 

Chinese  colonies  in  that  region.  Any  troops  or  officials  remaining  in  Outer  Tibet  at  the 
date  of  signature,  shall  be  withdrawn  within  three  months.  A  Chinese  high  official  may 
be  stationed  as  in  the  past  at  Lhasa,  with  an  escort  not  exceeding  300  men.  The  British 
Agent  at  Gyantze  may  visit  Lhasa  with  his  escort  should  occasion  require. 

"  The  Tibetan  Trade  Regulations  of  1893  and  1908  are  cancelled,  as  well  as  Article  3 
of  the  Convention  of  April  27th,  1906.  China  is  also  released  from  the  engagement  under 
Article  3  of  the  Convention  of  March  17th,  1890.  Difficulties  arising  between  the  Chinese 
and  Tibetan  Governments  out  of  this  Convention  shall  be  referred  to  the  British  Govern- 
ment for  adjustment. 

"  The  action  of  the  Chinese  representative  in  initialling  this  provisional  Convention  was 
repudiated  by  China,  and  under  instructions  he  abstained  from  signing  the  final  Conven- 
tion which  in  the  same  terms  was  duly  signed  by  the  British  and  Tibetan  authorities  on 
July  3rd,  1914.  In  accordance  with  the  notification  conveyed  to  the  Chinese  Government 
by  the  British  Government,  China,  so  long  as  she  declines  to  sign  this  Convention,  is 
deprived  of  all  advantages  and  privileges  secured  to  her  under  the  Convention. 

"China's  refusal  to  sign  is  based  upon  her  objection  to  the  inclusion  of  Chiamdo  in 
Outer  Tibet,  and  the  inclusion  of  Litang  and  Batang,  which  she  claims  to  be  part  of 
Suchuan  Province,  in  Inner  Tibet.  China's  representative  has  returned  to  Peking.  The 
Convention  and  exchange  of  notes  referred  to,  signed  by  the  British  and  Tibetan  represen- 
tatives on  July  3rd,  1914,  have  not  yet  been  officially  made  public." 

It  is  understood  that  no  change  has  since  occurred  in  the  status  of  the  situation  thus 
outlined. 


Note  2. 

Regulations  respecting  trade  in  Tibet,  amending  those  of  December  5,  1893,  were 
signed  at  Calcutta,  April  20,  1908,  and  ratifications  thereof  exchanged  at  Peking,  October 
14,  1908.    The  text  (as  given  in  British  Treaty  Series,  1908,  No.  35),  is  as  follows: 

Tibet  Trade  Regulations. 

"  Preamble. 

"  Whereas  by  Article  1  of  the  Convention  between  Great  Britain  and  China  on  the 
27th  April,  1906,  that  is  the  4th  day  of  the  4th  moon  of  the  32nd  year  of  Kwang  Hsii,  it 
was  provided  that  both  the  High  Contracting  Parties  should  engage  to  take  at  all  times 
such  steps  as  might  be  necessary  to  secure  the  due  fulfilment  of  the  terms  specified  in  the 
Lhasa  Convention  of  7th  September,  1904,  between  Great  Britain  and  Tibet,  the  text  of 
which  in  English  and  Chinese  was  attached  as  an  Annexe  to  the  above-mentioned  Con- 
vention ; 

"  And  whereas  it  was  stipulated  in  Article  3  of  the  said  Lhasa  Convention  that  the 
question  of  the  amendment  of  the  Tibet  Trade  Regulations  which  were  signed  by  the 
British  and  Chinese  Commissioners  on  the  5th  day  of  December  1893  should  be  reserved 
for  separate  consideration,  and  whereas  the  amendment  of  these  Regulations  is  now 
necessary ; 

"  His  Majesty  the  King  of  the  United  Kingdom  of  Great  Britain  and  Ireland  and  of 
the  British  Dominions  beyond  the  Seas,  Emperor  of  India,  and  His  Majesty  the  Emperor 
of  the  Chinese  Empire  have  for  this  purpose  named  as  their  Plenipotentiaries,  that  is  to  say : 

"His  Majesty  the  King  of  Great  Britain  and  Ireland  and  of  the  British  Dominions 
beyond  the  Seas,  Emperor  of  India, — ]\Ir.  E.  C.  Wilton,  C.M.G. ; 

"  His  Majesty  the  Emperor  of  the  Chinese  Empire — His  Majesty's  Special  Commis- 
sioner Chang  Yin  Tang; 

"  And  the  High  Authorities  of  Tibet  have  named  as  their  fully  authorised  Represen- 
tative to  act  under  the  directions  of  Chang  Tachen  and  take  part  in  the  negotiations — The 
Tsarong  Shape,  Wang-Chuk  Gyalpo. 

"  And  whereas  Mr.  E.  C.  Wilton  and  Chang  Tachen  have  communicated  to  each  other 
since  their  respective  full  powers  and  have  found  them  to  be  in  good  and  true  form  and 
have  found  the  authorisation  of  the  Tibetan  Delegate  to  be  also  in  good  and  true  form, 
the  following  amended  Regulations  have  been  agreed  upon : — 

"  1. — The  Trade  Regulations  of  1893  shall  remain  in  force  in  so  far  as  they  are  not 
inconsistent  with  these  Regulations. 

"2. — The  following  places  shall  form,  and  be  included  within,  the  boundaries  of  the 
Gyantse  mart : — 

"  (a.)  The  line  begins  at  the  Chumig  Dangsang  (Chhu-Mig-Dangs-Sangs)  north-east 
of  the  Gyantse  Fort,  and  thence  it  runs  in  a  curved  line,  passing  behind  the  Pekor-Crode 
(Dpal-Hkhor-Choos-Sde),  down  to  Chag-Dong-Gang  (Phyag-Gdong-Sgang)  ;  thence,  pass- 
ing straight  over  the  Nyan  Chu,  it  reaches  the  Zamsa  (Zam-Srag).     (&.)   From  the  Zamsa 


NUMBER  1906/2:  APRIL  27,  1906:  NOTES  583 

the  line  continues  to  run,  in  a  south-eastern  direction,  round  to  Lachi-To  (Gla-Dkyii-Stod), 
embracing  all  the  farms  on  its  way,  viz.,  The  Lahong;  The  Hogtso  (Hog-Mtsho)  ;  The 
Tong-Chung-Shi  (Grong-Chhung-Gshis)  ;  and  the  Rabgang  (Rab-Sgang),  &c.  (c.)  From 
Lachi-To  the  line  runs  to  the  Yutog  (Gyu-Thog),  and  thence  runs  straight,  passing  through 
the  whole  area  of  Gamkar-Shi   (Ragal-Mkhar-Gshis),  to  Chumig  Dangsang. 

"  As  difficulty  is  experienced  in  obtaining  suitable  houses  and  godowns  at  some  of  the 
marts,  it  is  agreed  that  British  subjects  may  also  lease  lands  for  the  building  of  houses 
and  godowns  at  the  marts,  the  locality  for  such  building  sites  to  be  marked  out  specially 
at  each  mart  by  the  Chinese  and  Tibetan  authorities  in  consultation  with  the  British  Trade 
Agent.  The  British  Trade  Agents  and  British  subjects  shall  not  build  houses  and  godowns 
except  in  such  localities,  and  this  arrangement  shall  not  be  held  to  prejudice  in  ajiy  way 
the  administration  of  the  Chinese  and  Tibetan  Local  Authorities  over  such  localities,  or 
the  right  of  British  subjects  to  rent  houses  and  godowns  outside  such  localities  for  their 
own  accommodation  and  the  storage  of  their  goods. 

"British  subjects  desiring  to  lease  building  sites  shall  apply  through  the  British 
Trade  Agent  to  the  Municipal  Office  at  the  mart  for  a  permit  to  lease.  The  amount  of 
rent,  or  the  period  or  conditions  of  the  lease,  shall  then  be  settled  in  a  friendly  way  by 
the  lessee  and  the  owner  themselves.  In  the  event  of  a  disagreement  between  the  owner 
and  lessee  as  to  the  amount  of  rent  or  the  period  or  conditions  of  the  lease,  the  case  will 
be  settled  bv  the  Chinese  and  Tibetan  Authorities,  in  consultation  with  the  British  Trade 
Agent.  After  the  lease  is  settled,  the  sites  shall  be  verified  by  the  Chinese  and  Tibetan 
Officers  of  the  Municipal  Office  conjointly  with  the  British  Trade  Agent.  No  building  is 
to  be  commenced  by  the  lessee  on  a  site  before  the  Municipal  Office  has  issued  him  a 
permit  to  build,  but  it  is  agreed  that  there  shall  be  no  vexatious  delays  in  the  issue  of 
such  permit. 

"  3. — The  administration  of  the  trade  marts  shall  remain  with  the  Tibetan  Officers, 
under  the  Chinese  Officers'  supervision  and  directions. 

"  The  Trade  Agents  at  the  marts  and  Frontier  Officers  shall  be  of  suitable  rank,  and 
shall  hold  personal  intercourse  and  correspondence  one  with  another  on  terms  of  mutual 
respect  and  friendly  treatment. 

"  Questions  which  cannot  be  decided  by  agreement  between  the  Trade  Agents  and 
the  Local  Authorities  shall  be  referred  for  settlement  to  the  Government  of  India  and  the 
Tibetan  High  Authorities  at  Lhasa.  The  purport  of  a  reference  by  the  Government  of 
India  will  be  communicated  to  the  Chinese  Imperial  Resident  at  Lhasa.  Questions  which 
cannot  be  decided  by  agreement  between  the  Government  of  India  and  the  Tibetan  High 
Authorities  at  Lhasa  shall,  in  accordance  with  the  terms  of  Article  1  of  the  Peking  Con- 
vention of  1906,  be  referred  for  settlement  to  the  Governments  of  Great  Britain  and  China. 

"4. — In  the  event  of  disputes  arising  at  the  marts  between  British  subjects  and  persons 
of  Chinese  and  Tibetan  nationalities,  they  shall  be  enquired  into  and  settled  in  personal 
conference  between  the  British  Trade  Agent  at  the  nearest  mart  and  the  Chinese  and 
TiJDetan  Authorities  of  the  Judicial  Court  at  the  mart,  the  object  of  personal  conference 
being  to  ascertain  facts  and  to  do  justice.  Where  there  is  a  divergence  of  view  the  law 
of  the  country  to  which  the  defendant  belongs  shall  guide.  In  any  of  such  mixed  cases, 
the  Officer,  or  Officers  of  the  defendant's  nationality  shall  preside  at  the  trial ;  the  Officer, 
or  Officers  of  the  plaintiff's  country  merely  attending  to  watch  the  course  of  the  trial. 

"  All  questions  in  regard  to  rights,  whether  of  property  or  person,  arising  between 
British  subjects,  shall  be  subject  to  the  jurisdiction  of  the  British  Authorities. 

"  British  subjects,  who  may  commit  any  crime  at  the  marts  or  on  the  routes  to  the 
marts,  shall  be  handed  over  by  the  local  authorities  to  the  British  Trade  Agent  at  the 
mart  nearest  to  the  scene  of  offence,  to  be  tried  and  punished  according  to  the  laws  of 
India,  but  such  British  subjects  shall  not  be  subjected  by  the  local  authorities  to  any  ill- 
usage  in  excess  of  necessary  restraint. 

"Chinese  and  Tibetan  subjects,  who  may  be  guilty  of  any  criminal  act  towards  British 
subjects  at  the  marts  or  on  the  routes  thereto,  shall  be  arrested  and  punished  by  the  Chinese 
and  Tibetan  Authorities  according  to  law. 

"  Justice  shall  be  equitably  and  impartially  administered  on  both  sides. 

"  Should  it  happen  that  Chinese  or  Tibetan  subjects  bring  a  criminal  complaint  against 
a  British  subject  before  the  British  Trade  Agent,  the  Chinese  or  Tibetan  Authorities  shall 
have  the  right  to  send  a  representative,  or  representatives,  to  watch  the  course  of  trial  in 
the  British  Trade  Agent's  Court.  Similarly,  in  cases  in  which  a  British  subject  has  reason 
to  complain  of  a  Chinese  or  Tibetan  subject  in  the  Judicial  Court  at  the  mart,  the  British 
Trade  Agent  shall  have  the  right  to  send  a  representative  to  the  Judicial  Court  to  watch 
the  course  of  trial. 

"  5. — The  Tibetan  Authorities,  in  obedience  to  the  instructions  of  the  Peking  Govern- 
ment, having  a  strong  desire  to  reform  the  judicial  system  of  Tibet,  and  to  bring  it  into 
accord  with  that  of  Western  nations,  Great  Britain  agrees  to  relinquish  her  rights  of 
extra-territoriality  in  Tibet,  whenever  such  rights  are  relinquished  in  China,  and  when  she 
is  satisfied  that  the  state  of  the  Tibetan  laws  and  the  arrangements  for  their  administration 
and  other  considerations  warrant  her  in  so  doing. 


584  CHINA  TREATIES  AND  AGREEMENTS 

"  6. — After  the  withdrawal  of  the  British  troops,  all  the  rest-houses,  eleven  in  number, 
built  by  Great  Britain  upon  the  routes  leading  from  the  Indian  frontier  to  Gyantse,  shall 
be  taken  over  at  original  cost  by  China  and  rented  to  the  Government  of  India  at  a  fair 
rate.  One-half  of  each  rest-house  will  be  reserved  for  the  use  of  the  British  officials 
employed  on  the  inspection  and  maintenance  of  the  telegraph  lines  from  the  marts  to  the 
Indian  frontier  and  for  the  storage  of  their  materials,  but  the  rest-houses  shall  otherwise 
be  available  for  occupation  by  British,  Chinese  and  Tibetan  officers  of  respectability  who 
may  proceed  to  and  from  the  marts. 

"  Great  Britain  is  prepared  to  consider  the  transfer  to  China  of  the  telegraph  lines  from 
the  Indian  frontier  to  Gyantse  when  the  telegraph  lines  from  China  reach  that  mart  and 
in  the  meantime  Chinese  and  Tibetan  messages  will  be  duly  received  and  transmitted  by 
the  line  constructed  by  the  Government  of  India. 

"  In  the  meantime  China  shall  be  responsible  for  the  due  protection  of  the  telegraph 
lines  from  the  marts  to  the  Indian  frontier  and  it  is  agreed  that  all  persons  damaging  the 
lines  or  interfering  in  any  way  with  them  or  with  the  officials  engaged  in  the  inspection  or 
maintenance  thereof  shall  at  once  be  severely  punished  by  the  local  authorities. 

"  7. — In  law  suits  involving  cases  of  debt  on  account  of  loans,  commercial  failure,  and 
bankruptcy,  the  authorities  concerned  shall  grant  a  hearing  and  take  steps  necessary  to 
enforce  payment;  but,  if  the  debtor  plead  poverty  and  be  without  means,  the  authorities 
concerned  shall  not  be  held  responsible  for  the  said  debts,  nor  shall  any  public  or  official 
property  be  distrained  upon  in  order  to  satisfy  these  debts. 

"  8. — The  British  Trade  Agents  at  the  various  trade  marts  now  or  hereafter  to  be 
established  in  Tibet  may  make  arrangements  for  the  carriage  and  transmission  of  their 
posts  to  and  from  the  frontier  of  India.  The  couriers  employed  in  conveying  these  posts 
shall  receive  all  possible  assistance  from  the  local  authorities  whose  districts  they  traverse 
and  shall  be  accorded  the  same  protection  as  the  persons  employed  in  carrying  the 
despatches  of  the  Tibetan  Authorities.  When  efficient  arrangements  have  been  made  by 
China  in  Tibet  for  a  Postal  Service,  the  question  of  the  abolition  of  the  Trade  Agents' 
couriers  will  be  taken  into  consideration  by  Great  Britain  and  China.  No  restrictions  what- 
ever shall  be  placed  on  the  employment  by  British  officers  and  traders  of  Chinese  and 
Tibetan  subjects  in  any  lawful  capacity.  The  persons  so  employed  shall  not  be  exposed 
to  any  kind  of  molestation  or  suffer  any  loss  of  civil  rights  to  which  they  may  be  entitled 
as  Tibetan  subjects,  but  they  shall  not  be  exempted  from  all  lawful  taxation.  If  they  be 
guilty  of  any  criminal  act,  they  shall  be  dealt  with  by  the  local  authorities  according  to 
law  without  any  attempt  on  the  part  of  their  employer  to  screen  or  conceal  them. 

"9. — British  officers  and  subjects,  as  well  as  goods,  proceeding  to  the  trade  marts, 
must  adhere  to  the  trade  routes  from  the  frontier  of  India.  They  shall  not,  without  per- 
mission, proceed  beyond  the  marts,  or  to  Gartok  from  Yatung  and  Gyantse,  or  from  Gartok 
to  Yatung  and  Gyantse,  by  any  route  through  the  interior  of  Tibet,  but  natives  of  the 
Indian  frontier,  who  have  already  by  usage  traded  and  resided  in  Tibet,  elsewhere  than 
at  the  marts  shall  be  at  liberty  to  continue  their  trade,  in  accordance  with  the  existing 
practice,  but  when  so  trading  or  residing  they  shall  remain,  as  hereofore,  amenable  to  the 
local  jurisdiction. 

"  10. — In  cases  where  officials  or  traders,  en  route  to  and  from  India  or  Tibet  are 
robbed  of  treasure  or  merchandise,  public  or  private,  they  shall  forthwith  report  to  the 
Police  officers,  who  shall  take  immediate  measures  to  arrest  the  robbers,  and  hand  them 
to  the  Local  Authorities.  The  Local  Authorities  shall  bring  them  to  instant  trial,  and  shall 
also  recover  and  restore  the  stolen  property.  But,  if  the  robbers  flee  to  places  out  of  the 
jurisdiction  and  influence  of  Tibet,  and  cannot  be  arrested,  the  Police  and  the  Local  Authori- 
ties shall  not  be  held  responsible  for  such  losses. 

"11. — For  public  safety  tanks  or  stores  of  kerosene  oil  or  any  other  combustible  or 
dangerous  articles   in  bulk  must  be  placed   far  away  from  inhabited  places   at  the  marts. 

"  British  or  Indian  merchants,  wishing  to  build  such  tanks  or  stores,  may  not  do  so 
until,  as  provided  in  Regulation  2,  they  have  made  application  for  a  suitable  site. 

"12. — British  subjects  shall  be  at  liberty  to  deal  in  kind  or  in  money,  to  sell  their 
goods  to  whomsoever  they  please,  to  purchase  native  commodities  from  whomsoever  they 
please,  to  hire  transport  of  any  kind,  and  to  conduct  in  general  their  business  transac- 
tions in  conformity  with  local  usage  and  without  any  vexatious  restrictions  or  oppressive 
exactions  whatever. 

"  It  being  the  duty  of  the  Police  and  Local  Authorities  to  afford  efficient  protection 
at  all  times  to  the  persons  and  property  of  the  British  subjects  at  the  marts,  and  along  the 
routes  to  the  marts  China  engages  to  arrange  effective  police  measures  at  the  marts  and 
along  the  routes  to  the  marts.  On  due  fulfilment  of  these  arrangements.  Great  Britain 
undertakes  to  withdraw  the  Trade  Agents'  guards  at  the  marts  and  to  station  no  troops 
in  Tibet  so  as  to  remove  all  cause  for  suspicion  and  disturbance  among  the  inhabitants. 
The  Chinese  Authorities  will  not  prevent  the  British  Trade  Agents  holding  personal  inter- 
course and  correspondence  with  the  Tibetan  officers  and  people. 

"Tibetan  subjects  trading,  travelling  or  residing  in  India  shall  receive  equal  advan- 
tages to  those  accorded  by  this  Regulation  to  British  subjects  in  Tibet. 


NUMBER  1906/3 :  MAY  26,  1906  585 

"13. — The  present  Regulations  shall  be  in  force  for  a  period  of  ten  years  reckoned 
from  the  date  of  signature  by  the  two  Plenipotentiaries  as  well  as  by  the  Tibetan  Delegate; 
but  if  no  demand  for  revision  be  made  on  either  side  within  six  months  after  the  end  of 
the  first  ten  years,  then  the  Regulations  shall  remain  in  force  for  another  ten  years,  from 
the  end  of  the  first  ten  years;  and  so  it  shall  be  at  the  end  of  each  successive  ten  years. 
"  14. — The  English,  Chinese  and  Tibetan  texts  of  the  present  Regulations  have  been 
carefully  compared,  and,  in  the  event  of  any  question  arising  as  to  the  interpretation  of 
these  Regulations,  the  sense  as  expressed  in  the  English  text  shall  be  held  to  be  the  cor- 
rect sense. 

"  15. — The  Ratifications  of  the  present  Regulations  under  the  hand  of  His  Majesty 
the  King  of  Great  Britain  and  Ireland,  and  of  His  Majesty  the  Emperor  of  the  Chinese 
Empire,  respectively,  shall  be  exchanged  at  London  and  Peking  within  six  months  from 
the  date  of  signature. 

"  In  witness  whereof  the  two  Plenipotentiaries  and  the  Tibetan  Delegate  have  signed 
and  sealed  the  present  Regulations. 

"  Done  in  quadruplicate  at  Calcutta,  this  twentieth  day  of   April,   in  the  year  of  our 
Lord  nineteen  hundred  and  eight,  corresponding  with  the  Chinese  date,  the  twentieth  day 
of  the  third  moon  of  the  thirty-fourth  year  of  Kuang  Hsii. 
"  (L.S.)  E.  C.  Wilton, 

British  Commissioner. 

"  Signature  of 
(L.S.)  Chang  Yin  Tang, 

Chinese  Special  Commissioner. 
"  Signature  of 
(L.S.)  Wang  Chuk  Gyalpo, 

Tibetan   Delegate." 


NUMBER  1906/3. 

INTERNATIONAL  AND  CHINA. 

International   postal   convention,   and   convention   concerning    the   exchange    of 

parcels  post.— May  26,  1906. 

[The  International  Postal  Convention,  and  the  Convention  concerning  the  exchange  of 
parcels  post,  with  their  respective  Rcglements  d'Execiition,  which  were  concluded  at  Rome 
on  May  26,  1906,  do  not  appear  to  have  such  a  particular  interest  in  relation  to  China  as 
to  warrant  the  reproduction  of  the  texts  in  the  present  compilation. 

China  gave  notice  of  its  adherence  to  the  postal  convention  by  a  dispatch  dated  Feb- 
ruary 5,  1914,  addressed  by  H.  E.  Sun  Pao-chi,  President  of  the  Council  of  Ministers  and 
Minister  for  Foreign  Affairs,  to  the  President  of  the  Swiss  Confederation,  of  which  the 
translation  is  as  follows : 

"  The  Chinese  Government,  deeming  that  the  organization  of  its  domestic  and  inter- 
national postal  service  (the  creation  of  which  dates  from  1896)  is  sufficiently  advanced  to 
justify  the  establishment  of  closer  relations,  equally  more  advantageous  to  both  parties, 
with  the  countries  of  the  Union,  desires  to  enter  the  Universal  Postal  Union. 

"  In  conformity  with  Article  24.  paragraph  2,  of  the  Universal  Postal  Convention  of 
May  26,   1906,*  I  have  therefore  the   honor  to  notify  the   High   Federal   Council   of  the 

*  Article  24  reads   (in  translation  from  the  French  text)  as  follows: 

"  Adhcrences  to  the  convention — 

"  I. — Countries  which  have  not  taken  part  in  the  present  convention  are  admitted  to  adhere  to  it 
upon  their  demand. 

"  2. — This  adherence  is  notified  diplomatically  to  the  Government  of  the  Swiss  Confederation,  and  by 
that  Government  to  all  the  countries  of  the  Union. 

"  3. — It  implies,  as  a  matter  of  course,  accession  to  all  the  clauses  and  admission  to  all  the  advantages 
for  which  the  present  convention   stipulates. 

"  4. — It  devolves  upon  the  Government  of  the  Swiss  Confederation  to  determine,  by  common  consetit 
with  the  Government  of  the  country  concerned,  the  share  to  be  contributed  by  the  administration  of  this 
latter  country  towards  the  expenses  of  the  international  bureau,  and,  if  necessary,  the  rates  to  be  levied 
by  that  administration  in   conformity  with   the   foregoing   Article   lo." 

Article  7  of  the  final  protocol  of  the  Universal  Postal  Congress  at  Rome,  signed  on  May  26,  1906, 
contains  the  following  provisions:  "  Salvador,  which  forms  part  of  the  postal  union,  not  having  been 
represented  at  the  congress,  the  protocol  remains  open  to  it  in  order  that  it  may  adhere  to  the  conventions 
which  have  been  concluded  there,  or  only  to  one  or  other  of  them.  .  .  .  The  protocol  likewise  remains 
open  to  the  Chinese  Empire  and  the  Empire  of  Ethiopia,  whose  delegates  to  the  congress  have  announced 
the  intention  of  those  countries  to  enter  the  Universal  Postal  Union  on  a  date  to  be  fixed  hereafter." 


586  CHINA  TREATIES  AND  AGREEMENTS 

adherence  of  China  to  that  convention,  as  also  to  the  Reglement  d' Execution  appended  to 
it,  to  date  from  March  1  next. 

"  In  order,  however,  to  permit  of  undertaking,  if  there  be  occasion,  in  certain  respects, 
an  adjustment  of  the  existing  procedure  in  so  far  as  concerns  the  exchange  service,  the 
Chinese  Government  desires  it  to  be  understood  that  the  provisions  and  regulations  of 
the  Union  w^ill  come  into  full  effect  as  regards  China  only  from  September  1. 

"  Accept,  etc." 

By  a  dispatch  of  May  16,  1914,  to  the  President  of  the  Swiss  High  Federal  Council, 
the  Minister  for  Foreign  Affairs  likewise  gave  notice  of  China's  adherence  to  the  parcels 
post  convention,  in  the  following  terms   (as  translated   from  the  French  text)  : 

"  The  Chinese  Government,  which  by  its  dispatch  of  February  5  last  notified  the  High 
Federal  Council  of  China's  adherence  to  the  Universal  Postal  Convention  of  j\Iay  26, 
1906,  furthermore  desires  to  participate  in  the  international  service  for  the  exchange  of 
parcels  post  of  the  Universal  Postal  Union. 

"  In  conformity  with  Article  20,  paragraph  1,  of  the  convention  of  May  26,  1906,  con- 
cerning the  exchange  of  parcels  post.t  I  have  the  honor  to  notify  the  High  Federal 
Council  of  the  adherence  of  China  to  that  convention,  as  also  to  the  Reglement  d'Execution 
appended  to  it,  to  come  into  full  effect  from  September  1,  1914. 

"  Accept,  etc." 

In  regard  to  the  effect  of  these  adherences  to  the  Rome  conventions  of  May  26,  1906, 
the  Postmaster  General  of  China  (Mr.  T.  Piry)  had  occasion  to  address  to  the  Director 
of  the  International  Bureau  of  the  Universal  Postal  Union,  under  date  of  March  18, 
1915,  a  communication  of  which  the  translation  is  as  follows : 

"  I  have  the  honor  to  request  you  to  be  so  good  as  to  communicate  the  following  to 
the  countries  of  the  Postal  Union : 

"  Having  effectively  entered  the  Universal  Postal  Union  on  September  1,  1914,  China 
ought  from  that  date  to  enjoy  the  rights  and  benefits  accruing,  to  all  the  members  of  the 
union,  out  of  the  provisions  of  the  Universal  Postal  Convention  (Article  24,  §3,  of  the 
Rome  convention). 

"  In  that  conviction,  the  administration  of  Chinese  posts  immediately  sought  to 
organize  a  direct  exchange  of  mails  between  China  and  certain  other  countries. 

"  While  the  majority  of  those  countries  have  welcomed  the  proposals  of  the  Chinese 
administration,  and  while  others  have  not  yet  been  able  to  carry  them  into  effect  because 
of  preoccupations  resulting  from  the  war,  there  are  some  which  have  raised  objections  to 
the  application  of  the  provisions  of  Article  4,  §§1  and  2,  of  the  Rome  convention,  and  of 
Article  1,  §1,  of  the  Reglement  d'Execution  of  that  convention.^: 

"  Two  of  those  countries,  for  example,  have  forbidden  the  navigation  companies  sub- 
sidized by  their  Governments,  and  thus  coming  under  the  category  of  third  services  as 
defined  in  Article  3,  §2,  of  the  Universal  Postal  Convention,  to  receive  aboard  their  vessels 
touching  at  Chinese  ports  mails  presented  by  the  Chinese  offices. 

"  In  order  the  better  to  define  the  situation  that  has  been  created  for  it,  China  believes 
it  necessary  to  recall  that,  at  the  time  of  notifying  the  Swiss  High  Federal  Council  of  its 
adherence  to  the  convention  of  May  26,  1906,  as  a  matter  of  courtesy  it  invited  the  atten- 
tion of  those  countries,  with  which  it  had  previously  concluded  postal  treaties,  to  the  abro- 
gation of  those  treaties  in  conformity  with  the  stipulations  of  Article  29  of  the  said 
convention. 

"  As  regards  the  effects  of  the  entry  of  China  into  the  Postal  Union,  it  is  incontestable 
that  the  adherence  of  this  country  to  the  Rome  convention  had  the  effect  of  rendering  void 

t  Article  20  reads   (in  translation  from  the  French  text)  as  follows: 

"  Adherences  to  the  convention — 

"  I. — The  countries  of  the  Universal  Postal  Union  which  have  not  taken  part  in  the  present 
convention  are  admitted  to  participate  in  it  on  their  demand,  and  subject  to  the  formalities  prescribed  by 
Article  24  of  the  principal  convention  in  the  case  of  entries  into  the   Universal   Postal   Union. 

"  2. — Nevertheless,  if  the  country  which  desires  to  participate  in  the  present  convention  claims  a 
right  to  levy  a  surtax  greater  tlian  25  centimes  per  parcel,  the  Government  of  the  Swiss  Confederation 
will  submit  to  all  the  contracting  parties  the  request  for  participation.  This  request  is  considered  as 
acceded  to.  if  within  six  months  no  objection   has  been  raised." 

{Article  4  of  the  convention  relates  to  transit  rates:  §§  i  and  2  of  it  read  (in  translation)  as 
follows: — 

"  1. — The  right  of  transit  is  guaranteed  throughout  the  entire  territory  of  the   Union. 

"  2. — Consequently,  the  several  postal  administrations  of  the  Union  may  send  reciprocally  through 
the  medium  of  one  or  of  several  of  them,  either  closed  mails  or  articles  in  open  mail,  according  to  the 
needs  of  the  traffic  and  the  convenience  of  the  postal  service." 

Article  i  of  the  Rkslement  d'Execution  relates  to  forwarding  of  mails;  §  i  of  it  reads  (in  translation) 
as  follows: 

"  I. — Each  administration  is  bound  to  forward,  by  the  most  rapid  routes  at  its  disposal  for  its  own 
mails,  the  closed  mails  and  the  articles  in  open  mail   which  are  delivered  to   it  by  another  administration. 

"  In  the  event  of  an  administration  finding  itself  obliged,  by  exceptional  circumstances,  to  suspend 
temporarily  the  dispatch  of  closed  mails  and  articles  in  open  mail  which  are  delivered  to  it  by  another 
administration,  it  is  bound  at  once  to  notify  the  fact,  if  necessary  by  telegraph,  to  the  administration  or 
administrations  concerned." 


NUMBER  1906/3 :  MAY  26,  1906  587 

the  provisions   (in  §1  of  Article  44  of  the  Rcglement  d'Exccui'wn)%  referring  to  the  post- 
offices  which  various  countries  maintain  upon  its  territory. 

'•  Article  1  of  the  Universal  Postal  Convention  ||  lays  down  this  fundamental  principle— 
that  the  Postal  Union  is  composed  of  the  totality  of  adhering  countries  (and  not  of  postal 
administrations),  which  form  a  single  postal  territory.  Article  44  of  the  Rcglement 
d'Execution  of  that  convention  can  thereafter  only  define  the  limits  of  that  single  territory 
in  enumerating: 

"1)  Countries  which,  not  having  signed  the  convention,  but  being  politically  dependent 
upon  countries  of  the  Union,  cannot  be  excluded  from  the  benefit  of  the  same  rights  and 
privileges  as  the  latter ; 

_"2)  Postal  establishments  maintained  by  countries  of  the  Union  outside  the  territorial 
limits  of  the  latter. 

"There  can  therefore  be  no  warrant,  in  the  text  of  the  said  Article  44,  without  viola- 
tion of  the  principle  laid  down  by  Article  1  of  the  convention,  for  offices  maintained  by 
Union  countries  in  other  Union  countries. 

"  The  terms  of  the  2nd  clause  of  Article  10  of  the  Rome  convention,  and  those  of 
Article  44,  §2,  of  the  Rcglement  d'Execution,  confirm  the  fact  that  only  post  offices  operat- 
ing in  countries  outside  the  Union  can  properly  be  comprised  under  §1  of  the  said  .Vticle  44. 

"  It  was,  besides,  impossible  for  China  to  ask,  in  advance  of  its  adherence  to  the  Rome 
convention, — an  adherence  which  could  not  involve  any  restriction  or  reserve, — the  modifica- 
tion of  Article  44  of  the  Rcglement  d'Execution  of  that  convention,  as  such  modification 
could  be  initiated  only  upon  the  request  of  one  of  the  administrations  of  the  Union,  and 
in  accordance  with  the  long  and  complicated  procedure  contemplated  by  Article  45. 

"  Relying  upon  the  principles  inscribed  in  the  Universal  Postal  Convention,  and  in 
agreement  on  this  point  with  the  jurists  in  international  law  of  all  countries,  China  con- 
siders that  by  virtue  of  its  entry  into  the  Union,  the  offices  maintained  upon  its  territory 
by  other  countries  of  the  Union  have  ceased  to  have  a  legal  existence. 

"  Although  in  consequence  of  the  difficulties  mentioned  above  and  those  that  have  their 
origin  in  the  present  events  of  the  war,  China  has  found  itself  obliged,  in  order  not  to 
impede  the  transmission  of  its  mails,  to  continue  temporarily  for  the  purpose  of  its  rela- 
tions with  other  countries  to  have  recourse  to  the  intermediation  of  certain  of  the  foreign 
post  offices  established  upon  its  territory,  or  to  accept  this  intermediation,  it  must  declare 
that  this  course  of  action  implies  no  recognition  on  its  part  of  the  legality  of  those  offices, 
and  furthermore  that  no  status,  in  that  respect,  can  be  created  by  the  written  communica- 
tions that  have  been  or  that  may  hereafter  be  exchanged  in  regard  to  them,  either  with 
those  offices  or  with  the  administrations  to  which  they  belong. 

"  China  protests  against  the  maintenance,  by  the  majority  of  the  foreign  post  offices 
operating  upon  its  territory,  of  tariffs  lower  than  those  fixed  by  Article  5  of  the  Rome 
convention,  for  the  payment  of  postage  upon  mails  exchanged  by  those  offices,  either 
between  themselves  or  with  the  countries  to  which  they  respectively  belong. 

"  Article  2  of  the  Rome  convention  stipulates  in  effect  that  the  provisions  of  that  con- 
vention apply  to  mails  originating  in  one  of  the  countries  of  the  Union  and  destined  to 
another  country  of  the  Union. 

"  On  this  occasion,  and  to  refute  an  opinion  that  has  been  expressed  in  China,  the  latter 
feels  it  should  observe  that  the  restricted  Unions,  contemplated  by  Article  21  of  the  con- 
vention, can,  by  their  definition,  be  established  only  as  between  countries,  and  not  between 
the  offices  maintained  by  a  country  outside  of  its  own  territory,  and  that  country. 

"  As  regards  the  tariffs  applied  by  foreign  post  offices  of  the  same  nationality  operating 
in  Chinese  territory,  in  their  relations  with  each  other,  it  is  undeniable  that  the  field  of 
action  for  the  exercise  of  the  sovereign  rights  of  a  Union  country,  in  the  fixing  of  tariffs 
applicable  to  mails  exchanged  between  its  own  offices,  ends  at  the  territorial  limits  of  the 
other  countries  of  the  Union. 

§  Article  44  of  the  Rtglement  d'Execution  relates  to  the  jurisdiction  of  the  Union;  the  relevant 
clauses  of  it  read   (in  translation)   as  follows; 

"  I. — The  following  are  considered  as  belonging  to   the   Universal   Postal   Union: 

I  St. — The  German  post  offices  established  in   China  and  in  Morocco,   as  subordinate  to  the   Postal 
Administration  of  Germany; 

5th. — The    Principality    of    Monaco    and    the    French    post    offices    established    in    Morocco    and    in 
China,   as   subordinate  to  the   Postal    .Administration    of    France; 

6th. — The    post    offices    which    the    administration    of    the    French    Colonies    and    Protectorates    of 
Indo-China  maintains  in  China,  as  subordinate  to  that  administration; 

8th. — The  post  offices  which   the  administration  of  the   British   Colony  of  Hongkong  maintains   in 
China; . 

nth. — The  post  offices  which  the  Japanese  administration  has  established  in  China. 
"  2. — In    the    interval    which    elapses    between    the    meetings,    the    administrations    of    Union    countries 
opening  in  countries  foreign  to  the  Union  post\  offices  which  are  to  be  regarded  as  belonging  to  the  Union, 
are  to  communicate  the   fact   to   the  administrations   of   all   the   other   Union   countries,   through   the   medium 
of  the  international  bureau." 

1 1  Article  i  of  the  convention,  under  the  heading  "  Definition  of  the  Postal  Union,"  reads  (in  transla- 
tion)  as  follows: — 

"  The  countries  between  which  the  present  convention  is  concluded,  as  well  as  those  which  may 
adhere  to  it  hereafter,  form  under  the  title  of  Universal  Postal  Union,  a  single  postal  territory  for  the 
reciprocal   exchange  of  correspondence  between  their  post   offices." 


588  CHINA  TREATIES  AND  AGREEMENTS 

"  China,  having  adhered  as  from  September  1  last  to  the  Rome  convention  concerning 
the  exchange  of  parcels  post,  must  declare  that  what  has  been  said  above,  in  regard  to 
the  temporary  continuation,  necessitated  by  circumstances,  of  the  intermediation  of  foreign 
post  offices  established  upon  its  territory,  applies  likewise  to  the  parcels  post  service. 

"  Accept,  etc." 

The  following  arrangements,  previously  concluded,  appear  to  have  been  cancelled  by 
the  adherence  of  the  Chinese  Government  to  the  International  Postal  Convention  and 
Parcels  Post  Convention  of  Alay  26,  1906: 

With  France,  postal  arrangement  signed  at  Peking,  February  3,  1900,  and  parcel  post 
arrangement  signed  at  Peking,  October  21,  1904; 

With  Germany,  postal  arrangement  signed  at  Peking,  October  25,  and  at  Shanghai, 
November  3,  1905,  and  parcel  post  arrangement  signed  at  Peking,  July  19,  and  at  Shanghai, 
August  26,  1910; 

With  Hongkong,  postal  arrangement  signed  at  Hongkong,  December  12,  and  at  Peking, 
December  29,  1904 ; 

With  Indo-China,  parcels  post  arrangement,  signed  at  Saigon,  Julv  24,  and  at  Peking, 
September  21.  1911 ; 

With  Japan,  postal  agreement  and  parcel  post  agreement,  both  signed  at  Peking,  Feb- 
ruary 9,  1910; 

With  Natal,  postal  arrangement  signed  at  Peitermaritzburg,  October  28,  and  at  Peking, 
December  27,  1905 ;  and 

With  Russia,  postal  arrangement  signed  at  Peking,  February  6/19,  1909. 

The  texts  of  these  arrangements  (omitting  formal  parts)  are  printed  herewith,  in  chron- 
ological  order. 


France. 

ARRANGEMENT  SETTING  FORTH  THE  RELATIONS  ESTABLISHED  BETWEEN  THE 
POSTAL  ADMINISTRATION  OF  FRANCE  AND  THE  POSTAL  ADMINISTRATION  OF 
CHINA. 

February  3rd,   1900 

ARTICLE  I. — Exchange  of  Mails. — i. — There  shall  be  between  the  Postal  Administration  of 
France  and  the  Postal  Administration  of  China  a  regular  exchange  of  postal  articles  of  all  kinds — 
ordinary,  registered,  international  or  in  transit,  closed  or  d  decouvert — by  any  means  of  transport, 
ordinary  or  special,  now  established  and  hereafter  established,  which  each  Administration  may  have 
at  its  disposal. 

2. — The  exchange  of  mails  between  the  two  Ad/ministrations  will  take  place  through  the  French 
Post  Offices  established  in  China  and  the  Chinese  Post  Offices  established  in  the  same  localities  as 
these  French  Post  Offices.  Other  Offices  may  besides  be  designated  on  consultation  for  the  exchange 
of  mails  wherever  postal  requirements  may  demand  it. 

ARTICLE  II. — Transport  of  Mails. — i. — The  Chinese  Post  Offices  will  accept  from  the  French 
Post  Offices  mails,  closed  or  a  decouvert,  destined  for  Chinese,  French,  or  foreign  Post  Offices  estab- 
lished in  or  out  of  China,  and  will  undertake  to  transmit  them  to  destination  by  any  means  of 
transport  at  the  disposal  of  the  Chinese  Administration. 

2. — The  French  Post  Offices  will  accept  from  the  Chinese  Post  Offices  mails,  closed  or  a  decouvert, 
destined  for  Chinese,  French,  or  foreign  Post  Offices  established  in  or  out  of  China,  and  will 
undertake  to  transmit  them  to  destination  by  any  means  of  transport  at  the  disposal  of  the  French 
Administration. 

3. — Each  Administration  will  support  the  cost  of  maintenance  of  the  transport  services,  ordinary 
or  special,  which  it  may  establish  for  the  carriage  of  mails,  but  will  be  entitled  to  claim  payment  of 
the  transit  charges  hereunder  stipulated  in  Article  V. 

ARTICLE  III. — Remitting  of  Mails. —  i. — The  remitting  of  mails,  closed  or  d  decouvert,  from 
one  Administration  to  the  other  w-ill  take  place  at  the  Offices  or  any  other  authorised  places  for 
exchange  and  will  be  made  from  hand  to  hand  between  agents  regularly  appointed  for  this  duty. 

2. — The  duplicate  copy  of  the  Way  Bill,  called  Part,  brought  by  the  remitting  agent  and  indicating 
the  number  of  packages  or  bags  remitted,  will  be  at  once  signed  by  the  receiving  agent  and  handed 
back  to  him  as  acknowledgment  of  receipt.  Inside  each  package  or  bag  a  Feuille  d'Avis  will  be 
enclosed,  containing  the  particulars  called  for  in  Article  [XX  of  the  "  Reglement  "  appended  to  the 
International  Convention  of  Washington]  XXI  of  the  "  Reglement  d'Execution  "  of  the  International 
Convention  of  Rome. 

3. — From  the  moment  this  agent  has  taken  delivery  of  the  mails  and  issued  an  acknowledgment 
of  receipt  without  making  any  observation  as  to  the  number  or  condition  of  the  packages  or  bags,  the 
despatching  Office  will  be  discharged  of  further  responsibility,  which  thereafter  will  lie  with  the 
receiving  Office. 

ARTICLE  IV. — Postage  and  Delivery. — i. — Each  Administration  will  use  its  own  postage 
stamps  to  frank  any  mail  matter,  whatever  its  destination,  originating  in  its  own  Offices,  and  will 
deliver  to  the  addressees  free  of  additional  charge  in  all  the  localities  where  it  has  a  Post  Office  any 
mail  matter,  whatever  its  origin,  w-hich  arrives  duly  and  sufficiently  prepaid  by  means  of  postage 
stamps  of  the  other  Administration. 

2. —  Each  Administration  fixes  its  tariffs.  It  is  understood  that  the  French  Administration  will 
not  apply  to  mail  matter  exchanged  between  its  own  Offices  in  China  taxes  lower  than  those  adopted 
by  the  Chinese  Administration.  On  the  other  hand,  the  Chinese  Administration  will  comply,  in 
respect  of  any  mail  matter  it  may  exchange  with  the  Union  countries  through  the  French  Offices, 
with  the  stipulations  of  Article  5  of  the  [Convention  of  Washington]  International  Convention  of 
Rome.     The  two  .Administrations  will  communicate  to  each  other  their  tariffs. 

3. — Mail  matfer  destined  for  places  inland  where  no  Post  Office,  Chinese  or  French,  is  yet  opened 
will  be  sent  to  destination  through  private  agencies  at  the  risk  and  expense  of  the  addressees. 

4. — Should  it  happen  that,  on  Chinese  territory  and  in  the  same  town,  both  a  Chinese  and  a 
French   Post  Office  exist,   each   Office  will  undertake  the  delivery   of  any  mail  matter   arriving   to  its 


NUMBER  1906/3 :  MAY  26,  1906  589 

address.      But    the    French    Post    Offices    may    continue,    by    payment    of    an    adequate    tax,    to    avail 
themselves  of  the  services  of  the  Chinese  Offices  to  ensure  the  distribution  of  tiieir  mail   matter. 

ARTICLE  V. — Transit  Charges. —  i. — Closed  mails  [and  correspondence  d  decoinert]  despatched 
on  account  of  Chinese  or  French  Post  Offices  by  means  of  the  transport  services  of  one  or  the  other 
of  the  contracting  Administrations  will  be  submitted,  to  the  benefit  of  the  Administration  whose 
services  carry  these  mails,  to  the  following  transit  charges: — 

(a.)  Within  the  Chinese  Empire  and  along  the  littoral  of  China,  foreign  bordering  countries 
included,  when  the  distance  docs  not  exceed  1,500  nautical  miles,  and  when  both  the 
Chinese  and  the  foreign  ports  are  united  by  the  same  line  of  steamers — 

1°.   For    territorial    transit    by    rail,    and    also    for    maritime    transit    not    exceeding 
300  nautical  miles,   [2   francs]   1  franc  50  centimes  per  kilogramme  of  letters 
or  postcards,   and   [25]   io  centimes  per  kilogramme   of   other   articles; 
2°.  For    territorial    transit    by    courier,    and    also    for    maritime    transit    exceeding 
300    nautical    miles,    [5]    4    francs    per    kilogramme    of    letters    and    postcards, 
and  50  centimes  per  kilogramme  of  other  articles. 
(&.)  Outside   of   the   Chinese   Empire,    for   any   transport   of   mails  other   than   the   categories 
provided   for  in  the  preceding  paragraph,    (a.): 

1°.  For  territorial  or  maritime  transit,  the  amounts,  per  kilogramme  of  letters 
or  other  articles,  fixed  by  Article  [4  of  the  "  Convention  Principale  "  of 
Washington,  calculated,  according  to  distances  and  the  countries  traversed, 
in  the  Table  E  published  by  the  contracting  Administrations']  4,  §  3,  of  the 
"  Convention  Principale  "  of  Rome. 
2°.  Correspondence  passing  a  decouvert  is  subject  to  the  following  transit  charges 
per  article,  and  irrespective  of  weight  or  destination,  namely: 

Letters 6       centimes  each. 

Postcards iV2   centimes  each. 

Other  articles 2^2   centimes  each. 

[2°.]  3°.  As  to  correspondence  franked  by  means  of  Chinese  postage  stamps  des- 
tined for  France  and  her  dependencies  or  for  foreign  countries  [whether 
despatched  closed  or  d  decouvert,']  in  transit  through  the  French  Post 
Offices,  they  will  be  forwarded  to  their  respective  destinations  in  the  same 
manner  and  liable  to  the  same  transit  charges  as  the  correspondence 
remitted  to  the  French  Offices  by  the  other  Administrations  of  the  Postal 
Union.  The  transit  charges  will  be  guaranteed  by  the  French  Administra- 
tion  and    periodically   refunded   by   the   Chinese   Administration. 

2. — It  is  understood — 

1°.  That   any   territorial   transit   by   rail   is   free   of   charge   if   the   Administration   concerned 
is   already    entitled   to   claim,    on   the   mail   matter    thus   conveyed   by   rail,    refund    for 
maritime  transit; 
2°.  That  any  transit  on  the  Yangtze-kiang  is  considered  as  maritime  transit; 
3°.  That    any    mail    matter    originating    from    foreign    countries,    remitted    a    decouvert    at   the 
place  of  landing  by  a  French  Office  to  a  Chinese  Office  or  vice  versa,  to  be  transmitted 
to   inland   places,   will   be  exempted    from   transit  charges; 
4°.  That  the  reductions  or  exemptions  stipulated  in   Article  4  of  the  Convention  of   [Wash- 
ington] Rome  will  also  apply  to  the  present  Arrangement. 

3. — Charges  for  transport  of  mails  by  means  of  services  or  ships  independent  of  the  French  or 
Chinese  Administrations  will  be  settled  under  the  terms  agreed  between  the  interested  parties. 

ARTICLE  VI. — Men-of-War  Mails. — The  closed  mails  handed  in  to  the  Chinese  Offices  by  a 
French  bureau  for  transmission  to  the  commander  of  a  man-of-war  of  whatever  nationality,  or  by 
the  commander  of  a  man-of-war  of  whatever  nationality  for  transmission  to  a  French  bureau,  will 
be  subjected,  in  account  with  the  French  bureau  sender  or  receiver,  to  the  transit  charges  enumerated 
in  the  preceding  Article. 

ARTICLE  VII. — Transit  Statistics. — The  balancing  of  the  transit  charges  account  will  necessi- 
tate an  annual  settlement  between  the  two  Administrations,  to  be  calculated  on  the  basis  of  statistics 
taken  annually  under  the  rules  laid  down  in  the  Conventions  of  the  Postal  Union  in  force  at  the 
time.  These  statistics  will  be  taken  each  year  during  the  first  28  days  of  the  months  of  May  and 
November  alternately. 

ARTICLE  VIII. — Parcel  Post. — i. — The  exchange  of  parcels,  as  also  the  exchange  of  mone> 
orders,  letters  with  declared  value  of  contents,  etc.,  will  be  made  the  subject  of  special  arrangement* 
as  soon  as  the  principal  Arrangement  is  put  in  force. 

2.- — Meanwhile,  in  order  to  offer  immediate  facilities  for  the  exchange  of  parcels,  the  Chinese 
Administration  is  willing — 

(o.)   To  transmit  and  distribute,  on  condition  that  the  addressee  will  pay  the  domestic  tariff, 

the   parcels — ordinary,   insured,   or   taxed   with   trade   charges — emanating   from    Union 

countries  handed  in  by  a   French  Office; 
(b.)  To  transmit  to   French  Offices,   after  payment  of  the  domestic  tariff  by  the   sender,   the 

parcels — ordinary,  insured,  or  taxed  with  trade  charges — destined  for  Union  countries 

which  may  be  handed  in  by  the  public. 

3. — As  to  domestic  parcels  emanating  from  or  destined  for  Kwangchowwan,  and  also  the  parcel* 
transmitted  in  closed  bags  from  one  Office  to  the  other  by  the  Chinese  or  French  Offices,  they  will 
be  provisionally  transmitted  and  distributed  subject  to  the  conditions  of  ulterior  arrangements  between 
the  two  Administrations. 

ARTICLE  IX. — Responsibility  and  Liability. — i. — In  case  of  the  loss  of  a  registered  article 
of  correspondence  or  of  a  closed  mail,  the  Administration  which  has  undertaken  its  transport  and 
cannot  account  for  its  delivery  or  transmission  to  the  other  Administration  will  be  held  responsible 
for  the  lost  registered  article  or  the  registered  articles  contained  in  the  closed  mail,  within  the 
limits  of  Article  8  of  the  "  Convention  Principale  "  of  [Washington  and  of  Article  XXIII  of  the 
"  Reglement  d'Ordre  et  de  Detail  "  thereto  appended]  Rome  and  of  Article  XXV  of  the  "  R^glement 
d'Execution  "  of  that  Convention. 

2. — The  loss  or  spoliation  of  a  parcel  will  give  right  to  an  indemnity,  which  may  amount  to 
the  equivalent  of  the  loss  or  damage  suffered,  but  can  in  no  case  exceed  25  francs  for  non-insured 
parcels   or    1,000   francs   for   insured   parcels. 

3. — The  protection  granted  above  to  registered  articles  and  parcels  will  not  extend  beyond  the 
working  limits  of  the  postal  services  of  the  contracting  Administrations,  and  will  not  cover  losses  01 
damages  arising  from  cases  of  force  majeure  such   as  tempest,   shiijwreck,   war,   brigandage,   etc. 

ARTICLE    X. — Notice    of    Changes    in    Organisation. — The    Postal    Administrations    of    China 


590  CHINA  TREATIES  AND  AGREEMENTS 

and  France  will  communicate  to  each  other  the  changes  which  may  take  place  in  the  organisations 
and  arrivals  and  departures  of  their  respective  services  for  the  transport  of  mails,  whenever  notice 
of  such  changes  may  prove  useful  to  the  two  Administrations  or  to  the  Foreign  Administrations  that 
have  recourse  to  their  intermediation. 

ARTICLE  XI. — Extent  of  Present  Arrangement. — The  Postal  Administration  of  China,  though 
it  has  not  yet  subscribed  to  the  treaties  of  the  Universal  Postal  Union,  hereby  agrees  to  abide,  as  far 
as  the  present  Arrangement  is  concerned,  by  the  stipulations  of  the  "  Convention  Principale  "  and 
of  the  1"  Reglement  d'Ordre  et  de  Detail,"  concluded  at  Washington  on  the  isth  June  1897] 
"  Reglement  d'Execution  "  signed  at  Rovw  on   the  26th  May  1906. 

The  present  Arrangement  will  thus  form,  with  the  documents  of  the  Postal  Union  mentioned 
above,  the  whole  of  the  dispositions  to  be,  as  far  as  possible,  observed  in  the  postal  relations  between 
the  Chinese  Post  Offices  and  the  French  Post  Offices. 

ARTICLE  XII. — Duration  of  Arrange.ment. — The  present  Arrangement  will  be  gradually  put 
in  force  as  soon  as  possible,  and  will  remain  in  force  for  an  indeterminate  period.  The  two  Adminis- 
trations may,  however,  at  any  time  introduce  in  it  any  such  modifications  as  they,  on  consultation, 
may  find  necessary,  or  bring  the  Arrangement  to  an  end  by  giving  notice  six  months  in  advance. 

ADDENDUM. — A  difference  of  opinion  having  arisen  between  the  Postal  Administrations  of 
France  and  China  regarding  the  intention  and  scope  of  the  Arrangement  come  to  between  tliein  and 
signed  at  Peking  on  the  3rd  February  1900,  it  is  understood  that  henceforward  the  Arrangement  shall 
not  apply  to  correspondence  a  decouvert  originating  in  China  and  to  be  distributed  by  the  Chinese 
Service.     No  change  is  made  in  the  stipulations  regarding  closed  mails. 

N.B. — The  changes  in  the  text  of  the  Arrangement,  as  set  forth  above,  from  the  wording  between 
brackets  [  ]  to  that  in  italics,  as  well  as  that  of  the  Addendum,  have  been  arranged  between  the 
French  Minister  and  the  Inspector  General  of  Customs  and  Posts  by  an  exchange  of  despatches,  of 
which  those  from  the  French  Minister  are  dated  the  21st  and  the  30th  January  1908  and  that  from 
the  Inspector  General  the  28th  January   1908. 


France. 


ARRANGEMENT  REGULATING  THE  EXCHANGE  OF  POSTAL  PARCELS  BETWEEN  THE 
ADMINISTRATION  OF  POSTS  AND  TELEGRAPHS  OF  FRANCE  AND  THE  ADMINIS- 
TRATION OF  CUSTOMS  AND  POSTS  OF  CHINA. 

October  21st,  1904 

(Translation) 

The  exchange  of  postal  parcels  between  the  Administration  of  Posts  and  Telegraphs  of  France 
and  the  Administration  of  Customs  and  Posts  of  China,  provided  for  in  Article  VIII  of  the  Postal 
Arrangement  concluded  on  the  3rd  February  1900  between  the  two  above-mentioned  Administrations, 
shall  be  regulated  according  to  the  conditions  hereunder  stated. 

ARTICLE  I. — Weight  of  Parcels. — The  maximum  weight  of  a  parcel,  whether  of  declared 
value  or  not,  shall  not  exceed   10  kilogrammes. 

However,  there  shall  be  an  exception  made  for  parcels  destined  for  Offices  of  the  Administration 
of  Customs  and  Posts  of  China  that  are  not  connected  by  railway  or  by  steamer,  in  which  case  the 
limit  shall  be  3  kilogrammes;  but  this  limit  may,  at  any  time  hereafter,  be  raised  by  mutual  agreement 
between   the  two   Administrations. 

ARTICLE  2. — Di.\i ensigns  of  Parcels. — The  postal  parcels  to  which  this  Convention  is  for  the 
present  to  apply  shall  be  those  of  which  no  dimension  shall  exceed  one  metre  and  fifty  centimetres, 
or  the  volume  of  which  shall  not  exceed  fifty-five  cubic  decimetres,  except  in  the  case  of  parcels  up 
to  three  kilogrammes  and  also  those  from  three  to  five  kilogrammes,  the  volume  of  which  shall  not 
exceed  twenty-five  cubic   decimetres,  and  their  size  sixty  centimetres  in  any  one  direction. 

However,  parcels  up  to  five  kilogrammes,  containing  umbrellas,  walking-sticks,  charts,  plans,  and 
such-like  articles,  shall  be  accepted  if  they  do  not  exceed  one  metre  long  and  twenty  centimetres 
broad  (or  thick). 

The  limits  of  dimensions  and  of  volume  herein  determined  may  be  increased  by  mutual  agreement. 
ARTICLE  3. — Exchange  of  Parcels. — Unless  otherwise  agreed  to  by  the  two  Administrations, 
the  exchange  of  postal  parcels  shall  take  place  through  the  intermediary  of  the  French  Offices 
established  in  China  and  the  Chinese  Offices  established  in  the  same  localities  as  these  French  Offices. 
ARTICLE  4. — Trans.mission  of  Parcels. — 1°.  The  French  Administration  shall  be  the_  inter- 
mediary, by  means  of  the  services  it  may  maintain,  for  the  exchange  of  parcels  between  China  on 
the   one   part   and    France,    French   colonies,   and    Foreign   countries   on   the   other. 

2°.  The  Administration  of  Customs  and  Posts  of  China  engages  on  its  part  to  assure  the 
transmission  by  its  services  of  all  parcels  that  shall  be  handed  to  it  by  the   French  Administration. 

ARTICLE  5. — Tariffs  and  Postage. — Each  Administration  shall  itself  determine  the  taxes  and 
duties  to  be  collected  on  postal  parcels  forwarded  by  its  own  Offices. 

The  prepayment  of  postage  on  postal  parcels  shall  be  obligatory  before  departure.  However, 
the  fee  for  delivery  shall  be  payable  by  the  addressee. 

Moreover,  parcels  destined  for  places  in  China  not  connected  by  railway  or  by  steamer  may  be 
further  charged  for  transmission  beyond  railway  or  steamer  services,  at  the  expense  of  the  addressee, 
supplementary  taxes  the  amount  of  which  shall  be  determined  by  the  Administration  of  Customs  and 
Posts  of  China. 

It  is  understood  that  the  French  Administration  shall  not  tax  parcels  exchanged  between  its 
Offices  in  China  at  rates  lower  than  those  charged  by  the  Chinese  Administration  of  Posts. 

ARTICLE   6. — Transit  Charges. — 1°.   The  Administration  of  Customs  and   Posts   of   China   shall 
pay  to  the  Administration  of  Posts  and  Telegraphs  of   France  the  following  charges: — 
For  each  parcel  destined  for  continental  Frilnce: 

Up  to   5  kilogrammes Frs.  3.15 

From    5    to    10    kilogrammes ,,      4.80 

For  each  parcel  destined  for  Algeria  or  for  Corsica,  the   following  additional  charges: 
Fr.  0.50  for  parcels  up  to  5  kilogrammes. 
Fr.  0.85   for  parcels  from  5  to   10  kilogrammes. 
For   parcels   destined    for    French   colonies   and    for    Foreign   countries,   the   charges    indicated 
in    Table    A,    drawn    up    by    the    Administration    of    French    Posts    in    accordance    with 
Article    i    of   the   "  Reglement   de   detail   et   d'ordre,"    for   the   fulfilment   of   the    Interna- 
tional Convention  of  Washington. 


NUMBER  1906/3 :  MAY  26,  1906  591 

2°.  The  Administration  of  Posts  of  France  shall  pay  to  the  Administration  of  Customs  and 
Posts  of  China  for  tlie  transmission  of  each  postal  parcel  handed  to  this  Administration  to  be 
forwarded  by  its  services  the  following  charges: — 

rof.25    for   all   maritime  transit   not  exceeding   500   nautical   miles,   or 
for  all  territorial  transit   not  exceeding    1,000  kilometres. 
TTr.  tn    r    \ri^r,<rrr,m,-npc  J    0^-50    for   all    maritime   transit   of    from    500   to    1,000    nautical    miles, 
up  10    5    Kilogrammes^  ^^   ^^^   ^,j   jg^ritorial   transit    of   from    1,000    to   2,000   kilometres. 

Lif.    for    all    maritime    transit    exceeding    1,000    nautical    miles,    or    for 
all  territorial  transit  exceeding  2,000  kilometres. 


r  of.40   for  all   maritime  transit   not   exceeding   500   nautical   miles,   or 
I  for   all   territorial   transit   not   exceeding    1,000   kilometres. 

From    5    to    10    kilo-  J    of./s    for  all   maritime  transit   of   from   500   to    1,000   nautical   miles, 
grammes.  }  or    for  all   territorial   transit   of   from    1,000   to   2,000   kilometres. 

Lif.50   for  all   maritime  transit  exceeding    1,000   nautical   miles,   or   for 
all  territorial   transit   exceeding   2,000   kilometres. 

ARTICLE  7. — Parcels  of  Declared  Value. — Besides  the  transit  charges,  the  Administration  of 
origin  shall  pay,  in  respect  of  insurance  fees  on  parcels  of  declared  value,  to  the  other  Administration, 
and,  if  need  be,  to  each  Administration  participating  in  the  transmission  when  such  Administration 
is  under  guarantee  of  responsibility,  a  proportional  part  of  the  determined  insurance  fee,  viz. :  for 
300  francs  or  fraction  of  300  francs,  of.05  centimes  for  territorial  transit,  and  of.  10  centimes  for 
maritime  transit. 

For  parcels  destined  for  Corsica  and  for  Algeria,  the  share  due  to  the  French  Administration 
shall  be  of.35  centimes  per  300  francs. 

ARTICLE  8. — AcKNOWLEDG.MENT  OF  RECEIPT. — The  sender  of  a  postal  parcel  may  obtain  an 
acknowledgment  of  receipt  of  his  parcel  by  paying  a  fee  that  shall  not  exceed  25  centimes. 

The  same  fee  may  be  charged  when,  subsequent  to  posting,  inquiries  are  made  about  a  parcel, 
provided  the  special   fee   for  an  acknowledgment  of   receipt   has  not  been   paid  already. 

This  charge  shall  accrue  entirely  to  tlie  Administration   of   origin. 

ARTICLE  9. — Delivery  and  Custo.ms  formalities. — It  shall  be  allowable  for  the  country  of 
destination  to  collect  from  the  addressee  a  fee  that  shall  not  exceed  of.25  centimes  per  parcel  for 
delivery  and  Customs  formalities. 

ARTICLE  10. — Annulation  of  Customs  Duties. — In  the  case  of  the  re-transmission  or  of  the 
return  of  a  parcel  to  the  Office  of  origin,  the  Customs  duties  that  have  been  paid  on  the  parcel  in 
the  country  of  first  destination  shall  be  annulled. 

ARTICLE  II. — Responsibility. — 1°.  Except  in  cases  of  force  majeure,  if  a  postal  parcel  be  lost, 
despoiled,  or  damaged,  the  sender  or,  in  his  default  or  by  his  request,  the  addressee  shall  be  entitled 
to  an  indemnity  corresponding  to  the  actual  amount  of  the  loss,  the  spoliation,  or  the  damage,  unless 
this  damage  be  caused  by  the  fault  or  by  the  negligence  of  the  sender,  or  be  due  to  the  nature  of 
the  parcel  itself;  but  this  indemnity  shall  not  exceed  25  francs  for  ordinary  parcels  up  to  5  kilo- 
grammes, 40  francs  for  parcels  from  5  to  10  kilogrammes,  and  the  declared  value  for  parcels  of 
declared  value. 

Besides,  the  sender  of  a  lost  parcel  shall  be  entitled  to  refund  of  the  postage  on  the  parcel  and 
also  to  the  postage  expenses  connected  with  making  the  inquiries  when  the  cause  of  the  claim  is 
due  to  the  fault  of  the  Post  Office.  However,  the  insurance  fee  shall  be  retained  by  the  Postal 
Administrations. 

2°.  The  obligation  to  pay  the  indemnity  shall  be  incumbent  upon  the  Administration  of  the  Office 
of  origin;  it  shall  then  rest  with  this  Administration  to  prefer  a  claim  against  the  responsible 
Administration,  that  is  to  say,  against  the  Administration  upon  whose  territory  or  in  whose  service 
the  loss,  spoliation,  or  damage  shall  have  taken  place. 

3°.  Until  proved  to  the  contrary,  the  responsibility  shall  remain  with  the  Administration  which, 
having  received  the  parcel  without  making  any  remark,  can  establish  neither  its  delivery  at  its 
destination  nor,  as  may  happen,  its  regular  transmission  to  the  next  Administration. 

4°.  The  payment  of  the  indemnity  by  the  Office  of  origin  shall  be  made  as  soon  as  possible, 
and  not  later  than  one  year  after  the  date  of  the  claim.  The  responsible  Office  shall  refund  without 
delay  to  the  Office  of  origin  the  amount  of  the  indemnity  paid  by  the  latter. 

The  Office  of  origin  shall  be  authorised  to  indemnify  the  sender  on  behalf  of  the  intermediary 
Office  or  of  the  Office  of  destination  which,  having  been  regularly  notified,  shall  have  allowed  one 
year  to  elapse  without  having  settled  the  claim.  Moreover,  in  the  case  of  an  Office  whose  responsibility 
shall  be  duly  established  which  shall  decline  altogether  to  pay  the  indemnity,  it  shall  undertake  to 
pay,  besides  the  indemnity,  the  accessory  expenses  resulting  from  undue  delay  in  making  the  payment. 

5°.  It  is  understood  that  a  claim  shall  be  admitted  only  if  made  within  one  year  from  the  date 
of  posting  the  parcel;  after  this  limit  the  claimant  shall  not  be  entitled  to  any  indemnity. 

6°.  If  the  loss  or  damage  happen  during  transmission  between  the  Offices  of  exchange  of  the 
two  Administrations,  thus  rendering  it  impossible  to  decide  upon  which  of  the  two  territories  the  act 
took  place,   the  two  Administrations  concerned  shall   share  the   loss  equally. 

7°.  The  Administrations  shall  cease  to  be  responsible  for  postal  parcels  delivery  of  which  shall 
have  been  taken  by  the  persons  entitled  to  receive  them. 

ARTICLE  12. — Offices  authorised  to  exchange  Parcels. — The  Postal  Administrations  of 
France  and  of  China  shall  designate  the  Offices  or  the  localities  at  which  the  exchange  of  postal 
parcels  is  to  be  allowed. 

They  shall  supply  each  other  with  a  list  of  the  places  open  to  this  service. 

ARTICLE  13. — Articles  prohibited. — Parcels  shall  not  contain  any  letter  or  note,  either  sealed 
or  open,  that  might  establish  a  correspondence  between  the  sender  and  the  addressee.  Exception 
may  be  made  only  in  the  case  of  invoices,  price  lists,  and  other  open  documents  that  relate  exclusively 
to  the  contents  of  the  parcel. 

The  sender  shall  also  be  forbidden  to  enclose  in  a  parcel  any  explosive  or  inflammable  material 
and  generally  all  articles  the  transmission  of  which  presents  any  danger  whatsoever,  or  the 
importation  of  which  shall  be  contrary  to  the  laws  or  to  Customs  regulations,  or  otherwise  not 
authorised. 

Parcels  containing  money,  articles  made  of  gold  or  of  silver,  and  other  precious  articles,  must 
have  their  value  declared. 

In  case  of  infraction  of  these  above  rules,  the  parcel  shall  simply  be  returned  to  the  place  of 
origin. 

The  tvv'o  Administrations  shall  communicate  to  each  other  a  list  of  things  and  products  forbidden 
importation   into   their   territories. 

ARTICLE  14. — Suspension  of  the  Service. — In  extraordinary  circumstances  of  a  nature  to  justify 
the  measure,  each  Administration  may  temporarily  suspend  the  parcel  post  service,  either  entirely 
or  partially,  on  condition  that  immediate  notice  be  given,  if  need  be  by  telegraph,  to  the  other 
Administration  concerned. 


592  CHINA  TREATIES  AND  AGREEMENTS 

ARTICLE  15. — Fulfilment  of  the  Convention. — The  Postal  Administrations  of  France  and 
of  China  shall  settle  all  matters  of  detail  and  of  disposition,  in  order  to  ensure  the  fulfilment  of 
the  present  Convention. 

They  shall  supply  to  each  other  a  list  of  the  countries  with  which  they  may  respectively  serve  as 
intermediaries. 

Especially  shall  the  Postal  Administration  of  France  undertake  to  enter  into  negotiations  with 
railway  and  navigation  companies,  in  order  to  assure  the  complete  fulfilment  by  these  companies  of 
all  the  clauses  of  the  said  Convention,  and  also  to  organise  the  service  of  exchange.  The  French 
Administration  shall  act  for  the  companies  as  intermediary  in  all  their  relations  with  the  Administra- 
tion of  Customs  and  Posts  of  China. 

ARTICLE  16. — General  Provision. — The  internal  legislation  of  each  of  the  contracting  countries, 
as  well  as  the  dispositions  of  the  International  Convention  of  Washington  and  of  the  "  Reglement  de 
detail  "  thereto  annexed,  shall  remain  applicable  to  all  points  not  herein  provided  for  or  not  contrary 
to  the  present  Convention. 

ARTICLE  17. — Duration  of  the  Present  Convention. — The  present  Arrangement  shall  be  put 
into  operation  from  a  day  mutually  to  be  agreed  upon  by  both  Administrations,  and  it  shall  remain 
in  force  for  an  indefinite  period.  However,  the  contracting  parties  reserve  to  themselves  the  right 
to  make  at  any  time  such  modifications  therein  as  they  may  by  mutual  agreement  judge  necessary,  or 
to  terminate  the  Arrangement  by  giving  at  least  six  months  notice  in  advance. 


Great  Britain   (Hongkong). 

ARRANGEMENT  SETTING  FORTH  THE  RELATIONS  ESTABLISHED  BETWEEN  THK 
POSTAL  ADMINISTRATION  OF  HONGKONG  AND  THE  POSTAL  ADMINISTRATION 
OF  CHINA. 

December  12th  and  2gth,   1904 

ARTICLE  I. — Exchange  of  Mails. — i. — There  shall  be  between  the  Postal  Administration  of 
Hongkong  (which  includes  the  British  Postal  Agencies  operating  in  the  Treaty-port  Settlements  of 
China)  and  the  Postal  Administration  of  China  a  regular  exchange  of  postal  articles  of  all  kinds — 
ordinary,  registered,  international,  or  in  transit,  closed  or  a  decouvert — by  any  means  of  transport, 
ordinary  or  special,  now  established  or  hereafter  to  be  established,  which  each  Administration  may 
have  at  its  disposal. 

2. — The  exchange  of  mails  between  the  two  Administrations  will  take  place  through  the  British 
Postal  Agencies  in  China  and  the  Chinese  Post  Offices  established  in  the  same  localities  as  these 
British  Postal  Agencies,  or,  where  no  British  Postal  Agency  exists,  between  the  British  and  Chinese 
Post  Offices  at  Shanghai  for  mails  to  and  from  river  and  coast  ports  north  of  Shanghai,  but,  for 
mails  to  and  from  southern  ports,  direct  between  Hongkong  and  the  Chinese  Post  Offices  at  these 
ports,  which  will  be  specially  designated.  Other  Offices  may,  on  agreement  between  the  two  Adminis- 
trations, be  designated   for  the  exchange  of  mails  wherever  postal   requirements  may   demand   it. 

ARTICLE  II. — Transport  of  Mails. —  i.— The  Chinese  Post  Offices  will  accept  from  Hongkong 
and  the  British  Postal  Agencies  in  China  mails,  closed  or  a  decouvert,  destined  for  Chinese  or  Foreign 
Post  Offices  established  in  or  out  of  China,  and  will  undertake  to  transmit  them  to  destination  by 
any  means  of  transport  at  the  disposal  of  the  Chinese  Administration. 

2. — The  Hongkong  Post  Office  or  the  British  Postal  Agencies  in  China  on  its  behalf  will  accept 
from  the  Chinese  Post  Offices  mails,  closed  or  d  decouvert,  destined  for  Chinese  or  Foreign  Post 
Offices  established  in  or  out  of  China,  and  will  undertake  to  transmit  them  to  destination  by  any 
means  of  transport  at  the  disposal  of  the  Hongkong  Administration. 

3. — Each  Administration  will  support  the  cost  of  maintenance  of  the  transport  services,  ordinary 
or  special,  which  it  may  establish  for  the  carriage  of  mails,  but  will  be  entitled  to  claim  payment 
of  the  transit  charges  hereunder  stipulated  in  Article  V. 

ARTICLE  III. — ReiMItting  of  Mails. —  i.^The  remitting  of  mails,  closed  or  a  decouvert,  from 
one  Administration  to  the  other  will  take  place  at  the  Offices  or  any  other  authorised  places  for 
exchange,  and  will  be  made  from  hand  to  hand  between  agents  regularly  appointed  for  this  duty. 

2. — The  duplicate  copy  of  the  Way  Bill,  called  Part,  brought  by  the  remitting  agent  and  indicating 
the  number  of  packages  or  bags  remitted,  will  be  at  once  signed  by  the  receiving  agent  and  handed 
back  to  him  as  acknowledgment  of  receipt.  Inside  each  package  or  bag  a  Feuille  d'Avis  will  be 
enclosed,  containing  the  particulars  called  for  in  Article  XX  of  the  Reglement  appended  to  the 
International  Convention  of  Washington. 

3. — From  the  moment  this  agent  has  taken  delivery  of  the  mails  and  issued  an  acknowledgment 
of  receipt,  without  making  any  observation  as  to  the  number  or  condition  of  the  packages  or  bags, 
the  despatching  Office  will  be  discharged  of  further  responsibility,  which  thereafter  will  lie  with  the 
receiving  Office. 

ARTICLE  IV. — Postage  and  Delivery. — i. — Each  Administration  will  use  its  own  postage 
stamps  to  frank  any  mail  matter,  whatever  its  destination,  originating  in  its  own  Offices,  and  will 
deliver  to  the  addressees,  free  of  additional  charge  in  all  the  localities  where  it  has  a  Post  Office, 
any  mail  matter,  whatever  its  origin,  which  arrives  duly  and  sufficiently  prepaid  by  means  of  postage 
stamps  of  the  other  Administration. 

2. — Each  Administration  fixes  its  tariffs.  It  is  understood  that  the  Hongkong  Administration  will 
not  apply  to  mail  matter  exchanged  between  its  own  Offices  in  China  taxes  lower  than  those  adopted 
by  the  Chinese  Administration.  On  the  other  hand,  the  Chinese  Administration  will  comply,  in 
respect  of  any  mail  matter  it  may  exchange  with  the  Union  countries  through  the  British  Offices, 
with  the  stipulations  of  Article  5  of  the  Convention  of  Washington.  The  two  Administrations  will 
communicate  to  each  other  their  tariffs. 

N.B. — The  Imperial  Chinese  Post  Office  undertakes  the  transmission  and  delivery,  free  of  charge, 
to  any  place  in  China  where  one  of  its  establishments  is  or  may  hereafter  be  established, 
of  all  letters  of  Foreign  provenance  handed  over  to  it  d  decouvert  by  the  Hongkong  Post 
Office  or  its  Agencies,  if  fully  prepaid  at  Union  rates,  or,  if  originated  in  Hongkong,  at  a 
specified  tariff.  But  a  domestic  rate  will  be  charged  on  other  articles  of  mail  matter — 
newspapers,  books,  parcels,  etc. — if  addressed  to  inland  places  not  accessible  by  railway 
or  steamer,  to  be  collected  from  the  addressee  before  delivery. 

3. — Mail  matter  destined  for  places  inland  where  no  Post  Office,  Chinese  or  British,  is  yet 
.opened  will   be  sent  to   destination   through   private  agencies  at   the   risk  and   expense   of  the   addressee. 

4. — Should  it  happen  that,  on  Chinese  territory  and  in  the  same  town,  both  a  Chinese  and  a 
British  Postal  Agency  exist,  each  Office  will  undertake  the  delivery  of  any  mail  matter  arriving  to 
its  address.  But  the  Hongkong  Administration  may,  by  payment  of  an  adequate  tax,  avail  itself  of 
the  services  of  the  Chinese  Offices  to  ensure  the  distribution  of  mail  matter  received  at  the  British 
Postal  Agencies. 


NUMBER  1906/3:  MAY  26,  1906  593 

ARTICLE  V. — Transit  Charges. — i. — Closed  mails  and  correspondence  d  decouvert  despatched 
on  account  of  Chinese  or  Hongkong  Post  Offices  by  means  of  the  transport  services  of  one  or  the 
other  of  the  contracting  Administrations  will  be  submitted,  to  the  benefit  of  the  Administration  whose 
services  carry  these  mails,  to  the  following  transit  charges: — 

(a.)  Within  the  Chinese  Empire  and  along  the  littoral  of  China,  Foreign  bordering  countries 
included,  when  the  distance  does  not  exceed  1,500  nautical  miles,  and  when  both 
the  Chinese  and  the  Foreign  ports  are  united  by  the  same  line  of  steamers: 

1°.    For    territorial    transit    by    rail,    and    also    for    maritime    transit    not    exceeding 
300    nautical    miles,    2    francs   per   kilogramme   of    letters   or    postcards,    and 
25   centimes  per  kilogramme  of  other  articles; 
2°.   For    territorial    transit    by   courier,    and    also    for    maritime    transit    exceeding 
300   nautical    miles,    5    francs    per   kilogramme    of   letters   and    postcards,    and 
so  centimes  per  kilogramme  of  other  articles. 
(&.)  Outside   of   the   Chinese    Empire,    for   any   transport   of   mails   other   than   the   categories 
provided  for  in  the  preceding  paragraph,   (n.): 

1°.  For  territorial  or  maritime  transit,  the  amounts,  per  kilogramme  of  letters 
or  other  articles,  fixed  by  Article  4  of  the  *'  Convention  Principale  "  of 
Washington,  calculated,  according  to  distances  and  the  countries  traversed, 
in  the  Table  E  published  by  the  contracting  Administrations; 
2".  As  to  correspondence  franked  by  means  of  Chinese  postage  stamps  destined 
for  the  United  Kingdom  and  its  Colonies,  Possessions,  and  Agencies,  or 
for  Foreign  countries,  whether  despatched  closed  or  a  decouvert,  in  transit 
through  Hongkong  and/or  the  British  Postal  Agencies,  they  will  be  forwarded 
to  their  respective  destinations  in  the  same  manner  and  liable  to  the  same 
transit  charges  as  the  correspondence  remitted  to  the  Hongkong  Adminis- 
tration by  the  other  Administrations  of  the  Postal  Union.  The  transit 
charges  will  be  guaranteed  by  the  Hongkong  Administration  and  periodically 
refunded  by  the  Chinese  Administration. 

2. — It  is  understood — 

1°.  That  any  territorial  transit  by  rail  is  free  of  charge  if  the  Administration  concerned 
is  already  entitled  to  claim,  on  the  mail  matter  thus  conveyed  by  rail,  refund  for 
maritime  transit; 

2°.  That  any  transit  on   the  Yangtze-kiang  is  considered  as  maritime  transit; 

3°.  That  mail  matter  originating  from  Foreign  countries,  remitted  a  decouvert  at  the  place 
of  landing  by  Hongkong  or  the  British  Postal  Agencies  to  a  Chinese  Office  or  vice 
versa,  to  be  transmitted  to  inland  places,  will  be  exempted   from   transit  charges; 

4°.  That  the  reductions  or  exemptions  stipulated  in  Article  4  of  the  Convention  of 
Washington  will  also  apply  to  the  present  Arrangement. 

3. — Charges  for  transport  of  mails  by  means  of  services  or  ships  independent  of  the  Hongkong  or 
Chinese  Administrations  will  be  settled  under  the  terms  agreed  between  the  interested  parties. 

ARTICLE  VI. — Men-of-War  Mails. — The  closed  mails  handed  in  to  the  Chinese  Offices  by  a 
British  Postal  Agency  for  transmission  to  the  commander  of  a  man-of-war  of  whatever  nationality, 
or  by  the  commander  of  a  man-of-war  of  whatever  nationality  for  transmission  to  Hongkong  or 
British  Postal  Agency,  will  be  subjected,  in  account  with  the  Hongkong  Administration,  to  the 
transit  charges  enumerated  in  the  preceding  Article. 

ARTICLE  V'll. — Transit  Statistics. — The  balancing  of  the  transit  charges  account  will 
necessitate  an  annual  settlement  between  the  two  Administrations,  to  be  calculated  on  the  basis 
of  statistics  taken  annually  under  the  rules  laid  down  in  the  Conventions  of  the  Postal  Union  in 
force  at  the  time.  These  statistics  will  be  taken  each  year  during  the  first  28  days  of  the  months 
of  May  and  November  alternately. 

ARTICLE  \TII. — Parcel  Post. — i. — The  exchange  of  parcels,  as  also  the  exchange  of  money 
orders,  letters  with  declared  value  of  contents,  etc.,  will  be  made  the  subject  of  special  arrangements 
as  soon  as  the  principal  Arrangement  is  put  in  force. 

ARTICLE  IX. — Responsibility  and  Liability. — 1. — In  case  of  the  loss  of  a  registered  article  of 
correspondence  or  of  a  closed  mail,  the  Administration  which  has  undertaken  its  transport  and  cannot 
account  for  its  delivery  or  transmission  to  the  other  Administration  will  be  held  responsible  for 
the  lost  registered  article  or  the  registered  articles  contained  in  the  closed  mail,  within  the  limits  of 
Article  8  of  the  "  Convention  Principale  "  of  Washington  and  of  Article  XXIII  of  the  "  Reglement 
d'Ordre  et  de  Detail  "  thereto  appended. 

2. — The  loss  or  spoliation  of  a  parcel  will  give  right  to  an  indemnity,  which  may  amount  to 
the  equivalent  of  the  loss  or  damage  suffered,  but  can  in  no  case  exceed  25  francs  for  non-insured 
parcels  or  1,000  francs  for  insured  parcels. 

3. — The  protection  granted  above  to  registered  articles  and  parcels  will  not  extend  beyond  the 
working  limits  of  the  postal  services  of  the  contracting  Administrations,  and  will  not  cover  losses  or 
damages  arising  from  cases  of  force  majeure,  such  as  tempest,   shipwreck,  war,  brigandage,  etc. 

ARTICLE  X. — Notice  of  Changes  in  Organisation. — The  Postal  Administrations  of  China  and 
Hongkong  will  communicate  to  each  other  the  changes  which  may  take  place  in  the  organisation  and 
arrivals  and  departures  of  their  respective  services  for  the  transport  of  mails,  whenever  notice  of 
such  changes  may  prove  useful  to  the  two  Administrations  or  to  the  Foreign  Administrations  that 
have  recourse  to  their  intermediation. 

ARTICLE  XI. — Extent  of  Present  Arrangement. — The  Postal  Administration  of  China, 
though  it  has  not  yet  subscribed  to  the  Treaties  of  the  Universal  Postal  Union,  hereby  agrees  to 
abide,  as  far  as  the  present  Arrangement  is  concerned,  by  the  stipulations  of  the  "  Convention 
Principale"  and  of  the  "Reglement  d'Ordre  et  de  Detail,"  concluded  at  Washington  on  the  15th 
June  1897. 

The  present  Arrangement  will  thus  form,  with  the  documents  of  the  Postal  Union  mentioned 
above,  the  whole  of  the  dispositions  to  be,  as  far  as  possible,  observed  in  the  postal  relations  between 
the  Chinese  Post  Offices  and   Hongkong  and  the   British   Postal   .-Ngencies  in  China. 

ARTICLE  XII. — Duration  of  Arrange.ment. — The  present  .-\rrangement  will  be  gradually  put 
in  force  as  soon  as  possible,  and  will  remain  in  force  for  an  indeterminate  period.  The  two 
Administrations  may,  however,  at  any  time  introduce  in  it  any  such  modifications  as  they,  on 
consultation,  may  find  necessary,  or  bring  the  Arrangement  to  an  end  by  giving  notice  six  months  in 
advance. 


594  CHINA  TREATIES  AND  AGREEMENTS 

Germany. 

ARRANGEMENT  SETTING  FORTH  THE  RELATIONS  ESTABLISHED  BETWEEN  THE 
IMPERIAL  POSTAL  ADMINISTRATION  OF  GERMANY  AND  THE  IMPERIAL  POSTAL 
ADMINISTRATION  OF  CHINA.* 

October  25th  and  November  3rd,   1905 

ARTICLE  I. — Exchange  of  Mails. —  i. — There  shall  be  between  the  Imperial  Postal  Administra- 
tion of  Germany  and  the  Imperial  Postal  Administration  of  China  a  regular  exchange  of  postal 
articles  of  all  kinds — ordinary,  registered,  international,  and  in  transit,  closed  or  a  decouvert — by  any 
means  of  transport,  ordinary  or  special,  now  established  or  hereafter  to  be  established,  which  each 
Administration  may  have  at  its  disposal. 

2. — The  exchange  of  mails  between  the  two  Administrations  will  take  place  through  the  German 
Post  Offices  established  in  the  Treaty  ports  and  the  Chinese  Post  Offices  established  in  the  same 
ports. 

The  following  are  to  be  recognised  as  Offices  of  exchange  by  the  Chinese  Administration:  the 
German  Office  in  the  Legation  quarter  at  Peking,  under  the  same  conditions  as  the  other  Foreign 
Offices  therein  opened;  the  German  Office  at  Chinan;  and,  temporarily,  according  to  the  special 
understanding  on  that  point,  the  German  Office  at  W'eihsien, — both  situated  outside  the  international 
trade  mart  limits;  and,  on  the  other  hand,  by  the  German  Administration:  the  Chinese  Office  at 
Tsingtau,  with  the  understanding  that  that  Olhce  will,  for  the  transport  of  its  mails,  avail  of  the 
Shantung  Railway  without  the  intermediary  of  the  German  Office. 

ARTICLE  II.^Transport  of  Mails. — i. — The  Chinese  Post  Offices  will  accept  from  the  German 
Post  Offices  mails,  closed  or  d  decouvert,  destined  for  Chinese,  German,  or  Foreign  Post  Offices 
established  in  or  out  of  China,  and  will  undertake  to  transmit  them  to  destination  by  the  (most 
rapid)   means  of  transport  at  the  disposal  of  the  Chinese  Administration    (for  its  own   sendings). 

2. — The  German  Post  Offices  will  accept  from  the  Chinese  Post  Offices  mails,  closed  or 
d  decouvert,  destined  for  Chinese,  German,  or  Foreign  Post  Offices  established  in  or  out  of  China, 
and  will  undertake  to  transmit  them  to  destination  by  the  (most  rapid)  means  of  transport  at  the 
disposal   of  the   German  Administration    (for   its   own   sendings). 

3. — The  German  Office  at  Tsingtau  will  hand,  d  decouvert,_  to  the  Chinese  Office  the  articles  of 
correspondence  for  the  localities  of  the  interior  other  than  Weihsien  and  Chinan,  and,  inversely,  the 
Chinese  Office  will  hand  to  the  German  Office  the  articles  of  correspondence  from  these  localities 
destined  for  Tsingtau. 

4. — Each  Administration  will  support  the  cost  of  maintenance  of  the  transport  services,  ordinary 
or  special,  which  it  may  establish  for  the  carriage  of  mails,  but  will  be  entitled  to  claim  paymept  of 
the  transit  charges  hereunder  stipulated  in  Article  V. 

ARTICLE  III. — Remitting  of  Mails. —  i. — The  remitting  of  mails,   closed   or  a   decouvert,   from 


*  See  §  4  of  the  Sinojapanese  Agreement  of  March  26th,  1917,  in  regard  to  Postal  and  Tele- 
graphic Operations  at  the  Leased  Territory  of  Kiaochow  Bay  and  along  the  Kiao-Tsi  Railway 
(No.  1917/S,  post.) 

In  B  &  F.  State  Papers,  vol.  99,  p.  954,  are  printed  the  following  communications  interchanged 
between  the  Inspector-General  of  Customs  and  the  German  Minister  at  Peking  in  regard  to  this 
Arrangement : — 

The  Inspector-General  of  Customs  and  Posts  to  His  Excellency  the  German  Minister. 

Peking,    November    4,    1905. 
"  Sir. 

"I  have  the  honour  to  acknowledge  your  letter  notifying  to  me  your  approval  of  the  Postal  Agree- 
ment concluded  between  our  respective  Administrations  on  the  25th  October,  1905,  and  I  join  your 
Excellency  in  the  hope  that  this  new  instrument  will  yield  mutual  advantages  to  Germany  and  China. 

"Your   Excellency   calls  attention  to  three   particular   points,   namely: — 

"  1. — It  is  understood  that  the  suppression  of  the  German  Post  Offices  in  the  interior  of  Shantung 
will  take  place  after  the  conclusion  of  the  present  Agreement,  with  the  exception  of  the  Offices  of 
Exchange  designated  in  paragraph  2  of  Article  I,  the  Office  of  Kaomi  not  being  withdrawn  till  after 
the  military  evacuation  of  that  place; 

"  2. — Your  Excellency's  Government  would  be  pleased  to  receive  from  the  Chinese  Administration 
the  assurance  that  German-speaking  employes  will  be,  as  far  as  possible,  used  in  the  postal  establish- 
ments situated   in  the   sphere  of  German   interests  in  Shantung;   and 

"  3. — Your  Excellency  will  recommend  to  your  Government  to  exercise  influence  on  the  Shantung 
Railway  Administration  to  bring  it  to  grant  to  the  Chinese  Post  Office  equitable  conditions,  proportionate 
to  those  usual  on  other  railway  lines  in  China,  for  the  concession  of  the  right  to  use  this  Administra- 
tion's lines  for  the  transport  of  its  despatches  under  the  supervision  of  its  own  agents  independently 
of  the  German   Postal    Service. 

"  In  acknowledging  your  Excellency's  remarks  on  these  three  points  I  place  willingly  on  record  my 
agreement  with  them;  it  may  be  well  to  addt  however,  that  German-speaking  employes  can  only  be  used 
if  procurable,  and  that  the  matters  referred  to  under  paragraphs  i  and  3  are  questions  which  formed, 
from  the  first,  an  essential  part  of  the  negotiations  now  concluded. 

"  I  shall  he  glad  if  the  question  mentioned  in  the  last  paragraph  of  your  Excellency's  letter  can  be 
speedily  settled;  it  will  be  in  the  interest  of  the  public  and  a  simple  measure  of  reciprocity  if,  as 
desired  by  (Thina,  the  Chinese  Post  Office  at  Tsingtau  is  allowed  to  land  and  ship  direct  from  or  to  its 
own  steamers  the  mails  passing  through  that  port. 

"  I  have,  etc., 

"  Robert    Hart." 

His  Excellency  the  German  Minister  to  the  Inspector-General  of  Customs  and  Posts. 

Peking,  November  23,  1905. 

'"'  With  reference  to  my  letter  dated  November  3rd,  1905,  I  have  the  honour  to  hand  to  your 
Excellency  herewith  one  copy  of  the  Postal  Agreement  concluded  between  our  respective  .\dministra- 
tions  and  which  was  signed   irv  duplicate  by  the  German   Postmaster   in  Shanghai  on   November  3rd. 

"  The  suppression  of  the  German  Post  Offices  in  Tschingchoufu,  Tschoutsun,  and  Kiaochow  will 
take  place  on  the  31st  of  December,   1905. 

I  have,  etc., 

"  A.   V.    MUMM." 


NUMBER  1906/3 :  MAY  26,  1906  595 

one  Administration  to  the  other  will  take  place  at  the  (corresponding)  Offices  (of  exchange)  or  any 
other  authorised  places  for  exchange  (fixed  on  by  mutual  consent),  and  will  be  made  from  hand  to 
hand  between  agents  regularly  appointed  for  this  duty. 

2. — The  duplicate  copy  of  the  Way  Bill,  called  Part,  brought  by  the  remitting  agent  and 
indicating  the  number  of  packages  or  bags  remitted,  will  be  at  once  signed  by  the  receiving  agent 
and  handed  back  to  him  as  acknowledgment  of  receipt.  Inside  each  package  or  bag  a  Feuille  d'Avis 
will  be  enclosed,  containing  the  particulars  called  for  in  Article  XX  of  the  Reglement  appended  to 
the  Fnternational  Convention  of  Washington. 

3. — Frorn  the  moment  this  agent  has  taken  delivery  of  the  mails  and  issued  an  acknowledgment 
of  receipt  without  making  any  observation  as  to  the  number  or  condition  of  the  packages  or  bags, 
the  despatching  Office  will  be  discharged  of  further  responsibility,  which  thereafter  will  lie  with 
the  receiving  Office  (till  proved  to  the  contrary). 

ARTICLE  IV. — Postage  and  Delivery. — i. — Each  Administration  will  use  its  own  postage 
stamps  to  frank  any  mail  matter,  whatever  its  destination,  originating  in  its  own  (Offices,  and  \v?ll 
deliver  to '  the  addressees  free  of  additional  charge  in  all  the  localities  where  it  has  a  Post  Office 
any  mail  matter,  whatever  its  origin,  which  arrives  duly  and  sufficiently  prepaid  by  means  of  postage 
stamps  of  the  other  Administration   (or  recognised  in  the  countries  of  origin). 

2. — Each  Administration  fixes  its  own  tariffs.  It  is  understood  that  the  German  Administration 
will  not  aoply  to  mail  matter  exchanged  between  its  own  Offices  in  China  taxes  lower  than  those 
adopted  by  the  Chinese  Administration.  On  the  other  hand,  the  Chinese  Administration  will  comply, 
in  respect  of  any  mail  matter  it  may  exchange  with  the  Union  countries  through  the  German  Offices, 
with  the  stipulations  of  Article  5  of  the  Convention  of  W'ashington.  The  two  Administrations  will 
communicate  to  each  other  their   tariffs. 

N.B. — Chinese  Post  Offices  steam  served  by  railways  or  steamers  will  transmit  and  deliver 
without  charge  the  international  articles  of  correspondence  duly  stamped  at  Union  rates  handed  to 
them  a  dccoti-'crt  by  the  German  bureaux,  as  also  those  originating  at,  or  destined  for,  Tsingtau, 
stamped  at  the  rate  ruling  between  the  German  bureaux  in  China;  but,  letters  and  postcards 
excepted,  these  articles  will  be  liable,  in  the  Chinese  bureaux  non-steam  served,  to  the  domestic 
charge  laid  down  in  the  Chinese  tariff. 

3. — Mail  matter  destined  for  places  inland  where  no  Post  Office,  Chinese  or  German,  is  yet 
opened  will  be  sent  to  destination  through  private  agencies  at  the  risk  and  expense  of  the  addressees. 
4- — Should  it  happen  that,  on  Chinese  territory  and  in  the  same  town,  both  a  Chinese  and 
German  Post  Office  exist,  each  Office  will  undertake  the  delivery  of  any  mail  matter  arriving  to  its 
address.  But  the  German  Post  Offices  may  continue,  by  payment  of  an  adequate  tax,  to  avail 
themselves  of  the  services  of  the  Chinese  Offices  to  ensure  the  distribution  of  their  mail  matter. 

ARTICLE  v.— Transit  Charges. — i. — Closed  mails  and  correspondence  d  decouvcrt  despatched 
on  account  of  Chinese  or  German  Post  Offices  by  means  of  the  transport  services  of  one  or  the 
other  of  the  contracting  Administrations  wit!  be  submitted,  to  the  benefit  of  the  Administration  whose 
services  carry  these  mails,  to  the  following  transit  charges: — 

(a.)  Within  the  Chinese  Empire  and  along  the  littoral  of  China,  Foreign  bordering  countries 
included,*  when  the  distance  does  not  exceed  1,500  nautical  miles,  and  when  both 
the  Chinese  and  the  Foreign  ports  are  united  by  the  same  line  of  steamers: 

1°.  For  territorial  transit  by  rail,  and  also  for  maritime  transit  not  exceeding 
300  nautical  miles,  2  francs  per  kilogramme  of  letters  or  postcards,  and  25 
centimes   per  kilogramme   of   other  articles; 

2°.    For    territorial    transit    by    courier,    and    also    for    maritime    transit    exceeding 
300    nautical    miles,    5    francs   per   kilogramme   of    letters   and    postcards,    and 
50  centimes  per  kilogramme  of  other  articles. 
(b.)   Outside  of  the    Chinese   Empire.f   for   any  transport  of  mails  other  than  the  categories 
provided   for  in  the  preceding  paragraph,    (a.)  : 

1°.  For  territorial  or  maritime  transit,  the  amounts,  per  kilogramme  of  letters 
or  other  articles,  fixed  by  Article  4  of  the  "  Convention  Principale  "  of 
Washington,  calculated,  according  to  distances  and  the  countries  traversed, 
in  the  Table  E  published  by  the  contracting  Administrations  (or  the  lists 
approved  of  by  these  Administrations  stating  the  weights  and  categories 
of  articles  transmitted). 

2°.  As  to  correspondence  franked  by  means  of  Chinese  postage  stamps,  destined 
for  the  German  Empire  and  dependencies  thereof  or  for  Foreign  countries, 
whether  despatched  closed  or  d  deconvert,  in  transit  through  the  German 
Post  Offices,  they  will  be  forwarded  to  their  respective  destinations  in 
the  same  manner  and  liable  to  the  same  transit  charges  as  the  corre- 
spondence remitted  to  the  German  Offices  by  the  other  Administrations 
of  the  Postal  Union.  The  transit  charges  will  be  guaranteed  by  the 
German  Administration  and  periodically  refunded  by  the  Chinese  Adminis- 
tration. 

2. — It  is  understood: — 

1°.   That    any    territorial    transit    by    rail    is    free    of   charge    if    the    Administration    concerned 

is   already    entitled    to    claim,    on    the    mail    matter    thus    conveyed    by    rail,    refund    for 

maritime  transit; 
2°.  That  any   transit  on  the  Yangtze-kiang  is  considered   as  maritime   transit; 
3°.  That   mail   matter   originating    from    Foreign    countries    remitted    d    decouvert   at    the   place 

of   landing  by  a  German   Office  to  a   Chinese   Office,   or  vice  versa,   to  be   transmitted 

to  inland  places,  will  be  exempted  from  transit  charges; 
4°.  That     the     reductions     or     exemptions     stipulated     in     Article     4     of     the     Convention     of 

Washington   will   also   apply  to  the   present   Arrangement. 

3-. — Charges  for  transport  of  mails  by  means  of  services  or  ships  independent  of  the  German 
or  Chinese  Administrations  will  be  settled  under  the  terms  agreed  between   the  interested  parties. 

ARTICLE  VI.— Men-of-War  Mails.— The  closed  mails  handed  in  to  the  Chinese  Offices  by  a 
German  bureau  for  transmission  to  the  commander  of  a  man-of-war  of  whatever  nationality,  or  by 
the  commander  of  a  man-of-war  of  whatever  nationality  for  transmission  to  a  CJerman  bureau, 
will  be  subjected,  in  account  with  the  German  bureau,  sender  or  receiver,  to  the  transit  charges 
enumerated  in  the  preceding  Article. 

ARTICLE  VII. — Transit  Statistics. — The  balancing  of  the  transit  charges  account  will  necessitate 
an  annual  settlement  between  the  two  Administrations,  to  be  calculated  on  the  basis  of  statistics 
taken   annually   under   the   rules   laid   down   in   the   Convention   of   the    Postal    Union    in    force   at    the    ' 


*  Articles  of  correspondence  of  all  categories,  domestic  or  international, 
t  Articles  of  correspondence  destined  for  Union  countries. 


596  CHINA  TREATIES  AND  AGREEMENTS 

time.     These  statistics  will  be  taken   each  year  during  the  first   28   days   of   the  months   of   May   and 
November  alternately. 

ARTICLE  VIII. — Parcel  Post. — i.— The  exchange  of  parcels,  as  also  the  exchange  of  money 
orders,  letters  with  declared  value  of  contents,  etc.,  will  be  made  the  subject  of  special  arrangements 
as  soon  as  the  principal  Arrangement  is  put  in   force. 

2. — Meanwhile,  in  order  to  offer  immediate  facilities  for  the  exchange  of  parcels,  the  Chinese 
Administration  is  willing: — • 

(a.)  To  transmit  and  distribute,  on  condition  that  the  addressee  will  pay  the  domestic 
tariff,  the  parcels — ordinary,  insured,  or  taxed  with  trade  charges — emanating  from 
Union  countries  handed  in  by  a  German  Office: 
(b.)  To  transmit  to  German  Ofiices,  after  payment  of  the  domestic  tariff  by  the  sender, 
the  parcels — ordinary,  insured,  or  taxed  with  trade  charges — destined  for  Union 
countries  which   may  be  handed   in  by  the  public. 

3. — As  to  domestic  parcels  emanating  from  or  destined  for  Tsingtau,  and  also  the  parcels  trans- 
mitted in  closed  bags  from  one  Office  to  the  other  by  the  Chinese  or  German  Offices,  they  will  be 
provisionally  transmitted  and  distributed  subject  to  the  conditions  of  ulterior  arrangements  between 
the  two  Administrations. 

ARTICLE  IX. — Responsibility  and  Liability. — i. — In  case  of  the  loss  of  a  registered  article  of 
correspondence  or  of  a  closed  mail,  the  Administration  which  has  undertaken  its  transport  and 
cannot  account  for  its  delivery  or  transmission  to  the  other  Administration  will  be  held  responsible 
for  the  lost  registered  article  or  the  registered  articles  contained  in  the  closed  mail,  within  the 
limits  of  Article  8  of  the  "  Convention  Principale  "  of  Washington  and  of  Article  XXIII  of  the 
"  Reglement  d'Ordre  et  de  Detail  "  thereto  appended. 

2. — The  loss  or  spoliation  of  a  parcel  will  give  right  to  an  indemnity,  which  may  amount  to  the 
equivalent  of  the  loss  or  damage  suffered,  but  can  in  no  case  exceed  25  francs  for  non-insured 
parcels  or   1,000  francs  for  insured  parcels. 

3. — The  protection  granted  above  to  registered  articles  and  parcels  will  not  extend  beyond  the 
working  limits  of  the  postal  services  of  the  contracting  Administrations^  and  will  not  cover  losses 
of  damages  arising   from   cases  of   force  majeure,    such   as  tempest,    shipwreck,    war,    brigandage,    etc. 

ARTICLE  X. — Notice  of  Changes  in  Organisation. — The  Postal  Administrations  of  China 
and  Germany  will  communicate  to  each  other  the  changes  which  may  take  place  in  the  organisation 
and  arrivals  and  departures  of  their  respective  services  for  the  transport  of  mails,  whenever  notice 
of  such  changes  may  prove  useful  to  the  two  Administrations  or  to  the  Foreign  Administrations  that 
have  recourse  to  their  intermediation. 

ARTICLE  XI. — Extent  of  Present  Arrangement. — The  Postal  Administration  of  China, 
though  it  has  not  yet  subscribed  to  the  Treaties  of  the  Universal  Postal  Union,  hereby  agrees  to 
abide,  as  far  as  the  present  Arrangement  is  concerned,  by  the  stipulations  of  the  "  Convention 
Principale"  and  of  the  "Reglement  d'Ordre  et  de  Detail,"  concluded  at  Washington  on  the  isth 
June  1897. 

The  present  Arrangement  will  thus  form  with  the  documents  of  the  Postal  Union  mentioned 
above,  the  whole  of  the  dispositions  to  be,  as  far  as  possible,  observed  in  the  postal  relations  between 
the  Chinese  Post  Offices  and  the  German  Post  Offices. 

ARTICLE  XII. — Duration  of  Arrangement. — The  present  Arrangement  will  be  gradually  put 
in  force  as  soon  as  possible,  and  will  remain  in  force  for  an  indeterminate  period.  The  two 
Administrations  may,  however,  at  any  time  introduce  in  it  any  such  modifications  as  they,  on 
consultation,  may  find  necessary,  or  bring  the  Arrangement  to  an  end  by  giving  notice  at  least  six 
months   in   advance. 


Great  Britain  (Natal). 

POSTAL  ARRANGEMENT  BETWEEN  CHINA  AND  NATAL. 

October  28th  and  December  27th,  1905 

In  order  to  establish  an  exchange  of  correspondence  between  China  and  the  British  Colonies  in 
South  Africa,  the  undersigned,  duly  authorised  for  that  purpose,  have  agreed  upon  the  following 
Articles : — 

Article  I. — There  shall  be  a  regular  exchange  of  correspondence  of  all  kinds  between  the 
Postal  Administration  of  China  and  the  Postal  Administration  of  Natal — via  Durban  or  other 
designated  place  or  places  in  Natal  for  correspondence  from  China,  and  via  any  Chinese  Treaty 
port  for  correspondence   from   Natal. 

Article  II. — Each  Administration  shall  be  entitled  to  send  through  the  intermediate  agency  of 
the  other  either  closed  mails  or  correspondence  a  decoiivert  to  any  other  country  with  which  the 
latter  Administration  has  postal  relations.  The  charges  payable  by  the  despatching  Administration 
in  respect  of  such  transit  correspondence  shall  be  at  the  rates  prescribed  by  the  Universal  Postal 
Union  Convention  and  settled  yearly  on  the  basis  of  statistics  taken  as  may  be  agreed  upon  hereafter. 

Article  III. — Each  Administration  shall  use  its  own  postage  stamps  and  maintain  Union  rates 
for  all  articles  of  correspondence  exchanged  between  them;  full  prepayment  at  these  rates  shall 
entitle  the  articles  to  be  delivered  free  of  all  charges  irrespective  of  their  destination,  except  that, 
in  China,  correspondence  addressed  to  places  beyond  Chinese  Post  Office  lines  shall  be  forwarded  to 
destination  through  private  agencies  at  the  risk  and  expense  of  the  addressees,  and  that  heavy  mail 
articles,  viz.,  newspapers,  printed  matter,  and  commercial  samples,  addressed  to  places  not  accessible 
by  railway  or  steamer,  shall  be  liable  on  delivery  to  an  additional  rate  fixed  by  tariff  and  calculated 
to  cover  courier  expenses. 

Article  IV. — The  stipulations  of  the  Union  Conventions  and  Arrangements  concluded  at 
Washington  shall  be  applicable  as  regards  every  postal  relation  between  China  and  Natal  not 
provided   for  by  the  ,^rticlcs  above  mentioned. 

Article    V. — This   Arrangement   may    end    on    giving   six   months   notice   in   advance. 


NUMBER  1906/3 :  MAY  26,  1906  597 


Russia. 
AGREEMENT  CONXERNING  THE  POSTAL  RELATIONS  BETWEEN   RUSSIA  AND  CHINA." 

February  6/i9th,  1909 

ARTICLE  I.; — Exchange  of  Mails. — i. — There  shall  be  established  between  the  Postal  Adminis- 
trations of  Russia  and  China  a  regular  excliange  of  mail  matter,  including  both  ordinary  and 
registered  letters  (letters,  postcards,  printed  matter,  commercial  papers,  and  samples),  whether  sent 
direct  in  closed  mails  or  a  dcconvert.  This  exchange  shall  take  place  by  any  means  of  transport, 
ordinary  or  special,  now  established  or  hereafter  to  be  established,  which  each  Administration  may 
have  at  its  disposal. 

2.^The  exchange  of  mails  between  the  two  Administrations  will  take  place  between  their 
respective  Post  Offices  in  the  conventional  towns  of  China  and  Manchuria  open  to  foreign  trade, 
to  wit:  Peking  (Legation  Quarter),  Tientsin,  Chefoo,  Hankow,  Shanghai,  Harbin,  Chanchunfu 
(Kuanch'engtsze),  Manchuli,  and  Pogranitschnaia,  on  condition,  however,  that  Chinese  Post  Offices 
in  -Manchuria  will  make  use  of  the  Chinese  Eastern  Railway  for  the  transport  of  their  courier  mails 
without  the  intermediary  of  the  Russian  Offices  and  on  the  basis  fixed  by  a  Special  Agreement  which 
shall  be  concluded  with  this  object  (in  respect  of  the  transport  of  courier  mails  not  liable  to  transit 
charges)  between  the  Chinese  Postal  Administration  and  the  afore-mentioned  Railway  Company 
through  the  good  offices  of  the  Head  Office  of  the  Russian  Posts. 

ARTICLE  II. — Transport  of  Mails. — i. — The  Chinese  Post  Offices  will  accept  from  the  Russian 
Post  Offices  mails  destined  for  Chinese  or  Russian  Post  Offices  or  for  foreign  Post  Offices 
established  in  China,  and  will  forward  the  said  mails  to  their  destination  by  the  most  rapid  means 
of  transport  at  the  disposal  of  the  Chinese  Administration. 

The  Chinese  Administration  will  likewise  accept,  either  to  transport  or  remit,  without  extra 
postage,  to  all  parts  of  China  where  are  now  established  or  shall  hereafter  be  opened  Offices  or 
Agencies  controlled  by  its  Administration,  mails  originating  in  foreign  countries  which  shall  be 
handed  over  to  it  d  dcconvert  by  the  Russian  Post  Office,  provided  that  these  mails  are  fully  franked, 
in  conformity  with  the  international  tariff,  whether  in  Russian  stamps,  in  case  they  have  been 
posted  in  Russian  Offices,  or  in  the  stamps  of  the  country  of  origin,  should  they  originate  in  a  third 
country.  As  regards  mails  destined  for  the  interior  of  China,  where  as  yet  the  Chinese  Post 
Office  is  not  in  operation,  they  will  be  subject  to  an  additional  charge  to  be  levied  from  the  addressee 
as  special  transport  fee. 

In  addition,  and  except  in  the  case  of  ordinary  letters  and  postcards,  a  special  inland  fee  will 
be  charged  for  heavy  and  cumbersome  mail  matter,  such  as  newspapers,  books,  etc.,  destined  for 
inland  places  not  accessible  by  railway  or  steamer. 

2. — The  Russian  Post  Offices  will  accept  from  Chinese  Post  Offices  mails  destined  for  Russian, 
Chinese,  or  foreign  Post  Offices  established  in  or  out  of  China  and  will  transmit  them  to  destination 
by  the  most  rapid  means  of  transport  at  the  disposal  of  the  Russian   Post  Office. 

The  aforesaid  Office  vv'ill,  moreover,  accept,  both  to  transport  and  remit,  without  extra  franking, 
mails  destined  for  countries  other  than  China  which  shall  be  handed  over  to  it  by  the  Chinese  Office 
&  decoiivert,^  if  these  mails  are  completely  franked  by  means  of  Chinese  stamps,  in  conformity  with 
the  international  tariff. 

3. — Mails  from  Russian  Post  Offices  destined  for  transportation  by  steamers  belonging  to  the 
Chinese  Postal  Service  or  railways  under  the  control  of  the  Chinese  Government  must  be  transmitted 
through  the  intermediary  of  the  Chinese  Offices  of  exchange;  mails  from  Chinese  Post  Offices  destined 
for  transportation  by  steamers  in  the  Russian  Postal  Service  or  by  railways  under  the  control  of  the 
Russian  Government  rpust  be  transmitted  through  the  intermediary  of  the  Russian  Offices  of  exchange 
(with  the  exception  specified  in  Article  I,  paragraph  2,  regarding  Chinese  courier  mails  transported 
free  of  charge). 

The  method  of  transport  for  mails  will  be  settled  by  mutual  agreement  between  the  Russian  and 
Chinese  Post  Offices  in  such  a  way  as  to  obviate  any  delay  in  the  transport  of  the  mails. 

ARTICLE  III. — Transit  Charges. — i. — Mails  in  transit  forwarded  by  means  of  the  services 
of  one  or  the  other  of  the  contracting  Administrations  will  be  submitted,  to  the  benefit  of  the 
Administration  whose  services  carry  these  mails,  to  the  following  transit  charges: — 

*  French  text  printed  in  Soglashenia,  p.  65,  where  it  is  accompanied  by  exchange  of  notes 
of  which  the  purport  is  indicated  by  the  following  translation  of  the  note  addressed  by  the  Russian 
Minister  at  Peking  to  the  Inspector  General  of  Imperial  Posts  of  China,  under  date  of  February  4/17, 
1909: 

"  I  have  the  honor  to  acknowledge  the  receipt  of  the  note  that  your  Excellency  was  so  good 
as  to  address  to  me  under  date  of  February  17,  on  the  subject  of  the  three  points  examined 
separately  from  the  postal  arrangement  between  our  two  respective  administrations,  and  upon  which 
we  have  come  to  an  agreement,  to  wit: 

"  I  St. — For  the  purpose  of  avoiding  all  discussion  in  future  as  to  the  payment  of  postage  upon 
mail  originating  from  the  treaty  towns  of  Manchuria  or  other  provinces,  it  is  agreed  that  in 
principle  such  mail  should  be  post-paid  with  Chinese  stamps,  and  that  those  post-paid  with  Russian 
or  foreign  stamps,  which  in  the  course  of  transmission  should  happen  to  fall  under  the  Chinese 
system,  are  to  be  considered  as  taxable. 

"  2nd. — As  regards  the  objection  made  by  the  Russian  administration  to  the  presence  of  a 
Chinese  letter  box  in  the  reserved  compartments  of  the  trains  of  the  Chinese  Eastern  Company, 
the  Chinese  administration  expresses  a  desire  to  have  this  objection  withdrawn;  the  use  of  a  box 
in  those  compartments  can  merely  prevent  the  public  from  mistakenly  placing  letters  post-marked 
with  the  stamps  of  one  administration,  in  the  box  of  the  other  administration,  which  renders  such 
letters  liable  to  be  taxed.  While  awaiting  the  decision  of  Petersburg  on  this  point,  the  Chinese 
administration  proposes,  during  stops  of  the  trains,  to  place  a  loose  post  box  on  the  platform  of 
the  car   for  the  convenience   of  the  public. 

"  3rd. — In  accordance  with  the  note  attached  to  Article  4  of  the  agreement  with  the  Chinese 
Eastern  Railway  Company,  the  Chinese  posts  and  the  company  are  at  liberty  to  come  to  a  separate 
agreement  to  fix  the  price  of  transportation  of  books,  printed  matter,  newspapers,  etc.,  of  the 
Chinese  posts. 

"  In  reply,  I  hasten  to  confirm  to  you  officially,  herewith,  our  agreement  upon  these  several 
points. 

"  Accept,  etc." 

See  also  the  Arrangement  with  the  Chinese  Eastern  Railway  Company  for  the  transportation 
of  mails  of  the  Chinese  imperial  posts,   February  6/19,   1909   (No.   1909/2,  post). 


598  CHINA  TREATIES  AND  AGREEMENTS 

(o.)  Within  the  Chinese  Empire  and  along  the  littoral  of  China  bordering  on  foreign 
countries,  if  the  distance  does  not  exceed  1,500  nautical  miles  and  when  both  the 
Chinese  and  the   foreign   ports  are   united   by   the   same   line   of   steamers- 

1°.    For    land    transport    by    rail,    and    also    for    sea    transport    not    exceeding    300 
nautical  miles,    i    franc   50  centimes  per  kilogramme  of  letters  and  postcards, 
and  20  centimes  per  kilogramme  of  other  articles. 
2°.   For    land    transport    by    courier,    and    also    for    sea    transport    exceeding    300 
nautical    miles,    4    francs    per    kilogramme    of    letters    and    postcards    and    50 
centimes  per  kilogramme   of  other  articles. 
(fc.)  Outside   of   the   Chinese   Empire,    for   any   transport   of   mails   other   than   the   categories 
provided   for  in  the  preceding  paragraph,    (a.) : 

1°.   For  land  or  sea  transport,  within  the  limits  of  the  Postal   Union,  the  transit 
charges    per    kilogramme    of    letters,    postcards,    and    other    articles    shall    be 
reckoned   in  conformity  with  Article  4  of  the   "  Convention   Pnncipale  "   of 
Rome. 
2°.  Correspondence    franked    by    means    of     Chinese    stamps    and     destined     for 
Russia  and   Russian   possessions  or   for   foreign   countries,   in  transit   through 
the    Russian    Office,    will    be    forwarded    to    their    respective    destinations    in 
the    same    manner    and    liable    to    the    same    transit    charges    as    the    corre- 
spondence   remitted    to    the    Russian    Office    by    the    other    Administrations    of 
the    Postal     Union     (including    the    transport    charges    due    to    the    Chinese 
Eastern   Railway).     These  transit  charges  will  be  guaranteed  by  the  Russian 
Administration   and   periodically   refunded  by  the   Chinese   Administration. 
2. — Charges  for  transport  of  mails  by  means  of  services  or  steamers  independent  of  the   Russian 
or  Chinese  Administrations  will  be  settled  by   agreement  between   the   interested   countries. 

ARTICLE  I\'. — Transit  Statistics. — The  balancing  of  the  transit  charges  in  connexion  with 
the  categories  of  correspondence  specified  above  in  Article  III,  paragraph  i,  will  be  calculated  on 
the  basis  of  statistics  t£iken  under  the  rules  laid  down  in  the  "  Reglement  d' Execution  "  of  the 
"  Convention  Principale  "  of  Rome.  The  regulations  laid  down  in  Article  VI  of  the  final  Protocol  of 
the   above-named   Convention   will   be  applied   to   the   aforesaid   balances   and   statistics. 

ARTICLE  V. — Notice  of  Changes  in  Organisation.— The  Postal  Administrations  of  Russia 
and  China  will  communicate  to  each  other  the  changes  which  may  take  place  in  the  organisation  of 
their  postal  service  and  in  the  arrivals  and  departures  of  mails,  whenever  notice  of  such  changes 
may  prove  useful  to  the  two  Administrations  or  to  the  foreign  Administrations  that  have  recourse 
to  their  intermediation. 

ARTICLE  VI. — Extent  of  the  present  Agreement. — In  all  matters  not  provided  for  in  the 
present  Agreement,  the  contracting  Postal  Administrations  agree  to  abide  by  the  stipulations  of  the 
"  Convention  Principale  "  and  of  the  "  Reglement  "  belonging  thereto  signed  at  Rome  on  the  26th  day 
of  May   1906. 

It  is  thus  understood  that  the  present  Agreement,  as  also  the  treaties  of  the  Union  referred  to 
above,  shall  be  binding  as  a  regulation,  and  that  the  two  Administrations  shall  be  bound  in  any 
particular  case  to  conform  thereto  in  their  postal  relations. 

ARTICLE  VII. — Duration  of  Agreement. — The  present  Agreement  will  come  into  force  on 
the  day  of  its  signature.  It  will  remain  in  force  for  an  indeterminate  period.  The  two  Administra- 
tions will,  however,  have  the  right  to  introduce  into  it  such  modifications  as  by  mutual  agreement 
they  may  find  necessary,  or  to  bring  the  Agreement  to  an  end  by  giving  each  other  notice  six 
months  in  advance. 


Japan. 

AGREEMENT     SETTING     FORTH     THE      RELATIONS     ESTABLISHED     BETWEEN      THE 

IMPERIAL    POSTAL    ADMINISTRATION    OF    JAPAN    AND    THE    IMPERIAL    POSTAL 

ADMINISTRATION  OF  CHINA. 

February  9th,   1910 

ARTICLE  I.— Exchange  of  Mails. — i. — There  shall  be  between  the  Imperial  Administration  of 
Japan  and  the  Imperial  Administration  of  China  a  regular  exchange  of  postal  articles  of  all  kinds- 
ordinary,  registered,  international,  and  in  transit,  closed  or  a  deconvert— by  means  of  any  transport, 
ordinary  or  special,  now  established  or  hereafter  to  be  established,  which  each  Administration  may 
have  at   its  disposal. 

2. — The  exchange  of  mails  between  the  two  Administrations  will  take  place  through  the  Japanese 
Post  Offices  established  in  the  treaty  ports  and  the  Chinese  Post  Offices  established  in  the  same 
ports.  The  following  are  also  recognised  by  the  Chinese  Administration  as  Offices  of  exchange:  the 
Japanese  Post  Office  in  the  Legation  Quarter  at  Peking,  under  the  same  conditions  as  other  foreign 
Post  Offices  therein  opened;  the  Japanese  Postal  Agency  at  Tangku,  for  the  exchange  of  steamer 
mails;  and  the  Japanese  Post  Offices  opened  in  Tatungkow,  Antung,  Newchwang,  Liaoyang, 
Moukden,  Tiehling,  and  Changchun. 

3. — The  remitting  of  mails,  closed  or  d  decouvert,  from  one  administration  to  the  other  will 
take  place  at  the  (corresponding)  Offices  (of  exchange)  or  any  other  authorised  places  for  exchange 
(fixed  on  by  mutual  consent),  and  will  be  made  from  hand  to  hand  between  agents  regularly 
appointed   for  this  duty. 

Ar<TlCLE  II. — Closed  Mails  by  Rail. —  i.^ — Closed  mails  sent  from  or  through  Chinese  Post 
Offices  and  destined  for  Chinese,  Japanese,  or  foreign  Post  Offices  established  in  or  out  of  China, 
to  be  conveyed  by  means  of  Japanese  railways  in  China,  shall  be  consigned  to  or  received  from 
the  said  railways  through  the  intermediary  of  the  Japanese  Post  Offices  at  those  places  of  exchange 
where  Japanese  Post  Offices  exist. 

2. — (Zlosed  mails  sent  from  or  through  Japanese  Post  Offices  and  destined  for  Japanese,  Chinese, 
or  foreign  Post  Offices  established  in  or  out  of  China,  to  be  conveyed  by  means  of  (Thinese  railways 
in  China,  shall  be  consigned  to  or  received  from  the  said  railways  through  the  intermediary  of  the 
Chinese  Post  Offices  at  places  of  exchange. 

3. — At  those  places  where  there  are  no  Offices  of  exchange  the  mails  above  cited  will  be  handed 
direct  to  or  from  the  responsible  officers  on  the  trains,  under  local  arrangements  to  be  made  by  the 
officials  of  the  two  contracting  Postal  Administrations. 

ARTICLE  III. — Closed  Mails  by  Steamers. — i. — Closed  mails  sent  from  or  through  Chinese 
Post  Offices  and  destined  for  Chinese,  Japanese,  or  foreign  Post  Offices  established  in  or  out  of 
China,  to  be  conveyed  by  means  of  steamers  subsidised  by  the  Imperial  Japanese  Government  or 
generally  those  steamers  in  the  mail  service  of  the  Empire  of  Japan,  shall  be  embarked  on  or 
received  from  the  said  steamers  through  the  intermediary  of  the  Japanese  Post  Offices  at  the  places 
of  exchange  or  direct  to  the  responsible  officers  on  board  at  places  where  no  Japanese  Office  of 
exchange  exists. 


NUMBER  1906/3 :  MAY  26,  1906  599 

2. — Closed  mails  sent  from  or  through  Japanese  Post  Offices  and  destined  for  Japanese,  Chinese, 
or  foreign  Post  Offices  established  in  or  out  of  China,  to  be  conveyed  by  means  of  steamers  in  the 
mail  service  of  China,  shall  be  embarked  on  or  received  from  the  said  steamers  through  the 
intermediary  of  the  Chinese  Post  Offices  at  the  places  of  exchange. 

ARTICLE  I\^ — Remuneration  for  Steamers. —  i. — In  tlie  case  of  those  Japanese  steamers 
which  load  Chinese  mails  to  or  from  non-opened  ports,  they  shall  enjoy  the  same  privileges,  facilities, 
and  immunities  as  other  flag  steamers  rendering  similar  services.  The  Chinese  mails  they  carry  shall 
not  be  liable  to  transit  charges. 

2. — While  Chinese  mails  loaded  on  board  Japanese  steamers  for  conveyance  between  open  ports 
shall  be  liable  to  transit  charges  payable  to  the  Japanese  .Administration,  such  steamers  shall  not  be 
entitled  to  claim  for  the  conveyance  in  question  the  same  privileges,  facilities,  and  immunities  as 
are  specially  granted  to  other  flag  steamers  for  similar  services  rendered  without  debiting  the  Chinese 
Administration  with  transit  charges. 

ARTICLE  y. — Tariffs. — Each  Administration  fixes  its  own  tariflfs. 

It  is  understood  that  for  mail  matter  exchanged  between  its  own  Offices  in  China  the  Imperial 
Japanese  Administration  will  not  apply  a  tariff  of  postage  lower  than  that  adopted  by  the  Imperial 
Chinese  Administration. 

The  two  Administrations  will  communicate  to  each  other  their  tariffs. 

ARTICLE  \'I. — Postage  Stamps. — Each  Administration  will  use  its  own  postage  stamps  to  frank 
its  own  mail  matter. 

It  is  understood,  however,  that  mail  matter  originating  in  the  localities  mentioned  in  Article  I, 
§  2,  but  destined  for  Chinese  inland  places,  shall  be  franked  in  Chinese  stamps  at  Chinese  domestic 
rate;  otherwise,  it  shall  be  liable  to  be  taxed  by  the  Chinese  Administration  as  unpaid  correspondence. 

ARTICLE  VIL — Correspondence  d  decouvert. — i. — The  Imperial  Chinese  Post  Office  under- 
takes, free  of  charge,  the  transmission  to,  and  the  delivery  at,  all  places  in  China  steam  served  by 
railways  or  steamers  where  one  of  its  establishments  is  or  may  hereafter  be  established  of  al! 
correspondence  for  China  posted  in  Japan,  Korea,  or  the  Leased  Territory  of  Kwantung  and  prepaid 
in  Japanese  postage  stamps  at  the  domestic  rates  of  Japan,  as  well  as  of  all  correspondence  for  China 
posted  in  any  country  of  the  Postal  Union  and  prepaid  in  postage  stamps  of  the  country  of  origin 
at  the  Union  rates,  if  the  above  correspondence  be  handed  over  to  the  said  Post  Office  d  decouvert 
by  the  Imperial  Japanese  Post  Office  in  China;  but  these  articles,  letters  and  postcards  excepted,  if 
addressed  to  non-steam-served  places,  will  be  liable  to  the  domestic  charge  laid  down  in  the  Chinese 
tariff.  Further,  any  correspondence  above  mentioned,  if  addressed  to  inland  places  where  the 
Chinese  Post  Office  does  not  yet  function,  will  be  forwarded  to  destination  by  the  min-chii  at  the 
risk   and   cost   of   the  addressee. 

2. — The  Imperial  Japanese  Post  Office  in  China  undertakes,  free  of  charge,  the  transmission  to, 
and  the  delivery  at,  destination  of  all  correspondence  for  Japan,  Korea,  and  the  Leased  Territory 
of  Kwantung  posted  in  China  and  prepaid  in  Chinese  postage  stamps  at  the  rates  adopted  by  the 
Japanese  Post  Offices  in  China  for  correspondence  to  those  places,  and,  subject  to  transit  charges,  the 
transmission  of  all  correspondence  for  countries  of  the  Postal  Union  posted  in  China  and  prepaid  in 
Chinese  stamps  at  the  rates  stipulated  in  Article  5  of  the  Universal  Postal  Convention. 

ARTICLE  VIII. — Taxed  Correspondence. — The  correspondence  mentioned  in  the  preceding 
Article  \'II,  whether  unpaid  or  insufficiently  prepaid,  shall  be  dealt  with  in  accordance  with  the 
stipulations  provided  for  in  the  said  Article.  It  is  provided  that  on  all  unpaid  or  insufficiently 
prepaid  correspondence  addressed  for  delivery  in  China  or  in  Japan,  Korea,  or  the  Leased  Territory 
of  Kwantung,  either  Administration  shall  collect  from  the  addressee  a  charge  equal  to  double  the 
amount  of  the  deficiency  according  to  the  tariff  of  the  country  of  origin. 

ARTICLE  IX. — Newspapers,  etc.,  with  Special  Marks. — Newspapers  and  periodical  publica- 
tions bearing  the  special  mark  "  under  contract,"  originally  posted  in  Japan,  Korea,  or  the  Leased 
Territory  of  Kwantung  for  delivery  in  their  interior  and  handed  over  to  the  Chinese  Post  Office  as 
redirected  articles,  shall  be  sent  to  destination  subject  to  the  stipulations  under  Article  \'II  of  this 
Agreement. 

ARTICLE  X. — Postage  and  Weights. — As  regards  correspondence  posted  in  China  and  addressed 
for  delivery  in  Japan,  Korea,  or  the  Leased  Territory  of  Kwantung,  the  Postal  Administration  of 
China  shall  not  adopt  rates  of  postage  lower  than  those  which  are  chargeable  in  the  Japanese  Post 
Office  in  China,  nor  the  maximum  limits  of  weight  and  dimensions  exceeding  those  which  the  said 
Offices  adopt. 

The  rates  of  postage  as  well  as  the  maximum  limits  of  weight  and  dimensions  to  be  observed 
in  respect  of  correspondence  posted  in  China  and  destined  for  any  country  of  the  Postal  Union  shall 
be  in  conformity  with  the  stipulations  of  the  Union. 

ARTICLE  XI. — Transport  Services. — Each  of  the  contracting  Administrations  shall  securely 
convey  the  mails  of  the  other  Administration  by  the  most  direct  route  and  by  the  most  rapid  means 
of  conveyance  at  its  disposal. 

Each  Administration  will  communicate  to  the  other,  from  time  to  time,  the  organisation  and 
movements  of  the  railways,  steamers,  and  other  services  utilised  for  the  conveyance  of  the  mails  of 
the  other  Administration  as  well  as  the  proposed  time  of  despatch  and  arrival  of  its  own  mails. 

ARTICLE  XII. — Transit  Charges  on  Closed  Mails. — i. — Chinese  and  Japanese  closed  mails 
conveyed  by  means  of  Japan  or  China  by  virtue  of  the  stipulations  of  Article  I  are  subject  to  the 
territorial  or  maritime  transit  charges  at  the  rates  provided  for  in  the  Universal  Postal  Convention, 
to  be  credited  to  the  Administration  whose  services  participate  in  the  conveyance.  It  is  prorided, 
however,  that  for  railway  conveyance  within  the  Empire  of  China  half  of  the  Union  rates  shall  apply 
to  all  services  over  a  distance  not  exceeding  i.ooo  miles. 

2. — Any  conveyance  on  the  Yangtze-kiang  is  considered  as  maritime  transit. 

3. — It  is  further  understood  that — 

1°.   Sea   cotiveyance   over   a   distance   not   exceeding   300   nautical   miles   is   gratuitous    if   the 

Administration    concerned    already    receives,    on    account    of    the    mails    conveyed,    the 

remuneration    applicable   to   territorial    transit; 
2°.  Charges    for    transport    of    mails    by    means    of    services    or    ships    independent    of    the 

Japanese  or  Chinese  Administrations  will   be  settled  under  the  terms  agreed   between 

the  interested  parties. 

ARTICLE  XIII. — Charges  on  d  decouvert  Correspondence. — i. — Correspondence  sent  a 
decouvert  from  China  through  the  intermediary  of  the  Japanese  Post  Office  for  Postal  Union 
countries  by  virtue  of  Article  VII  shall  be  subject,  for  the  benefit  of  the  Postal  Administration  of 
Japan,  to  the  transit  charges  at  the  rate  of  closed  mails  provided  for  in  the  Universal  Postal 
Convention. 

2- — Chinese  correspondence  sent  in  closed  mails  or  d  decouvert  bv  the  Transsiberian  route  to 
the  countries  of  the  Postal  Union  through  the  intermediary  of  the  Imperial  Japanese  Post  Office 
will  be  liable  to  the  transit  charges  provided  by  mutual  entente  between  the  various  Administrations 
concerned  for  this  special  route. 


600  CHINA  TREATIES  AND  AGREEMENTS 

ARTICLE  XIV. — Transit  Statistics. — The  transit  charges  provided  for  in  the  preceding  two 
Articles  shall  be  settled  triennially  between  the  Postal  Administration  of  Japan  and  of  China  on  the 
basis  of  the  statistics  to  be  taken  every  three  years  during  the  first  28  days  of  the  month  of  May 
or  of  November  alternately,  according  to  the  usual  procedure  followed  between  Administrations  of 
the  Postal  Union. 

ARTICLE  XV. — Letters  with  Declared  Value. — The  exchange  of  letters  with  declared  value 
of  contents  will  be  made  the  subject  of  a  special  arrangement  between  the  Japanese  and  the  Chinese 
Administrations  as  soon  as  circumstances  may  permit  the  Chinese  Administration  to  organise  this 
service. 

ARTICLE  XVI. — Responsibility:  Registered  Articles. —  In  case  of  the  loss  of  a  registered 
article,  domestic  or  international,  the  Postal  Administration  in  the  service  of  which  the  loss  took  place 
shall  be  held  responsible  in  accordance  with  the  stipulations  of  the   Universal   Postal   Convention. 

ARTICLE  XVII. — Responsibility:  Closed  Mails. — In  case  where  a  closed  mail  has  been  lost  or 
damaged,  or  its  contents  abstracted,  the  Postal  Administration  in  the  service  of  which  the  loss, 
damage,  or  abstraction  took  place  shall  assume  the  responsibility  in  accordance  with  the  stipulations 
of  the  preceding  Article  only  in  respect  of  the  missing  registered   articles  contained  in   the   said  mails. 

ARTICLE  XN'III. — Extent  of  Postal  Agreement. — The  stipulations  of  the  Universal  Postal 
Convention,  as  well  as  the  Regulations  for  the  execution  of  the  above  Convention,  shall  remain 
applicable  as  regards  every  postal  relation  between  the  Postal  Administration  of  Japan  and  the 
Postal   Administration  of  China  not  provided   for  by  the  Articles  of  the   present   Agreement. 

ARTICLE  XIX. — Duration  of  Postal  Agreement. — The  present  Agreement  shall  come  into 
operation  on  the  1st  April  1910,  and  shall  remain  in  force  for  an  indefinite  period.  However,  the 
two  contracting  Administrations  are,  at  any  time  by  common  consent,  at  liberty  to  introduce  in  the 
present  Agreement  any  such  modifications  as  they  may  find  necessary,  or  to  bring  the  Agreement  to 
an  end  at  six  months  notice.  .  •  .       -.i  •, 

The  present  Agreement  shall  supersede,  on  the  day  on  which  it  comes  into  operation,  the  Mail 
Service  Provisional  Arrangement  between  Japan  and  China,  signed  at  Peking  on  the   i8th   May   1903. 


Japan. 

AGREEMENT  REGULATING  THE  EXCHANGE  OF  POSTAL  PARCELS  BETWEEN  THE 
IMPERIAL  POSTAL  ADMINISTRATION  OF  JAPAN  AND  THE  IMPERIAL  POSTAL 
ADMINISTRATION  OF  CHINA. 

February  9th,   1910 

The  exchange  of  postal  parcels  between  the  Imperial  Postal  Administration  of  Japan  and  the 
Imperial  Postal  Administration  of  China  shall  be  regulated  according  to  the  conditions  hereunder 
stated. 

CHAPTER  I.— PARCELS  A  DECOUVERT. 

ARTICLE  I. — Places  of  Exchange. — The  exchange  of  postal  parcels,  ordinary  or  of  declared 
value,  shall  take  place  through  the  intermediary  of  the  Japanese  Post  Offices  established  in  China  and 
the  Chinese  Post  Offices  established  in  the  same  localities  as  these  Japanese  Post  Offices,  the  places 
of  exchange  being  the  same  as  those  enumerated  in  Article  I  of  the  Postal  Agreement  concluded 
between  the  two  Administrations  on  the  9th  February  191 0. 

ARTICLE  II. — Weights  and  Dimensions. — The  maximum  weight  of  a  parcel  is  fixed  at   121/2  lb. 
(1,500  momme),  and  the  maximum  dimensions  at  60  centimetres   (2  shaku)   in  any  one  direction. 
The  following  exceptions,  however,  will  be  made: — 

1°.  The   limit  of  weight   for  parcels   destined   for   Offices   of   the   Chinese  Administration   not 
connected    by    railway    or    steamers    shall    be    3    kilogrammes    (800    momme),    and    the 
volume  must  not  exceed  25  cubic  decimetres   (i   cubic  shaku). 
2°.   Parcels    containing    umbrellas,    walking-sticks,    charts,    plans,    and    such-like    articles    shall 
be   accepted    if    the    dimensions    do   not    exceed    i    metre    (3    shaku    3    sun)    in    length 
and  20  centimetres   (6.5   sun)   in  breadth  or  depth. 
The    limits    \n    weight,    dimensions,    and    volume    may    be    hereafter    increased    by    mutual    consent 
between   the   two   Administrations. 

ARTICLE  III. — Transmission. — i. — The  Imperial  Chinese  Post  Office  undertakes  the  trans- 
mission to,  and  delivery  at,  any  place  where  one  of  its  establishments  is  or  may  hereafter  be 
established  of  all  parcels  for  China  posted  in  Japan,  Korea,  or  the  Leased  Territory  of  Kwantung 
and  prepaid  in  Japanese  postage  stamps  at  the  rate  of  postage  provided  for  in  Article  IV,  and 
handed  over  to  the  said  Office  d  decouvert  by  Imperial  Japanese  Post  Offices  in  China. 

2  — Imperial  Japanese  Post  Offices  in  China  undertake  the  transmission  to,  and  the  delivery 
at,  destination  of  all  parcels  for  Japan,  Korea,  or  the  Leased  Territory  of  Kwantung  posted  in 
China  and  prepaid  in  Chinese  postage  stamps  at  the  rate  of  postage  provided  for  in  Article  IV, 
and  handed  over  to  the  said  Office  d  decouvert  by  the  Imperial  Chinese  Post  Office. 

3. — By  measure  of  exception,  however,  postal  parcels  with  declared  value  will  only  be  trans- 
mitted through  the  intermediary  of  the  Chinese  Post  Office  to  certain  designated  places,  a  revised 
list  of  which  will   from  time  to  time  be  supplied  to  the   Imperial   Japanese  Administration. 

4. — The  value  declared  on  an  insured  parcel  exchanged  d  decouvert  will  not  e.xceed  500 
dollars   (yen).  ,       ,      ,,  ... 

ARTICLE  IV. — Postage. — i. — The  rates  of  postage  on  parcels  a  decouvert  mentioned  in 
Article  III  and  the  share  to  be  allotted  thereof  to  each  Administration  are  as  follows: — 

Japanese  Chinese  TnrAT 

Post  Office  Post  Office  Postage- 

Share.  Share. 

$  $  $ 

Parcels  not  over  200  momme   (i  lb.   10  oz.)   .     . 
Parcels    over    200    momme    but    not    over    400 
momme    (3%   lb.)      .... 
,,  400    momme    but    not    over    600 

momme    (5    lb.) 

„  600     momme     but     not     over    900 

momme    (7Vi   lb.)      .... 

,,  900    momme    but    not    over    1,200 

momme    (10    lb.) 

„  1,200  momme  but  not  over   1,500 

momme   {12V2  lb.)   .... 


0.30 

0.15 

0.4S 

0-35 

0.20 

0.55 

0.40 

0.25 

0.6s 

0.50 

0.30 

0.80 

0.60 

0.40 

1. 00 

0.70 

0.50 

1.20- 

NUMBER  1906/3 :  MAY  26,  1906  601 

By  mutual  consent  between  the  two  Administrations,  these  rates  may  be  altered  according  to 
the  amounts  each  Administration  may  desire  to  collect. 

2. — Prepayment  of  postage  on  postal  parcels  shall  be  obligatory  before  departure;  but  the  fee 
for  delivery,  if  necessary,  shall  be  payable  by  the  addressee. 

3- — Parcels  destined  for  places  in  China  not  connected  by  railway  or  steamer,  although  fully 
prepaid  at  the  rates  provided  in  Article  IV,  may  be  further  charged,  for  transmission  to  places 
beyond  railway  or  steamer  services,  at  the  expense  of  the  addressee,  supplementary  taxes,  the  amount 
of  which   shall  conform  to  the  published  tariff  of  the  Chinese  Administration   for   its  domestic   parcels. 

4. — It  is  understood  that  the  Japanese  Administration  shall  not  tax  parcels  exchanged  between 
its  Offices  in  China  at  rates  lower  than  those  charged  by  the  Chinese  Administration. 

ARTICLE  V. — Insurance  Fee. — The  insurance  fee  on  parcels  of  declared  value  shall  be  at  the 
rate  of  20  cents  (20  sen)  on  parcels  up  to  10  dollars  (yen)  value,  and  10  cents  (sen)  increase  for 
each  additional   10  dollars   (yen)   value. 

Half  of  this  fee  shall  accrue  to  the  Administration  performing  transmission. 

ARTICLE  \'I. — Parcels  to  or  from  a  Third  Country. — ^Parcels  posted  in  one  of  the  two 
contracting  parties  and  sent  through  the  other  to  a  third  country,  or  parcels  posted  in  a  third  country 
and  sent  through  one  of  the  contracting  countries  to  the  other,  may  be  exchanged  between  the  two 
Postal  Administrations  of  Japan  and  of  China,  in  accordance  with  the  stipulations  of  the  preceding 
Articles. 

It  is  provided  that  Chinese  parcels  for  a  third  country  have  to  pay  the  Chinese  domestic  rate, 
and  in  addition  the  rates  as  indicated  in  Table  A  drawn  up  by  the  Japanese  Office. 

The  above  provisions  shall  also  apply  to  parcels  exchanged  between  a  third  country  and  one 
of  the  two  contracting  countries  and  subsequently  redirected  or  sent  back  to  the  other  of  the 
contracting  countries. 

ARTICLE  V'll. — Parcel  Bill. — Parcels  exchanged  d  decouvert  must  be  accompanied  by  a  Parcel 
Bill,  which  shall  be  made  out  at  the  despatching  Office  of  exchange  in  conformity  with  the  specimen 
provided  for  in  the  Union  Parcel  Post  Convention.  Customs  Declarations  and,  if  any,  other 
documents  must  be  securely  attached  to  the  Parcel   Bill. 

The  amount  to  be  entered  on  the  Parcel  Bill  shall  be  converted  into  French  currency  at  the  rate 
of  40  cents   (sen)  =   i   franc. 

ARTICLE  VIII. — Customs  Declaration. — Every  parcel  d  decouvert  must  be  accompanied  by  a 
Customs  Declaration,   giving  the  name,   quantity,  weight,  and  value  of  its  contents. 

Every  parcel  with  declared  value  must  bear  on  the  Customs  Declaration  and  also  on  the  address 
side  of  the  parcel,  a  statement  of  the  insured  sum,  which  must  be  expressed  by  the  sender  in  a  very 
conspicuous  manner  in  the  money  of  the  country  of  origin — dollars  and  cents,   or  yen   and   sen. 

ARTICLE  IX. — Customs  Formalities. — The  Customs  formalities  in  China  in  respect  of  the 
parcels  to  be  handed  over  a  decouvert  to  the  Imperial  Japanese  Post  Office  in  China  by  the  Imperial 
Chinese  Post  Office  and  vice  versa  shall  always  be  fulfilled  by  the  Imperial  Chinese  Post  Office  on 
the  same  conditions  as  other  international  parcels  to  or  from  its  own  service. 

CHAPTER  XL— CLOSED  PARCEL  MAILS. 

ARTICLE  X. — Exchange. — The  exchange  of  closed  parcel  mails  shall  take  place  between  the 
places  of  exchange  as  defined  in  Article  I  of  Chapter  I  of  this  ."Xgreement. 

It  IS  understood  that  at  railway  stations  where  no  Post  Offices  of  exchange  exist,  suitable  local 
arrangements  will  be  made  by  the  officials  of  the  contracting  Administrations  for  the  remitting 
and  landing  of  closed  parcel  mails  at  these  stations  on  the  same  principles  as  for  ordinary  closed 
mails. 

ARTICLE  XI. — Transmission. — The  Postal  Administration  of  China  undertakes  to  convey  all 
closed  parcel  mails  exchanged  between  Japan,  Korea,  the  Leased  Territory  of  Kwantung,  and  an 
Imperial  Japanese  Post  Office  in  China,  between  the  Imperial  Japanese  Post  Offices  in  China  as  well 
as  between  a  third  country  and  an  Imperial  Japanese  Post  (Jffice  in  China,  by  means  of  railways, 
steamers,  and  other  services,  now  established  or  hereafter  to  be  established,  which  the  said  Adminis- 
tration  may  have  at  its  disposal   for  the  conveyance  of  its  own  parcel   mails. 

The  Postal  Administration  of  Japan  undertakes  to  convey  similarly  all  closed  parcel  mails 
exchanged  between  the  Imperial  Chinese  Post  Offices  as  well  as  between  an  Imperial  Chinese  Post 
Office  and  a  third  country. 

The  value  declared  on  an  insured  parcel  included  in  the  closed  parcel  mails  mentioned  in  the 
preceding  paragraphs  delivered  for  transmission  to  a  Japanese  or  a  Chinese  Post  Office,  must  not 
exceed  500  dollars   (yen). 

ARTICLE  XII. — Transit  Rates. — Chinese  or  Japanese  closed  parcel  mails  conveyed  by  means 
of  the  services  of  Japan  or  China  by  virtue  of  the  stipulations  of  Article  XI  are  subject  to  the 
territorial  or  maritime  transit  charges  at  the  rates  provided  for  in  the  Union  Parcel  Post  Convention, 
to  be  credited  to  the  Administration  whose  services  participate  in  the  conveyance.  It  is  provided  that, 
as  regards  the  conveyance  by  railways  in  China,  a  half  of  the  Union  rates  shall  apply  to  the  services 
at  any  distance  not  exceeding  1,000  miles. 

Besides  the  above  charges,  every  insured  parcel,  if  any,  included  in  the  closed  parcel  mails 
mentioned  in  the  preceding  paragraph,  is  subject  to  the  territorial  or  maritime  insurance  fee  at  the 
rates  provided  for  in  the  aforesaid  Convention,  to  be  credited  to  the  Administration  which  takes 
part  in  the  conveyance. 

ARTICLE  XIII. — Way  Bill. — Closed  parcel  mails  shall  be  accompanied  by  a  Way  Bill,  on 
which  the  despatching  Office  of  exchange  will  enter  the  number,  origin,  destination,  and  weight  of 
each  parcel  contained  therein,  and,  in  the  case  of  an  insured  parcel,  its  declared  value;  this  Way 
Bill  will  be  handed  over  by  the  said  Office  to  the  intermediate  Office  of  exchange. 

CHAPTER  III.— ACCOUNTS. 

ARTICLE  XIV. — Quarterly  Accounts. — Each  Administration  shall  cause  each  of  its  exchanging 
Offices  to  prepare  an  account  quarterly,  for  all  the  parcels  a  decouvert  and  the  closed  parcel  mails 
received  from  the  exchanpe  Offices  concerned  of  the  other  Administration,  on  the  basis  of  the 
Parcel  Bills  and  the  Way  Bills  respectively  mentioned  in  Articles  VIT  and  XIII. 

ARTICLE  XV. — General  Annual  Accounts. — The  quarterly  accounts  mentioned  in  the  pre- 
ceding Article,  after  having  been  verified  and  accepted,  on  both  sides,  by  the  respective  Post  Offices, 
shall  be  included  in  the  General  Annual  Account  by  the  Administration  to  which  the  balance  is  due. 


502  CHINA  TREATIES  AND  AGREEMENTS 


CHAPTER  IV.— RESPONSIBILITY. 

ARTICLE  X\'I. — Loss  or  Damage. — In  case  where  an  uninsured  or  insured  parcel,  whether 
domestic  or  international,  has  been  lost  or  damaged  or  its  contents  abstracted,  the  Postal  Adminis- 
tration in  the  service  of  which  the  loss,  damage,  or  abstraction  took  place  shall  be  held  responsible 
in  accordance  with  the  stipulations  of  the  Union  Parcel  Post  Convention. 

CHAPTER  v.— CUSTOMS   FORMALITIES    FOR   PARCELS  TO   BE   DELIVERED   BY   OR 
POSTED  AT  THE  JAPANESE  POST  OFFICE  IN  CHINA  DIRECT. 

ARTICLE  XVII. — Customs  Report  and  Payment  of  Duty. — The  Japanese  Post  Office  will  send 
a  detailed  report  to  the  Customs,  giving  the  name  and  value  of  the  contents,  address,  marks,  quantity, 
and  provenance  of  each  parcel  received,  and  unless  as  provided  under  Article  XXII  the  parcel  is  to 
be  examined,  the  Customs  will  immediately  enter,  on  that  report,  the  duty  payable  and  return  the 
report  to  the  Post  Office.  The  Post  Office  will  then  either  direct  the  addressee  to  pay  the  duty 
into  the  Customs  Bank  and  procure  Customs  Release  Permit,  or  will  itself  collect  such  duty  from  the 
addressee. 

ARTICLE  X\'III. — Duty  under  Half  a  Tael. — Any  Customs  duty  under  half  a  tael  per 
parcel  will  not  be  collected.  It  is,  however,  provided  that  in  case  two  or  more  parcels  containing 
similar  merchandise  and  sent  from  the  same  sender  to  the  same  addressee  have  been  received  by 
the  same  mail  the  total  amount  of  the  Customs  duty  exceeds  half  a  tael,  the  duty  may  be  collected 
in  respect  of  the  whole  of  such  parcels. 

ARTICLE  XIX. — Customs  Release  of  Parcels. — No  parcel  is  to  be  transmitted  or  delivered 
until  either  Customs  Release  Permit  has  been  exhibited  to,  or  the  duty  collected  by,  the  Japanese 
Post  Office,  except  in  the  case  of  parcels  which  have  to  be  immediately  redirected  or  sent  back  to 
Japan  or  a  third  country. 

ARTICLE  XX. — Monthly  Remittance  of  Duty  Collection. — The  Customs  duty  collected  by 
the  Post  Office  will  be  remitted  monthly  to  the  Customs,  and  a  return  of  the  parcels  on  which  the 
duty  could  not  be  collected  will  be  supplied. 

ARTICLE  XXI. — Refund  of  Duties. — It  is  understood  that  the  import  or  export  duty  originally 
collected  on  a  parcel  subsequently  returned  to  the  Office  of  origin  will  be  refunded  by  the  Customs 
provided  the  parcel  is  recognised  by  the  latter  to  be  still  in  its  original  packing  and  has  been  unopened. 

ARTICLE  XXII. — Customs  Examination. — Whenever  examination  is  necessary  the  Post  Office 
will  either  send  the  parcel  to  the  Customs  or  the  Customs  will  send  Examiners  to  the  Post  Office  to 
open  and  examine  the  parcel  in  question  in  company  with  the  postal  officials,  and  the  Post  Office  will 
admit  such  Examiners  and  give  them  every  facility. 

CHAPTER  VI.— APPLICATION  OF  UNION  CONVENTION. 

ARTICLE  XXIII.  The  stipulations  of  the  Union  Parcel  Post  Convention  and  the  Regulations 
thereof  shall  remain  applicable  as  regards  every  parcel  post  relation  between  the  Empire  of  Japan  and 
the  Empire  of  China  not  provided  for  by  the  Articles  of  the  present  Agreement. 

CHAPTER  VII.— DURATION  OF  AGREEMENT. 

ARTICLE  XXIV.  The  present  Agreement  shall  come  into  operation  on  the  ist  April  1910,  and 
shall  remain  in  force  for  an  indefinite  period.  The  two  contracting  Administrations,  however, _  are 
at  liberty,  at  any  time  by  mutual  consent,  to  introduce  in  the  present  Agreement  any  such  modifica- 
tions as  they  may  find  necessary  or  to  bring  the  Agreement  to  an   end  at  six  months   notice. 

The  present  Agreement  shall  supersede,  on  the  day  on  which  it  comes  into  operation,  the 
Parcel  Post  Provisional  Arrangement  between  Japan  and  China,  signed  at  Peking  on  the  i8th  May 
1903,  and  the  Understanding  appertaining  thereto. 


Germany. 

ARRANGEMENT  REGULATING  THE  EXCHANGE  OF  POSTAL  PARCELS  BETWEEN  THE 
ADMINISTRATION  OF  IMPERIAL  POSTS  OF  GERMANY  AND  THE  ADMINISTRATION 
OF  IMPERIAL  CUSTOMS  AND  POSTS  OF  CHINA. 

July  19th  and  August  26th,   1910 

The  exchange  of  postal  parcels  between  the  Administration  of  Imperial  Posts  of  Germany  and 
the  Administration  of  Imperial  Customs  and  Posts  of  China,  provided  for  in  Article  VIII,  1°,  of 
the  Postal  Arrangement  concluded  on  the  2Sth  October/ard  November  1905  between  the  two  above- 
mentioned  Administrations,  shall  be  regulated  according  to  the  conditions  hereunder  stated. 

Article  i. — Weight  of  Parcels. —  1°.  The  maximum  weight  of  parcels,  whether  of  declared  value 
or  not,  shall  not  exceed  10  kilogrammes. 

2°.  However,  the  exchange  of  postal  parcels  exceeding  5  kilogrammes  in  weight  is  restricted, 
provisionally,  to  parcels  originating  from  and  destined  for  Germany  and  the  Offices  of  Tsingtau  on 
the  one  part  and  China  on  the  other. 

3°.  By  way  of  exception,  this  limit  of  weight  is  fixed  at  3  kilogrammes  in  relation  with  Offices 
of  the  Administration  of  Customs  and  Posts  of  China  that  are  not  connected  by  railway  or  by 
steamer;  but  this  limit  may,  hereafter,  be  raised  by  mutual  agreement  between  the  two  Adminis- 
trations. 

Article  2. — Dimensions  of  Parcels. — 1°.  Parcels  destined  for  China  shall  not  for  the  present 
exceed  i  metre  and  50  centimetres  in  any  one  direction,  nor  a  volume  of  55  cubic  decimetres,  except 
in  the  case  of  parcels  up  to  3  kilogrammes  and  also  those  from  3  to  5  kilogrammes,  the  volume  of 
which  shall  not  exceed  25  cubic  decimetres,  and  their  size  60  centimetres  in   any  one  direction. 

2°.  However,  parcels  up  to  5  kilogrammes,  containing  umbrellas,  walking-sticks,  charts,  plans,  and 
such-like  articles,  shall  be  accepted  if  they  do  not  exceed  i  metre  long  and  20  centimetres  broad  or 
thick. 

3°.  The  limits  of  dimension  and  of  volume  herein  determined  may  be  increased  by  mutual 
agreement. 


NUMBER  1906/3 :  MAY  26,  1906  603 

ARTICLE  3.— Exchange  of  Parcels.— Unless  otherwise  agreed  to  by  the  two  Administrations,  the 
exchange  of  postal  parcels  shall  take  place  through  the  intermediary  of  the  German  Offices  established 
in  China  and  the  Chinese  Offices  established  in  the  same  localities  as  these  German  Offices. 

Article  4.— Transmission  of  Parcels.— 1°.  The  German  Administration  shall  be  the  inter- 
mediary, by  means  of  the  postal  services  it  may  maintain,  for  the  exchange  of  parcels  between 
China  on  the  one  part  and  Germany,  Tsingtau,  the  German  Colonies  and  Protectorates,  and  foreign 
countries  on  the  other. 

2°.  The  Administration  of  Customs  and  Posts  of  China  engages  on  its  part  to  ensure  the  trans- 
mission by  its  services  of  all  parcels  that  shall  be  handed  to  it  by  the  German  Administration. 

Article  5.— Tariffs  and  Postage. — 1°.  Each  Administration  shall  itself  determine  the  taxes  and 
duties  to  be  collected  on  postal  parcels  forwarded  by  its  own  Offices.  The  prepayment  of  postage  on 
postal  parcels  shall  be  obligatory  before  departure.  The  fee  for  delivery  shall,  however,  be  payable 
by  the  addressee. 

2°.  Moreover,  parcels  destined  for  places  in  China  not  connected  by  railway  or  by  steamer  may 
be  further  charged  for  transmission  beyond  railway  or  steamer  services,  at  the  expense  of  the 
addressee,  supplementary  taxes,  the  amount  of  which  shall  be  determined  by  the  Administration  of 
Customs  and  Posts  of  China. 

3°.  The  German  Postal  Administration  shall  collect,  from  the  addressee,  on  parcels  from  5  to  10 
kilogrammes  originating  in  China,  an  additional  tax,  in  accordance  with  the  German  tariff,  for  the 
transmission  of  such  parcels  from   Bremen  or  Hamburg  to  destination. 

4°.  The  two  Administrations  shall  supply  each  other  with  their  respective  tariffs. 

S°-  It  is  understood  that  the  German  Administration  shall  not  tax  parcels  exchanged  between 
Its  Offices  in  China  at  rates  lower  than  those  charged  by  the  Chinese  Administration   of  Posts. 

.Article  6.— Transit  Charges.— 1° .  The  Administration  of  Posts  of  China  shall  pay  to  the 
Administration  of  Posts  of  Germany  for  parcels  destined  for  Germany  and  for  each  postal  parcel 
the  following  charge: — 

I.  Via  Bremen  or  Hamburg  (direct  exchange): 

(a.)   2  francs  for  parcels  up  to   i   kilogramme. 
(b.)   3  francs  for  parcels  from  i  to  s  kilogrammes. 
_  (c.)   4  francs  50  centimes  for  parcels  from  5   to   10  kilogrammes. 
II.   Via  Italy  and  Austria-Hungary  or  Switcerland: 

(a.)   3   francs   for  parcels  up  to   i   kilogramme. 

(t>.)   4  francs    for    parcels   from    i    to    5   kilogrammes.      (This   route   is   not   open,    for 
the  present,  for  parcels  from  5  to  10  kilogrammes.) 
III.   Via  Siberia : 

The    date    of    opening    of    this    route    and    the    conditions    for    the    transmission    of 
parcels  shall  be  notified  later  to  the  Administration  of  Posts  of  China. 

2°.  The  Administration  of  Posts  of  Germany  shall  pay  to  the  Administration  of  Posts  of  China 
for  parcels  destined  for  China,  and  for  each  postal  parcel,  the  following  charge: — 

(a.)   50  centimes  for  parcels  up  to  i  kilogramme. 

(b.)   75  centimes  for  parcels  from    i   to  5   kilogrammes. 

(c.)    I  franc  25  centimes  for  parcels  from  5  to  10  kilogrammes. 

3°.  With  regard  to  the  exchange  of  parcels  originating  from,  or  destined  for,  the  German 
Offices  at  Tsingtau,  the  Administration  to  which  the  parcels  are  handed  shall  be  entitled  to  a  fee  of 
2S  centimes  per  parcel. 

4°.  As  to  international  postal  "parcels,  the  Administration  of  Posts  of  Germany  shall  notify  to 
the  Administration  of  Posts  of  China — 

(a.)  The    nomenclature    of    countries    with    which    it    may    serve    as    intermediary    for    the 

exchange  of  postal  parcels; 
(&.)   The   routes   open    for   the   transmission    of    such    parcels    from    the    time    they    enter,   its 

services; 
(c.)    The  total  amount  of  charges  to  which  it  is  thereby  entitled  for  each   destination. 

Article  7. — Parcels  of  Declared  Value. — x°.  Besides  the  transit  charges,  the  Administration  of 
origin  shall  pay,  in  respect  of  insurance  fees  on  parcels  of  declared  value,  to  the  other  Administration, 
and,  if  need  be,  to  each  Administration  participating  in  the  transmission  when  such  Administration 
is  under  guarantee  of  responsibility,  a  proportional  part  of  the  determined  insurance  fee,  viz.,  for 
300  francs  or  fraction  of  300  francs,  5  centimes  for  territorial  transport,  and  10  centimes  per 
maritime  service  participating  in  the  transmission. 

2°.  However,  the  insurance  fee  payable  by  the  Chinese  Administration  to  the  German  Adminis- 
tration for  parcels  destined  for  Germany  carried  over  the  undermentioned  routes  is  thus  modified: — 

(a.)    Via  Bremen  or  Hamburg: 

20  centimes  per  300   francs  for  parcels  up  to  5  kilogrammes. 

15  centimes  per  300   francs  for  parcels  from   5   to    10  kilogrammes. - 

The  insurance   fee   for  territorial   transport   in   Germany   of   parcels   from    5   to    10 

kilogrammes     is     collected     by     the     German     Administration     of     Posts     from     the 

addressee. 
(&.)   Via  Italy: 

30  centimes  per  300  francs, 
(c.)     Via  Siberia: 

The  insurance  fees  shall  be  notified  later  to  the  Administration  of  Posts  of  China. 

As  to  postal  parcels  which  may  be  forwarded  in  transit  through  Germany,  the  German  Adminis- 
tration of  Posts  shall  notify  to  the  Administration  of  Posts  of  China  the  total  of  insurance  fees  to 
which  it  is  entitled   for  each   destination. 

Article  8. — Acknozvledgment  of  Receipt. — 1°.  The  sender  of  a  postal  parcel  may  obtain  an 
acknowledgment  of  receipt  of  his  parcel  by  paying  a  fee  that  shall  not  exceed  25  centimes. 

2°.  The  same  fee  may  be  charged  when,  subsequent  to  posting,  inquiries  are  made  about  a  parcel, 
provided  the  special  fee  for  an  acknowledgment  of  receipt  has  not  been  paid  already. 

3°.  This  charge  shall  accrue  entirely  to  the  Administration  of  origin. 

Article  9. — Delivery  and  Customs  Formalities. — It  shall  be  allowable  for  the  country  of 
destination  to  collect  from  the  addressee  a  fee  that  shall  not  exceed  25  centimes  per  parcel  for 
delivery  and  Customs  formalities. 

Article  10. — Annulment  of  Customs  Duties. — In  the  case  of  the  retransmission  or  of  the  return 
of  a  parcel  to  the  Office  of  origin,  the  Customs  duties  that  have  been  paid  on  the  parcel  in  the 
country  of  first  destination  shall  be  annulled. 


504  CHINA  TREATIES  AND  AGREEMENTS 

Article  ii. — Responsibility.^!".  Except  in  cases  of  force  majeure,  if  a  postal  parcel  be  lost, 
despoiled,  or  damaged,  the  sender  or,  in  his  default,  or  by  his  request,  the  addressee  shall  be 
entitled  to  an  indemnity  corresponding  to  the  actual  amount  of  the  loss,  the  spoliation,  or  the 
damage,  unless  this  damage  be  caused  by  the  fault  or  by  the  negligence  of  the  sender,  or  be  due 
to  the  nature  of  the  parcel  itself;  but  this  indemnity  shall  not  exceed  25  francs  for  ordinary  parcels 
up  to  5  kilogrammes,  40  francs  for  parcels  from  5  to  10  kilogrammes,  and  the  declared  value  for 
parcels   of   declared   value. 

Besides,  the  sender  of  a  lost  parcel  shall  be  entitled  to  refund  of  the  postage  on  the  parcel  and 
also  to  the  postage  expenses  connected  with  making  the  inquiries  when  the  cause  of  the  claim  is 
due  to  the  fault  of  the  Post  Office.  However,  the  insurance  fee  shall  be  retained  by  the  Postal 
Administrations. 

2°.  The  obligation  to  pay  the  indemnity  shall  be  incumbent  upon  the  Adoriinistration  of  the 
Office  of  origin;  it  shall  then  rest  with  this  Administration  to  prefer  a  claim  against  the  responsible 
Administration,  that  is  to  say,  against  the  Administration  upon  whose  territory  or  in  whose  service 
tne  loss,   spoliation,   or   damage  shall   have   taken   place. 

3°.  Until  proved  to  the  contrary,  the  responsibility  shall  remain  with  the  Administration  which, 
having  received  the  parcel  without  making  any  remark,  can  establish  neither  its  delivery  at  its 
destination  nor,  as  may  happen,  its  regular  transmission   to  the  next   Administration. 

4°.  The  payment  of  the  indemnity  by  the  Office  of  origin  shall  be  made  as  soon  as  possible, 
and  not  later  than  one  year  after  the  date  of  the  claim.  The  responsible  Office  shall  refund  without 
delay  to  the  Office  of  origin  the  amount  of  the  indemnity  paid  by  the  latter. 

The  Office  of  origin  shall  be  authorised  to  indemnify  the  sender  on  behalf  of  the  intermediary 
Office  or  of  the  Office  of  destination  which,  having  been  regularly  notified,  shall  have  allowed  one 
year  to  elapse  without  having  settled  the  claim. 

Moreover,  in  tiie  case  of  an  Office  whose  responsibility  shall  be  duly  established  which  shall 
decline  altogether  to  pay  the  indemnity,  it  shall  undertake  to  pay,  besides  the  indemnity,  the 
accessory   expenses   resulting   from   undue   delay  in   making  the   payment. 

5°.  It  is  understood  that  a  claim  shall  be  admitted  only  if  made  within  one  year  from  the 
date  of  posting  the  parcel;  after  this  limit  the  claimant   shall  not  be  entitled  to   any  indemnity. 

6°.  If  the  loss  or  damage  happen  during  transmission  between  the  Offices  of  exchange  of  the 
two  Administrations,  thus  rendering  it  impossible  to  decide  upon  which  of  the  two  territories  the  act 
took  place,  the  two  Administrations  concerned  shall  share  the  loss  equally. 

7°.  The  Administration  shall  cease  to  be  responsible  for  postal  parcels,  delivery  of  which  shall 
have  been  taken  by  the  persons  entitled  to  receive  them. 

Article  12. — Articles  prohibited. —  1°.  Parcels  shall  not  contain  any  letter  or  note,  either  sealed 
or  open,  that  might  establish  a  correspondence  between  the  sender  and  the  addressee.  Exception  may 
be  made  only  in  the  case  of  invoices,  price  lists,  and  other  open  documents  that  relate  exclusively  to 
the  contents  of  the  parcel. 

2°.  The  sender  shall  also  be  forbidden  to  enclose  in  a  parcel  any  explosive  or  inflammable 
material  and  generally  all  articles  the  transmission  of  which  presents  any  danger  whatsover,  or  the 
importation  of  which  shall  be  contrary  to  the  laws  or  to  Customs  regulations,  or  otherwise  not 
authorised. 

3°.  Parcels  containing  money,  articles  made  of  gold  or  of  silver,  and  other  precious  articles, 
must  have  their  value  declared. 

4°.  In  case  of  infraction  of  these  above  rules,  the  parcel  shall  simply  be  returned  to  the  place 
of  origin. 

5°.  The  two  Administrations  shall  communicate  to  each  other  a  list  of  things  and  products 
forbidden  importation  into  their  territories. 

Article  13. — Temporary  Suspension  of  the  Service. — In  extraordinary  circumstances  of  a  nature 
to  justify  the  measure,  each  Admiriistration  may  temporarily  suspend  the  parcel  post  service,  either 
entirely  or  partially,  on  condition  that  immediate  notice  be  given,  if  need  be  by  telegraph,  to  the 
other  Administration  concerned. 

Article  14. — Fiilfihnent  of  the  Convention. — 1°.  The  Postal  Administrations  of  Germany  and 
of  China  shall  settle  all  matters  of  detail  and  of  disposition,  in  order  to  ensure  the  fulfilment  of  the 
present  Convention. 

2°.  The  Postal  Administrations  of  Germany  and  of  China  shall  designate  the  Offices  or  the 
localities  at  which  the  exchange  of  postal  parcels  is  to  be  allowed. 

3°.  They  shall  supply  to  each  other  a  list  of  the  countries  with  which  they  may  respectively 
sferve  as  intermediaries  and  the  list  of  localities  open  to  the  service. 

Article  15. — General  Provision. — The  internal  legislation  of  each  Of  the  contracting  countries, 
as  well  as  the  dispositions  of  the  International  Convention  concerning  the  exchange  of  postal  parcels 
and  of  the  detailed  regulations  thereto  annexed,  shall  remain  applicable  to  all  points  not  herein 
provided  for  or  not  contrary  to  the  present  Convention. 

Article  16. —Duration  of  the  Convention. — The  present  Arrangement  shall  be  put  into 
operation  from  a  day  mutually  agreed  upon  by  both  Administrations,  and  it  shall  remain  in  force 
for  an  indefinite  period.  However,  the  contracting  parties  reserve  to  themselves  the  right  to  make 
at  any  time  such  modifications  therein  as  they  may  by  mutual  agreement  judge  necessary,  or  to 
terminate  the  Arrangement  by  giving  at  least  six  months  notice  in  advance. 


France  (Indo-China). 

ARRANGEMENT  REGULATING  THE  EXCHANGE  OF  POSTAL  PARCELS  BETWEEN  THE 
PROVINCE  OF  YUNNAN,  INDO-CHINA.  AND  THE  COUNTRIES  BEYOND,  THROUGH 
THE  INTERMEDIARY  OF  THE  SERVICES  OF  INDOCHINA.* 

July  24th  and  September  21st,   191 1 

ARTICLE  1. — Postal  Parcels  leaving  China. — (a)  Originating  at  the  Indo-Chinese  Offices  of 
Mengtss  aiui/or  Yiinnanfit. — The  Indo-Chinese  Offices  of  Mengtsz  and  Yiinnanfu  accept  for  trans- 
mission ordinary  postal  parcels  for  all  the  destinations  mentioned  in  the  postal  tariff  of  Indo-China 
and  collect  the  same  taxes  as  that  Administration,  augmented  by: — 

1°.  The  share  due  to  China  for  the  transport  in  Yunnan,  provisionally  fixed  by  the 
Office  of  China  at  o  fr.  70  centimes  for  parcels  not  exceeding  5  kilos,  and  i  franc 
for   parcels   over   5   but  not  exceeding    10  kilos.; 

*  See  the   Convention   with   the  Compagnie   Frangaise   des  Chemins   de  Per   de   I'Indo-Chine   et   du 
Yunnan    for   the   Transportation    of    Parcels    Post,    April    isth,    1912    (No.    1912/7,    post). 


NUMBER  1906/3 :  MAY  26,  1906  605 

2°.  The  cost  of  transport  between  Laokai  and  Haiphong,  on  the  line  belonging  to  the 
"  Compagnie  des  Chemins  de  Fer  de  I'lndo-Chine  et  du  Yunnan":  i  franc  for 
parcels  not  exceeding  5  kilos,  and  2  francs  for  parcels  over  5  but  not  exceeding 
10  kilos. 

These  parcels  are  forwarded,  accompanied  by  a  Parcel  Way  Bill,  to  the  Chinese  Office  of 
exchange  of  Hokow,  through  the  intermediary  and  under  the  care  of  the  Chinese  Offices  of  Mengtsz 
and  Yiinnanfu. 

The  Chinese  Office  of  Hokow,  after  checking  the  parcels,  returns  to  the  Indo-Chinese  Office  of 
origin   (Mengtsz  or  Yunnanfu),  duly  signed,  the  Parcel  Way  Bill  which  accompanied  the  parcels. 

It  then  hands  over  the  parcels,  a  decoiirert.  after  having  entered  them  on  a  Parcel  Way  Bill, 
made  out  in  duplicate,  on  which  the  Chinese  Administration  is  credited,  in  column  9,  with  its  share 
of  the  transport:  o  f.  70  centimes  for  parcels  not  exceeding  5  kilos,  and  i  franc  for  parcels  over 
5  but  not  exceeding  10  kilos. 

(fc.)  Originating  at  the  Chinese  Offices  in  Yunnan. — The  Chinese  Offices  in  Yunnan  accept  for 
transmission  ordinary  postal  parcels  for  all  the  destinations  mentioned  in  the  postal  tariff  of 
IndoChina. 

These  parcels  are  handed  over,  d  decouvert,  by  the  Chinese  Office  of  Hokow  to  the  Indo-Chinese 
Office  of  Laokai,  accompanied  by  a  Parcel  Way  Bill,  on  which  the  Chinese  Office  of  Hokow  enters 
to  the  credit  of  the  Administration  of  Indo-China  the  shares  of  transport  to  destination  due  to  that 
Administration,  viz.: — 

1°.   Principal  tax  as  per  postal  tariff  of  Indo-China; 

2°.  Cost  of  transport  between  Laokai  and  Haiphong  on  the  line  belonging  to  the  "  Com- 
pagnie des  Chemins  de  Fer  de  I'lndo-Chine  et  du  Yunnan":  i  franc  for  parcels  not 
exceeding  5  kilos,  and  2  francs  for  parcels  over  5  but  not  exceeding   10  kilos. 

The  postal  tariff  of  the  Colony  showing  the  taxes  on  postal  parcels  forwarded  from  IndoChina 
will  be  communicated  to  the  Office  of  China  by  the  Office  of  Indo-China. 

ARTICLE  2. — Postal  Parcels  entering  China. — (o)  Destined  for  Mengtsz  and/or  Yiinnanfu. — 
Indo-Chinese,  French,  or  foreign  ordinary  postal  parcels  destined  for  Mengtsz  or  Yunnanfu  are 
handed  by  the  Indo-Chinese  Office  of  Laokai  to  the  Chinese  Office  of  Hokow,  in  closed  mails, 
accompanied  by  a  Parcel  Way  Bill,  in  duplicate,  on  which  the  Indo-Chinese  Office  of  Laokai  enters 
to  the  credit  of  the  Administration  of  China,  in  column  9,  the  share  of  the  transport  due  to  that 
Administration:  o  f.  70  centimes  for  parcels  not  exceeding  5  kilos,  and  i  franc  for  parcels  over  5  but 
not  exceeding  10  kilos. 

These  parcels  are  then  handed  over  to  the  Indo-Chinese  Offices  of  Mengtsz  and /or  Yiinnanfu 
through  the  intermediary  and  under  the  care  of  the  Chinese  services,  to  be  delivered  to  the 
addressees. 

(b.)  Destined  for  Localities  other  than  Mengtsz  and  Yiinnanfu. — Indo-Chinese,  French,  or 
foreign  ordinary  postal  parcels  destined  for  places  situated  in  the  province  of  Yunnan  other  than 
Mengtsz  and  Yiinnanfu  are  handed  over,  d  decouvert,  by  the  Indo-Chinese  Office  of  Laokai  to  the 
Chinese  Office  of  Hokow,  accompanied  by  a  Parcel  Way  Bill,  in  duplicate,  on  which  the  Indo- 
Chinese  Office  of  Laokai  enters  to  the  credit  of  the  Administration  of  China,  in  column  9,  the  share 
of  the  transport  due  to  that  .Administration:  o  f.  70  centimes  for  parcels  not  exceeding  5  kilos,  and 
I   franc  for  parcels  over  5  but  not  exceeding  10  kilos. 

These  parcels  are  delivered  by  the  Chinese  Offices,  which  collect  from  the  addressees  of  parcels 
destined  for  non-steam-served  places  in  Yunnan  supplementary  taxes  known  as   "  domestic  rates." 

.ARTICLE  3. — Postal  Parcels  exchanged  by  the  Chinese  Offices  in  transit  through  Indo- 
China.—  (a.)  Postal  Parcels  leaving  Yunnan. — Postal  parcels  forwarded  by  the  Chinese  Office  of 
Hokow  to  other  Chinese  Offices  in  the  Empire  of  China,  in  transit  through  Indo-China  and  the 
maritime  services  and  vice-versa,  pay  the  taxes  fixed  by  the  Administration  of  China. 

These  parcels  passing  in  transit  are  handed  over,  d  decouvert,  to  the  Office  of  Laokai  by  the  Office 
of  Hokow  for  Customs  treatment,  after  which  the  parcels  are  placed  by  the  two  Offices  of  exchange 
in  baskets  supplied  by  the  Administration  of  China.  These  baskets  are  then  forwarded,  in  transit, 
through  the  maritime  services  via  Hongkong  to  the  Chinese  Offices  designated  by  the  Chinese  Office 
of  Hokow. 

The  Chinese  Office  of  Hokow  enters  to  the  credit  of  the  Administration  of  Indo-China  the 
maritime  and  territorial  taxes  for  transport,  as  stipulated  in  Articles  3  and  6  of  the  Convention  of 
Rome  for  the  exchange  of  postal  parcels,  augmented  by  the  share  of  transport  on  the  line  belonging 
to  the  "  Compagnie  des  Chemins  de  Fer  de  I'lndo-Chine  et  du  Yunnan":  i  franc  for  parcels  not 
exceeding  5  kilos,  and  2  francs  for  parcels  over  5  but  not  exceeding   10  kilos. 

(fc.)  Postal  Parcels  entering  Yunnan. — Postal  parcels  coming  from  ports  in  China  via  Hongkong 
destined  for  Yunnan,  for  which  the  Administration  of  Indo-China  must  be  credited  with  the  total 
shares  of  transport  to  Laokai — including  those  relative  to  the  distance  Hongkong-Haiphong,  when 
the  transport  has  been  effected  by  Indo-China  steamers, — are  forwarded  in  closed  mails,  in  baskets 
supplied  by  the  Administration  of  China,  by  the  Chinese  Offices  of  origin  to  the  Indo-Chinese  Office 
of  Laokai,  which  Office  hands  them  over  d  decouvert,  with  the  baskets,  to  the  Chinese  Office  of 
Hokow. 

ARTICLE  4. — Customs  Duties  and  Fortvtalities  concerning  Chinese  or  Foreign  Postal 
Parcels  exchanged  in  transit  through  the  Services  of  Indo-China. —  (a.)  Indo-Chinese  and 
Chinese  parcels  leaving  the  province  of  Yunnan,  and  those  passing  in  transit  through  Indo-China,  must 
be  accompanied  by  two  Customs  Declarations.  The  examination  of  these  parcels  takes  place  at  the 
Chinese  Office  of  Hokow  in  the  presence  of  an  officer  of  the  Indo-Chinese  Customs,  who  will  assist 
by  giving  the  necessary  indications,  in  order  that  the  Customs  Declarations  may  be  drawn  up  in 
accordance  with  the  terms  of  the  General  Tariff  of  the  Indo-Chinese  Customs.  The  Customs  transit 
duties  are  paid  immediately,  and  the  amount  of  these  duties,  collected  as  per  the  General  Tariff  of 
the  Indo-Chinese  Customs,  is  handed  by  the  Chinese  Office  of  Hokow  to  the  Collector  of  Customs 
of  Laokai. 

{b.)  As  regards  Indo-Chinese  or  foreign  parcels  entering  Yunnan,  the  formalities  required  by 
the  Chinese  Customs  are  performed  at  Mengtsz  and/or  Yiinnanfu  or  at  the  place  of  destination. 

ARTICLE  5. — Parcels  with  Declared  Value. — Parcels  with  declared  value  exchanged  between 
Chinese  Offices,  in  transit  through  the  services  of  Indo-China,  are  accepted  by  that  Office,  provided 
that  they  are  transmitted  packed  in  special  baskets  giving  every  guarantee  as  to  the  adequate 
protection  of  the  contents. 

The  .Administration  of  China,  on  its  part,  accepts  parcels  with  declared  value  exchanged,  in  all 
relations,  with  the  Indo-Chir.ese  Offices  of  Mengtsz  and /or  Yiinnanfu. 

These  parcels  are  entered  on  special  Parcel  Way  Bills,  and  each  Office  participating  in  the 
transport  receives  the  shares  stipulated  in  the  Convention  of  Rome  for  the  exchange  of  postal  parcels 
(Art.  3.  §  4),  viz.,  o  f.  05  centimes  per  300  francs  or  fraction  of  300  francs  of  the  declared  value 
for  territorial   transit  and  o   f.    10   centimes   for  maritime  transit. 


506  CHINA  TREATIES  AND  AGREEMENTS 

ARTICLE  6. — Parcel  Way  Bills. — The  Office  of  exchange  which  takes  delivery  of  postal  parcels 
signs,  in  token  of  receipt,  one  copy  of  the  Parcel  VVay  Bill,  which  is  kept  by  the  other  Office  of 
exchange  to  be  attached  to  its  accounts.  The  duplicate  copy  of  the  Parcel  Way  Bill  accompanying 
the  parcels  is  attached  to  the  accounts  of  the  Office  which  takes  delivery  of   the  parcels. 

ARTICLE  7. — Accounts. — The  two  Offices  of  Laokai  and  Hokow  are  entrusted  with  the  prepara- 
tion of  accounts. 

To  that  effect,  they  prepare  monthly  a  statement,  in  conformity  with  specimen  K  of  the 
Convention  of  Rome  for  the  exchange  of  postal  parcels,  and  forward  it,  together  with  the  Parcel 
Way  Bills  relating  thereto,  to  the  Directors  General  of  their  respective  Administrations.  After 
verification  and  acceptance,  on  both  sides  of  the  monthly  account  L  prepared  by  the  two  Offices, 
the  Administrations  summarise  the  accounts  in  a  quarterly  statement,  the  balance  of  which  is  paid, 
in  gold  francs,  by  means  of  drafts  drawn  on  the  places  chosen  by  mutual  consent.  The  taxes 
collected  in  piastres  and  cents  in  Yunnan  on  parcels  destined  for  the  Indo-Chinese  Offices  are 
converted  into  francs  at  the  official  rate  fixed  by  the  Treasury  of  Indo-China  at  the  time  of  the 
settlement  of  accounts,  i.e.,  on  the  last  day  of  the  quarter.  This  rate  is  regularly  communicated  by 
the  Indo-Chinese  Office  of  Laokai  "^o  the  Chinese  Office  of  Hokow. 

ARTICLE  8. — General  Provisions  and  Responsibilities. — It  is  understood  that  as  soon  as  the 
projected  Arrangement  between  the  Office  of  Indo-China  and  the  "  Conipagnie  des  Chemins  de  Per 
de  rindo-Chine  et  du  Yunnan,"  with  a  view  to  reduce  the  cost  of  transport,  shall  have  been  concluded, 
and  the  taxes  provided  for  by  the  Convention  of  Rome  become  applicable  to  the  Indo-Chinese  transit, 
the  Office  of  China  will,  in  virtue  thereof,  reduce  to  o  f.  50  and  o  f.  80  its  shares  of  the  transport 
in   Yunnan,  provisionally  fixed  at  o  f.   70  and   i    franc. 

For  all  points  that  are  not  provided  for  by  the  present  Arrangement,  namely,  as  regards  the 
question  of  the  respective  responsibility  of  the  several  Offices,  the  contracting  parties  will  adhere  to 
the  rules  laid  down  in  the  Convention  of  Rome   for  the  exchange  of  postal   parcels. 

ARTICLE  9. — Duration  of  Arrangement. — The  present  Arrangement  shall  come  into  force  as 
soon  as  the  necessary  notifications  have  been  made  by  the  Office  of  Indo-China  to  the  International 
Bureau  at  Berne  and  the  Administrations  of  China  and  Indo-China  have  agreed  upon  a  date  by 
simple  exchange  of  letter.  It  shall  remain  in  force  for  an  indefinite  period.  The  contracting  parties 
reserve  to  themselves  the  right  to  make  at  any  time  such  modifications  therein  as  they  may  judge 
necessary  and  to  terminate  the  Arrangement  by  giving  notice   three  months  in  advance. 


See  also  the  postal  arrangement  with  British  India,  February  9,  1909  (No.  1909/1,  post), 
the  arrangement  with  the  Chinese  Eastern  Railway  Company  for  the  transportation  of 
mails,  February  6/19,  1909  (No.  1909/2,  post),  the  parcel  post  arrangement  with  Hongkong, 
June  5  and  22,^  1909  (No.  1909/4,  post),  the  Convention  with  the  Compagnie  Franqaise  des 
Chemins  de  Fer  de  I'lndo-Chine  et  du  Yunnan  for  the  transportation  of  parcels  post, 
April  15,  1912  (No.  1912/7,  post),  the  parcels  post  convention  with  the  United  States,  May 
29  and  July  11,  1916  (No.  1916/10,  post),  and  the  Agreement  with  Japan  in  regard  to  postal 
and  telegraph  operations  at  the  leased  territory  of  Kiaochow  Bay  and  along  the  Kao-Tsi 
Railway,  March  26,  1917   (No.  1917/5,  post).] 


NUMBER  1906/4. 

RUSSIA  AND  THE  UNITED  STATES. 

Exchange  of  notes  in  regard  to   the  reciprocal  protection  of  trade-marks  in 

China.* — June  28,   ipo6. 

Mr.  Rockhill  to  Mr.  Pokotilow. 

Peking,  June  28,  1906. 
Mr.  Minister  and  Dear  Colleague:  The  Government  of  the  United  States 
being  desirous  of  reaching  an  understanding  with  the  Government  of  Russia  for 
the  reciprocal  protection  against  infringement  in  China  by  citizens  and  subjects 
of  our  respective  nations  of  trade-marks  duly  registered  in  the  United  States  and 
Russia,  I  am  authorized  by  the  Secretary  of  State  of  the  United  States  to  inform 
you  that  the  American  consular  courts  in  China  afford  protection  against  in- 

*  Text  (and  translation)  as  printed  in  U.  S.  Treaty  Series  (No.  484).     Printed  also  in 
Isvicstia,  1914,  Vol.  I,  p.  1 ;  Malloy,  p.  1535. 


NUMBER  1906/4:  JUNE  28,  1906  607 

fringement  in  China  by  American  citizens  of  trade-marks  the  property  of  Rus- 
sian subjects  which  have  been  duly  registered  in  the  United  States. 

I  beg  that  you  will  kindly  inform  me  whether  like  protection  will  be  given 
to  American  citizens  in  the  consular  courts  of  Russia  in  China  against  the  in- 
fringement by  Russian  subjects  of  their  trade-marks  duly  registered  in  Russia. 

I  have  the  honor  to  be,  my  dear  colleague,  your  obedient  servant, 

W.  W.  ROCKHILL. 

His  Excellency  D.  Pokotilow, 

Envoy  Extraordinary  and  Minister  Plenipotentiary,  etc., 

Russian  Legation,  Peking. 


Mr.  Pokotilozv  to  Mr.  RockhiU. 
[Translation.] 

Peking,  June  28,  1906. 

Mr.  Minister  and  Dear  Colleague  :  I  have  the  honor  to  acknowledge  the 
receipt  of  your  note  of  to-day's  date  by  which  you  kindly  inform  me  that  the 
Government  of  the  United  States  being  desirous  of  reaching  an  understanding 
with  the  Imperial  Government  of  Russia  concerning  the  protection  in  China  of 
trade-marks  duly  registered  in  Russia  and  the  United  States,  you  have  been 
authorized  to  declare  that  the  American  consular  courts  in  China  have  jurisdic- 
tion in  all  matters  concerning  the  infringement  by  persons  subject  to  the  juris- 
diction of  the  United  States  of  trade-marks  the  property  of  Russian  subjects 
which  have  been  duly  registered  in  the  United  States. 

Being  duly  authorized  by  my  Government,  I  have  the  honor  to  inform  you 
that  the  Imperial  Government  is  equally  ready  to  insure  in  China  through  the 
Russian  consular  courts  protection  for  trade-marks  the  property  of  persons 
subject  to  the  jurisdiction  of  the  United  States  and  duly  registered  in  Russia 
which  may  be  infringed  by  Russian  subjects.  I  deem  it  necessary,  however, 
to  observe  that  infringements  of  trade-marks  not  being  considered  by  the  Ameri- 
can statutes  a  criminal  ofifense  persons  subject  to  the  jurisdiction  of  the  United 
States  having  suffered  injury  can,  through  reasons  of  reciprocity,  only  claim 
before  the  Russian  courts  indemnification  for  the  damages  sustained  by  them. 

Please  accept,  Mr.  Minister  and  dear  Colleague,  the  assurance  of  my  highest 
consideration. 

D.    POKOTILOW. 

His  Excellency  W.  W.  Rockhill, 

Envoy  Extraordinary  and  Minister  Plenipotentiary,  etc., 
American  Legation,  Peking. 


608  CHINA  TREATIES  AND  AGREEMENTS 

NUMBER  1906/5. 

INTERNATIONAL  AND  CHINA. 

International  Red  Cross  Convention  for  the  amelioration  of  the  condition  of  the 
wounded  of  the  armies  in  the  field. — July  6,  1906. 

[The  text  of  this  convention  is  not  included  in  the  present  compilation,  as  it  appears 
to  have  no  particular  interest  in  reference  to  China.  Translations  of  the  French  texts  of 
the  convention,  concluded  at  Geneva,  July  6,  1906,  and  of  the  final  protocol  of  the  Con- 
ference for  the  revision  of  the  Geneva  convention  (of  August  22,  1864),  signed  at  Berne, 
August  22,  1906,  are  to  be  found  in  Malloy,  p.  2183.] 


NUMBER  1906/6. 

BELGIUM  AND  RUSSIA. 

Exchange    of   notes    concerning    the   reciprocal    protection    of    trade-marks    in 

China.*— October  15,  1906. 

Note  addressed  by  the  Charge  d'affaires  of  Belgium  at  Peking  to  the 
Russian  Minister,  under  date  October  2/15,  1906. 

I  have  the  honor  to  acknowledge  to  your  Excellency  the  receipt  of  the  notef 
which  you  were  so  good  as  to  address  to  me  on  the  subject  of  the  reciprocal  pro- 
tection of  Belgian  and  Russian  trademarks  in  China. 

This  communication  notes  that  the  Imperial  Government  has  given  the  neces- 
sary instructions  in  order  that  the  Russian  consular  tribunals  may  assure  the 
legal  protection  of  trademarks  belonging  to  Belgian  nationals  (i.e.,  ressortissants 
beiges)  and  duly  registered  in  Russia. 

In  taking  note  of  this  communication  I  have  the  honor  to  make  known  to 
your  Excellency  that  the  Government  of  the  King,  for  its  part,  assures  the  pro- 
tection in  China  of  Russian  trademarks  (i.e.,  marques  de  fabrique  et  de  com- 
merce russes),  regularly  registered  in  Belgium,  which  may  be  infringed  by  Bel- 
gian nationals. 

The  King's  legation,  as  well  as  the  Belgian  consulates,  vice  consulates  and 
agencies  in  China,  are  competent  to  take  jurisdiction  of  such  claims  as  may  be 
brought  before  them  in  such  cases. 

I  have  taken  care  to  advise  our  consular  agents  in  China  of  the  conclusion, 

*  Translation  from  French  text  as  printed  in  lavicstia,  1914,  vol.  1,  p.  2. 

t  The  note  referred  to,  dated  September  29/October  12,  1906,  was  identical,  mutatis 
mutandis,  with  that  addressed  to  the  British  Minister  on  October  16/29,  1906  (No. 
1906/8,  post). 


NUMBER  1906/7:  OCTOBER  16,  1906  609 

between  Belgium  and  Russia,  of  the  agreement  which  is  effected  by  the  exchange 
of  correspondence  that  has  taken  place  between  us. 
Accept,  etc. 

(Sgd.)  De   Prelle. 


NUMBER  1906/7. 

ITALY  AND  RUSSIA. 

Exchange    of   notes    concerning    the   reciprocal    protection    of    trade-marks    in 

China.t— October  16,  1906. 

Note  of  the  Italian  Minister  at  Peking  to  the  Russian  Minister,  under 

DATE  OF  October  3/16,  1906. 

By  your  note  of  today's  date§  you  were  so  good  as  to  inform  me  that  as  the 
Imperial  Government  desires  to  come  to  an  agreement  w^ith  the  Government  of 
Italy  concerning  the  reciprocal  protection  in  China  of  trademarks  (i.e.,  marques 
de  fabrique  et  de  commerce)  duly  registered  in  Russia  and  in  Italy,  you  have 
been  authorized  by  the  Minister  for  Foreign  Affairs  of  Russia  to  declare  to  me 
that  the  Government  of  Russia  is  ready  to  enforce,  through  its  consular  tribunals 
in  China,  all  claims  relating  to  the  infringement  of  trademarks  (i.e.,  marques  de 
fabrique  et  de  commerce),  duly  registered  in  Russia,  committed  by  Russian  sub- 
jects aganist  Italian  nationals   (i.e.,  ressortissants  italiens). 

In  taking  note  of  this  communication  I  have  the  honor  to  inform  you  that 
I  am  for  my  part  authorized  by  the  Royal  Government  to  declare  to  you  that  the 
infringement  of  Russian  trademarks  (i.e.,  marques  de  fabrique  et  de  commerce 
russes),  duly  registered  in  Italy,  committed  by  persons  subject  to  the  jurisdiction 
of  the  Italian  consular  tribunals  in  China,  will,  in  accordance  w'ith  the  provisions 
of  the  law,  be  tried  in  the  first  instance  by  the  consular  tribunals  mentioned  above, 
and  on  appeal  by  the  Royal  Court  of  Appeal  at  Ancona. 

Accept,  etc. 

(Sgd.)  Baroli. 

t  Translation  from  French  text  as  printed  in  Isviestia,  1914,  vol.  I,  p.  3. 
§  The   note   referred   to   was    identical,    mutatis   inutatidis,   with   that    addressed   to   the 
British  Minister  on  October  16/29th,  1906  (No.  1906/8,  post). 


610  CHINA  TREATIES  AND  AGREEMENTS 

NUMBER  1906/8. 

GREAT  BRITAIN  AND  RUSSIA. 

Exchange    of   notes    concerning    the    reciprocal    protection    of    trade-marks    in 

China*— October  29,  1906. 

Note  of  Russian  Minister  at  Peking  to  British  Minister. 

Imperial  Russian  Legation, 
Peking,  October  16/29,  1906. 
Mr.  Minister  and  dear  Colleague, 

The  Imperial  Government  being  desirous  of  arriving  at  an  agreement  with 
the  Government  of  Great  Britain  in  regard  to  the  reciprocal  protection,  in  China, 
of  trademarks  (i.e.,  marques  de  fabrique  et  de  commerce)  duly  registered  in 
Russia  and  in  England,  I  have  the  honor  to  advise  you  that  I  am  authorized  by 
the  Minister  for  Foreign  Affairs  of  Russia  to  declare  to  you  that  the  Govern- 
ment of  Russia  is  ready  to  enforce,  through  its  consular  tribunals  in  China,  all 
claims  relating  to  the  infringement  of  trademarks  (i.e.,  marques  de  fabrique  et 
de  commerce),  duly  registered  in  Russia,  committed  by  Russian  subjects  against 
English  nationals  (i.e.,  ressortissants  anglais). 

I  should  be  obliged  if  you  would  be  so  good  as  to  advise  me  if  the  same 
protection  would  be  accorded,  in  the  consular  tribunals  of  Great  Britain  in  China, 
to  trademarks  belonging  to  Russian  subjects  and  regularly  registered  in  England, 
which  might  be  infringed  by  English  subjects. 

Accept,  etc. 

(Sgd.)  D.  Pokotilow. 

Note  of  British  Minister  to  Russian  Minister. 

Sir,  Peking,  October  30,  1906. 

I  have  the  honour  to  acknowledge  the  receipt  of  your  note  of  the  29th 
October,  in  which  you  are  good  enough  to  inform  me  that  you  have  been  au- 
thorized by  the  Russian  Minister  of  Foreign  Affairs  to  declare  that  the  Russian 
Government  are  ready,  through  their  Consular  Tribunals  in  China,  to  enforce 
any  request  relative  to  infringements  of  British  trade-marks  duly  registered  in 
Russia,  which  may  be  committed  by  Russian  subjects. 

In  reply,  I  have  the  honour  to  inform  you  that  under  the  Order  in  Council 
of  February  2nd,  1899,!  it  is  open  to  a  Russian  whose  trade-mark,  duly  registered 
in  Great  Britain,  has  been  infringed  by  a  British  subject  in  China,  to  take  pro- 
ceedings against  the  latter  in  the  British  Court,  provided — 

*  Translation  from  the  French  text  as  printed  in  Izviestia,  1914,  vol.  I,  p.  4.  Printed 
also  in  Hcrtslet,  p.  617. 

t  For  the  relevant  articles  of  the  Order  in  Council  of  February  11,  1907,  replacing  the 
provisions  of  the  Order  in  Council  here  cited,  see  note  to  the  Anglo-American  arrange- 
ment concerning  trade-marks  in  China  (No.  1905/4),  at  page  505,  ante. 


NUMBER  1906/9:  NOVEMBER  30,  1906  611 

(1)  That  the  consent  in  writing  of  His  Majesty's  Minister  or  Charge 
d'Affaires  be  obtained  to  the  prosecution,  but  (2)  such  consent  may  be  withheld 
unless  His  Majesty's  Minister  or  Charge  d'Affaires  is  satisfied  that  effectual  pro- 
vision exists  for  the  punishment  in  the  Russian  Consular  Courts  of  Russian  sub- 
jects infringing  British  trade-marks. 

In  view  of  the  assurances  given  by  your  Excellency  in  the  note  under  reply, 
I  am  authorized  by  His  Majesty's  Government  to  inform  you  that  it  is  not  open  to 
doubt  that,  in  practice,  the  consent  of  the  British  Minister  or  Charge  d'Affaires 
would  be  given  in  any  and  every  case  where  full  reciprocity  could  be  and  was 
granted  by  Russia. 

I  shall  not  fail  to  inform  His  Majesty's  Government  of  this  exchange  of 
notes  nor  to  issue  the  necessary  instructions  to  His  Majesty's  Consular  Officers 
in  China. 

I  have,  &c., 

J.  N.  Jordan. 


NUMBER  1906/9. 

FRANCE  AND  RUSSIA. 

Exchange    of   notes    concerning    the    reciprocal    protection    of    trade-marks   in 

China* — November  30,  1906. 

Note   of   the   French    Minister   at    Peking   to   the    Russian    Minister, 

UNDER  date  of  NOVEMBER   17/30,   1906. 

I  have  the  honor  to  take  note  of  your  dispatch  of  today's  date.f  by  which 
you  are  so  good  as  to  make  known  to  me  that  your  Government  will  enforce, 
through  its  consular  tribunals  in  China,  all  claims  presented  by  a  French  national 
(i.e.,  nn  ressortissant  frangais)  in  respect  to  infringements  of  French  trade- 
marks (i.e.,  marques  franqaises  de  fahrique  et  de  commerce),  duly  registered  in 
Russia,  which  may  be  committed  by  Russian  subjects. 

I  am,  for  my  part,  authorized  by  my  Government  to  declare  to  you  that  the 
French  consular  tribunals  in  China  will,  from  today's  date,  assure  the  protection 
of  Russian  trademarks  (i.e.,  marques  russes  de  fahrique  et  de  commerce),  duly 
registered  in  France,  which  may  be  infringed  by  French  nationals  (i.e.,  ressortis- 
sants  frangais),  and  that  for  this  purpose  they  will  take  jurisdiction  of  all  claims 
that  may  be  presented  to  them  in  such  cases  by  Russian  subjects. 

Accept,  etc. 

(Sgd.)  Bapst. 

*  Translation  from  the  Frencli  text  as  printed  in  Icvicstia,  1914,  vol.  I,  p.  6. 
tThe   note   referred   to   was   identical,    mutatis  mutandis,   with   that    addressed   to   the 
British  Minister  on  October  16/29,  1906  (No.  1906/8,  ante). 


612  CHINA  TREATIES  AND  AGREEMENTS 

NUMBER  1906/10. 

JAPAN  AND  CHINA. 

Agreement  for  the  rendition  of  the  Port  of  Ying-k'on  {Port  of  N ewchwang) .% — 

December  5,  1906.^ 

In  accordance  with  the  Four  Articles  agreed  upon  by  the  Governments  of 
China  and  Japan  at  Peking  in  the  month  of  October  last,  ||  providing  for  the 
return  of  Ying-k'ou  by  Japan  to  the  control  of  China,  the  two  Governments  men- 
tioned have  now  appointed  representatives,  who  have  met  at  Ying-k'ou  and  have 
agreed  upon  the  following : 

1.  Whereas  Article  I  of  the  Peking  Memorandum  provides  that  previous 
to  the  withdrawal  of  the  Japanese  Military  forces  regulations  relating  to  quaran- 
tine inspection  (or  public  health)  at  Ying-k'ou  shall  be  adopted  by  the  Chinese 
local  authorities  in  consultation  with  the  Japanese  Consul,  now,  therefore,  we, 
representatives  of  the  two  Governments  concerned,  have  agreed  that,  for  the 
time  being,  such  matters  shall  be  dealt  with  under  the  regulations  adopted  by  the 
Japanese  military  authorities,  and  that  afterwards,  should  occasion  arise  requir- 
ing their  modification,  the  Chinese  local  authorities  may  of  their  own  authority 
take  such  action  as  may  be  needed. 

2.  Whereas  Article  II  of  the  Peking  Memorandum  provides  that  all  public 
works  begun  during  the  military  occupation,  or  for  which  arrangements  were 
made  at  that  time  shall  be  taken  over  by  the  local  authorities,  or  by  them  allowed 

X  Translation  from  the  Chinese  text. 

In  connection  with  this  agreement  see  also  the  treaty  between  Japan  and  China,  Decem- 
ber 22,  1905   (No.  1905/18,  ante). 

§  Signed  at  Newchwang. 

II  The  Chinese  text  reads  "Japanese  calendar  10th  month  (i.e.,  October);  Chinese 
calendar  9th  moon  (i.  e.,  18th  October-15th  November)."  The  Peking  Agreement  referred 
to  was  signed  November  9th,  1906,  between  the  Wai  Wu  Pu  and  Mr.  Hayashi,  Minister 
of  Japan,  in  terms  of  which  the  following  is  a  translation : 

Agreement  in  regard  to  Rendition  of  Yingkow,  November  g,  1906. 

"  (1)  Previous  to  the  withdrawal  of  the  Japanese  troops  from  Ying-k'ou  (Port  of 
Newchwang)  all  regulations  relating  to  quarantine  inspection  and  the  prevention  of  epi- 
demics must  be  determined  by  the  local  authorities  in  consultation  with  the  Japanese 
Consul. 

"  (2)  All  public  works  begun  during  the  period  of  military  occupation  or  arranged  for 
but  not  yet  begun  must  be  taken  over  and  completed  by  the  local  authorities,  or  the  latter 
must  allow  the  Japanese  to  complete  them. 

"  (3)  All  matters  relating  to  police  and  sanitation  shall  be  under  the  control  of  the 
Chinese  local  authorities,  who  shall  administer  them  in  a  thoroughly  efficient  manner  so  as 
to  secure  the  general  welfare.  To  this  end,  Japanese  Police  Inspectors  and  Medical  Officers 
are  also  to  be  employed.  Should  the  administration  be  unsatisfactory  in  any  particular  the 
Japanese  Consul  may  make  representations  to  the  local  authorities,  who  shall  advise  with 
him  and  take  such  action  as  the  circumstances  may  require. 

"  (4)  Both  the  Native  Customs  and  the  Imperial  Maritime  Customs  shall  be  under  the 
control  of  the  Customs  Taot'ai.  The  Chinese  Government  shall  for  the  present  deposit  all 
receipts  from  both  Customs  with  the  Yokohama  Specie  Bank,  but  hereafter,  as  soon  as  the 
Bank  of  the  Board  of  Finance  shall  have  established  its  branch,  these  receipts  shall  be 
deposited  with  both  banks." 


NUMBER  1906/10:  DECEMBER  5,  1906  613 

to  be  undertaken  by  the  Japanese,  we  now  find  that  the  Japanese  mihtary  authori- 
ties have  granted  permission  to  a  joint  stock  company  to  establish  water  works, 
electric  tramways,  an  electric  light  plant,  and  a  telephone  system  at  Ying-k'ou, 
and  we,  representatives  of  the  two  Powers  concerned,  have  agreed  that  the  said 
company  may  undertake  the  water  works,  electric  tramways,  and  electric  light- 
ing, but  that  it  will  be  necessary  first  to  send  the  Regulations  adopted  by  the  com- 
pany to  Peking  to  be  filed  with  the  Board (s)  concerned,  and,  if  it  shall  appear 
necessary  to  the  said  Board (s)  so  to  do,  to  be  altered,  or  to  have  additions  made 
to  them,  or  excisions  from  them ;  and  the  said  company  agrees  to  comply  ac- 
cordingly. 

As  for  the  telephone  system,  it  should  be  taken  over  by  the  Imperial  Chinese 
Telegraph  Service,  and  be  operated  by  it,  and  the  said  Telegraph  Service  and 
the  company  shall  each  appoint  a  representative  to  examine  the  telephone  prop- 
erty, as  already  established  in  Ying-k'ou,  and  estimate  the  price  at  which  it  shall 
be  bought.  If  these  representatives  fail  to  agree  upon  a  price,  the  said  Tele- 
graph Service  and  the  company  shall  together  select  a  disinterested  arbitrator  to 
determine  the  same,  whose  decision  shall  be  accepted  by  both  parties. 

As  to  the  abattoir,  it  shall  be  taken  charge  of  by  the  Health  Office,  and  the 
manner  of  fixing  the  price  at  which  it  shall  be  bought  shall  be  similar  to  that 
adopted  in  the  case  of  the  purchase  of  the  telephone  system  by  the  Telegraph 
Service. 

The  light  railway  extending  from  Ying-k'ou  to  Niuchia-t'un  shall  be  taken  up 
as  soon  as  the  electric  tramway  is  completed.  All  works  of  public  utility  under- 
taken by  the  Japanese  military  authorities,  or  arranged  for  but  not  yet  begun, 
the  Chinese  local  authorities  agree  to  take  over  and  complete  as  planned. 

3.  Whereas  it  is  provided  in  Article  III  of  the  Peking  Memorandum  that 
matters  afifecting  police  administration  and  public  health  shall  be  under  the  con- 
trol of  the  Chinese  local  authorities ;  that  the  management  thereof  shall  be  most 
efficient  so  as  to  secure  public  safety;  that  Japanese  police  instructors  and 
physicians  shall  be  employed  in  the  administration,  and  that,  if  any  cause  of  dis- 
satisfaction should  arise,  the  Japanese  Consul  may  notify  the  local  authorities 
who  shall  consult  with  him  and  take  the  necessary  action ;  now  we,  representa- 
tives of  the  two  Governments  concerned,  have  agreed  that  in  the  employment  of 
Japanese  police  instructors  and  physicians  the  same  regulations  shall  be  adopted 
as  in  the  case  of  the  Japanese  police  instructors  and  physicians  employed  in 
Tientsin,  except  in  the  matter  of  salaries ;  and,  if  hereafter  dissatisfaction  should 
occur  in  the  administration  of  police  afTairs,  immediately  upon  a  notification  to 
that  effect  from  the  Japanese  Consul  the  local  authorities  shall  consult  with  him 
and  take  such  action  as  may  be  needed. 

4.  No  suits  at  law  decided  during  the  military  occupation  shall  be  reopened 
by  the  Chinese  local  authorities.  The  records  in  all  such  cases,  and  other  docu- 
ments connected  with  them,  shall  be  delivered  by  the  military  government  to  the 
Chinese  local  authorities  for  filing.  The  military  government  shall  also  make 
copies  of  all  such  records  and  deposit  the  same  at  the  Japanese  Consulate  at 
Ying-k'ou. 

5.  Whereas  it  is  provided  in  Article  4  of  the  Peking  Memorandum  that 


614  CHINA  TREATIES  AND  AGREEMENTS 

both  the  Imperial  Maritime  Customs  and  the  Native  Customs  shall  be  placed 
under  the  control  of  the  Customs  Taot'ai,  and  that  the  Chinese  Government  shall 
for  the  present  deposit  the  receipts  of  both  said  customs  with  the  Yokohama 
Specie  Bank,  and  that  hereafter  when  the  Bank  of  the  Board  of  Finance  shall  have 
established  a  branch  (at  Ying-k'ou)  the  receipts  shall  be  deposited  with  both 
banks ;  now  therefore  we,  representatives  of  the  two  Governments  concerned,  have 
agreed  that  the  local  authorities  concerned  and  the  Yokohama  Specie  Bank  shall 
together  arrange  the  terms  of  such  deposit  with  the  Yokohama  Specie  Bank  at 
Ying-k'ou. 

6.    The  military  government  at  Ying-k'ou  agree  that  on  the  sixth  of  Decem- 
ber, 1906,  it  will  entirely  withdraw  from  said  port. 

(Dated)  Ming-chih  (Meiji)  XXXIX  Year,  12th  Month,  5th  Day.     Kuang 
Hsii  XXXII  Year,  10th  Moon,  20th  Day.     (December  5,  1906.) 
(Signed)  Moritaro  Abe, 

First  Secretary,  Japanese  Legation, 
Ananoshin  Segawa, 

Japanese  Consul  at  Newchwang, 
Lieut.  Colonel  Kikei  Yokura, 
Representatives  of  the  Imperial  Japanese  Gov't. 
Liang  Ju-hao  [M.  T.  Liang], 
Intendant  of  the  Chin-chen-SJian-hai-kuan  Circuit, 

Representative  of  the  Imperial  Chinese  Gov't. 


NUMBER  1907/1. 

GERMANY  AND  RUSSIA. 

Exchange  of  notes  concerning  the  reciprocal  protection  of  trademarks  in  China.X 

— February  1,  1907. 

Note  of  the  German  Minister  at  Peking  to  the  Russian  Minister,  under 
date  of  January  19/February  1,  1907. 

By  your  dispatch  of  today's  date  §  your  Excellency  was  so  good  as  to  inform 
me  that  as  the  Government  of  Russia  is  desirous  of  arriving  at  an  understanding 
with  the  Government  of  Germany  concerning  the  reciprocal  protection  in  China 
of  trademarks  (i.  e.,  marques  de  fabrique  et  de  commerce)  duly  registered  in 
Russia  and  in  Germany,  you  had  been  authorized  by  the  Minister  for  Foreign 
Affairs  of  Russia  to  declare  to  me  that  the  Government  of  Russia  is  ready  to 
enforce,  through  its  consular  tribunals  in  China,  all  claims  relating  to  the  infringe- 
ment of  trademarks  (i.  e.,  marques  de  fabrique  et  de  commerce),  duly  registered 

t  Translation  from  the  French  text  as  printed  in  Izviestia,  1914,  vol.  I,  p.  7. 
§  The  note  referred  to  was  identical,  mutatis  mutandis,  with  that  addressed  to  the  British 
Minister  on  October  16/29,  1906  (No.  1906/8,  ante). 


NUMBER  1907/2:  MARCH  7,  1907  615 

in   Russia,   committed   by    Russian   subjects   against    German   nationals    (i.    e., 
ressortissants  allemands) . 

In  reply  to  this  communication  I  have  the  honor  to  bring  it  to  the  knowledge 
of  your  Excellency  that  my  Government  gladly  accedes  to  the  proposed  agree- 
ment and  has  authorized  me  to  take  steps  to  that  end  herewith.  I  am  authorized 
to  declare,  for  my  part,  to  your  Excellency  that  the  Government  of  Germany  will 
assure  the  protection  in  China  of  trademarks  (i.  e.,  marques  de  fabrique  et  de, 
commerce),  the  property  of  Russian  nationals  (i.  e.,  ressortissants  russes), 
regularly  registered  in  Germany,  which  may  have  been  infringed  by  German 
nationals  (i.  e.,  ressortissants  allemands) . 

The  consular  tribunals  of  Germany  in  China  will  therefore  take  jurisdiction 
of  all  claims  that  may  be  presented  them  in  such  cases  by  Russian  nationals 
(i.  e.,  ressortissants  russes). 

Accept,  etc. 

(Sgd.)  Rex. 


NUMBER  1907/2. 

GREAT  BRITAIN  (British  and  Chinese  Corporation,  Limited)  AND  CHINA. 

Agreement  for  the  issue  and  regulation  of  a  loan  for  the  construction  of  the 
Canton-Kowloon  Raihvay* — March  7 ,  1907 . 

This  Agreement  is  made  at  Peking  on  the  twenty-third  day  of  the  first 
month  of  the  thirty-third  year  of  Kwang  Hsu,  corresponding  to  the  seventh 
day  of  March,  1907,  and  the  contracting  parties  are : — 

The  Wai-Wu-Pu  acting  under  the  authority  of  an  Imperial  Decree,  of  the 
one  part,  and  the  British  and  Chinese  Corporation,  Limited,  (hereinafter  called 
the  Corporation)  of  the  other  part. 

Whereas  a  preliminary  agreement  was  made  on  the  28th  March,  1899, 
between  H.  E.  Sheng,  Director  General  of  the  Imperial  Chinese  Railway  Admin- 
istration, acting  under  the  authority  of  the  Tsung-li  Yamen,  of  the  one  part,  and 
the  British  firm  of  Jardine,  Matheson  and  Company,  for  themselves  and  on 
behalf  of  the  Hongkong  and  Shanghai  Banking  Corporation,  representing  as 
Joint  Agents  the  Corporation,  of  the  other  part,  and  it  was  part  of  the  objects 
thereof  that  the  terms  of  another  preliminary  agreement  signed  by  the  same 
contracting  parties  on  the  13th  May,  1898,t  should  be  thereby  adopted  as  a 
preliminary  agreement  for  the  construction  and  working  of  a  Railway  from  the 
city  of  Canton  to  the  boundary  of  the  Kowloon  leased  territory  under  British 
control,  subject,  however,  as  far  as  might  be  practicable,  to  the  terms  and  con- 

*Text  as  printed  in  Wang,  p.  361.  Printed  also  in  Kent,  p.  287;  F.  E.  Review,  vol.  V 
p.  148.    See  Note  to  this  document,  post.  p.  626. 

t  Preliminary  agreement  for  the  Shanghai-Nanking  Railway,  attached  to  the  final  con- 
tract of  July  9,  1903  (No.  1903/2,  ante). 


616  CHINA  TREATIES  AND  AGREEMENTS 

ditions  thereafter  agreed   to   in   the   final   contract   for   the    Shanghai-Nanking 
Railway  when  signed  and  ratified. 

Now  it  is  hereby  agreed  by  and  between  the  parties  hereto  as  follows : — 

Article  1, — The  Corporation  agrees  to  issue,  on  behalf  of  the  Imperial 
Chinese  Government,  a  sterling  loan  (hereinafter  referred  to  as  "the  Loan") 
for  the  amount  of  £1,500,000  on  the  terms  and  conditions  hereinafter  contained. 
Imperial  Chinese  Government  Bonds  are  to  be  issued  for  the  entire  amount, 
similar  to  the  Bonds  of  the  Shanghai-Nanking  Railway,  with  the  Railway  as  first 
mortgage  security  therefor.  The  Loan  shall  be  in  one  issue,  and  the  price  agreed 
upon  is  94%  of  the  nominal  value,  subject  to  the  other  provisions  of  this  Article 
as  hereinafter  stated.  The  interest  on  the  Bonds  shall  be  at  the  rate  of  5%  per 
annum  on  their  nominal  value,  payable  half-yearly,  on  the  first  day  of  June  and 
the  first  day  of  December,  and  shall  be  calculated  from  the  date  of  their  sale  to 
the  public. 

The  Loan  shall  be  issued  to  the  public  as  soon  as  possible  after  signing  this 
Agreement,  but,  if  at  the  date  of  signature  thereof,  owing  to  an  unfavorable 
state  of  the  market  rendering  the  issue  of  the  Loan  and  the  payment  of  its 
proceeds  to  the  Viceroy  of  Canton  impossible  on  the  terms  above  named,  then 
in  such  case  the  Corporation  shall  thereafter,  at  such  times  as  the  Chinese  Gov- 
ernment may  decide  within  a  period  not  exceeding  eight  (8)  months,  issue  the 
Loan  and  pay  the  proceeds  thereof  to  the  Viceroy,  deducting  and  retaining  six 
(6)  points  from  the  rate  at  which  the  Loan  is  actually  issued  to  the  public,  what- 
ever that  rate  may  be,  (i.  e.  if  the  issue  price  be  101  the  Viceroy  will  receive 
95  and  so  on). 

Subject  to  the  provisions  of  Article  16,  the  duration  of  the  Loan  is  fixed  at 
thirty  (30)  years  commencing  from  the  date  of  the  signature  of  this  Agreement, 
but  no  interest  shall  be  paid  on  any  Bonds  which  may  be  redeemed  or  cancelled 
under  the  terms  hereinafter  mentioned  after  the  redemption  or  cancellation 
thereof. 

On  the  face  of  each  of  these  Bonds  shall  be  expressed  the  value  thereof  in 
the  sum  of  ilOO,  or  in  such  different  amounts  as  the  Chinese  Minister  in  London 
in  consultation  with  the  Corporation  may  sanction. 

It  is  understood  that  the  Chinese  Government  may  hereafter,  in  its  discretion, 
appoint  a  Director  General  of  the  Railway  upon  whom,  in  such  case,  will  devolve 
all  the  powers,  functions  and  responsibility  herein  attributed  to  the  Viceroy  of 
Canton  (hereinafter  called  the  Viceroy). 

Article  2. — The  proceeds  of  the  Loan  are  to  be  used  in  the  construction  and 
equipment  of  the  Railway,  and  in  paying  interest  on  the  Loan  during  the  course 
of  construction. 

The  Railway,  being  the  first  mortgage  security  for  the  Loan,  shall  be  built 
and  equipped  under  the  direction  of  the  Viceroy,  in  accordance  with  the  provisions 
of  Article  6  hereinafter,  and  shall  be  built  as  economically  as  possible  in  accord- 
ance with  the  best  modern  system. 

It  is  understood  that  the  Viceroy  will  secure  all  the  necessary  land  for  the 
Railway,  and  will  give  the  necessary  instructions  to  expedite  and  facilitate  the 
work  of  construction.    The  Railway  will  be  built  in  the  first  instance  as  a  single 


NUMBER  1907/2:  MARCH  7,  1907  617 

line,  but  provision  will  be  made,  with  the  approval  of  the  Viceroy,  and  wherever 
necessary  to  meet  traffic  requirements,  for  the  eventual  construction  of  a  double 
line. 

If,  during  the  time  of  construction,  the  proceeds  of  the  Loan,  together  with 
the  accrued  interest  thereon,  payable  by  the  Corporation,  should,  after  the 
deduction  of  the  sums  necessary,  for  the  payments  of  interest  on  the  Loan, 
be  insufficient  to  complete  the  construction  of  the  Railway,  the  amount  of 
the  deficiency  shall  either  be  provided  from  the  Chinese  Government's  own 
resources  or  by  a  Supplementary  Loan  to  be  hereafter  issued  by  the  Corporation, 
the  interest  and  other  conditions  of  which  Supplementary  Loan  shall  be  ar- 
ranged when  the  time  arrives,  having  due  regard  to  the  conditions  of  the  money 
market. 

When  the  Railway  is  complete,  if  there  is  a  surplus  from  the  sale  of  Bonds, 
the  said  surplus  shall  be  at  the  disposal  of  the  Chinese  Government  either  to 
redeem  the  Bonds  in  accordance  with  the  terms  of  this  Agreement  as  hereinafter 
stated,  or  to  be  placed  on  deposit  with  the  Hongkong  and  Shanghai  Banking 
Corporation  for  the  purpose  of  paying  interest  on  the  loan,  or  for  other  pur- 
poses beneficial  to  the  Railway,  in  regard  to  which  the  Viceroy  will  communicate 
in  due  course  with  the  Corporation. 

In  all  matters  relating  to  the  construction  of  the  Railway  it  is  expressly 
agreed  that  particular  heed  shall  be  paid  to  the  opinions  and  habits  of  the 
Chinese  people,  and  that,  when  practicable,  Chinese  shall  be  employed  in  posi- 
tions of  trust  and  responsibility  in  connection  with  the  Railway. 

In  regard  to  earthwork,  or  such  other  work  as  Chinese  are  competent  to 
perform,  contracts  shall  be  entered  into  for  such  work  with  Chinese,  under  the 
sanction  of  the  Head  Office,  and  the  work  itself  shall  be  carried  out  in  accord- 
ance with  plans  and  specifications  of  the  Engineer-in-Chief  and  under  his 
supervision. 

Detailed  plans  and  estimates  of  cost,  whether  of  the  respective  sections  of 
the  Railway,  or  of  any  alterations  of  the  same,  are  to  be  submitted  for  the 
approval  of  the  Viceroy,  by  the  Engineer-in-Chief  through  the  Managing 
Director. 

Article  3. — The  Loan  shall  be  secured  by  mortgage  declared  to  be  now 
entered  into  in  equity  by  virtue  of  this  Agreement,  and  shall,  as  soon  as  possible 
hereafter,  be  secured  by  a  specific  and  legal  first  mortgage  in  favour  of  the 
Corporation  upon  all  lands,  materials,  rolling  stock,  buildings,  property  and 
premises,  of  every  description  purchased  or  to  be  purchased  for  the  Railway, 
and  on  the  Railway  itself,  as  and  when  constructed,  and  on  the  revenue  of  all 
descriptions  derivable  therefrom. 

The  provisions  of  this  Article  in  respect  of  the  mortgage,  are  to  be  construed 
and  treated  as  equivalent  in  purport  and  effect  to  a  mortgage  customarily  executed 
and  delivered  in  England  to  a  Trustee  for  the  purpose  of  securing  Loans  and 
Bond  Issues  upon  Railway  properties  in  foreign  countries. 

Article  4. — It  is  hereby  agreed  that  in  six  (6)  months  after  this  agreement 
is  signed,  the  Corporation  shall  provide  the  amount  necessary  to  proceed  with 
the  detailed  survey  of  the  Railway,  and  for  preliminary  construction  work  if 


513  CHINA  TREATIES  AND  AGREEMENTS 

necessary,  whether  this  amount  comes  from  the  sale  or  hypothecation  of  the 
Bonds,  or  from  advances  made,  provided  that  Bonds  for  the  required  amount 
shall  have  been  executed  and  delivered  to  the  Corporation.  If,  after  expiration 
of  eight  (8)  months  from  the  date  of  the  ratification  hereof,  the  work  of  con- 
struction shall  not  have  been  begun  on  the  Railway,  this  Agreement  is  to  become 
null  and  void,  but  if  failure  to  commence  construction  be  due  to  any  cause  of 
force  majeure,  a  reasonable  extension  of  this  time  limit  shall  be  arranged  between 
the  Viceroy  and  the  Corporation. 

Of  the  proceeds  realized  from  the  sale  of  the  Bonds,  after  deducting  so 
much  of  them  as  may  be  required  to  be  kept  in  England  for  the  purchase  of 
materials  and  the  payments  of  contracts  there,  or  for  repayment  of  advances, 
such  amounts  as  may  be  estimated  and  certified  to  by  the  Engineer-in-Chief 
to  the  Viceroy  through  the  Managing  Director,  as  being  actually  required  for 
the  construction  of  any  particular  section  of  the  Railway,  may  be  ordered  by 
the  Viceroy,  after  consideration,  to  be  transferred  to  Hongkong  to  be  kept 
in  the  Hongkong  and  Shanghai  Bank,  and  placed  to  the  credit  of  the  con- 
struction account  of  the  Railway  for  the  exclusive  purpose  of  constructing  the 
Railway  in  the  manner  herein  provided  for  under  the  supervision  of  the  Head 
Office  and  the  Viceroy. 

On  each  occasion  of  a  remittance  being  made  to  China,  the  amount  realised 
in  Sycee  will  be  reported  to  the  Viceroy,  and  any  portion  which  may  not  be 
required  shall  be  placed  at  interest.  Similarly,  the  balance  in  England  shall  be 
placed  at  interest,  to  be  allowed  at  the  usual  rate. 

The  accounts  of  the  money  spent  from  time  to  time  in  England,  and  of  the 
money  transferred  to  the  credit  of  the  construction  and  other  accounts  for  use 
in  China,  are  to  be  submitted  quarterly  to  the  Head  Office  for  report  to  the 
Viceroy  for  the  information  of  the  Waiwupu,  and  for  his  further  report  to  the 
Board  of  Revenue,  and  the  Board  of  Communications,  for  record  therein,  after 
such  accounts  have  been  approved  and  signed  by  him. 

Article  5. — As  to  the  form  of  the  Bond,  it  is  to  be  agreed  upon  by  the  Vice- 
roy or  by  the  Chinese  Minister  in  London  and  the  Corporation,  as  soon  as  possible 
after  the  signature  of  this  Agreement,  but  if,  hereafter,  the  money  markets 
in  London  or  other  countries  require  any  modification  of  the  form  of  the  Bond, 
except  in  anything  that  afifects  the  amount  of  the  Loan  and  the  liability  of  the 
Chinese  Government,  which  are  not  to  be  touched  at  all,  such  slight  modifications 
may  be  made  to  meet  the  views  of  the  money  markets  by  the  Corporation  in 
consultation  with  the  Chinese  Minister  in  London. 

Any  modifications  are  to  be  reported  at  once  by  the  Corporation  to  the 
Viceroy  for  the  approval  of  the  Waiwupu. 

The  Bonds  are  to  be  engraved  entirely  in  the  English  language,  and  shall 
bear  the  fac-simile  of  the  signature  of  the  Viceroy  and  of  his  seal  of  office,  in 
order  to  dispense  with  the  necessity  of  signing  them  all  in  person,  but  the  Chinese 
Minister  in  London  shall,  previous  to  the  issue  of  any  Bonds,  put  his  seal  upon 
each  Bond  with  a  fac-simile  of  his  signature,  as  a  proof  that  the  issue  and  sale 
of  the  Bonds  are  duly  authorised  and  binding  upon  the  Chinese  Government. 

Such  Bonds  are  to  be  numbered  consecutively,  and  as  many  Bonds  as  may 


NUMBER  1907/2:  MARCH  7,  1907  619 

be  needed  are  to  be  properly  engraved  under  the  supervision  of  the  Corporation, 
and  after  they  are  sealed  by  the  Chinese  Minister  in  London,  as  hereintofore 
provided,  are  to  be  countersigned  by  the  Corporation. 

All  expenses  for  the  engraving,  safe  deposit,  and  sale  of  the  Bonds  are  to  be 
borne  by  the  Corporation. 

Article  6.— When  the  work  of  construction  is  ready  to  begin,  the  Viceroy 
will  establish  a  Head  Office  at  Canton  for  the  construction  and  management  of 
the  Railway.  This  Office  will  be  under  the  direction  of  a  Chinese  Managing 
Director  (appointed  by  the  Viceroy)  with  whom  will  be  associated  a  British 
Engineer-in-Chief,  and  a  British  Chief  Accountant.  These  British  employes 
shall  be  proposed  and  certified  as  competent  for  their  posts,  by  the  Corporation, 
and  shall  be  aproved  by  the  Viceroy;  if  their  services  should  prove  unsatisfactory 
to  the  Viceroy,  he  shall  request  the  Corporation  to  dispense  with  their  services 
and  to  nominate  their  successors,  and,  in  the  event  of  the  Corporation  desiring 
to  remove  them  for  good  cause,  it  shall  do  so  in  consultation  with  the  Viceroy. 
It  is  understood  that  the  duties  performed  by  these  employes  are  intended  to 
promote  the  mutual  interests  of  the  Chinese  Government  and  the  Bondholders 
respectively,  and  it  is  therefore  agreed  that  all  cases  of  difference  arising  there- 
from shall  be  referred  for  amicable  adjustment  between  the  Viceroy  and  the 
Representative  of  the  Corporation.  The  salaries  and  other  terms  of  agreement 
of  the  Engineer-in-Chief  and  the  Chief  Accountant  shall  be  proposed  by  the 
Corporation,  for  approval  by  the  Viceroy;  and  the  amount  of  their  salaries  etc., 
shall  be  paid  out  of  the  general  accounts  of  the  Railway. 

For  all  important  technical  appointments  on  the  Railway  Staflf,  Europeans  of 
experience  and  ability  shall  be  engaged,  and  wherever  competent  Chinese  are 
available,  they  shall  also  be  employed.  All  such  appointments  shall  be  made, 
and  their  functions  defined,  by  the  Managing  Director  and  the  Engineer-in-Chief 
in  consultation,  and  shall  be  submitted  for  the  Viceroy's  approval ;  similar  pro- 
cedure shall  be  followed  in  the  case  of  Europeans  employed  in  the  Chief  Account- 
ant's department.  In  the  event  of  the  misconduct,  or  the  incompetency  of 
European  employes,  their  services  may  be  dispensed  with  by  the  Managing 
Director,  after  consultation  with  the  Engineer-in-Chief,  and  subject  to  the 
sanction  of  the  Viceroy.  The  form  of  agreements  made  with  European  employes 
shall  conform  to  the  usual  practice. 

The  accounts  of  the  receipts  and  the  disbursements  of  the  Railway's  con- 
struction and  operation,  shall  be  kept  in  Chinese  and  English  in  the  Department 
of  the  Chief  Accountant,  whose  duty  it  shall  be  to  organise  and  supervise  the 
same,  and  to  report  thereon  for  the  information  of  the  Viceroy  through  the 
Managing  Director,  and  of  the  Corporation.  All  receipts,  and  payments,  shall 
be  certified  by  the  Chief  Accountant  and  authorized  by  the  Managing  Director. 

For  the  general  technical  staff  of  the  Railway  the  necessary  arrangements 
shall  be  made  by  the  Managing  Director  in  consultation  with  the  Engineer-in- 
Chief,  and  reported  to  the  Viceroy  in  due  course. 

The  duties  of  the  Engineer-in-Chief  shall  consist  in  the  efficient  and  economi- 
cal construction  and  maintenance  of  the  Railway,  and  the  general  supervision 
thereof   in   consultation   with  the   Managing   Director.      He    shall   always   give 


520  CHINA  TREATIES  AND  AGREEMENTS 

courteous  consideration  to  the  wishes  and  instructions  of  the  Viceroy,  whether 
conveyed  directly  or  through  the  Managing  Director,  and  shah  always  comply 
therewith,  having  at  the  same  time  due  regard  to  the  efficient  construction  and 
maintenance  of  the  Railway. 

A  school  for  the  education  of  Chinese  in  railway  matters  shall  be  established 
by  the  Managing  Director,  subject  to  the  approval  of  the  Viceroy. 

Article  7. — Under  the  provisions  of  Article  3  of  this  Agreement  the 
properties  covered  by  the  first  mortgage  security  hereby  created  include  the  Rail- 
way, its  property  and  equipment,  and  the  mortgage  is  to  be  executed  by  a  deed 
in  the  form  contemplated  by  the  said  Article.  But  subject  to  the  guarantee  and 
mortgage  thus  given  by  the  Chinese  Government,  it  is  hereby  declared  that  this 
Railway  is  in  fact  a  Chinese  property. 

All  land  that  may  be  required  along  the  whole  course  of  the  Railway  within 
survey  limits,  and  for  the  necessary  sidings,  stations,  repairing  shops  and  car 
sheds,  to  be  provided  for  in  accordance  with  the  detailed  plans  now  made,  or 
hereafter  to  be  made  by  the  Engineer-in-Chief,  and  approved  by  the  Viceroy, 
shall  be  acquired  by  the  Viceroy  at  the  actual  cost  of  the  land,  and  shall  be 
paid  for  out  of  the  proceeds  of  the  Loan. 

The  title  deeds  of  the  land  for  the  Railway  and  all  other  lands  shall  be 
free  from  all  encumbrances  and  entanglements  and  shall,  from  time  to  time, 
as  soon  as  secured,  be  registered  in  the  name  of  the  Railway. 

Notices  of  all  purchases  of  lands  for  the  Railway  within  the  survey  limit 
(together  with  corresponding  title  deeds)  are  to  be  transmitted  by  the  Railway 
Head  Office  under  the  direction  of  the  Viceroy  to  the  local  Agent  of  the  Corpor- 
ation for  record  and  preservation  in  its  office  in  Hongkong,  and  for  the  purpose 
of  establishing  the  first  mortgage  security  until  the  time  when  the  same  are  to  be 
returned  to  the  viceroy,  as  hereinafter  in  this  Article  provided. 

All  lands,  the  title  deeds  of  which  are  lodged  with  the  Corporation  as  part 
of  the  first  mortgage  security  of  the  Loan,  shall  not  be  disposed  of  in  any  way  by 
hire,  lease,  or  sale,  to  any  party,  for  any  purpose  whatsoever,  without  the  written 
consent  of  the  Viceroy,  except  only  in  the  event  of  the  Imperial  Chinese  Gov- 
ernment failing  to  pay  the  interest  or  principal  of  the  Bonds,  and  then  in  accord- 
ance with  the  powers  in  the  deed  of  mortgage. 

The  lands  thus  bought  shall  be  free  from  all  encumbrances,  liabilities  and 
entanglements,  and  shall  be  conveyed  by  full  and  sufficient  deeds  of  assignment 
according  to  Chinese  law,  all  of  which  are  to  be  kept  and  recorded  in  the  Hong- 
kong Office  of  the  Corporation,  and  are  to  be  held  by  it  as  a  first  mortgage 
security  for  the  Bonds  under  the  provisions  of  this  agreement,  until  such  time  as 
principal  and  interest  of  the  bonds,  together  with  all  indebtedness,  shall  havie 
been  paid  ofif,  when  the  same  shall  then  be  returned  to  the  Viceroy,  except  only 
in  the  case  of  the  Imperial  Chinese  Government's  failure  to  pay  the  interest  or 
principal  of  the  Bonds  and  consequent  realization  under  the  powers  of  the 
mortgage   security. 

For  the  proper  protection  of  the  first  mortgage  security  the  Chinese  Gov- 
ernment undertakes  that  until  the  Bonds  shall  have  been  redeemed,  no  part  of  the 
lands  comprised  in  the  mortgage  security  or  the  Railway  with  its  appurtenances 


NUMBER  1907/2:  MARCH  7,  1907  621 

shall  be  transferred  or  given  to  another  party,  or  shall  be  injured,  and  that  the 
rights  of  the  first  mortgage  shall  not  be  in  any  way  impaired,  unless  with  the 
consent  in  writing  of  the  Corporation,  which  shall  only  be  given  if  in  the  opinion 
of  the  Corporation  the  interests  of  the  Bond-holders  will  not  be  affected. 

And  further,  that  until  the  interest  and  principal  of  the  loan  and  all  the 
indebtedness  shall  have  been  paid  off,  or  unless  with  the  express  consent  in 
writing  of  the  Corporation,  the  Chinese  Government  or  the  Viceroy  shall  not  again 
mortgage  the  above  properties  to  another  party  whether  Chinese  or  foreign. 

During  the  period  of  this  agreement  no  special  taxes  shall  be  levied  by  the 
Chinese  Government  on  the  Railway,  its  appurtenances,  or  earnings :  but  all 
taxes  at  present  payable,  such  as  land  tax,  as  well  as  any  taxes  which  the 
Chinese  Government  may  hereafter  institute,  such  as  stamp  duty,  etc.,  and 
which  may  be  applicable  generally  to  all  commercial  transactions  in  China,  shall 
also  apply  in  the  case  of  the  Railway  and  its  operations. 

Article  8. — It  is  agreed  that  if  the  half-yearly  interest  on  the  Bonds  is  not 
paid  on  any  due  date  thereof,  or  if  the  principal  of  the  Loan  be  not  paid  in  accord- 
ance with  the  amortisation  schedule  hereto  attached,  the  whole  Railway  with  all 
its  appurtenances  herein  mortgaged  to  the  Corporation  for  the  Bondholders,  shall 
be  handed  over  to  the  Corporation  to  be  dealt  with  by  it  according  to  law  in 
such  manner  as  will  ensure  the  proper  protection  of  the  interests  of  the  Bond- 
holders, provided,  however,  that  if  the  failure  to  make  payment  at  any  one  date 
be  due  to  causes  beyond  the  control  of  the  Chinese  Government,  and  if  the 
Viceroy  request  the  Corporation  to  postpone  the  taking  over  of  the  Railway  for 
a  reasonable  period  of  grace,  the  question  shall  be  amicably  discussed  and 
decided  between  the  Viceroy  and  the  Representative  of  the  Corporation.  When 
the  whole  Loan  and  the  interest  due  thereon  and  all  the  indebtedness  shall 
have  been  paid  ofif,  the  Railway  with  all  its  appurtenances  in  good  working 
condition  shall  revert  to  the  possession  and  management  of  the  Chinese  Govern- 
ment according  to  the  provisions  of  this  Agreement. 

Article  9. — As  remuneration  for  all  services  rendered  by  the  Corporation 
during  construction  of  the  Railway,  the  Corporation  shall  receive  the  sum  of 
i35,000  half  of  which  shall  be  paid  when  the  construction  work  is  half  completed, 
but  not  later  than  eighteen  (18)  months  after  commencement  of  construction, 
and  the  other  half  upon  completion  of  the  line.  This  amount  shall  be  regarded 
as  a  commutation  of  all  commissions  to  which  the  Corporation  and  its  Agents 
would  properly  be  entitled,  and  of  payments  of  all  services  rendered  in  the 
construction  and  equipment  of  the  Railway,  in  respect  of  the  present  Loan ; 
but  in  the  event  of  any  branch  lines  being  decided  upon  by  the  Chinese  Gov- 
ernment for  construction  in  connection  with  this  Railway,  and  if  the  Chinese 
Government  decide  to  build  the  same  by  issue  of  a  foreign  Loan  and  not  from 
its  own  resources,  then  the  Corporation  shall  have  the  first  option  of  tendering 
for  such  Loan,  and  a  further  payment,  proportionate  to  the  amount  of  such 
supplementary  Loan,  and  calculated  at  the  same  rate  as  the  commutation  herein- 
above mentioned,  shall  be  made  to  the  Corporation  as  commutation  of  its  com- 
mission for  all  services  in  respect  of  construction. 

In  return  for  this  commuted  commission,  the  Viceroy  is  entitled  to  require 


622  CHINA  TREATIES  AND  AGREEMENTS 

the  Corporation  to  superintend  the  purchase  of  all  materials  required  for  the 
construction  and  equipment  of  the  Railway,  which  shall  be  purchased  in  the 
open  market  at  the  lowest  rate  obtamable,  it  being  understood  that  all  such 
materials  shall  be  of  good  and  satisfactory  quality.  At  equal  rates  and  qualities, 
goods  of  British  manufacture  shall  be  given  preference  over  other  goods  of 
foreign  origin.  Invoices  and  inspector's  certificates  are  to  be  submitted  to  the 
Vicerory. 

With  a  view  to  encouraging  Chinese  industries,  Chinese  Government  and 
other  materials  are  to  be  preferred,  provided  price  and  quality  are  suitable. 

No  commission  shall  be  allowed  to  the  Corporation  on  the  purchase  of 
materials  except  as  above  provided.  All  trade  discounts  or  rebates,  if  any,  are, 
during  construction,  to  go  to  the  construction  account,  and  after  completion,  to 
the  credit  of  the  Railway. 

Article  10. — In  the  construction  of  the  line,  in  the  working  of  the  Railway, 
and  in  the  performance  of  the  different  kinds  of  business  connected  with  the  Rail- 
way, no  interference  or  obstruction  by  Chinese  or  foreigners  will  be  permitted. 
The  Chinese  Government  will  provide  protection  for  the  Railway  while  under 
construction  or  when  in  operation,  and  all  the  properties  of  the  Railway,  as  well 
as  Chinese  and  foreigners  employed  thereon,  are  to  enjoy  the  utmost  protection 
from  the  local  officials. 

The  Railway  may  maintain  a  force  of  Chinese  police  with  Chinese  officers, 
their  wages  and  maintenance  to  be  wholly  defrayed  as  part  of  the  cost  of  the 
construction  and  maintenance  of  the  Railway.  In  the  event  of  the  Railway  requir- 
ing further  protection  by  the  military  forces  of  the  Imperial  or  Provincial  Govern- 
ments, the  same  will  be  duly  applied  for  by  the  Head  office  and  promptly  afforded, 
it  being  understood  that  such  military  forces  shall  be  maintained  at  the  expense  of 
the  Government  or  the  Province. 

Article  11. — All  receipts  and  earnings  of  the  Railway  shall  be  regularly 
paid  in  to  the  Railway's  account  with  the  Hongkong  and  Shanghai  Banking 
Corporation,  and  on  such  funds,  whether  on  daily  balance  or  on  fixed  deposit, 
the  Bank's  usual  rate  of  interest  shall  be  allowed. 

All  expenses  of  working  and  maintaining  the  line  shall  be  paid  from  the 
receipts  and  earnings,  and  any  remainder  thereof  shall  be  charged  with  the 
service  of  the  Loan.  If,  after  payment  of  these  expenses,  and  making  due  pro- 
vision for  payment  of  interest  at  5%  per  annum  on  the  Bonds,  and  for  repay- 
ments of  principal  due  in  accordance  with  the  amortisation  schedule  hereto 
attached,  there  remain  surplus  funds  unappropriated  and  properly  available 
for  other  purposes,  such  funds  shall  be  at  the  disposal  of  the  Chinese  Gov- 
ernment to  be  used  in  such  manner  as  the  Viceroy  may  decide,  provided  always 
that  after  completion  and  opening  of  the  hne  to  traffic  the  amount  sufficient  for 
regular  payments  of  interest  and  repayments  of  principal  shall  be  deducted  from 
such  surplus  funds,  if  any,  and  shall  be  deposited  with  the  Hongkong  and 
Shanghai  Banking  Corporation  six  months  before  the  date  at  which  such  pay- 
ments fall  due. 

In  the  event  of  there  being  no  surplus  funds  available  as  aforesaid  from  the 
earnings  of  the  Railway,  the  amount  required  for  payments  of  interest  and  re- 


NUMBER  1907/2:  MARCH  7,  1907  623 

payments  of  principal,  shall  be  provided  in  accordance  with  the  conditions  of 
Article  14  hereinafter. 

Article  12. — The  Corporation  are  hereby  appointed  Trustees  for  the  Bond- 
holders, and  in  any  future  negotiations  respecting  these  Loans,  or  matters  arising 
in  connection  therewith,  which  may  take  place  between  the  Viceroy  and  the 
Corporation,  the  Corporation  shall  be  taken  as  representing  the  Bondholders, 
and  as  such,  empowered  to  act  on  their  behalf.  In  view  of  the  fact  that  the 
Corporation's  responsibility  to  the  Bondholders  continues  after  construction, 
whereas,  as  stated  in  Article  9,  its  commuted  commission  for  services  rendered 
is  limited  to  the  period  of  construction,  and  the  Corporation  is  not  thereunder 
entitled  to  any  further  remuneration  during  the  period  of  the  Loan,  the  Corpor- 
ation shall  receive  as  remuneration  for  its  services  and  responsibility  in  acting 
as  Trustees  for  the  Bondholders,  the  sum  of  il,000  per  annum,  such  remuneration 
to  commence  from  the  date  of  issue  of  this  Loan  and  to  terminate  upon  its 
complete    redemption. 

Article  13. — All  materials  of  any  kind  that  are  required  for  the  construc- 
tion and  working  of  the  Railway,  whether  imported  from  abroad  or  from  the 
provinces  to  the  scene  of  the  work,  shall  be  exempted  from  likin  so  long  as  such 
exemption  remains  in  force  in  respect  of  other  Chinese  Railways.  The  Bonds 
of  this  Loan,  together  with  their  coupons  and  the  income  of  the  Railway,  shall 
be  free  from  imposts  of  any  kind  by  the  Government  of  China. 

Article  14. — It  is  agreed  that  during  the  time  of  the  construction  of  the 
Railway,  the  interest  on  the  Bonds  and  on  any  advances  made  by  the  Corporation 
is  to  be  paid  from  the  proceeds  of  the  Loan.  The  accruing  interest  from  any 
proceeds  of  the  Loan  not  used  during  the  period  of  construction,  and  the  earnings 
derived  by  the  Chinese  Government  from  the  working  of  any  sections  of  the 
Railway  as  they  are  built,  are  to  be  used  to  make  up  the  amount  required  for 
the  payment  of  the  said  interest,  and  if  any  deficiency  remains  it  is  to  be  met 
from  the  proceeds  of  the  Loan. 

When  the  construction  of  the  Railway  is  wholly  completed,  the  interest  on 
the  Bonds  is  to  be  paid,  from  the  income  or  earnings  of  the  Railway  received  by 
the  Chinese  Government,  every  half-year  on  the  first  day  of  June  and  the  first 
day  of  December. 

It  is  hereby  agreed  that  the  amount  required  for  the  payment  of  interest 
and  the  repayment  of  principal,  together  with  a  sum  of  one-quarter  of  one  per 
cent,  on  such  amounts,  to  cover  commission  to  the  Hongkong  and  Shanghai 
Banking  Corporation,  who  are  hereby  appointed  Agents  for  the  entire  service 
of  repaying  the  Loan,  shall  be  paid  to  them  fourteen  (14)  days  before  the  due 
dates  in  Hongkong  or  in  Canton  (at  the  option  of  the  Viceroy  when  settling 
exchange)  in  local  currency  sufficient  to  meet  such  payments  in  sterling  in 
London,  exchange  for  which  shall  be  settled  with  the  Hongkong  and  Shanghai 
Banking  Corporation,  the  Viceroy  having  the  option  of  settling  exchange  at  any 
date  or  dates  within  six  (6)  months  previous  to  any  due  date  for  the  repayment  of 
interest  and  principal. 

The  Chinese  Government  unconditionally  undertakes,  and  hereby  promises, 
to  pay  the  principal  of  the  Loan  and  the  interest  on  the  Loan  on  the  due  dates 


524  CHINA  TREATIES  AND  AGREEMENTS 

fixed  therefor.  If,  at  any  time,  the  earnings  of  the  Railway,  together  with 
funds  available  from  the  proceeds  of  the  Loan,  are  not  sufficient  to  meet  the 
interest  on  the  Bonds  and  the  repayment  of  capital  in  accordance  with  the 
amortisation  schedule  hereto  attached,  the  Viceroy  shall  devise  means  for 
supplying  the  deficiency,  and  should  his  inability  to  do  so  appear  probable, 
he  shall  memorialise  the  Government  to  take  measures  to  make  up  the  defi- 
ciency from  other  sources,  and  thus  be  ready  to  pay  ofif  the  indebtedness,  so  that 
the  reauired  amount  may  be  placed  in  each  case  at  least  fourteen  days  previous 
to  the  due  dates  of  such  payments,  in  the  hands  of  the  Hongkong  and  Shanghai 
Banking  Corporation. 

Article  15. — The  Corporation  may,  subject  to  all  its  obligations,  transfer 
or  delegate  all  or  any  of  its  rights,  powers,  and  discretions,  to  its  successors  or 
assigns,  but  the  Corporation,  which  is  a  Corporation  formed  under  English  law, 
shall  not  transfer  its  rights  under  this  agreement  to  any  other  nation,  or  people 
of  any  other  nationality,  except  British  or  Chinese.  Similarly,  the  Chinese 
Government's  rights  and  authority  under  this  Agreement  shall  not  be  transferred 
to  persons  of  other  nationality. 

It  is  further  understood  that  the  Chinese  Government  will  not  build  another 
line  competing  with  this  Railway  to  its  detriment. 

Article  16. — The  term  of  the  Loan,  as  stated  in  Article  1,  shall  be  thirty 
(30)  years.  Repayment  of  principal  shall  commence  after  the  expiry  of  12j/^ 
years  from  the  date  of  the  Loan  and  shall  be  completed  in  17^  years  by  yearly 
payments  to  the  Hongkong  and  Shanghai  Banking  Corporation  as  Agents  for  the 
service  of  the  Loan,  acting  for  the  Corporation  under  the  terms  of  this  Agree- 
ment, in  accordance  with  the  amortisation  schedule  hereto  attached.^ 

If,  at  any  time  after  the  expiry  of  I23/2  years  from  the  date  of  the  Loan,  the 
Imperial  Chinese  Government  should  wish  to  redeem  the  outstanding  amount 
of  the  Loan,  or  any  portion  of  it,  not  yet  due  under  the  provisions  of  the 
amortisation  schedule  hereto  attached,  not  less  than  six  months'  notice  shall  be 
given  in  writing  by  the  Viceroy  to  the  Representative  of  the  Corporation, 
declaring  the  number  of  additional  Bonds  so  required  to  be  redeemed,  where- 
upon the  Representative  of  the  Corporation  shall  immediately  proceed  to  make 
such  arrangements  as  may  be  necessary  and  usual  for  the  redemption  of  the 
number  of  Bonds  specified,  which,  when  duly  redeemed  after  payment  by  the 
Imperial  Chinese  Government  of  the  proper  amount  due  thereon,  shall  be 
cancelled  and  delivered  to  the  Viceroy. 

All  Bonds  thus  redeemed,  in  excess  of  the  amount  specified  in  the  amortisa- 
tion schedule  hereto  attached,  before  the  expiry  of  25  years  from  the  date  of 
the  Loan,  shall  be  paid  for  with  a  premium  of  2 J/2%  over  their  face  value,  (i.  e. 
il02.10  will  be  required  to  pay  for  ilOO),  but  after  25  years  Bonds  may  be 
redeemed  over  and  above  the  amounts  specified  in  the  schedule  without  premium 
upon  notice  being  given  in  the  manner  above  specified. 

As  soon  as  the  Loan  has  been  completely  redeemed,  this  Agreement  shall 
become  null  and  void  and  the  mortgage  shall  be  cancelled. 

Article  17. — If,  during  construction,  any  proceeds  of  the  sale  of  the  Bonds 

t  Amortisation  schedule  is  omitted  here. 


NUMBER  1907/2:  MARCH  7,  1907  625 

are  lying  unused  and  bearing  interest  on  their  deposit  whilst  the  construction 
of  the  Railway  is  going  on,  such  interest  is  to  be  credited  to  the  general  account 
of  the  Railway  in  order  that  the  Railway  may  enjoy  the  full  advantage  thereof. 
It  is  also  agreed  that,  if  the  Corporation  shall  think  it  expedient  before  the 
sale  of  any  of  the  Bonds  to  advance  any  money  for  the  work,  such  advances, 
together  with  the  interest  thereon  not  exceeding  a  charge  of  6%  per  annum, 
shall  be  deducted  from  the  proceeds  of  the  sale  of  the  Bonds. 

Article  18. — The  junction  of  the  sections  of  the  Railway  from  Canton  to 
Jthe  boundary  of  the  Kowloon  leased  territory  under  British  control,  and  from 
the  said  boundary  to  the  port  of  Kowloon  respectively,  and  the  subsequent  joint 
working  of  the  two  sections,  shall  be  arranged  by  agreement  between  the  Viceroy 
of  Canton  and  the  Governor  of  Hongkong. 

Article  19. — This  Agreement  is  signed  under  the  authority  of  an  Imperial 
Edict  dated  the  seventh  day  of  February,  1907,  which  has  been  officially  com- 
municated to  the  British  Minister  in  Peking  by  the  Waiwupu. 

Article  20. — This  Agreement  is  executed  in  quintuplicate  in  English  and 
Chinese,  one  copy  to  be  retained  by  the  Viceroy,  one  by  the  Waiwupu,  one  by 
the  Board  of  Communications,  one  by  the  British  Minister,  and  one  by 
the  Corporation,  and  should  any  doubt  arise  as  to  the  interpretation  of  the 
Agreement  the  English  text  shall  be  accepted  as  the  standard. 

Signed  at  Peking  by  the  contracting  parties  this  twenty-third  day  of  the 
first  month  of  the  thirty-third  year  of  the  Emperor  Kwang  Hsii,  being  the 
seventh  day  of  March,  nineteen  hundred  and  seven. 
[Seal  of  Waiwupu.] 
[Seal  and  Signature  of  His  Excellency  Tang  Shao-yi, 

representing  the  Waiwupu.] 
Witnesses  to  signature  of  H.  E.  Tang  Shao-yi. 

KuNG.  Hu. 

For  the  British  &  Chinese  Corporation  Ltd. 

(Signed)  J.  O.   P.  Bland. 

Witnessed  by : 

Jardine  Matheson  &  Co. 
For  the  Hongkong  &  Shanghai  Banking  Corporation: 

(Signed)  H.  S.  Gardner, 


Agent. 


Joint  Agents: 

The  British  &  Chinese  Corporation,  Limited. 


626  CHINA  TREATIES  AND  AGREEMENTS 


Note. 


Further  advances  on  account  of  the  Canton-Kowloon  Railway  were  arranged  on  June  6, 
1913,  in  the  terms  of  the  following  letter  (as  given  in  JVang,  p.  391)  : 

Letter  of  Agreement  for  Advances  on  Canton-Kowloon  Railway,  June  6,  1913. 

The  British  and  Chinese  Corporation,  Limited. 

Peking,  June  6th,   1913. 
The  Hon.  Mr.  Chu  Chi-Chien, 

Minister  of   Communications,   Peking. 

Sir, 

I  have  the  honour  to  inform  you  that  the  Board  of  Directors  of  the  British  and  Chinese 
Corporation  Limited  have  now  consented  to  the  proposed  arrangements  for  advances  on 
account  of  the  Canton-Kowloon  Railway,  on  the  following  terms  and  conditions. 

1.  The  British  and  Chinese  Corporation  Limited  agrees  to  advance  to  the  ^Ministry  of 
Communications  the  sum  of  Fifty  Thousand  Pounds  Sterling  (£50,000)  to  be  placed  to  the 
credit  of  the  Canton-Kowloon  Railway  in  the  Hongkong  and  Shanghai  Bank,  London.  This 
sum  will  be  advanced  in  one  amount  or  in  instalments,  as  the  ^Ministry  of  Communications 
may  decide,  for  the  term  of  2  years,  calculated  from  the  date  of  payment  of  the  first 
instalment.  Interest  will  be  at  the  rate  of  7%  per  annum,  calculated  from  the  date  of  pay- 
ment  of   each    instalment. 

2.  Of  the  aforementioned  advance  the  sum  about  £35,000  will  be  applied  to  the  pur- 
chase of  rolling  stock  and  other  urgent  requirements  of  the  Canton-Kowloon  Railway,  and 
about  £15,000  to  the  repayment  of  the  Peking-Mukden  Railway  for  rolling  stock  supplied  to 
the  Canton-Kowloon  Railway. 

3.  The  Ministry  of  Communications  on  behalf  of  the  Chinese  Government  uncondi- 
tionally accepts  direct  responsibility  for  this  advance  and  hypothecates  as  security  therefor 
the  rolling  stock  purchased  or  to  be  purchased  under  Clause  2.  Repayment  will  be  made 
either  by  4  instalments  of  £12,500  every  six  months  calculated  from  the  date  of  payment  of 
the  first  instalment,  or  in  one  amount  at  the  expiration  of  2  years,  calculated  from  the  date 
of  payment  of  the  first  instalment,  as  the  ^Ministry  of  Communications  may  decide :  payments 
of  interest  will  cease  as  and  when  instalments  are  repaid. 

4.  In  consideration  of  the  above  advance  the  British  and  Chinese  Corporation  Limited 
shall  continue  to  act  as  purchasing  agents  of  the  Canton-Kowloon  Railway  for  a  period  of 
five  years  from  the  date  of  the  first  instalment  on  the  same  terms  and  conditions  as  hitherto 
at  a  commission  of  five  per  cent  (5%). 

5.  The  terms  and  conditions  of  this  letter  of  agreement  will  be  communicated  by  the 
Ministry  of  Communications  to  the  Waichiaopu  for  communication  by  them  to  the  ^Minister 
for   Great   Britain    in    Peking. 

I  have  the  honour  to  request  that  you  will  be  good  enough  to  signify  your  acceptance 
and  confirmation   of   the   arrangements   and   conditions   herein   contained   by   affixing   your 
signature  to  the  statement  to  this  effect  below,  retaining  one  copy  of  the  letter  so  executed 
for  your  files  and  returning  the  other  to  the  undersigned. 
I  have  the  honour  to  be.  Sir. 

Your  obedient  servant, 

(Signed)  S.  F.  M.w'ers. 


.  _     ..         I    The  British  and  Chinese 
'•-^^^'-'  Corporation  Limited. 


I  hereby  accept  and  confirm  on  behalf  of  the  Ministry  of  Communications  the  arrange- 
ments and  conditions  herein   contained. 

[Chinese  Signature  and  Seal] 


NUMBER  1907/3 :  APRIL  15,  1907  627 

NUMBER  1907/3. 

JAPAN  AND  CHINA. 

Convention  regarding  the  Hsinmin-Mukdcn  and  Kirin-Ch'angch'un  Railways^ 

—April  15,  1907. 

Gonsuke  Hayashi,  Envoy  Extraordinary  and  Minister  Plenipotentiary  of 
Japan,  and  Na-t'ung,  Ch'u  Hungchi,  and  Tong  Shao-i,  Ministers  of  the  Imperial 
Chinese  Board  of  Foreign  Affairs,  having  been  appointed  thereto  by  their  re- 
spective governments,  have  agreed  upon  the  following  Articles : — 

I.  The  Chinese  Government,  being  desirous  of  purchasing  the  Hsin-min 
Fu-Mukden  Railway,  constructed  by  Japan,  hereby  agrees  that  the  purchase 
price  thereof  shall  be  Japanese  Gold  Yen  1,660,000,  to  be  paid  through  the 
Yokohama  Specie  Bank  at  Tientsin. 

The  status  of  this  railway  shall  be  changed  by  the  Chinese  Government  to  that 
of  the  lines  built  by  China  herself,  and  it  is  agreed  that  one-half  of  the  capital 
needed  for  that  part  of  the  line  east  of  the  Liao  River  shall  be  borrowed  from 
the  South  Manchuria  Railway  Company. 

II.  The  Chinese  Government,  being  about  to  construct  a  railway  line  herself 
from  Kirin  to  Changchun  Fu,  agrees  to  borrow  from  the  aforesaid  Company 
one-half  of  the  capital  needed  for  this  work. 

III.  The  conditions  of  the  loans  provided  for  in  Articles  I  and  II,  with 
the  exception  of  the  periods  within  which  they  are  to  be  repayable,  shall  be  in 
all  respects  similar  to  those  of  the  loan  contracts  of  the  Railways  Inside  and 
Outside  Shan-hai  Kuan.  The  most  important  conditions  are  mentioned  below. 
The  Regulations  for  the  management  of  the  railway  lines  shall  correspond  with 
the  methods  at  present  employed  by  the  General  Office  of  the  Railway  Lines 
Inside  and  Outside  Shan-hai  Kuan. 

(a)  The  periods  within  which  the  loans  shall  be  repaid  shall  be 

for  that  part  of  the  Hsin-min-Mukden  Line  east  of  the  Liao  River  18  years, 
and 

for  the  Kirin-Changchun  Line  25  years. 

No  repayment  in  full  of  these  loans  shall  be  allowed  before  the  expiration 
of  the  periods  named. 

(6)  The  security  for  the  loan  from  the  South  Manchuria  Railway  Com- 
pany for  that  part  of  the  Hsin-min-Mukden  Line  east  of  the  Liao  River  shall 
be  the  real  property  of  the  aforesaid  section  and  its  earnings. 

The  security  for  the  mercantile  shares  to  be  issued  by  the  Kirin-Changchun 
Railway  Administration  as  well  as  for  the  loan  to  be  made  from  the  South  ]\Ian- 
churia  Railway  Company  shall  be  the  real  property  of  the  said  Railway  and  its 
earnings. 

*  Translation  from  the  Chinese  text  as  printed  in  Wang,  p.  127.  Printed  also  in  For. 
Rel,  1907,  p.  776;  Herfslet,  p.  397;  F.  E.  Rcviczv.  vol.  XI,  p.  391.  See  Note  to  this  docu- 
ment, post,  p.  629. 


628  CHINA  TREATIES  AND  AGREEMENTS 

So  long  as  these  loans  are  not  repaid  by  the  Chinese  Government,  the 
aforesaid  property  and  earnings  of  the  above-named  lines  shall  not  be  pledged 
as  security  for  any  other  loan. 

During  the  periods  of  these  loans  the  Chinese  Government  agrees  that  the 
buildings,  machinery,  rolling-stock,  and  road-bed  of  the  section  of  the  Hsin- 
min-Mukden  Railway  east  of  the  Liao  River  and  of  the  Kirin-Changchun 
Railway  shall  be  kept  in  good  condition,  and  furthermore  that  such  additions 
will  be  made  to  the  rolling-stock  from  time  to  time  as  may  be  required  to  satisfy 
demands  of  the  traffic. 

If  the  Kirin-Changchun  Line  should  hereafter  build  branch  lines  or  an  ex- 
tension, the  construction  of  such  lines  shall  rest  of  right  with  the  Chinese 
Government,  but,  if  there  should  be  a  lack  of  capital,  application  shall  be  made 
to  the  (South  Manchuria  Railway)  Company  for  an  arrangement.  Should 
China,  however,  appropriate  funds  herself  for  the  construction  of  any  other 
railway  lines  than  those  mentioned,  it  shall  not  concern  the  South  Manchuria 
Railway  Company. 

(c)  The  loans  and  the  interest  thereon  are  guaranteed  by  the  Chinese 
Government,  and  should  there  be  any  failure  to  make  payment  of  interest  or  re- 
payment of  principal  at  the  proper  periods,  the  Company  shall  at  once  notify 
the  Chinese  Government,  which  shall  pay  over  to  the  Company  the  amount  of 
the  shortage.  If  the  Chinese  Government,  after  such  notification  by  the  Company, 
shall  be  unable  to  make  good  the  deficit  in  the  payments  of  principal  or  interest, 
the  line  in  question  with  its  real  property  shall  be  handed  over  to  the  temporary 
control  of  the  Company  until  the  shortage  is  made  good,  after  which  it  shall  be 
returned  to  the  control  of  the  Railway  Administration. 

If,  however,  the  shortage  be  for  a  small  amount  only,  an  extension  of  time 
shall  be  granted  as  an  accommodation,  but  never  for  more  than  three  months. 

(d)  During  the  periods  of  these  loans  the  Engineer-in-Chief  employed  shall 
be  a  Japanese,  and  should  there  be  an  insufficient  supply  of  Chinese  for  the 
various  posts  in  the  service  of  the  railways,  Japanese  may  be  employed  with  the 
Chinese.  If  at  any  time  it  shall  become  necessary  to  change  the  Engineer-in- 
Chief,  consultation  must  first  be  had  with  the  (South  Manchuria  Railway) 
Company  before  appointment  may  be  made.  There  shall  also  be  appointed  one 
Japanese  accountant,  who  must  be  thoroughly  qualified,  and  who  shall  have 
entire  responsibility  for  the  arrangement  and  over-sight  of  the  various  accounts 
of  the  railways,  but  in  his  supervision  of  receipts  and  expenditures  he  must 
consult  and  act  with  the  Director  General. 

(e)  The  railways  mentioned  being  Chinese  Government  lines,  the  latter  shall 
have  the  right  to  transport  soldiers  and  subsistence  over  either  line  free  of  charge 
whenever  military  aflfairs  or  measures  of  relief  shall  require. 

(/)  All  earnings  of  the  railways  in  question  must  be  deposited  in  Japanese 
banks.  As  to  the  terms  upon  which  such  deposits  shall  be  made,  satisfactory 
arrangements  shall  be  agreed  upon  by  the  parties  concerned  when  the  loan  con- 
tracts are  drawn  up. 

IV.  The  Chinese  Government  immediately  after  the  purchase  of  the  present 
Hsin-min-Mukden  Railway  shall   enter  into  a  contract  with  the   South  Man- 


NUMBER  1907/3;  APRIL  15,  1907:  NOTE  629 

churia  Railway  Company  for  the  loan  in  connection  with  that  section  of  the  line 
east  of  the  Liao  River,  and  shall  also  appoint  and  direct  a  Chinese  engineer  'to 
consult  and  act  with  the  Japanese  engineer  in  making  a  survey  of  the  Kirin-Chang- 
chun  Line  to  furnish  a  basis  for  estimating  the  amount  of  the  loan  needed  for  the 
construction  of  the  line,  and  within  six  months  after  the  completion  (of  the 
survey)  shall  enter  into  a  contract  with  the  South  Manchuria  Railway  Company 
for  the  loan. 

V.  The  lines  from  Hsin-min  to  Mukden  and  from  Kirin  to  Changchun  under 
the  management  of  China  must  connect  with  the  South  Manchuria  Railway 
line.  The  Tientsin-Shan-hai  Kuang  Railway  Administration  and  the  South  Man- 
churia Railway  Company  shall  appoint  representatives  to  consult  together  and 
draw  up  the  necessary  regulations. 

VI.  The  rate  at  which  the  loans  specified  in  Articles  I  and  II  shall  be  issued 
shall  be  determined  fairly  in  accordance  with  the  terms  of  the  most  recent  loan 
negotiated  by  China  with  any  foreign  country. 

VII.  Within  one  month  after  the  payment  of  the  purchase  price  of  the  Hsin- 
min-Mukden  Railway,  the  Chinese  Railway  Administration  shall  appoint  officers 
to  take  control  of  the  same. 

Japanese  Calendar,  Meiji  XL  Year,  Fourth  Moon,  15  Day. 
Chinese  Calender,  Kuanghsu  XXXIII  Year,  Third  Moon,  3  Day.     (April 
15,  1907.) 


Note. 

In  connection  with  this  convention  see  also  the  agreement  for  the  handing  over  of  the 
Hsinmin-Mukden  Railway,  May  27,  1907  (No.  1907/5,  post)  :  Supplementary  Agreement  for 
a  loan  for  the  Hsinmin-Mukden  and  Kirin-Changchun  Railways,  November  12,  1908  (No. 
1908/18,  post)  :  detailed  agreements  concerning  the  Hsinmin-Mukden  and  the  Kirin-Chang- 
chun Railway  loans, _  August  18,  1909  (Nos.  1909/6  and  1909/7.  post):  also,  with  particular 
reference  to  the  Kirin-Changchun  Railway,  see  Article  6  of  the  agreement  relating  to 
Chientao,  September  4,  1909  (No.  1909/10,  post),  and  Article  7  of  the  Sino-Japanese  treaty 
respecting  South  Manchuria  and  Eastern  Inner  Mongolia,  May  25,  1915  (No.  1915/8,  post), 
and  Kirin-Changchun  Railway  loan  agreement  of  October   12,   1917    (No.   1917/11,  post). 

The  following  is  a  translation  from  the  Chinese  text  of  an  agreement  for  the  con- 
struction of  the  Kirin-Changchun  Railway  by  the  Chinese  Eastern  Railway,  which  had  been 
signed  June  28/July  11,  1902: 

Preliminary  Agreement  for  Kirin-Changchun  Railway,  July  ii,  1902. 

1. — The  construction  and  management  of  the  Kirin-Changchun  railway  by  the  Chinese 
Eastern  Railway  Company  is  undertaken  with  the  express  object  of  encouraging  the  trade 
of  the  city  of  Kirin.  Its  name  shall  be  the  Kirin  Branch  Railway.  The  Regulations  as  to 
its  construction  are  given  below.  The  Regulations  contained  in  the  contracts  entered  into 
with  the  Chinese  Government  on  the  2d.  of  the  Eighth  Moon,  XXII  Year  of  Kuanghsu, 
Chinese  Calendar,  that  is  August  27  (September  8).  1896,  Russian  Calendar  [No.  1896/5. 
ante],  and  on  the  18th  of  Fifth  Moon,  XXIV  Year  of  Kuanghsu,  Chinese  Calendar,  that  is 
June  24  (July  6,  1898)  [No.  1898/15,  ante]  for  the  construction  of  the  main  line  of  the 
Chinese  Eastern  Railway,  and  the  Southern  Manchuria  Branch  line,  respectively,  do  not 
apply  to  the  construction  of  this  Kirin  Branch  line,  and  are  not  to  be  observed  in  dealing 
with  it. 

2. — For  the  supervision  of  the  construction  of  this  railway  in  a  thorough  and  honest 
manner,  there  shall  be  established  a  Supervising  Commission,  the  General  Director  of  which 
shall  be  the  Tartar  General  of  Kirin,  whose  authority  shall  in  no  wise  differ  from  that 
exercised  by  the  General  Director  of  the  main  line,  His  Excellency,  Hsii,  with  reference 
to  that  line,  and  the  Deputy  Lieutenant  General  of  Kirin  shall  be  the  Assistant  Director. 


530  CHINA  TREATIES  AND  AGREEMENTS 

The  consulting  members  of  the  Commission  shall  be  the  Kirin  Taot'ai,  the  Superintendent 
of  Works,  the  Assistant  Superintendent  of  Works,  and  the  Agent  empowered  to  act  in 
behalf  of  the  Superintendent  of  Works. 

3. — Before  undertaking  the  construction  of  this  branch  line,  the  Superintendent  of 
Works  shall  send  a  deputy  to  survey  and  fix  the  direction  of  the  line,  and  prepare  a  map  of 
the  same,  after  which  the  Tartar  General  of  Kirin  and  the  Superintendent  of  Works  of 
the  Chinese  Eastern  Railway  must  consult  together  and  agree  to  approve.  In  surveying 
this  line  steps  must  be  taken  to  carry  it  around  any  villages,  houses,  graves,  or  market 
towns. 

4. — In  all  matters  pertaining  to  the  construction  and  management  of  this  branch  line 
eflforts  shall  be  made  to  adopt  the  best  methods  in  the  hope  that  there  may  be  a  constant 
tendency  to  improvement  which  will  secure  success. 

To  obtain  the  land  needed  for  the  branch  line,  it  will  be  necessary  to  first  make  a  map 
and  submit  the  same  to  the  Tartar  General  of  Kirin  for  his  approval.  But  the  people  of  the 
province  depend  upon  the  cultivation  of  their  lands  for  a  living,  and  all  lands  needed  for 
railway  stations,  telegraph  lines,  or  for  obtaining  needed  sand,  rock,  earth,  lime,  etc.,  must 
be  paid  for  at  a  just  estimate  of  their  real  value,  based  upon  their  quality  as  agricultural 
lands ;  it  will  not  be  permitted  to  determine  prices  as  was  done  in  the  case  of  the  main  line. 

If  any  of  the  lands  referred  to  are  public  lands,  no  payment  need  be  made  for  them, 
but,  if  they  be  private  lands,  payment  must  be  made  promptly  to  enable  the  owners  to 
remove  elsewhere. 

5. — All  lands  needed  for  the  road  must  be  definitely  bought  at  one  time,  after  which 
there  must  be  no  further  additions  or  extensions  made.  In  the  case  of  all  lands  taken  for 
the  use  of  this  railway  the  Tartar  General  must  first  examine  the  map  of  the  same  and  give 
his  approval,  and  the  price  must  be  paid  in  full  before  such  lands  can  become  the  property 
of  the  railway.  All  lands  that  are  the  property  of  the  said  Company  shall  be  free  of  all 
land  taxes.  The  said  Company  shall  have  sole  power  to  control  the  same,  as  well  as  to 
construct  buildings,  execute  other  necessary  works,  and  establish  telegraph  lines  for  the  use 
of  the  railway.  All  regulations  relating  to  the  operation  of  this  railway,  including  tariffs 
for  goods  and  passengers,  shall  be  fixed  by  the  Chinese  Eastern  Railway  Company,  itself. 
All  receipts  of  the  said  Company,  such  as  the  earnings  of  the  traffic  and  income  from  the 
telegraphs  shall  be  free  from  every  sort  of  taxation.  If  any  mines  be  opened,  arrange- 
ments shall  be  made  hereafter  for  dealing  with  them;  this  rule  does  not  apply  to  them. 

6. — All  materials  needed  by  the  Chinese  Eastern  Railway  Company  for  the  construction 
and  operation  of  this  branch  line  shall  be  obtained  from  the  shops  at  Harbin  as  needed; 
it  will  not  be  necessary  to  establish  other  shops  at  Kirin  or  Changchun,  lest  there  be  thus 
an   unnecessary  occupation  of   the   people's   land. 

7. — With  regard  to  this  branch  line,  it  is  hereby  distinctly  agreed  that  at  the  expiration 
of  36  years  from  the  date  of  the  signing  of  this  contract  the  Chinese  Government  shall 
have  the  right  to  buy  back  the  railway  by  the  payment  of  the  original  capital  stock  plus  the 
debts  incurred  on  account  of  construction  and  the  interest  thereon.  All  surplus  earnings  of 
the  said  Company  after  payment  of  dividends  to  share-holders  shall  be  deposited  in  a 
sinking  fund  for  the  repayment  of  the  capital  stock,  and  shall  be  deducted  from  the  amount 
to  be  paid  for  re-purchase.  If  at  the  expiration  of  the  36  years'  period  China  shall  not 
desire  to  re-purchase  the  railway,  this  agreement  shall  be  continued  for  44  years  longer,  at 
the  expiration  of  which  time  the  Chinese  Eastern  Railway  Company  must  in  accordance 
with  the  terms  of  this  contract  return  to  China  without  payment  this  branch  line  with 
all  its   railway  stations  and  all  public  property. 

8. — When  the  Kirin  branch  line  is  reported  completed  the  Chinese  Eastern  Railway 
Company  must  carry  all  official  despatches  for  the  Chinese  Government  free  of  charge. 
Chinese  soldiers  in  pursuit  of  robbers  and  all  arms  and  ammunition  as  well  as  the  soldiers' 
pay  shall  be  transported  at  half  rates. 

9. — Any  Chinese  subjects  living  within  the  boundaries  of  the  railway  property  who  may 
be  guilty  of  any  offence  light  or  serious  must  be  tried  by  the  nearest  deputy  of  the  Bureau 
of  Railway  Affairs.  Any  Chinese  subjects  arrested  by  the  Russian  police  for  violation  of 
Regulations  or  offense  against  the  Law  must  be  at  once  delivered  to  the  Deputy  of  the 
General  Bureau  of  Railway  Affairs  for  custody  and  trial,  and  must  not  be  detained  (by  the 
said  police). 

10. — All  duties  leviable  upon  Chinese  or  foreign  goods  transported  by  the  Kirin 
Branch  Railway  must  be  dealt  with  in  accordance  with  Regulations  to  be  hereafter  estab- 
lished by  the  Chinese  Government.  These  Regulations  shall  be  determined  by  the  Chinese 
Board  of  Foreign  Affairs  and  the  Chinese  Board  of  Revenue  in  consultation  with  the  Russian 
Minister  at  Peking. 

11. — All  such  materials  as  sand,  rock,  lime,  and  earth  needed  by  this  Railway  shall  be 
free  of  all  customs  and  likin  taxes,  and  all  lumber  shall  pay  a  tax  of  ten  per  cent,  of  its 
value  according  to  the  Chinese  Regulations.  Immediately  upon  the  transportation  of  the 
lumber  to  the  Western  Lumber  Customs  Station  this  duty  shall  the  same  day  be  paid  in  full. 

12. — Chinese  subjects  shall  have  exactly  the  same  rights  and  privileges  as  Russians  for 
trading  within  the  limits  of  the  lands  taken  by  the  Railway;  no  disinction  shall  be  made. 


NUMBER  1907/4:  ^lAY  23,  1907  631 

13.— On  the  day  of  the  approval  of  this  agreement  at  Peking  the  Chinese  Eastern 
Railway  Company  shall  deliver  to  the  Tartar  General  of  Kirin  350,000  Roubles,  Russian 
Currency. 

14.— This  agreement  for  the  Kirin  Branch  Railway  is  a  special  arrangement,  and  it 
shall  not  be  cited  hereafter  as  a  precedent  for  the  construction  of  other  branch  lines  no 
matter  where. 

15. — The  Chinese  Eastern  Railway  Company  shall  make  every  effort  to  employ  native 
laborers  for  the  construction  of  this  Branch  Railway,  and  the  local  authorities  shall  exert 
themselves  to  the  utmost  to  assist  in  securing  such  laborers. 

16. — After  the  parties  to  this  agreement  shall  have  signed  the  same,  it  shall  not  go  into 
effect  until  it  shall  have  been  first  approved  by  the  Ministers  of  the  Chinese  Board  of  Foreign 
Affairs  and  the  Russian  Minister  of  Finance,  Mr.  Witte :  and  not  until  then  may  Mr.  Te 
(Daniel),  the  Superintendent  of  Construction,  begin  the  work  of  building  this  line. 

Kuanghsu  XXVIII,  Sixth  Moon,  7th  Day  (July  11th,  1902,  New  Style). 


NUMBER  1907/4. 

RUSSIA  (Chinese  Eastern  Railway  Company)  AND  CHINA. 

Agreement  for  the  transfer  to  China  of  the  telegraph  lines  in  Manchuria  outside 
the  Chinese  Eastern  Raihuay  territory* — May  <?j,  190/. 

Peking,  23rd  May,  1907. 
The  Director  General  of  the  Imperial  Chinese  Telegraph  Administration, 

Peking. 
I  have  the  honor  to  acknowledge  receipt  of  your  letter  of  the  21st  inst.f  and 
beg  to  confirm  the  agreement  regarding  the  transfer  to  China  of  the  telegraph  lines 
in  IManchuria  outside  the  Railway  territory,  viz. : 

The  Chinese  Eastern  Railway  Administration  will  without  delay  cede  to  the 
Imperial  Chinese  Telegraph  Administration  the  telegraph  lines  and  material 
specified  below,  viz. : 

1.  Tsitsikar  city  to  Helampo. 

2.  Tsitsikar  city  to  Railway  station. 

3.  Harbin  to  Mihailo-Semenovsk — two  wires  with  all  instruments,  batteries 
and  material  found  at  the  stations  on  this  line. 

4.  Hailin  Railway  station  to  Ninguta. 

5.  Tao-lai-chao  to  Kirin — two  wires. 

6.  Tao-lai-chao  to  Potune. 

7.  Tao-lai-chao  to  Ukashu-Kuanchengtsu. 

8.  Kuanchengtsu  Railway  station  to  city. 

9.  Hailar  Railway  station  to  city  and 

10.  All  telegraph  material  still  in  existence  of  the  Kirin-Omoso-Ninguta  line 
and  the  projected  Omoso-Titaso  line. 

*  Text  as  printed  in  Soglashenia,  p.  53. 

In  connection  with  this  agreement,  see  also  that  of  October  7,  1907  (No.  1907/17,  post). 

t  This  letter  is  not  here  printed,  being  reproduced  in  full  in  the  reply  except  for  the 
following  introductory  paragraph: 

"  Having  arrived  at  an  understanding  with  the  Russian  Government  regarding  the 
transfer  to  China  of  the  telegraph  lines  in  Manchuria  outside  the  railway  territory  and 
having  been  informed  by  H.  E.  Russian  Minister  that  this  matter  has  to  be  finally  settled 
with  the  Chinese  Eastern  Railway  Administration  we  should  feel  greatly  obliged  if  you 
would  be  good  enough  to  confirm  the  following  agreement,"  etc. 


632  CHINA  TREATIES  AND  AGREEMENTS 

It  is  further  understood  that  whatever  spare  material,  which  may  be  found  along 
the  above  mentioned  lines,  will  belong  to  the  Chinese  Telegraph  Administration. 

In  consideration  for  which  the  Imperial  Chinese  Telegraph  Administration 
undertakes  to  pay  the  Chinese  Eastern  Railway  Administration  in  Peking  on  or 
before  the  first  day  of  September  1907  the  sum  of  $120,000.00  (Mexican  Dollars 
one  hundred  and  twenty  thousand). 

The  Chinese  Eastern  Railway  Administration  at  Harbin  has  been  advised  of 
the  conclusion  of  the  above  agreement  and  instructed  to  hand  over  the  lines  and 
materials  mentioned  therein  to  the  Representative  of  the  Imperial  Chinese  Tele- 
graph Administration. 

Yours  faithfully, 

(Signed)  J.  Cheshev, 

Representative  of  the  Chinese  Eastern  Railway  Administration. 


NUMBER  1907/5. 

JAPAN  (South  Manchuria  Railway  Company)  AND  CHINA. 

Agreement  for  the  handing  over  by  Japan  of  the  Mukden-Hsinmint'im  Railway, 
together  with  the  rolling-stock  and  equipment.^ — May  2y,  igoj. 

Chou  Ch'ang-ling,  Expectant  Taotai,  Second  Grade  Button,  Director-General 
of  the  Railway  Administration  Inside  and  Outside  Shanhaikwan,  and 

"  Chiu-Pao-T'ien-Cheng-Chou,"  Director-General  of  the  South  Manchuria 
Railway, 

having  been  duly  empowered,  have  agreed  upon  the  following  articles  relating 
to  the  handing  over  of  the  Mukden-Hsinmint'un  Railway,  together  with  loco- 
motives, rolling-stock  and  materials. 

The  parties  named,  having  assured  each  other  of  being  fully  empowered  by 
their  respective  Governments,  have  drawn  up  an  agreement,  in  accordance  with 
the  following  articles,  for  the  purpose  of  handing  over  to  the  Chinese  Railway 
Administration  the  railway  between  Mukden  and  Hsinmint'un,  together  with  all 
equipment  in  the  neighborhood  of  the  line,  rolling-stock,  and  materials. 

Two  copies  have  been  drawn  up  in  Chinese  and  two  in  Japanese. 

Article  1. — The  articles  to  be  handed  over  to  the  Chinese  Government  are 
as  stated  in  the  attached  list. 

Article  2. — The  date  of  handing  over  is  fixed  as  the  40th  year  of  Meiji, 

*  Translation  from  the  Chinese  text  as  printed  in  Wang,  p.  131. 

In  connection  with  this  agreement  see  also  the  Sino-Japanese  conventions  regarding  the 
Hsinmin-Mukden  and  Kirin-Changchun  Railways,  April  15,  1907  (No.  1907/3,  ante)  : 
Supplementary  Agreement  for  a  loan  for  the  Hsinmin-Mukden  and  Kirin-Changchun 
Railways,  November  12,  1908  (No.  1908/18,  post)  :  Detailed  Agreement  concerning  the 
Hsinmin-Mukden  Railway  Loan.  August  18,  1909  (No.  1909/6,  post). 


NUMBER  1907/5 :  MAY  27,  1907  633 

6th  month  1st  day,  or  the  33rd  year  of  Kuanghsii,  4th  moon,  21st  day  (June  1, 
1907).  All  funds  received,  together  with  all  matters  relating  to  train  traffic,  will 
pass  under  the  charge  of  the  Chinese  Railway  Administration.  Before  the  road 
is  handed  over  they  will  remain  under  the  charge  of  the  South  Manchuria  Rail- 
way Company. 

Article  3. — All  officials  and  employees  now  belonging  to  the  road  will  be 
temporarily  borrowed  of  the  South  Manchuria  Railway  Company  during  a  period 
of  seven  days,  beginning  from  the  date  of  the  handing  over  of  the  road,  until  the 
Chinese  Railway  Administration  can  appoint  substitutes  therefor.  Salaries  and 
expenses  during  the  said  period  of  seven  days  will  be  defrayed  by  the  South 
Manchuria  Railway  Company,  in  order  to  facilitate  the  handing  over  of  the 
road,  and  as  an  expression  of  friendship. 

Article  4. — A  list  of  the  names  of  the  officials  and  employees  on  the  road 
is  now  handed  to  the  Chinese  deputy.  If  the  Chinese  Railway  Administration 
wishes  to  continue  their  services,  the  South  Manchuria  Railway  Company  will 
give  heed  to  the  wishes  of  the  individuals. 

Article  5. — After  the  road  has  been  handed  over,  if  not  within  the  period 
for  the  alteration  of  the  line,  the  matter  of  train  traffic  and  the  appointment  of 
officers  by  each  party  will  be  taken  up  and  settled,  that  cooperation  may  be 
facilitated. 

Article  6. — Besides  the  articles  to  be  handed  over,  referred  to  in  Article  1, 
if  not  within  the  period  for  the  alteration  of  the  line,  the  materials  collected  for 
the  repair  of  rolling-stock  and  rails  will  be  given  to  the  Chinese  Railway  Adminis- 
tration in  accordance  with  a  list  drawn  up  by  the  South  Manchuria  Railway 
Company,  to  be  handed  over  as  they  now  stand. 

Article  7. — Besides  the  articles  referred  to  in  the  preceding  article,  if  there 
should  be  any  important  articles  required  by  the  Chinese  Railway  Administration, 
they  will  be  handed  over  at  a  just  price,  providing  the  South  Manchuria  Railway 
Company  does  not  suffer  inconvenience  thereby. 

Article  8. — Besides  the  rolling-stock  and  materials  to  be  handed  over, 
referred  to  in  Article  1,  if  not  within  the  period  for  the  alteration  of  the  line, 
such  articles  as  are  urgently  needed  by  the  Chinese  Railway  Administration  will 
be  loaned  to  it  at  a  just  rental,  providing  the  South  Manchuria  Railway  Company 
suffers  no  great  inconvenience  thereby. 

Article  9. — If  not  within  the  period  for  the  alteration  of  the  line,  coal  and 
water  required  by  the  Chinese  Railway  Administration  will  be  supplied  at  a  just 
price,  providing  the  South  Manchuria  Railway  Company  suffers  no  great  incon- 
venience thereby. 

Article  10. — After  the  road  has  been  handed  over,  articles  to  be  removed 
to  the  South  Manchuria,  Railway  Company,  not  included  among  those  to  be 
handed  over,  together  with  the  caretakers  thereof,  will  be  transported  from 
Hsinmint'un  to  the  South  Manchuria  Railway  by  the  Chinese  Railway  Adminis- 
tration free  of  charge.  Officials  and  employees  of  the  said  company,  together 
with  their  families  and  household  effects,  will  receive  similar  treatment  within  a 
period  of  six  months,  at  the  expiration  of  which  the  right  cannot  be  availed  of. 

Article  11. — Important  matters  which  may  arise  in  the  future,  in  addition  to 


634  CHINA  TREATIES  AND  AGREEMENTS 

those  mentioned  in  these  articles,  will  be  taken  up  and  settled  by  mutual  con- 
ference. 

Kuanghsii,  33rd  year,  4th  moon,  16th  day: 
Meiji,  40th  year,  5th  moon,  27th  day: 
(May  27th,  1907). 

Chou  Ch'ang-Ling, 
Expectant  Taotai,  Second  Grade  Button, 
Director-General  of  the  Railway  Ad- 
ministration Inside  and  Outside  Shan- 
haikzvan. 
'*  Chiu-Pao-T'ien-Cheng-Chou," 
Director-General  of  the  South  Manchuria  Railway. 


NUMBER  1907/6. 

JAPAN  AND  CHINA. 

Agreement  for  the  establishment  of  a  maritime  customs  office  at  Dairen,  and  for 
inland  ivaters  steam  navigation.'^ — May  jo,  iQoy, 

The  Governments  of  Japan  and  China  having  agreed  to  the  establishment  of 
an  office  of  the  Chinese  Imperial  Maritime  Customs  at  Dairen,  the  undersigned 
duly  authorized  by  their  respective  Governments  hereby  engage  to  accept  for  the 
general  guidance  of-  that  office,  and  as  a  preliminary  and  provisional  measure,  the 
detailed  understanding  set  forth  in  the  documents  hereto  attached,  viz., 

(A)  Agreement  about  the  establishment  of  a  Maritime  Customs  Office  at 
Dairen,  and 

(B)  Inland  Waters  steam  Navigation. 

And  it  is  further  agreed  that  in  the  spring  of  next  year  after  the  experience  of 
one  season  there  shall  be  a  reconsideration  of  the  present  arrangement  in  order  to 
fuller  accord  with  local  conditions  and  needs  and  that  for  the  documents  now 
accepted  there  shall  be  substituted  a  revised  agreement  supplemented  by  an 
Ordinance,  the  former  to  be  prepared  by  the  Japanese  Minister  and  the  Inspector 
General  of  Customs  and  the  latter  by  the  Japanese  Authorities  of  the  leased  terri- 
tory in  communication  with  the  Commissioner  of  Customs  at  Dairen.  And  it  is 
further  understood  that  the  Japanese  Authorities  will  take  steps  to  prevent 
smuggling  from  the  leased  territory  into  China  and  support  the  Chinese  Authori- 
ties in  the  measures  they  adopt  to  prevent  smuggling  from  China  into  the  leased 
territory,  and  also  that  a  suitable  procedure  shall  be  arranged  for  dealing  with 
railway  traffic  at  the  Dairen  terminus  and  the  frontier  station  (Wa  Fang  Tien  or 

*  Official  English  text  as  printed  in  Customs,  vol.   II,  p.  740.     Printed  also  in    Traitcs 
et  Conventions,  204;  For.  Ret.,  1907,  p.  133.    See  Note  to  this  document,  post,  p.  638. 


NUMBER  1907/6:  MAY  30,  1907  635 

Other)    and   temporary   regulations    be   made    for   collection   of   duties   by   the 
Customs.  (Signed)  G.  Hayashi.  (Seal.) 

Minister  of  Japan. 
(Signed)  Robert  Hart.  (Seal.) 

Inspector  General  of  Customs. 
Signed  and  sealed  at  Peking  the  30th  May,  1907. 


AGREEMENT  ABOUT  THE  ESTABLISHMENT  OF  A  MARITIME  CUSTOMS  OFFICE  AT 

DAIREN. 

1.  The  Commissioner  or  the  Chief  of  the  Maritime  customs  Office  at  Dairen 
is  to  be  of  Japanese  nationality.  The  Inspector  General  of  Customs  will  come  to 
an  understanding  with  the  Japanese  Legation  at  Peking  in  case  of  appointing  a 
new  Commissioner. 

2.  The  members  of  the  staff  of  the  Maritime  Customs  Office  at  Dairen  shall, 
as  a  rule,  be  of  Japanese  nationality ;  in  case,  however,  of  a  suddenly  occurring 
vacancy  or  of  temporary  requirements  of  the  Service,  members  of  other  nationali- 
ties may  be  provisionally  sent  to  Dairen. 

3.  The  Inspector  General  of  Maritime  Customs  will  inform  the  Governor 
General  of  the  leased  territory  beforehand  about  the  change  of  the  Commissioner 
of  Customs  at  Dairen. 

4.  All  correspondence  between  the  Customs  Office  at  Dairen  and  the  Japanese 
authorities  and  Japanese  merchants  shall  be  conducted  in  the  Japanese  language. 
Should,  however,  merchants  of  other  nationality  come  to  reside  at  Dairen,  they 
shall  be  at  liberty  to  correspond  in  English  or  in  Chinese. 

5.  On  merchandise  brought  by  sea  to  Dairen  no  Import  Duty  shall  be  levied. 
Import  Duty  according  to  existing  Treaties  shall  be  levied  by  the  Maritime 
Customs  Office  on  all  merchandise  or  products  passing  the  Japanese  frontier  of  the 
leased  territory  into  the  interior  of  China.  The  Japanese  authorities  agree  to  take 
suitable  measures  to  assist  as  far  as  it  is  possible  in  the  prevention  of  merchandise 
passing  the  Japanese  frontier  when  not  provided  with  a  Permit  or  Pass  by  the 
Maritime  Customs  Office. 

6.  When  Chinese  merchandise  or  products  brought  from  the  interior  of 
China  into  the  Japanese  leased  territory  are  shipped  from  Dairen  to  other  places, 
they  will  pay  the  Export  Duty  according  to  existing  Treaties.  Produce  raised  in, 
and  merchandise  manufactured  from  produce  raised  in  or  imported  by  sea  into, 
the  Japanese  leased  territory  shall  pay  no  Export  Duty.  The  Duty  to  be  paid 
by  articles  manufactured  in  the  Japanese  leased  territory  from  materials  brought 
there  from  the  interior  of  China  will  be  the  same  as  at  present  paid  by  articles  in 
similar  circumstances  in  the  German  leased  territory  of  Kiaochow. 

7.  Chinese  merchandise  or  products  brought  from  Chinese  Treaty  ports  to 
Dairen  shall  pay  no  Duty  as  long  as  they  remain  inside  Japanese  territory ;  but 
if  these  Chinese  merchandise  or  products  pass  the  Japanese  frontier  into  the 
interior  of  China,  they  shall  pay  according  to  existing  Treaties. 

8.  Chinese  merchandise  shipped  from  Dairen.  and  having  paid  accordingly 
Export  Duty,  shall  be  provided  with  a  receipt,  on  the  producing  of  which  it  shall 


636  CHINA  TREATIES  AND  AGREEMENTS 

pay,  on  being  landed  at  a  Chinese  Treaty  port,  a  Coast  Trade  Duty  according  to 
existing  Treaties. 

9.  For  Japanese  and  other  non-Chinese  merchandise,  on  being  shipped  to 
Dairen  from  a  Chinese  Treaty  port,  the  Import  Duty  paid  at  the  latter  port  shall 
be  refunded  by  Drawback  according  to  treaty  stipulations.  On  being  imported  to 
Dairen  such  merchandise  shall  pay  no  Duty,  so  long  as  it  does  not  pass  the  Japan- 
ese frontier  into  the  interior  of  China.  On  being  re-exported  from  Dairen  to 
other  places  outside  China,  such  merchandise  shall  pay  no  Export  Duty. 

10.  Chinese  merchandise  or  products  having  been  shipped  from  a  Chinese 
Treaty  port  to  Dairen  and  reshipped  from  there  to  places  outside  China  shall 
on  this  occasion  pay  no  Export  Duty,  in  case  that  documentary  evidence  is  pro- 
duced of  their  having  paid  Export  Duty  at  the  Treaty  port  from  which  they  came. 

11.  The  Maritime  Customs  Office  at  Dairen  shall  take  no  part  in  the  collec- 
tion or  administration  of  Tonnage  Dues,  Lighthouse  Dues,  or  Port  Dues. 

12.  The  Customs  Tariff  in  vigour  in  the  Chinese  Treaty  ports  shall  be  applied 
likewise  by  the  Maritime  Customs  Office  at  Dairen. 

13.  The  Japanese  Government  agree  to  set  apart  for  the  Maritime  Customs 
Office  sufficient  space  at  Dairen  for  building  offices,  lodgings  for  the  stafif,  with 
suitable  room  for  garden,  stables,  and  servants'  quarters.  The  amount  to  be  paid 
for  the  sale  or  lease  of  such  ground  is  to  be  settled  locally  by  mutual  agreement. 

14.  The  Chief  of  the  Customs  Office  and  the  members  of  the  stafif  shall  be  free 
from  any  obligation  to  act  as  jurors  or  assessors  or  from  any  other  personal  services. 

15.  The  aforesaid  Maritime  Customs  Office  at  Dairen  shall  be  charged  like- 
wise exclusively  with  the  granting  and  issuing  of  Transit  Passes  for  merchandise 
going  into  the  interior  of  China,  as  well  as  for  merchandise  coming  from  the 
interior  of  China  to  Dairen;  and  this  Office  will  be  charged  as  well  with  all  and 
every  function,  right,  or  capacity  which  appertain  in  the  Treaty  ports  to  the  so- 
called  Chinese  Customs  Taotai. 

16.  For  the  Transit  Passes  mentioned  in  Article  15  the  Duty  according  to 
existing  Treaties — i.  e.,  half  of  the  amount  of  the  Export  or  Import  Duties- 
shall  be  collected  by  the  Maritime  Customs  Office  at  Dairen. 

17.  The  procedure  to  be  observed  in  case  of  frauds  or  contraventions  com- 
mitted by  merchants  against  the  Maritime  Customs  rules  shall  be  settled  hereafter 
by  a  separate  Agreement,  but  it  is  understood  in  principle  that  all  judicial  proce- 
dure rests  with  the  Japanese  tribunals. 

18.  In  view  of  the  possibility  that  with  the  development  of  commercial 
activity  in  the  Japanese  leased  territory  new  requirements  may  arise  which  are  not 
to  be  foreseen,  it  is  understood  that  the  present  Agreement  bears  a  provisional 
character,  and  that  both  parties  to  it  agree  to  introduce  amendments  as  soon  as 
required  for  the  purpose  of  remedying  inconveniences  which  may  arise  in  the 
practical  execution  of  this  Agreement. 

(Seal)  G.  Hayashi, 

Minister  of  Japan. 
(Seal)  Robert    Hart, 

Inspector  General  of  Customs. 
Signed  and  sealed  at  Peking,  the  30th  May,  1907. 


NUMBER  1907/6:  MAY  30,  1907  637 

B. 

Inland  Water  Steam  Navigation. 

1.  The  Chinese  Maritime  Customs  having  been  formally  authorised  to 
function  in  Dairen  are  now  empowered  to  issue  inland  steam  navigation  papers : 
steamers  thus  permitted  to  ply  on  the  inland  waters  are  to  be  guided  generally  by 
the  rules  and  regulations  of  July  and  September  1898  and  the  additional  rules  of 
October  1903,  but  more  especially  by  the  regulations  herebelow  set  forth. 

2.  Steamers  about  to  ply  in  the  inland  waters  are  required  to  deposit  their 
national  papers,  Foreign  or  Native,  with  the  Customs,  and  will  receive  in 
exchange,  on  written  application,  the  Inland  Waters  Certificate ;  such  Certifi- 
cates are  valid  for  one  year,  and  a  fee  of  Tls.  10  is  payable  on  first  issue  and 
TIs.  2  for  each  annual  renewal.  Tonnage  Dues  are  payable  once  every  four 
months. 

3.  Such  certificated  steamers  may  ply  according  to  regulations  (1)  from 
Dairen  to  a  place  or  places  inland  and  back,  and  (2)  from  Dairen  to  a  place  inland, 
thence  to  a  Treaty  port,  thence  to  a  place  inland,  and  thence  back  to  Dairen.  On 
making  due  report  to  the  local  Customs  or  Tax  Office,  and  paying  local  Dues  or 
Duties,  they  may  land  or  ship  cargo  or  passengers  at  any  recognised  places  of  trade 
passed  on  the  voyage,  but  they  may  not  ply  between  inland  places  exclusively  with- 
out special  authority.  If  visiting  another  treaty  port  on  any  such  inland  voyage, 
the  Customs  at  such  port  are  to  be  duly  reported  to  and  all  port  regulations, 
national  and  native,  complied  with. 

4.  Whenever  certificated  steamers  quit  or  return  to  Dairen,  they  are  to  clear 
from  and  report  to  the  Dairen  Customs,  handing  in  Outward  and  Inward  Mani- 
fests of  cargo,  reporting  places  to  be  called  at  or  called  at  (sic),  and  paying  the 
prescribed  Duties.  Opium  and  contraband  goods  are  not  to  be  carried  inward  or 
outward:  if  carried,  the  goods  are  confiscable  and  the  vessel  subject  to  a  fine  of 
$500,  a  second  offence  entailing  withdrawal  of  Inland  Waters  Certificate  and 
privileges. 

5.  The  Japanese  authorities  will  assist  the  Dairen  Customs  to  suppress 
smuggling — more  especially  the  smuggling  of  Opium  and  contraband. 

6.  The  transmission  of  Chinese  closed  mails  between  Dairen  and  inland 
ports  shall  be  free  of  charge  and  the  postal  Administrations  concerned  will 
arrange  a  fitting  procedure  for  the  transmission  of  such  Chinese  closed  mails 
through  the  Japanese  leased  territory  from  and  to  Chinese  post  offices  outside  that 
territory. 

7.  The  application  of  the  Inland  Waters  Steam  Navigation  understanding 
will  be  restricted  to  steamers  which  ply  on  inland  waters  not  inside  the  area  of 
the  Japanese  leased  territory. 

(Seal)  G.  Hayashi, 

Minister  of  Japan. 
(Seal)  Robert  Hart. 

Inspector  General  of  Customs. 

Signed  and  sealed  at  Peking  the  30th  May,  1907. 


538  CHINA  TREATIES  AND  AGREEMENTS 

Note. 

The  customs  house  at  Dairen  was  opened  on  July  1,  1907.  It  is  understood  that  no 
revision  of  this  agreement  has  been  made  as  contemplated. 

Provisional  customs  regulations  for  the  leased  territory  of  Kwantung  were  enacted  by 
an  ordinance  of  the  Government-General  of  Kwantung  under  date  of  June  26,  1907.  The 
following  is  a  translation  from  the  Japanese  text,  embodying  certain  subsequent  amend- 
ments : 

Provisional  Customs  Regulations  for  Kwantung  Leased  Territory,  June  26,  1907. 

1. — Foreign  goods  imported  from  a  foreign  country  or  goods  manufactured  therefrom 
must  pay  import  duty,  if  sent  to  the  interior. 

Foreign  goods  imported  from  a  Chinese  treaty  port,  unaccompanied  by  duty  paid  cer- 
tificate, must  pay  import  duty,  if  sent  to  the  interior. 

Foreign  goods  imported  from  a  Chinese  treaty  port  and  accompanied  by  duty  paid 
certificate,  are  entitled  to  drawback  at  the  port  of  duty  payment,  when  they  have  been 
consumed  in,  or  reexported  from,  the  leased  territory. 

2. — Native  goods  coming  from  a  Chinese  treaty  port,  and  accompanied  by  duty  paid 
certificate,  must  pay  coast  trade  duty,  if  sent  to  the  interior. 

2a. — Produce  raised  in  the  leased  territory,  or  goods  manufactured  therefrom,  shall 
pay  import  duty  on  being  sent  to  the  interior. 

[Article  2a,  when  introduced  by  Ordinance  No.  42  of  1907,  contained  the  additional 
sentences,  "  But  the  sender  of  such  goods  can  choose  not  to  pay  import  duty.  In  the 
latter  case,  the  goods  thus  sent  will  be  treated  in  the  same  way  as  Chinese  produce."  These 
two  sentences  were  cancelled  by  Ordinance  No.  26,  of  1910.] 

3. — Native  produce  imported  from  a  Chinese  treaty  port,  unaccompanied  by  duty  paid 
certificate,  must  pay  import  duty  on  deposit,  pending  inquiry  with  the  custom  house  of 
the  port  concerned,  and  is  liable  to  confiscation  together  with  the  deposit,  if  any  unlawful 
action  be  committeed  in  connection  therewith. 

4. — Native  produce  brought  down  by  land  to  the  leased  territory  must  pay  export 
duty,  if  exported. 

5. — Produce  raised  in  the  leased  territory,  and  goods  manufactured  therefrom  or  from 
the  materials  imported  from  a  foreign  country  shall  pay  no  export  duty  if  accompanied 
by  certificate  of  origin  issued  by  the  Japanese  authorities. 

6. — Goods  manufactured  from  materials  brought  from  the  interior  or  from  a  Chinese 
port  by  sea,  shall  pay  export  duty  on  exportation.  But  it  is  optional  with  the  shipper  to 
pay  duty  on  the  material  or  on  the  manufactured  article. 

7. — Foreign  goods  on  which  import  duty,  or,  native  goods  on  which  export  duty,  has 
been  levied  at  a  Chinese  treaty  port,  shall  pay  no  export  duty  when  reexported  from  Dairen. 

8. — Goods  transported  from  or  to  the  interior  under  the  transit  regulations  shall  pay 
transit  dues  in  addition  to  export  or  import  duty. 

9. — Opium  coming  to  the  leased  territory,  whether  by  sea  or  land,  must  be  reported 
to  the  customs  immediately  upon  arrival. 

10. — Opium  going  to  the  interior  must  pay  import  duty  and  likin.  This,  however,  does 
not  apply  to  foreign  or  native  opium  imported  from  a  Chinese  treaty  port,  accompanied 
by  duty  paid  certificate  or  bearing  Hupu  labels. 

11. — All  opium  going  to  the  interior,  whether  dutiable  or  not,  must  be  declared  to  the 
customs,  and  labelled  and  stamped. 

12. — Native  opium  coming  from  the  interior  or  from  a  Chinese  treaty  port,  unaccom- 
panied by  duty  paid  certificate  or  not  bearing  Hupu  labels,  shall  be  charged  with  Tung-shui. 

13. — Arms,  ammunition,  explosives,  and  materials  used  in  the  manufacture  of  the  same, 
shall  be  unloaded  or  landed  only  after  the  receipt  of  a  customs  permit. 

14. — The  transportation  to  the  interior,  or  the  exportation  to  a  Chinese  port,  of  arms, 
ammunition,  explosives,  and  materials  used  in  the  manufacture  of  the  same,  is  prohibited 
unless  they  are  accompanied  by  Hu-chao  issued  by  the  Chinese  authorities. 

15. — The  two  preceding  rules  do  not  apply  to  arms,  ammunition,  etc.,  for  the  use  of 
the  Japanese  army,  navy,  and  police  force. 

16. — Upon  a  ship's  arrival,  the  master  of  the  vessel  or  his  agent  shall  hand  in  withotit 
delay  to  the  customs  the  ship's  papers  or  consular  report,  and  import  manifest.  The  mani- 
fest must  contain  the  name  and  flag  of  the  vessel,  the  port  of  shipment  as  well  as  the 
destination  of  the  cargo,  marks  and  numbers,  number  of  packages,  quantity,  weight  in 
tons,  and  names  of  consignees,  and  be  signed  by  the  master  of  the  vessel  or  his  agent. 

When  the  quantity  of  the  cargo  destined  for  the  interior  is  large  enough  to  be  treated 
as  independent  cargo,  the  master  of  the  vessel  or  his  agent  should  prepare  two  manifests — 
one  for  the  cargo  destined  for  the  interior  and  another  for  the  leased  territory. 

The  import  manifest  may  only  be  amended  within  twenty-four  hours  of  its  being 
handed  in  to  the  customs. 

17.— Consignees  of  import  cargo,  whether  for  the  interior  or  for  the  leased  territory, 
shall  hand   in   to   the   customs   an   "  import   statement,"   giving   the   name   and   flag   of   the 


NUMBER  1907/6:  MAY  30,  1907:  NOTE  639 

importing  vessel,  the  places  of  purchase  and  of  production  or  manufacture  of  the  goods, 
marks  and  numbers,  description  of  the  articles,  number  of  packages,  quantity,  and  value. 
18. — When  a  vessel  wants  to  clear,  an  export  manifest  signed  by  the  master  of  the 
vessel  or  his  agent  must  be  handed  in  to  the  customs  at  least  two  hours  previous  to  the 
application  for  her  clearance.  The  items  to  be  entered  in  the  export  manifest  are  the 
same  as  those  in  the  import  manifest. 

19. — When  goods  are  to  be  exported  the  shipper  must  hand  in  to  the  customs  an  export 
application,  and  goods  must  undergo  customs  examination. 

After  examination  of  the  goods,  the  applicant  shall  pay  to  the  customs  bank  the  amount 
of  duty  as  stated  in  the  duty  memorandum  issued  by  the  customs.  Upon  production  of  the 
duty  receipt  at  the  office,  the  shipping  permit  will  be  issued. 

20. — The  clearance  permit  is  issued  only  after  all  dues  and  duties  have  been  paid. 
21. — When  cargo,  for  which  a  shipping  permit  had  been  issued,  can  not  be  received  on 
board,  the  fact  must  be  reported  without  delay  to  the  customs.    A  shut-out  memorandum  will 
then  be  issued  to  the  shipper. 

22. — Transhipment  of  goods  can  not  take  place  without  permission  from  the  customs. 
If  goods  are  transhipped  without  permit,  they  are  liable  to  confiscation  and  the  master  of 
the  vessel  to  a  fine. 

22a. — Transhipment  of  goods  can   not  take  place  unless  the  goods  correspond  to  the 
particulars  given  in  the  manifest  and  the  packages  remain  intact. 
[Introduced  by  Ordinance  No.  38  of  1907.] 
23. — The  tariffs  in  use  in  the  customs  are : 

No.  1.     (1)   For  foreign  imports:  the  Revised  Import  Tariff  of  1902. 

(2)   For  native  imports  and  exports :  the  old  general  tariff  for  the 
trade  of  China. 
No.  2.  In  case  special  tariffs  are  to  be  adopted   for  goods   exported 

or  imported  by  junk,  a  separate  notification  shall  be  issued. 
[Added  by  Ordinance  No.  27  of  October  13,  1914.] 

24. — In  cases  of  appeal  against  fines  and  confiscation  ordered  by  the  Commissioner  of 
Customs,  the  procedure  followed  will  be  in  accordance  with  the  spirit  of  the  "  Rules  for 
Joint  Investigation  in  Cases  of  Confiscation  and  Fine  by  the  Custom  House  Authorities, 
Peking,  31  May,  1868." 

25. — The  custom  house  is  open  for  transaction  of  business  from  9  a.m.  to  4  p.m.,  Sun- 
days and  holidays  excepted. 

Examination  offices  will  be  open  from  8  a.m.  to  4  p.m. 

26. — Loading  or  discharging  cargo  before  6  o'clock  a.m.  and  after  6  o'clock  p.m.,  or 
Sundays  or  holidays  is  not  allowed  unless  a  special  permit  is  obtained  from  the  customs. 
This,  however,  does  not  apply  to  passengers'  baggage  or  mail  matter.  The  fees  on  such 
permit  are : 

For  working  before  6  a.m H.K.  Tls.  10 

"  "  from    6  p.m.  to  12  p.m "        "       10 

"  "  from    6  p.m.  to    6  a.m.  next  day  "        "      20 

"  Sunday  (whole  day)    "        "      40 

(half    day)      "        "      20 

"  holiday  (whole   day)     "        "      40 

(half    day) "        "      20 

26a. — The  rate  of  exchange  between  the  Haikwan  Tael  and  the  amount  in  currency  to 
be  paid  to  the  Dairen  customs  shall  be  based  on  the  Newchwang  quotation. 
[Introduced  by  Ordinance  No.  42  of  1907.] 

27. — All  business  communications  relating  to  customs  matters  should  be  addressed  to 
the  Commissioner  of  Customs. 

ADDITIONAL  RULE. 

28. — The  term  "  interior  "  in  the  present  regulations  means  any  part  of  Chinese  ter- 
ritory beyond  the  frontier  of  the  leased  territory. 

[It  is  understood  that  this  rule  has  been  construed  to  include  the  treaty  ports  within 
the  meaning  of  "  interior."] 


640  CHINA  TREATIES  AND  AGREEMENTS 

NUMBER  1907/7. 

FRANCE  AND  JAPAN. 
Agreement  in  regard  to  the  continent  of  Asia.'^ — June  lo,  iQoy. 

The  Government  of  His  Majesty  the  Emperor  of  Japan  and  the  Government 
of  the  French  RepubHc,  animated  by  the  desire  to  strengthen  the  relations  of 
amity  existing  between  them,  and  to  remove  from  those  relations  all  cause  of  mis- 
understanding for  the  future,  have  decided  to  conclude  the  following  Agreement : 

"  The  Governments  of  Japan  and  France,  being  agreed  to  respect  the  inde- 
pendence and  integrity  of  China,  as  well  as  the  principle  of  equal  treatment  in 
that  country  for  the  commerce  and  subjects  or  citizens  (i.e.,  ressortissants)  of  all 
nations,  and  having  a  special  interest  in  having  order  and  a  pacific  state  of  things 
guaranteed  especially  in  the  regions  of  the  Chinese  Empire  adjacent  to  the  ter- 
ritories where  they  have  the  rights  of  sovereignty,  protection  or  occupation,  en- 
gage to  support  each  other  for  assuring  the  peace  and  security  in  those  regions, 
with  a  view  to  maintaining  the  respective  situation  and  the  territorial  rights  of 
the  two  Contracting  Parties  in  the  Continent  of  Asia." 

In  witness  whereof,  the  Undersigned :  His  Excellency  Monsieur  Kurino, 
Ambassador  Extraordinary  and  Plenipotentiary  of  His  Majesty  the  Emperor 
of  Japan  to  the  President  of  the  French  Republic,  and  His  Excellency  Monsieur 
Stephen  Pichon,  Senator,  Minister  for  Foreign  Affairs,  authorized  by  their 
respective  Governments,  have  signed  this  Agreement  and  have  affixed  thereto 
their  seals. 

Done  at  Paris,  the  10th  of  June  1907. 

(L.  S.)  S.  Kurino. 

(L.  S.)  S.    PiCHON. 

*  Translation  from  the  French  text  as  printed  in  Traitcs  et  Conventions,  p.  376. 
Printed  also  in  For.  Rel.,  1907,  p.  754;  Am>.  Int.  Law  Journal,  Supplement,  1910,  p.  313; 
Hertslct,  p.  618. 

Simultaneously  with  the  conclusion  of  this  agreement  was  signed  a  declaration  of  which 
the  following  is  the  translation : 

Declaration  regarding  mutual  most-favored-nation   Treatment  as  between  Japan  and 

French  Indo-China,  June  lo,  1907. 

The  two  Governments  of  Japan  and  France,  while  reserving  the  negotiations  for  the 
conclusion  of  a  Convention  of  Commerce  in  regard  to  the  relations  between  Japan  and 
French  Indo-China,  agree  as  follows : 

The  treatment  of  the  most  favoured  nation  shall  be  accorded  to  the  ofificers  and  sub- 
jects of  Japan  in  French  Indo-China  in  all  that  concerns  their  persons  and  the  protection 
of  their  property,  and  the  same  treatment  shall  be  applied  to  the  subjects  and  proteges  of 
French  Indo-China  in  the  Empire  of  Japan,  until  the  expiration  of  the  Treaty  of  Com- 
merce and  Navigation  signed  between  Japan  and  France  on  the  4th  of  August,  1896. 

Paris,  the  10th  of  June,  1907. 

(L.  S.)  S.  Kurino. 

(L.  S.)  S.  Pichon. 


NUMBER  1907/8:  JUNE  12,  1907  641 

NUMBER  1907/8. 

DENMARK  AND  THE  UNITED  STATES. 

Exchange   of   notes  in   regard   to   the   reciprocal  protection   of   trademarks   in 

China* — June   I2,   igoy. 

Mr.  Brun  to  Mr.  Root. 
[Translation.] 

Legation  of  Denmark, 
Washington,  D.  C,  March  19,  1907. 

Mr.  Secretary  of  State:  By  order  of  my  Government  I  have  the  honor 
to  beg  that  Your  Excellency  will  kindly  let  me  know  whether  the  Government  of 
the  United  States  would  be  disposed  to  conclude  an  arrangement  with  the  Govern- 
ment of  the  King  for  the  reciprocal  protection  in  China  of  the  trade-marks  of  the 
citizens  of  our  two  countries  when  the  said  trade-marks  are  duly  registered  in  the 
country  of  the  infringer. 

Should  the  Government  of  the  United  States  be  disposed  to  conclude  such  an 
arrangement,  the  King's  Government  would  take  the  necessary  measures  to  have 
Danish  subjects  who  would  infringe  in  China  an  American  trade-mark  duly  regis- 
tered in  Denmark,  brought  before  the  Danish  Consular  Court  at  Shanghai  and 
eventually  punished  in  accordance  with  the  provisions  of  the  law  of  Denmark. 

The  Government  of  the  King  would  expect  the  Government  of  the  United 
States  to  take  similar  measures  in  regard  to  American  citizens  who  might  violate 
in  China  the  privilege  of  a  Danish  subject  whose  trade-mark  is  duly  registered  in 
the  United  States. 

I  am  authorized  to  add  that  my  Government  would  be  very  glad  if  such  an 
arrangement  could  be  effected  by  means  of  an  exchange  of  notes  between  Your 
Excellency  and  me. 

Hoping  that  Your  Excellency  will  see  no  objection  to  assenting  to  this 
proposal  of  my  Government,  I  beg  you  to  accept,  Mr.  Secretary  of  State,  the 
renewed  assurance  of  my  high  consideration. 

C.  Brun. 


Mr.  Root  to  Mr.  Brun. 

No.  671.]  Department  of  State, 

Washington,  March  25, 1907. 
Sir:  I  have  the  honor  to  acknowledge  the  receipt  of  your  note  of  the  19th 
instant,  in  which,  by  order  of  your  Government,  you  inquire  whether  the  Govern- 
ment of  the  United  States  would  be  disposed  to  conclude  with  that  of  Denmark 

*  Texts  (and  translations)  as  printed  in  Malloy,  p.  399. 


642  CHINA  TREATIES  AND  AGREEMENTS 

an  arrangement  by  an  exchange  of  notes  for  the  reciprocal  protection  in  China 
of  trade-marks  of  the  citizens  of  either  country  from  infringement  by  citizens  of 
the  other  when  the  said  trade-marks  are  duly  registered  in  the  country  of  the 
infringer. 

By  this  agreement  Danish  subjects  infringing  in  China  an  American  trade- 
mark duly  registered  in  Denmark  would,  you  state,  be  brought  before  the  Danish 
Consular  Court  at  Shanghai  and  eventually  punished  in  accordance  with  the  pro- 
visions of  the  law  of  Denmark,  and  the  Government  of  the  King  would  expect  the 
Government  of  the  United  States  to  take  similar  measure  in  regard  to  American 
citizens  who  might  violate  in  China  the  privilege  of  a  Danish  subject  whose  trade- 
mark is  duly  registered  in  the  United  States. 

The  agreement  proposed  by  your  Government  is  in  line  with  the  agreements 
which  have  been  effected  by  exchange  of  notes  between  the  Minister  of  the  United 
States  at  Peking  and  the  diplomatic  representatives  there  of  certain  other 
countries. 

It  is  to  be  pointed  out,  however,  that  in  view  of  the  fact  that  there  is  no 
statute  in  the  United  States  making  the  infringement — counterfeiting,  etc.,  of  a 
trade-mark — a  criminal  offense,  and  that  effectual  provision  exists  by  a  civil  action 
for  damages  by  the  owner  of  a  trade-mark,  the  word  "  punishment "  is  to  be 
understood,  with  respect  to  the  United  States,  to  refer  to  a  civil  action  only  and 
not  to  a  criminal  procedure. 

If  this  explanation,  which  has  been  made  in  the  case  of  each  of  the  agreements 
mentioned  above,  is  satisfactory  to  your  Government,  I  shall  be  pleased  to  make 
the  exchange  of  notes  with  you. 

Accept,  Mr.  Minister,  the  renewed  assurances  of  my  highest  consideration. 

Elihu  Root. 


Mr.  Clan  to  Mr.  Root. 

[Translation.] 

Danish  Legation, 
May  27,  1907. 

Mr.  Secretary  of  State:  Referring  to  note  No.  671,  which  Your  Excellency 
had  the  kindness  to  address  to  the  legation  on  March  25  last,  I  have  the  honor, 
by  order  of  my  Government,  to  inform  you  that  the  necessary  instructions  have 
been  sent  to  the  Danish  consul  at  Shanghai  (the  consular  headquarters  for  the 
whole  of  China)  in  order  to  authorize  him  to  protect  American  trade-marks,  duly 
deposited  in  Denmark,  against  violations  by  Danish  subjects  in  China,  to  the 
same  extent  as  Danish  marks  of  the  same  nature  are  protected. 

The  law  which  the  Danish  court  at  Shanghai  is  called  upon  to  enforce  in  the 
premises  is  the  Danish  law  of  April  11,  1890,  amended  by  the  law  of  December 
19,  1898,  and  the  ordinances  of  September  28,  1894,  and  September  12,  1902. 

Hoping  to  receive  a  note  informing  me  that  the  diplomatic  and  consular 
ofificers  of  the  United  States  in  the  Middle  Kingdom  have  had  the  necessary 
instructions  sent  to  them  in  order  to  insure  reciprocity  by  granting  the  protection 
of  the  United  States  Consular  Courts  in  China  to  Danish  subjects  against  Ameri- 


NUMBER  1907/9:  JUNE  13,  1907  643 

can  citizens  who  have  counterfeited  Danish  trade-marks  regularly  deposited  in  the 
United  States,  I  beg  of  you,  Mr.  Secretary  of  State,  to  accept  the  renewed 
assurance  of  my  highest  consideration. 

J.  Clan. 


Mr.  Root  to  Mr.  Clan. 

No.  694.]  Department  of  State, 

Washington,  June  12,  1907 . 

Sir:  I  have  the  honor  to  acknowledge  the  receipt  of  your  note  of  the  27th 
ultimo  by  which  you  inform  me  that  in  pursuance  of  the  understanding  reached  by 
the  correspondence  which  passed  between  the  Danish  legation  and  the  Department 
of  State  on  March  19  and  25,  1907,  the  necessary  instructions  have  been  sent  to 
the  Danish  consul  at  Shanghai  (the  consular  headquarters  for  the  whole  of 
China)  in  order  to  authorize  him  to  protect  American  trade-marks,  duly  deposited 
in  Denmark,  against  violations  by  Danish  subjects  in  China,  to  the  same  extent 
as  Danish  marks  of  the  nature  are  protected. 

As  a  completion  of  the  exchange  of  notes  to  give  the  said  understanding  eflfect, 
I  have  the  honor  to  inform  you  that,  on  the  part  of  the  United  States,  the 
Minister  of  the  United  States  at  Peking  has  this  day  been  instructed  to  inform  the 
consular  of^cers  of  the  United  States  in  China  that  hereafter  trade-marks  of 
Danish  subjects,  which  have  been  duly  registered  in  the  United  States,  are  to  be 
protected  against  infringement  by  such  persons  as  come  under  the  jurisdiction 
of  the  United  States  Consular  Courts  in  China. 

Accept,  sir,  the  renewed  assurances  of  my  high  consideration. 

Elihu  Root. 


NUMBER  1907/9. 

JAPAN  AND  RUSSIA. 

Provisional  convention  (ivith  additional  articles  and  protocol)  concerning  the 
junction  of  the  Japanese  and  Russian  Railways  in  Manchuria* — June  13, 
1907. 

The  Imperial  Government  of  Japan  and  the  Imperial  Government  of  Russia, 
having  resolved  to  conclude  a  Convention  concerning  the  connexion  of  the 
Japanese  and  the  Russian  Railways  in  Manchuria,  in  conformity  with  the  pro- 
visions of  Article  VIII  of  the  Treaty  of  Peace  signed  at  Portsmouth  on  Sep- 

*  Translations  from  French  text  as  printed  in  Traites  et  Conventions,  S77.  French 
texts  printed  also  in  the  Russian  Yellow-Book.  Ncgociations  entrc  la  Russie  et  le  Japon 
relatives  h  la  Division  de  la  Station  de  Kouan-tchen-fsy  et  a  la  Conclusion  d'une  Con- 
vention Provisoire  concernant  le  Service  de  Raccordement  des  Chcmins  de  Per  Riisses  et 
Japonais  en  Manchourie,  1906-07  (St.  Petersburg;  1907);  Hertslet,  1199. 


644  CHINA  TREATIES  AND  AGREEMENTS 

tember  5  (August  23,  o.s.),  1905,  the  undersigned,  Itchiro  Motono,  Docteur  en 
Droit,  Envoy  Extraordinary  and  Minister  Plenipotentiary  of  Japan,  and  le  Maitre 
de  la  Cour  Imperiale  Alexandre  Iswolsky,  Minister  of  Foreign  Affairs  of  Russia, 
being  duly  authorized  for  the  purpose  by  their  respective  Governments,  have 
mutually  agreed  upon  the  following  articles,  provisionally. 

Regarding  those  provisions  of  this  convention  which  concern  the  South 
Manchuria  Railway  Company  on  the  one  part  and  the  Chinese  Eastern  Railway 
Company  on  the  other,  the  two  Governments  engage  mutually  to  take  necessary 
measures  to  ensure  their  prompt  execution  by  the  said  Companies. 

Article  I. — The  junction  of  the  sections  of  the  two  railways  will  be  made 
at  the  boundary  line  of  the  Kuanchengtze  station  of  the  Chinese  Eastern  Railway. 
The  South  I^Ianchuria  Railway  Company  shall  prolong  its  line  with  the  gauge 
adopted  by  that  Company  from  the  Changchun  station  of  the  said  Company  to 
the  limit  of  the  Kuanchengtze  station  of  the  Chinese  Eastern  Railway,  and  the 
Chinese  Eastern  Railway  shall  construct  a  line  of  the  same  gauge  in  continuation 
of  the  prolongation  of  the  Japanese  line  constructed  by  the  South  ]SIanchuria  Rail- 
way to  the  platform  of  the  Russian  Kuanchengtze  station.  The  Chinese  Eastern 
Railway  shall  construct  in  prolongation  of  its  line,  a  railway  of  the  gauge  of  1 
meter  524  (Russian  gauge  of  5  English  feet)  from  the  platform  of  the  Russian 
Kuanchengtze  station  to  the  limit  of  that  station,  and  the  South  Manchuria  Rail- 
way Company  shall  construct  a  line  of  the  same  gauge  in  continuation  of  the 
prolongation  of  the  Russian  railway  constructed  by  the  Chinese  Eastern  Railway 
Company  to  the  platform  of  the  Japanese  Changchun  station. 

The  point  of  junction  of  the  two  sections  of  the  Japanese  and  Russian 
railways  and  the  plans  of  that  junction  shall  be  resolved  upon  in  common  accord 
between  the  two  companies. 

Article  II. — The  South  ]\Ianchuria  Railway  Company  as  well  as  the 
Chinese  Eastern  Railway  Company  shall  establish,  besides  the  junction  of  their 
lines,  direct  communication  for  passengers  and  for  merchandise,  and  also  all 
the  necessary  installations,  in  order  to  effect  in  the  shortest  time  and  with  the 
least  expense  possible,  the  transhipment  of  merchandise  at  the  terminal  stations, 
made  necessary  by  the  difference  in  the  width  of  the  gauges. 

Each  Company  reserves  the  right  to  decide  on  the  plans  of  construction 
within  the  limits  of  its  own  ground. 

Article  III. — Each  Company  assumes  responsibility  for  all  the  undertakings 
mentioned  in  Articles  I  and  II  of  the  present  convention,  as  incumbent  on  them 
respectively,  and  these  undertakings  shall  be  executed  by  the  companies  with  the 
least  possible  delay  and  as  far  as  possible  simultaneously. 

Article  IV. — The  maintenance  of  the  tracks,  of  the  installations  for 
despatch  and  transhipment  and  all  the  other  appurtenances  upon  the  ground  of 
each  railway  shall  respectively  be  taken  charge  of  by  the  companies. 

Article  V. — The  traffic  between  the  South  Manchuria  Railway  and  the 
Chinese  Eastern  Railway  shall  be  established  in  conformity  with  the  following 
conditions : 

The  passenger  trains  of  the  South  Manchuria  Railway,  with  the  passengers, 
their  baggage   and   other  objects   transported  by   those   trains   proceed   on   the 


NUMBER  1907/9:  JUNE  13,  1907  645 

Japanese  track  to  the  Russian  station  of  Kuanchengtze,  and  the  passenger  trains 
of  the  Chinese  Eastern  Railway,  with  the  passengers,  their  baggage  and  other 
objects  transported  by  those  trains  proceed  on  the  Russian  track  to  the  Japanese 
station  of  Changchun. 

The  trains  of  the  South  Manchuria  Railway  with  freight  for  the  Chinese 
Eastern  line  come  on  the  Japanese  track  to  the  Russian  station  of  Kuanchengtze, 
where  the  delivery  and  transhipment  of  the  merchandise  to  the  Russian  railway 
are  effected,  and  the  trains  of  the  Chinese  Eastern  Railway  with  freight  for  the 
South  Manchuria  line  come  by  the  Russian  track  to  the  Japanese  station  of 
Changchun,  where  the  delivery  and  transhipment  of  the  merchandise  to  the 
Japanese  railway  are  effected. 

Article  VI. — The  time  schedule  for  the  movement  of  trains,  with  a  view  to 
the  connexion  of  the  two  railways,  shall  be  arranged  in  common  by  the  manage- 
ments of  the  two  Railway  Companies. 

Article  VII. — The  passenger  fares  and  freight  charges  for  traveling  be- 
tween the  terminal  stations  shall  be  collected :  those  going  from  south  to  north,  in 
conformity  with  the  tariffs  in  force  on  the  South  Manchuria  line,  and  those 
going  from  north  to  south,  in  conformity  with  the  tariffs  in  force  on  the  Chinese 
Eastern  line. 

The  distribution  of  the  fees  collected  for  transport  on  the  lines  of  the  two 
Companies  shall  be  made  in  accordance  with  an  agreement  to  be  concluded 
between  the  managements  of  the  two  Companies. 

Article  VIII. — Each  of  the  two  companies  enjoys  the  right  gratuitously  and 
reciprocally  to  make  use  of  the  connecting  line  and  the  installations  attached  to  the 
service  of  transhipment  belonging  to  the  other. 

Article  IX. — The  two  railway  Companies  shall  organize  a  train  service 
mutually  co-ordinated  and  sufficient  to  ensure  regular  passenger  and  freight 
traffic,  and  establish  regulations  and  provisions  for  the  service  of  operation,  all 
in  conformity  with  the  interests  of  that  service. 

Article  X. — All  the  provisions  to  be  later  adopted  on  the  basis  of  the  present 
Convention  and  concerning  the  train  service,  the  transportation  of  passengers,  the 
transhipment  of  merchandise,  the  signal  service,  etc.,  shall  be  regulated  by  special 
arrangement  between  the  two  Companies,  with  due  approval  of  the  respective 
Governments.  The  mutual  use  of  the  means  of  transportation,  the  relations 
between  employees  of  the  two  raihvays  as  well  as  the  mode  of  fixing  the  joint 
quota  due  to  each  administration  in  the  distribution  of  the  receipts,  shall  be 
regulated  subsequently  by  similar  arrangements. 

Article  XI. — In  all  cases  where  the  managements  of  the  two  railways  can- 
not agree  on  points  covered  by  the  present  Convention  or  in  general  upon  all  other 
points  concerning  their  reciprocal  relations  mentioned  in  this  agreement,  the 
differences  shall  be  regulated  by  the  decision  of  the  two  respective  Govern- 
ments, arrived  at  in  common  after  the  exchange  of  views  between  them  on  the 
subject. 

In  proof  whereof  the  Envoy  Extraordinary  and  Minister  Plenipotentiary 
of  Japan  and  the  Minister  of  Foreign  Affairs  of  Russia  have  signed  the  present 
Provisional  Convention  and  afifixed  their  seals  thereto. 


646  CHINA  TREATIES  AND  AGREEMENTS 

Done  at  St.  Petersburg  in  duplicate  on  the  13th  day  of  the  sixth  month 
of  the  40th  year  of  Meiji  corresponding  to  May  31   (June  13),  1907. 

(Signed)  I.   Motono, 

(Signed)  Iswolsky. 


Additional  Articles. 

I. — The  Imperial  Russian  Government  and  the  Imperial  Japanese  Govern- 
ment, desiring  to  establish  direct  communications  for  passengers  and  freight 
upon  the  various  Russian  and  Japanese  railway  lines,  undertake  to  facilitate 
the  conclusion  of  a  special  arrangement  for  this  purpose  as  soon  as  possible. f 

II. — The  undersigned,  Alexander  Iswolsky,  Minister  for  Foreign  Affairs 
of  Russia,  and  Itchiro  Motono,  Envoy  Extraordinary  and  Minister  Plenipoten- 
tiary of  Japan,  having  come  to  an  agreement  for  the  adoption  of  Article  5  of  the 
provisional  convention  for  a  connecting  railway  service,  pending  the  construction 
of  the  Changchun-Kirin  Railway,  it  is  agreed  between  the  two  High  Contracting 
Parties  that  when  the  said  line  shall  have  been  built,  the  transfer  of  passengers 
coming  from  the  north  by  the  Chinese  Eastern  Railway,  and  proceeding  in  the 
direction  either  of  Kirin  or  of  Dairen,  as  also  the  transfer  of  passengers  coming 
either  by  the  Kirin  line  or  by  the  South  Manchurian  line,  and  proceeding  north- 
wards, will  take  place  at  the  Japanese  station  of  Changchun.  For  this  purpose, 
a  special  arrangement  will  be  concluded  later  between  the  interested  companies. 

III. — With  a  view  to  bringing  into  operation  the  railway  connection  in 
Manchuria,  without  awaiting  the  completion  of  the  work  contemplated  by  the 
provisional  convention  signed  this  day,  the  South  Manchuria  Railway  Company 
will  construct  a  temporary  station  in  proximity  to  the  Russian  station  of  Kuan- 
chengtze,  and  the  two  companies  will  establish,  each  for  its  own  part,  the  necessary 
arrangements  for  the  transfer  of  passengers,  packages,  baggage  and  other  objects 

t  On  August  14,  1911,  was  concluded  a  supplementary  convention  for  this  purpose, 
of  which  the  translation  (from  the  French  text  printed  in  Isviestia,  1912,  vol.  II,  p.  43)  is 
as  follows : 

Supplementary  Convention  concerning  Railway  Connections  in  Manchuria, 

August  14,  igii. 

The  Imperial  Government  of  Japan  and  the  Imperial  Government  of  Russia,  desiring 
to  facilitate,  in  accordance  with  the  provisions  of  Additional  Article  I  annexed  to  the 
Provisional  Convention  concerning  the  connecting  service  of  the  Japanese  and  Russian 
Railways  in  Manchuria,  signed  at  St.  Petersburg,  May  31/June  13,  1907,  the  direct  shipment 
of  goods  between  the  two  countries  by  the  Japanese  and  Russian  railways  and  steamships, 
have  agreed  upon  the  following : 

I. — The  two  Governments  will  authorize  the  railways  and  the  navigation  companies 
interested  to  make  arrangements  for  the  direct  shipment  of  goods.  These  arrangements  will 
have  to  be  submitted  for  the  approval  of  the  two  Governments  before  being  put  into 
force. 

II. — The  two  Governments  agree  to  take,  in  case  of  necessity,  all  indispensable  legis- 
lative measures  for  the  putting  into  force  of  the  said  arrangements. 

In  faith  whereof  the  undersigned,  duly  authorized  by  their  respective  Governments, 
have  signed  this  convention  and  set  their  seals  thereto. 

Done  at  St.  Petersburg,  the  14th  day  of  the  8th  month  of  the  forty-fourth  year  of  Meiji, 
corresponding  to  August  1/14,  1911. 

(Sgd.)  MoTONO.  (Sgd.)  Neratow. 


NUMBER  1907/9:  JUNE  13,  1907  647 

transported  by  the  passenger  trains,  and  the  transhipment  of  merchandise  between 
the  temporary  Japanese  station  and  the  Russian  station  of  Kuanchengtze. 

Done  at  St.  Petersburg  in  dupHcate,  May  31/June  13,  1907,  corresponding 
to  the  13th  day  of  the  6th  month  of  the  40th  year  of  Meiji. 

(Sgd.)  ISWOLSKY.  (Sgd.)  I.    MOTONO. 

(L.  S.)  (L.  S.) 


PROTOCOL. 


At  the  moment  of  proceeding  to  the  signature  of  the  Provisional  Conven- 
tion for  the  connexion  of  the  Japanese  and  Russian  railways  in  Manchuria,  the 
two  High  Contracting  Parties,  judging  it  useful  to  settle  certain  questions  rela- 
tive to  the  station  of  Kuanchengtze  and  to  the  coal  mines  of  Shibelin  and 
Taokiatun,  the  undersigned,  Itchiro  Motono,  Docteur  en  Droit,  Envoy  Extraordi- 
nary and  Minister  Plenipotentiary  of  Japan,  and  le  Maitre  de  la  Cour  Imperiale, 
Alexandre  Iswolsky,  Minister  of  Foreign  Affairs  of  Russia,  have  concluded  the 
following : — 

Art.  I. — It  has  been  agreed  between  the  two  High  Contracting  Parties  that 
in  principle  the  station  of  Kuanchengtze  and  its  appurtenances  were  the  common 
property  of  Japan  and  Russia,  but  that,  for  the  sake  of  practical  convenience, 
the  exclusive  ownership  of  the  said  station  and  of  its  appurtenances  shall  remain 
with  Russia  and  that  for  it  the  Russian  Government  shall  pay  to  the  Japanese 
Government  a  sum  of  560,393  rubles  as  compensation  for  the  renunciation  by 
Japan  of  her  rights  of  co-ownership  of  the  Kuanchengtze  station  and  its 
appurtenances. 

Art.  II. — The  Russian  Government  shall  turn  over  to  the  Japanese  Govern- 
ment, with  the  briefest  possible  delay,  after  the  signature  of  the  Provisional 
Convention  for  the  railway  connexion,  in  their  actual  state,  all  the  railways  and 
all  the  objects  belonging  to  these  railways  which  are  to  the  south  of  the  point 
marked  N.  2,223  in  the  plan  here  annexed,  as  well  as  the  coal  mines  at  Shibelin 
and  Taokiatun  with  all  their  appurtenances.  Immediately  after  the  signing  of  the 
said  Convention,  the  necessary  instructions  shall  be  sent  by  the  two  Governments 
of  Japan  and  Russia  to  the  South  Manchuria  Railway  Company,  on  the  one  part, 
and,  on  the  other  part,  to  the  Chinese  Eastern  Railway  Company,  to  proceed  to 
the  transfer  of  the  said  railways  and  of  everything  belonging  to  these  railways 
as  well  as  the  aforementioned  coal  mines. 

Art.  III. — It  is  agreed  between  the  two  High  Contracting  Parties  that  the 
Japanese  Government  shall  subsequently  choose  a  site,  where  shall  be  constructed 
the  Japanese  station  of  Kuanchengtze  and  the  town  of  Changchun. 

In  the  event  of  the  construction  of  the  Kirin  railway  line,  the  Japanese 
Government  shall  exert  itself  to  cause  the  construction  by  the  railway  company, 
outside  the  limits  of  the  Changchun  station,  of  grade  crossings  or  viaducts  at  the 
points  of  crossing  of  the  said  line  and  the  principal  roads  between  the  Russian 
station  of  Kuanchengtze  and  the  town  of  Changchun. 

Art.  IV. — The  detailed  regulations  relative  to  the  transhipment  of  the  pas- 


648  CHINA  TREATIES  AND  AGREEMENTS 

sengers  and  merchandise  from  one  railway  to  the  other,  which  should  be  con- 
cluded between  the  two  railway  companies,  Japanese  and  Russian,  shall  be  dis- 
cussed and  concluded  between  the  companies  interested,  with  the  briefest  possible 
delay,  after  the  signing  of  the  Provisional  Convention  for  the  railway  con- 
nexion. As  to  the  place  and  the  date  of  the  meeting  of  the  Delegates  respecting 
that  subject,  they  shall  be  subsequently  determined  in  the  manner  most  agreeable 
to  the  two  Parties. 

Art.  V. — It  is  agreed  between  the  two  High  Contracting  Parties  that  the 
Convention  signed  under  today's  date  shall  be  put  in  force  immediately  after 
the  construction  of  the  provisional  Japanese  station  mentioned  in  Article  3 
of  the  Additional  Articles  of  the  said  Convention  shall  have  been  completed. 

In  testimony  whereof,  the  Envoy  Extraordinary  and  Minister  Plenipotentiary 
of  Japan  and  the  Minister  of  Foreign  Affairs  of  Russia  have  signed  the  present 
Protocol  and  affixed  thereto  their  seals. 

The  13th  day  of  the  6th  month  of  the  40th  year  of  Meiji,  corresponding  to 
May  31/June  13,  1907. 

(Signed)  I.  Motono. 

(Signed)  Iswolsky. 


NUMBER  1907/10. 

RUSSIA  AND  CHINA. 

Experimental  regulations  for  the  establishment  of  customs  houses  in  Northern 

Adanchnria* — July  8,  1907 . 

I. — The  Convention  for  the  Land  Trade  Between  Russia  and  China  f  pro- 
vides that  no  duties  shall  be  levied  on  the  frontier  of  the  two  countries  within 
the  limit  of  a  hundred  li  (33  miles)  ;  and  the  Chinese  Eastern  Railway  Agreement 
provides  that  China  must  establish  Customs  Stations  where  the  railway  line 
crosses  the  frontier.^ 

Now,  therefore,  China  agrees  not  to  collect  duty  for  the  present  upon  goods 
shipped  by  railway  to  the  stations  within  the  hundred-/i  limit  on  the  frontier. 

II. — Certain  areas  shall  be  fixed  within  which  goods  shipped  by  rail  shall  be 
required  to  pay  but  two-thirds  of  regular  import  duty. 

At  Harbin,  the  main  station  on  the  line,  such  %  duty  area  shall  extend 
to  all  points  within  a  radius  of  ten  Chinese  li  (3  miles)  from  the  station.  At  the 
following  more  important  places  such  area  shall  extend  to  a  distance  of  five  li 
in  each  direction  from  the  station ;  viz :  Man-chu-li,  Cha-lai-no-erh,  Hai-la-erh, 

*  Translation,  as  printed  in  For.  Rel.,  1907,  p.  138,  from  the  official  Chinese  text. 
In  connection  with  these  regulations,  see  also  the  Memorandum  of  agreement  concern- 
ing the  provisional  Sungeri  River  trade  regulations,  etc.,  August  8,  1910  (No.  1910/3,  post). 
See  Note  1  to  this  document,  post,  p.  650. 
t  See  Note  2  to  this  document,  post,  p.  650. 
i  Agreement  signed  September  8,  1896  (No.  1896/5,  ante). 


NUMBER  1907/10:  JULY  8,  1907  649 

Cha-lan-t'un,  Fu-lu-erh-chi,  Tsitsi-ha-erh,  A-shih-ho,  I-mien-po,  Hai-lin,  Yieh-ho, 
Mu-lin,  Chiao-chie-chan,  Shuang-cheng-p'u,  Lao-shao-kou,  Yao-men,  and  K'uan- 
ch'eng-tzu.  The  two-thirds  duty  regulation  shall  be  put  into  effect  at  all  the 
above  places,  and  within  the  area  around  each  as  stipulated,  with  the  exception, 
however,  of  Man-chu-li  and  Chiao-chie-chan  (on  the  Sui-fen  River)  both  of 
which  places  are  situated  within  the  hundred-//  duty  free  limit.  In  addition 
to  the  above,  there  shall  be  two-thirds  duty  areas  extending  to  a  distance  of 
three  //  in  each  direction  from  all  the  smaller  stations  on  the  Eastern  Railway. 

If,  however,  such  goods  are  shipped  out  of  the  places  above  mentioned  and 
the  areas  described,  all  other  places  being  in  inland  territory,  the  full  amount  of 
the  regular  duty  thereon  must  be  made  up,  and  the  goods  considered  subject  to 
inland  trade  regulations. § 

III. — This  reduction  of  one-third  of  the  regular  import  duty  on  goods  shipped 
by  railway,  is  made  by  special  agreement  between  China  and  Russia.  China 
agrees,  however,  that  not  only  Russian  but  all  foreign  merchandise  shipped  to 
China  over  the  Eastern  Railway,  is  equally  affected. 

Russia,  on  her  part,  agrees  that  all  duty  collected  on  goods  which  are  not 
exempt  from  duty  by  the  terms  of  the  Russo-Chinese  Land  Trade  Convention, 
shall  be  levied  according  to  the  new  Customs  tariff,  one-third  of  the  regular 
amount  being  deducted. 

IV. — These  Articles  of  Agreement  shall  serve  in  a  general  way  for  experi- 
mental regulations  for  North  Manchurian  Customs-houses.  If  it  shall  become 
necessary  to  make  any  additions  or  alterations  therein,  or  if  any  corrections  shall 
be  found  necessary  in  order  that  the  regulations  shall  be  in  harmony  with  Chinese 
Customs  procedure,  such  changes  may  be  considered  and  decided  upon  by  both 
parties  to  this  agreement  after  one  year. 

§  With  the  text  as  printed  in  For.  RcL,  1907,  p.  138,  is  given  the  following  "  Exposition 
of  Article  2  "  : 

"  Some  controversy  with  regard  to  the  interpretation  of  Article  II.  of  the  above 
agreement  having  occurred,  the  Chinese  Board  of  Foreign  Affairs  at  a  later  date  officially 
communicated  the  following  explanation  of  its  understanding  of  that  article  to  the  Russian 
Minister  in  Peking,  and  received  his  acceptance  of  the  same  [on  October  7.  1907]. 

" '  Article  II.  of  the  Experimental  Regulations  agreed  upon  by  China  and  Russia 
for  the  opening  of  Customs  Houses  in  Northern  Manchuria  contains  the  following  clause: 

"  '  If,  however,  such  goods  are  shipped  out  of  the  places  above  mentioned  and  the  areas 
described,  all  other  places  being  in  inland  territory,  the  full  amount  of  the  regular  duty 
thereon  must  be  made  up,  and  the  goods  considered  subject  to  inland  trade  regulations.' 

"The  meaning  of  this  article  is  that  all  goods  shipped  out  of  the  places  mentioned 
and  the  areas  described,  will,  (since  all  other  places  are  considered  to  be  within  inland 
territory)  be  required  to  make  up  the  full  amount  of  the  regular  import  duty  by  paying 
the  Vi  not  previously  collected.  This  additional  %  duty  will  take  the  place  of  a  transit 
duty,  and  upon  payment  thereof  a  pass  will  be  issued  permitting  the  goods  to  be  shipped 
to  any  point  within  the  Three  Eastern  Provinces  (Manchuria)  under  the  inland  trade 
regulations.  Without  such  pass  the  goods  will  be  subject  to  likin  and  other  duties  at  all 
Customs  barriers  passed.  Furthermore,  if  it  is  proposed  to  ship  these  goods  upon  which 
the  full  import  duty  has  been  paid,  from  the  Three  Eastern  Provinces  into  China  proper, 
then  a  further  half-duty  will  be  collected  thereon  in  accordance  with  the  regular  Customs 
tarifif,  this  being  the  transit  duty  for  China  proper.  Upon  payment  of  this  duty  a  pass 
will  be  issued  exempting  the  goods  from  further  duty,  but  without  such  pass  likin  and 
other  duties  will  be  collected  at  all  Customs  barriers  passed. 

"And  in  addition  it  is  clearly  understood  that  this  plan  as  explained  is  experimental, 
even  as  the  Regulations  themselves,  and  if  any  additions  or  alterations  are  found  necessary, 
a  consideration  of  the  matter  shall  be  held  by  both  parties  to  this  agreement  one  year 
hence." 


550  CHINA  TREATIES  AND  AGREEMENTS 

As  to  detailed  regulations  for  Customs  Houses,  the  mapping  of  the  different 
areas,  and  the  locating  of  small  stations,  these  matters  shall  be  discussed  and 
decided  as  soon  as  possible  by  representatives  of  the  two  countries. || 


Note  1. 

In  Soglashcnia,  p.  85,  are  printed  a  Russian  translation  of  the  note  from  Prince  Ch'ing 
to  the  Russian  Minister  at  Peking,  under  date  of  June  23/July  6,  1907,  proposing  these 
regulations,  and  the  reply  of  the  Russian  Minister,  under  date  of  June  25/July  8,  1907, 
accepting  them;  and  there  is  also  printed  a  further  exchange  of  notes,  of  which  the  purport 
is  indicated  by  the  following  translation  of  the  note  addressed  by  Prince  Ch'ing  to  the 
Russian  Minister  under  date  of  July  2/15,  1907: 

"  On  June  25/July  8  last,  I  had  the  honor  to  receive  your  communication  in  which  you 
said:  'On  this  day  I  had  the  honor  to  inform  you.  Honorable  Prince  and  Dignitaries,  that 
the  Imperial  Russian  Government  had  expressed  its  consent  to  the  establishment  of  Chinese 
customs  houses  at  the  terminal  points  of  the  Chinese  Eastern  Railway,  on  the  basis  of  rules 
adopted  for  the  period  of  one  year.  I  now  deem  it  my  duty  to  state  to  you  that  the 
Imperial  Russian  Government  is  seriously  solicitous  that  any  special  privileges  which  may 
in  future  be  granted  to  goods  conveyed  into  Manchuria  through  the  port  of  Dalny 
(Dairen)  should  also  be  extended  to  goods  brought  into  Manchuria  over  the  land  frontier. 
Therefore  all  privileges  granted  to  goods  brought  through  the  port  of  Dalny,  and  not 
provided  for  in  the  treaties  on  maritime  trade  or  the  agreement  for  the  construction  of  the 
South  Manchurian  Branch,  shall  be  granted  also  to  the  goods  introduced  into  Manchuria 
over  the  railroad  via  frontier  points.  I  deem  it  my  duty  to  communicate  the  foregoing  to 
you.  Honorable  Prince  and  Dignitaries,  in  compliance  with  instructions  from  my  Govern- 
ment.' 

"  In  connection  with  the  foregoing  communication  the  ministry  under  my  charge  deems 
it  its  duty  to  inform  your  Excellency  that  it  has  taken  careful  note  of  the  contents  thereof 
and  has  taken  the  matter  under  advisement." 


Note  2. 

The  reference  is  to  the  regulations  for  trade  by  land,  annexed  to  the  St.  Petersburg 
treaty  of  February  12/24,  1881,  between  Russia  and  China  (for  which  see  Customs,  Vol.  1. 
p.  188,  or  Hertslet,  p.  483),  Article  1  of  which  provided  for  a  duty-free  zone  of  fifty 
Russian  versts  (one  hundred  Chinese  li,  or  approximately  thirty-three  miles)  on  either  side 
of  the  frontier.  These  zones  were  subsequently  abolished.  See,  in  this  connection,  the 
following  translation  (from  the  Russian  text  as  printed  in  Isviestia,  1912,  vol.  VI,  p.  74)  of 
a  note  addressed  by  the  Russian  Minister  at  Peking  to  the  Wai  Chiao  Pu  under  date  of 
August  24/September  6,  1912 : 

Abolition  of  50-verst  duty-free  frontier  Zone,  September  6,  1912. 

"  On  October  25/November  7,  last  year  the  Imperial  Russian  Government  handed  to 
the  Chinese  delegate  its  counter-proposals  for  the  revision  of  the  St.  Petersburg  treaty  of 
1881,  which  up  to  the  present  still  remain  without  answer.  The  repeated  reminders  of  the 
Imperial  Government  as  to  the  necessity,  in  the  interests  of  the  trade  of  both  countries, 
of  coming  to  a  conclusion  of  the  negotiations  already  commenced  for  the  revision  of  the 
said  treaty,  have  not  led  either  to  the  receipt  of  the  consent  of  the  Chinese  Government 
to  the  Russian  counter-proposals  or  to  any  other  new  proposals  regarding  the  question.  The 
attempt  of  the  Imperial  Government  to  come  to  an  agreement  with  the  Chinese  Government 
regarding  the  date  up  to  which  the  St.  Petersburg  treaty  should  be  left  in  force  has  like- 
wise remained  without  result. 

"  Such  a  situation  reacts  in  the  most  injurious  manner  on  the  Russo-Chinese  overland 
trade  which,  having  a  biennial  or  even  triennial  turnover,  has  need  of  settled  procedure 
more  than  any  other  trade.  The  continued  uncertainty  as  to  how  long  the  existing  system 
of  trade  relations  on  the  frontier  of  Russia  and  China  will  last,  evokes  just  complaints  from 
all  sides. 

"  In  view  of  the  above,  having  come  to  the  conclusion  that  the  Chinese  Government 


See  Note  3  to  this  document,  post,  p.  651. 


NUMBER  1907/10:  JULY  8,  1907:  NOTES  651 

is  either  unable  or  unwilling  to  negotiate  a  revision  of  the  St.  Petersburg  treaty,  and 
considering  that  the  Chinese  Government  has  not  availed  itself  of  the  right  to  a  revision 
of  trade  regulations  conveyed  under  Article  15  of  the  said  treaty,  the  Imperial  Russian 
Government,  desirous  of  establishing  a  sound  system  for  Russo-Chinese  overland  trade, 
hereby  declares  that  it  is  compelled  to  consider  the  St.  Petersburg  treaty  of  1881  as  remaining 
in  force  for  a  further  period  of  ten  years,  i.e.  to  7/20  August,  1921,  in  conformity  with  the 
stipulations  contained  in  Article  15  of  the  treaty. 

"Of  the  proposals  communicated  by  the  Chinese  delegate  in  August  last  year,  the 
Imperial  Government  has  taken  note  of  the  desire  of  the  Chinese  Government  to  abrogate 
the  special  privilege  of  duty-free  trade  in  the  fifty-verst  zone  on  each  side  of  the  land 
frontier  between  Russia  and  China.  The  Imperial  Government  recognizes  that  under  the 
present  conditions  when  along  the  land  frontier  a  series  of  populated  districts  has  grown 
up,  the  existence  of  a  fifty-verst  free  zone,  established  at  a  time  when  the  frontier  was 
uninhabited,  has  become  in  many  places  abnormal.  This  is  confirmed  by  the  series  of 
difficulties  which  have  arisen  latterly  as  to  the  true  meaning  of  the  privileges  connected 
with  the  existence  of  this  zone. 

"  Desiring  to  meet  the  above_  mentioned  wish  of  the  Chinese  Government,  expressed 
through  its  delegate  for  the  revision  of  the  St.  Petersburg  treaty,  and  recognizing  the 
inconvenience  of  leaving  the  question  of  the  fifty-verst  privileged  zone  without  decision 
for  ten  years,  the  Imperial  Russian  Government  hereby  informs  the  Chinese  Government 
that  the  privileged  zone  on  the  Russian  side  of  the  land  frontier  between  Russia  and  China 
will  be  abolished  from  1/14  January,  1913. 

"  It  goes  without  saying  that  the  Imperial  Government  will  not  object  to  the  simultaneous 
abolishment  of  the  privileged  fifty-verst  zone  on  the  Chinese  side  of  the  frontier." 


Note  3. 

The  following  provisional  regulations  for  the  working  of  the  Chinese  custom  houses 
at  the  Stations  Manchuria  and  Pogranichnaya  (Suifenho)  were  subsequently  agreed  upon 
and  published  by  a  notification  of  the  Commissioner  of  Customs  at  Harbin  on  May  .^0, 
1908: 

Provisional  Regulations  for  Chinese  Custom  Houses  at  Manchuria  and 
Pogranichnaya,  May  30,  1908. 

General  Rules. 

"Art.  1. — In  accordance  with  the  Contract  for  the  Construction  of  the  Chinese  Eastern 
Railway  of  27-th  August/8-th  September  1896,  of  Kuang  Hsii  22-nd  year,  8-th  moon  2-nd 
day,  by  Chinese  calendar,  Custom  Houses  are  about  to  be  opened  by  the  Chinese  Govern- 
ment at  the  terminal  stations  of  the  Chinese  Eastern  Railway  'Manchuria'  and  '  Pogranit- 
chnaya '  ('Suifenho')  which  will  be  subordinated  to  the  Head  Custom  House  at  Harljin. 

"  At  the  Stations  Horhonte  and  Mulin  Controlling  Barriers  will  be  established  by  the 
Chinese  Customs  to  control  the  movements  of  goods  and  to  levy  duties  on  merchandise 
exported  from  within  the  50-versts  free  frontier  zone. 

"  NOTE. — The  security  existing  within  the  Chinese  Eastern  Railway  Territory  is 

assured  to  the  full  extent  to  the  employes  of  the  Chinese  Customs. 

"  Art.  2. — Goods  carried  by  the  Chinese  Eastern  Railway  through  the  said  Customs 
into  the  Russian  Empire,  and  in  the  opposite  direction,  are  liable  to  Customs  Import  or 
Export  duty  respectively  at  two-thirds  of  the  Tarifif  rate  of  the  Chinese  Maritime  Customs. 

"  Art.  3. — The  above  mentioned  Custom  Houses  collect  exclusively  Customs  duties  and 
do  not  levy  any  inland  or  other  duties  or  taxes.  They  however  collect  Transit  Dues  on 
such  goods  carried  by  the  Railway  as  are  declared  at  the  Customs  as  intended  for  trans- 
mission into  the  interior  from  within  the  station  areas  fixed  by  the  despatches  of  23-rd  and 
2S-th  June/6-th  and  8-th  July.  1907  (Kuang  Hsii  33-rd  year,  5-th  moon.  26-th  and  28-th 
days).     (See  Appendix  A.)     [See  Note  1,  p.  650.] 

"  NOTE. — The  rate  of  Transit  Dues  referred  to  in  this  article  is  as  follows : 

"1)  When  conveyed  from  within  the  Station  areas  into  the  interior  within  the 
limits  of  Manchuria,  Transit  Dues  are  equal  to  one-third  of  the  Maritime  Customs 
Tarifif,  i.e.,  one  half  of  the  Import  duty  paid: 

"  2)  When  conveyed  from  within  the  Station  areas  to  the  provinces  of  China 
proper  the  full  Maritime  duty  is  made  up,  i.e.,  the  additional  one-third  is  to  be  paid 
together  with  Transit  dues  at  the  rate  of  one  half  of  the  Maritime  duty. 

"  Art.  4. — On  payment  of  Customs  or  Transit  duty  the  said  Customs  Houses  issue 
Receipts  and  Certificates. 


552  CHINA  TREATIES  AND  AGREEMENTS 

"  Art.  5. — Goods  destined  according  to  their  Railway  documents  for  the  Stations  Man- 
churia and  Pogranitchnaya  and  other  stations  situated  within  the  50-versts  frontier  zone 
are — as  goods  entering  the  50-versts  free  frontier  zone — released  for  conveyance  to  destina- 
tion after  examination  free  of  duty. 

"  Art.  6. — Goods  from  Russia  destined  according  to  the  Bills  of  Lading  for  the  stations 
situated  outside  the  50-versts  frontier  zone,  or  goods  laden  at  the  stations  JNIanchuria  or 
Pogranitchnaya  and  intended  for  transmission  to  the  stations  outside  this  50-versts  frontier 
zone,  are  liable  to  Import  duty  after  examination  by  the  Customs. 

"  Art.  7. — In  all  their  actions  the  Custom  Houses  at  the  stations  Manchuria  and 
Pogranitchnaya  conform  with  the  Treaty  of  1881  (Kuang  Hsii  7-th  year)  and  the  Regula- 
tions for  Land  Trade  appended  thereto,  the  Contract  for  the  construction  of  the  Chinese 
Eastern  Railway  concluded  in  1896  (Kuang  Hsii  22-nd  year),  the  Principal  Rules  given 
in  the  despatches  of  the  Chinese  Foreign  Ofhce  and  the  Russian  Minister  at  Peking  of 
23-rd  and  25-th  June/6-th  and  8-th  July,   1907    (Kuang  Hsii  33-rd  year  5-th   moon,   26-th 

and    28-th    days),    the    Supplementary    despatches    of 1907    (Kuang    Hsii    o3-rd 

year,  .  .  .  moon,  .  .  .  day),  as  with  the  present  Provisional  Regulations  and  the  general 
instructions  of  the  Inspector  General  of  the  Chinese  Imperial  Maritime  Customs  as  far  as 
these  are  applicable  to  the   conditions  of   land   trade. 

"  The  Custom  House  at  the  Station  ]\Ianchuria,  being  situated  in  a  locality  opened  to 
foreign  trade,  complies  also  with  the  treaties  concluded  by  the  Chinese  Government  with 
other  countries. 

"Art,  8. — In  order  not  to  delay  the  cargo  traffic  and  in  the  interest  of  the  Russo- 
Chinese  trade  the  said  Custom  Houses  will  take  all  necessary  measures  towards  the  speedy 
release  of  goods  passing  through  the   Customs. 

"  Art.  9. — Buildings  required  for  the  use  of  the  Customs  at  the  Stations  Manchuria  and 
Pogranitchnaya  for  offices,  for  storage  and  keeping  of  goods  which  are  in  the  hands  of  the 
Customs  (go-downs)  and  for  quarters  of  the  employes  will  be  provided  by,  and  at  the 
expense  of  the  Chinese  Government,  and  the  sites  for  the  Russian  and  Chinese  Custom 
House  buildings  at  these  stations  will  be  chosen  by  mutual  agreement  in  the  immediate 
neighbourhood  of  each  other  in  order  to  avoid  all  delay  in  the  transmission  of  documents 
and  goods  from  one  Custom  House  to  the  other. 

"  Art.  10. — In  the  event  of  there  being  at  the  Stations  Manchuria  and  Pogranitchnaya 
buildings  belonging  to  the  Chinese  Eastern  Railway  fulfilling  by  their  situation  the  demands 
of  the  preceding  article,  such  buildings  may  be  placed  by  the  Railway  at  the  disposal  of 
the  Customs  against  rental  as  by  mutual  arrangement. 

"  The  Chinese  Eastern  Railway  can  in  general  undertake  the  construction  of  all  buildings 
required  by  the  Customs  according  to  the  plans  and  specifications  of  the  Customs  at 
their  own  cost. 

"Art.  11. — For  the  examination  of  passengers  and  their  luggage  the  Russian  Customs 
at  the  Stations  Manchuria  and  Pogranitchnaya  may  place  at  the  disposal  of  the  Chinese 
Customs  their  Luggage  Examination  Halls. 

"Art.  12. — Chinese  Customs  buildings  (offices  and  godowns)  as  well  as  all  the  goods 
discharged  by  the  Customs  into  these  must  be  guarded  by  the  Customs  themselves.  The 
responsibility  however  for  goods  in  railway  cars  from  which  Railway  seals  have  not  been 
removed  by  the  Customs  rests  with  the  Railway. 

"  Art.  13. — In  service  matters  the  Russian  and  Chinese  Customs  at  the  Stations  Man- 
churia and  Progranitchnaya  as  well  as  the  Chinese  Eastern  Railway  will  render  mutually 
full  assistance  to  each  other. 

"  The  Railway .  undertakes  the  transmission  by  all  mail  trains,  of  Chinese  Customs 
covers  addressed  to  the  stations  lying  en  route  free  of  charge,  and  will  issue  by  agreement 
a  certain  number  of  free  service  railway  tickets  for  the  employes  of  the  Chinese  Customs 
travelling  on  service  on  the  line. 

"Telegrams  from  the  Chinese  Customs  are  transmitted  by  the  Railway  Telegraph 
against  payment  as  usual. 

"Art.  14. — With  a  view  to  expedite  the  transaction  of  business  and  establish  a  fixed 
terminology  and  for  convenience  of  the  local  Chinese  population,  a  gradual  introduction, 
based  upon  experience,  is  desirable  of  a  Chinese  text  parallel  with  the  Russian  on  forms  of 
documents  of  various  kinds,  labels,  etc.  used  by  the  Railway  and  which  have  connection 
with  the  Customs. 

"  In  order  to  facilitate  relations  between  the  Chinese  Customs  at  the  frontier  stations, 
the  Railway  and  the  Russian  Customs  the  external  correspondence  will  be  carried  on  in 
Russian,  with  parallel  Chinese  text  if  necessary;  likewise  documents  issued  by  the  Chinese 
Customs  will  be  supplied  with  parallel  Russian  text  as  may  be  necessary. 

"  Art.  15. — For  the  execution  of  Customs  formalities  in  connection  with  the  goods 
passing  through  the  Stations  Manchuria  and  Pogranitchnaya  in  the  absence  of  the  owner 
of  the  goods  or  of  his  agent,  the  Chinese  Eastern  Railway  maintains  at,  the  said  stations 
Customs  Agencies. 


NUMBER  1907/10:  JULY  8,  1907:  NOTES  653 

"  XOTE. — Conditions  and  Rules  for  the  working  of  the  Customs  Agencies  are 
defined  by  special  agreements  between  the  Chinese  Eastern  Railway  and  the  Chinese 
Customs.  In  case  of  it  being  necessary  for  the  Agencies  to  pay  the  duties,  these  are 
tendered  either  in  cash  or  by  bills  of  the  Chinese  Eastern  Railway. 
"  Art.  16. — Should  a  discrepancy  be  discovered  between  the  goods  and  Customs  docu- 
ments tendered  for  these,  goods  will  be  confiscated  or,  at  the  option  of  the  Customs,  a  fine 
will  be  inflicted. 

"  Specl-'lL  Rules. 
"  import  of  goods. 

"Art.  17. — Goods  going  from  Russia  into  Manchuria  are  examined  by  the  Custom 
Houses  at  the  Stations  Manchuria  and  Pogranitchnaya  respectively.  Goods  which  according 
to  the  Bills  of  Lading  have  for  their  destination  one  of  the  places  situated  within  the 
50-versts  frontier  zone  are  to  be  passed  without  delay  free  of  duty  after  the  Customs 
have  ascertained  that  among  the  goods  there  is  nothing  prohibited  for  importation  into 
China. 

"  NOTE. — Goods  mentioned  in  this  article,  at  the  option  of  the  sender,  with  the 

consent  of  the  Customs,  may  be  sent  under  Customs  seals  of  the  entering  Customs 

concerned  to  Harbin  for  examination  and  payment  of  duty. 

"  Art.  18. — The  examination  of  goods  imported  into  Manchuria  will  be  carried  out  on 
the  basis  of  the  duplicate  copies  of  the  Bills  of  Lading  transmitted  by  the  Russian  Cus- 
toms to  the  Chinese  Customs. 

"  The  Chinese  Customs  will  begin  the  examination  not  later  than  24  hours  from  the 
time  of  the  transmission  of  the  Bills  of  Lading.  The  examination  of  goods  brought  by  a 
train  must  be  completed  in  the  shortest  time  possible  and  not  later  than  48  hours  from  the 
moment  the  examination  began.  In  case  of  noncompliance  with  the  fixed  time  limits,  a 
report  will  be  drawn  up  by  the  Custom  House  anent  the  circumstances  of  delay  and  sub- 
mitted to  the  Head  Custom  House ;  copy  of  that  report  is  to  be  attached  to  the  railway 
cargo  documents. 

"  Art.  19. — The  undermentioned  particulars  must  invariably  be  entered  on  the  Bills  of 
Lading,  i.e..  name  of  sender,  and,  if  possible,  the  name  of  addressee,  place  of  despatch  of 
goods  (the  station  of  departure),  place  of  destination,  denomination,  quantity  and  weight 
of  goods :  mode  of  packing,  signs,  marks,  numbers,  etc.  and,  if  possible,  the  value  of  goods, 
and  the  signature  of  the  railway  offical  appointed  for  the  purpose. 

"  Art.  20. — In  addition  to  the  duplicate  copies  of  Bills  of  Lading  it  is  left  to  the  owner 
of  the  goods  to  present  to  the  Customs  Invoices,  Specifications  and  other  documents  defining 
value,  quality  and  quantity  of  goods. 

"Art.  21. — Besides  the  above  mentioned  duplicate  copies  of  the  Bills  of  Lading,  the 
Railway  station  officials  present  to  the  Customs   for  comparison  Train  and  Car  Lists. 

"  Art.  22. — On  receipt  of  the  Bill  of  Lading  the  Customs  either  calculate  the  duties 
leviable  according  to  the  data  given  on  the  Bill  of  Lading  if,  upon  unloading  a  part  of 
the  goods,  the  packages  after  outside  inspection  or  on  opening  a  certain  number  of  pack- 
ages at  random  be  found  to  correspond  in  all  respects  with  the  particulars  given  on  the  Bill 
of  Lading,  or  otherwise  goods  are  unloaded  from  cars,  opened  up  and  examined  by  the 
Customs  in  the  event  of  there  being  some  discrepancy  or  suspicion  about  the  documents. 
"  Art  23. — The  despatch  of  goods  from  the  Stations  INIanchuria  or  Pogranitchnaya  into 
Manchuria  by  the  Railway  line  is  only  to  take  place  with  the  cognisance  of,  and  after  the 
sender  of  goods  has  submitted  to,  the  Customs  a  written  application  to  that  effect. 

"  Goods  destined  for  stations  situated  inside  the  50-versts  zone  are  passed  without 
delay  duty  free  after  the  Customs  have  ascertained  there  is  nothing  in  them  that  is  pro- 
hibited for  importation.  Goods  going  by  railway  to  places  outside  the  50-versts  frontier 
zone  are  examined  according  to  the  application  presented  and  charged  Import  duty  on 
whenever  leviable. 

"  Goods,  however,  sent  from  other  stations  within  the  50-versts  zone  to  stations  out- 
side this  zone  are  liable  to  examination  and  levy  of  duty  whenever  such  is  due  at  theCon- 
trolling  Barriers  to  be  established  by  the  Chinese  Customs  at  the  stations  Horhonte  and 
Mulin.  . 

"  Art.  24. — The  release  of  goods  from  Customs  control  takes  place  immediately  after 
the  payment  of  Customs  duties  leviable  on  them.  In  proof  of  payment  of  duty  the  Cus- 
toms issue  Receipts  to  exempt  goods   from  second   payment  of   Customs   duty. 

"  Art.  25. — At  the  option  of  the  owner  of  goods  Receipts  may  be  issued  for  separate 
lots  of  goods  forming  part  of  a  consignment  showing  fractional  amounts  of  duty  charged 
on  each  lot.  but  on  payment  of  a  special   fee   for  these   Receipts. 
"  Art.  26. — These  Receipts  remain   in   force   for  three  years. 

"  Art.  27.— Goods  prohibited  for  importation  into  China  when  discovered  will  be  con- 
fiscated by  the  Customs. 

"Art.  28.— (Not  settled.) 


554  CHINA  TREATIES  AND  AGREEMENTS 

"Art.  29.— (Not  settled.) 

"Art.  58.  [Follows  Art.  29  as  referring  to  the  same  subject.] — Goods  having  for  their 
destination  one  of  the  points  inside  the  station  areas  which  have  paid  duty  on  importation 
may  be  transmitted  to  places  in  the  interior  upon  presentation  of  an  application  to  the 
entering  Customs  or  the  Harbin  Head  Custom  House  together  with  a  receipt  of  either  of 
the  Custom  Houses  at  the  Stations  Manchuria  or  Pogranitchnaya  in  proof  of  payment  of 
the  Import  duty,  and  upon  payment  of  Transit  dues  at  the  rate  fixed  in  Article  3  of  the 
present  Regulations. 

"  The  Customs  concerned,  or  the  Head  Custom  House  at  Harbin,  after  having  verified 
the  goods  with  the  entries  in  the  Receipts  in  proof  of  payment  of  duty  and  after  having 
levied  the  said  Transit  dues,  issues  to  the  owner  of  the  goods  Transit  Certificates  men- 
tioned above. 

"  Art.  30. — Transit  Certificates  may,  at  the  option  of  the  owner  of  goods,  be  issued 
for  a  whole  consignment  of  the  goods  or  for  each  separate  lot  of  a  consignment  as  may 
be  decided  by  the  owner  of  goods. 

"  EXPORT  OF  GOODS. 

"  Art.  31. — On  arrival  of  a  train  from  Manchuria  at  the  Stations  Manchuria  or  Po- 
granitchnaya the  Railway  officials  present  to  the  Customs  House  Train  and  Car  Lists  and 
the  duplicate  copies  of  Bills  of  Lading. 

"Art.  12. — Only  such  goods  as  are  addressed  to  the  Stations  in  Russia  outside  the  50- 
versts  frontier  zone  are  liable  to  Export  duty  after  examination  by  the  Customs. 

"  Art.  Z2). — Goods  exported  from  Manchuria  are  examined  by  the  Chinese  Customs 
who  assess  the  Export  duty  according  to  the  Chinese  Tariff  and  then  by  the  Russian 
Customs  who  calculate  the  Import  duty  according  to  the  Russian  Tariff,  or,  in  order  to 
avoid  delay,  according  to  circumstances,  examination  and  assessment  of  duty  are  carried  out 
by  both  Customs  jointly  and  simultaneously. 

"  Art.  34. — Goods  which  are  liable  to  Chinese  Export  duty  may  not  be  despatched  by 
railway  into  the  Russian  Empire  before  duty  has  been  paid. 

"  Art.  35. — Goods  the  exportation  of  which  from  the  Chinese  Empire  is  prohibited 
will  be  confiscated  by  the  Chinese  Customs. 

"  Art.  36. — In  the  case  of  goods  brought  to  the  Stations  Manchuria  or  Pogranitchnaya 
for  transmission  into  the  Russian  Empire  which  have  already  paid  Export  duty,  these  will 
be  released  by  the  Chinese  Customs  without  a  fresh  levy  of  Export  duty,  in  the  event  of  a 
Certificate  regarding  such  payment  being  presented  and  if  the  packages  upon  outside  in- 
spection prove  to  be  in  agreement  with  the  particulars  given  in  the  Certificate.  In  case  of 
discrepancy  or  a  suspicion  about  the  goods,  these  will  be  examined. 

"  RAILWAY   GOODS. 

"  Art.  Zl . — All  articles  and  materials  required  for  the  construction,  working  and  repairs 
of  the  Chinese  Eastern  Railway  Line  are  exempt  from  all  Customs  taxes  and  duties  as  well 
as  those  levied  inland.  In  these  are  also  included  all  articles  required  for  the  protection 
of  the  line. 

"  Art.  38. — For  the  above  mentioned  goods  the  Railway  presents  to  the  Customs  duplicate 
copies  of  Bills  of  Lading  and  the  goods  will  be  released  by  the  Customs  at  once  after  an 
outside  inspection  and  comparison  of  packages  with  the  particulars  in  the  Bills  of  Lading, 
with  the  exception  of  those  special  cases  when  the  Harbin  Head  Custom  House  directs  the 
Custom  House  to  examine  a  particular  lot  of  railway  goods. 

"  Art.  39. — The  said  duplicate  copies  of  Bills  of  Lading  will  be  accompanied  by  certifi- 
cates or  declarations  issued  by  the  Chinese  Eastern  Railway  to  the  effect  that  these  goods  are 
its  own  property  and  intended  for  its  requirements   (use). 

"Art.  40. — In  case  it  is  intended  to  sell  or  transmit  to  an  outsider  materials  or  articles 
mentioned  in  Article  Zl ,  whether  on  account  of  their  not  being  needed  or  being  worn  out, 
a  declaration  of  such  intention  to  the  Customs  is  necessary,  who  on  consideration  of  the 
circumstances,  gives  the  permission,  and  levies  duty,  if  such  is  due. 

"  GOODS  IN  TRANSIT. 

"Art.  41. — Goods  passing  from  one  locality  of  the  Russian  Empire  to  another  in  transit 
through  Manchuria  are  released  at  once  by  the  Customs  without  levy  of  duty  and  without 
hindrance  if  the  seals  affixed  at  the  entering  Station  by  the  Russian  and  Chinese  Customs 
are  intact.  The  Chinese  Customs  seals  are  affixed  to  the  cars  after  the  Russian  Customs 
seals. 

"  Art.  42. — The  Railway  hands  over  to  the  Customs  for  information  duplicate  copies  of 
Bills  of  Lading  for  the  transit  goods  mentioned  in  the  preceding  article. 

"Art.  43. — Should   seals  of  one  of  the   Customs  be   damaged   or   lost  en   route   while 


NUMBER  1907/10:  JULY  8,  1907:  NOTES  655 

the  seals  of  the  other  Customs  or  the  Railway  seals  are  intact  and  the  latter  agree  with 
the  entries  made  in  the  Car  List,  the  leaving  Customs  orders  the  release  of  the  car  on  its 
journey  without  making  a  detailed  internal  verification  of  the  cargo. 

"  Art.  44. — Should  all  the  seals  afiixed  at  the  entering  station  be  damaged  or  lost  or 
only  a  part  of  them  making  unhindered  access  into  the  car  possible,  or  the  car  be  damaged 
en  route,  and  require  a  reloading  of  goods,  the  railway  station  at  which  the  damage  is 
discovered,  informs  immediately  by  telegraph  the  Customs  at  the  station  of  entry  as  well 
as  the  nearest  Custom  House  and  detains  the  car  until  the  receipt  of  a  telegraphic  reply. 

"  Art  45.— It  rests  with  the  Custom  House  which  receives  the  telegram  to  appoint  a 
special  employe  to  carry  out  the  investigation  into  the  causes  of  damage  or  loss  of  seals,  or 
to  commission  the  Railway  to  make  such  investigation  or  to  authorise  the  despatch  of  the 
car  for  investigation  to  the  leaving  frontier  station. 

"Art.  46. — If  at  the  investigation  or  upon  inspection  and  comparison  of  cargo  with 
documents  at  the  place  of  accident  or  at  the  leaving  Customs  the  cargo  be  found  in  full 
agreement  with  the   documents  it  will  be  allowed  to  proceed  without  hindrance. 

"  Art.  47. — On  the  cars  with  damaged  or  lost  seals  new  seals  will  be  affixed  at  the 
place  of  accident  with  which  they  will  proceed  to  the  frontier  leaving  Customs,  proper 
remarks  to  the  effect  being  made  on  the  cargo  documents;  if  a  special  Customs  officer  be 
sent  to  make  the  investigation,  in  addition  to  the  Railway  seals  attached  at  the  place  of 
accident.  Customs  seals  will  be  affixed  by  him  also.  In  the  absence  of  the  Customs  officer 
the  cars  will  proceed  with  only  the  Railway  seals. 

"Art.  48.— (Not  settled.) 

"Art.  49. — In  case  of  shortage,  loss  or  disagreement  of  cargo,  caused  through  derail- 
ment or  other  uncontrollable  forces  (force  majeure)  the  Railway  is  not  responsible  to 
the  Customs,  but  in  all  such  cases  the  railway  must  take  proper  steps  to  prevent  pilfering, 
loss,   etc.,   of  the   remaining  cargo. 

"Art.  50. — If,  in  cases  described  in  Article  49,  it  is  intended  to  sell  the  remaining  or 
damaged  cargo  on  the  spot.  Customs  permission  must  be  obtained  beforehand.  Import 
duty  (and  Transit  dues,  if  leviable)  must  be  paid  by  the  purchaser  before  delivery  of  the 
sold  cargo. 

"  Art  51. — In  case  the  investigation  proves  the  guilt  of  Railway  employes,  the  Cus- 
toms concerned  notifies  this  to  the  Railway  authorities  for  them  to  take  such  action  as  may 
be  deemed  necessary,  and  the  Railway  authorities  will  inform  the  Customs  of  the  decision 
given. 

"  RE-EXPORTS. 

"  Art.  52. — In  case  foreign  goods  are  re-exported  from  China,  the  import  duty  originally 
paid  will  be  refunded  in  accordance  with  the  rules  followed  by  the  Chinese  Maritime  Cus- 
toms, as  given  below. 

"  Art.  53. — Foreign  goods  which  have  paid  Import  duty,  if  re-exported  from  China 
within  three  years  from  the  date  of  such  payment,  may  receive  refund  of  the  previously 
paid  Import  duty  in  the  form  of  Drawback  Certificate. 

"  Art.  54. — Drawback  Certificates  are  accepted  by  the  Customs  without  deduction  in 
payment  of  Export  and  Import  duties.  If  desired,  they  may  be  exchanged  for  ready 
money. 

"  Art.  55. — Drawback  Certificates  are  issued  by  the  Customs  within  three  weeks  from 
the  day  of  presentation  of  documents  establishing  the  right  of  the  owner  of  goods  to  a 
refund  of  duty,  in  case  the  goods  prove  to  be  in  all  respects  in  agreement  with  the 
description  recorded  at  the  time  of  importation,  if  they  are  in  their  original  packages,  bearing 
all  the  distinguishing  signs  and  marks,  and  if  the  duty  the  refund  of  which  is  requested 
was  actually  paid  within  the  specified  term. 

"  Art.  56. — Should  the  examination  prove  discrepancy  between  goods  and  documents 
and  fraud  be  discovered,  the  goods  will  be  confiscated. 

"Art.  57. — If  fraud  be  discovered  when  refund  of  duty  is  claimed  on  foreign  goods, 
the  Customs  at  its  option  either  inflicts  a  fine  not  exceeding  five  times  the  duty  the 
refund  of  which  was  applied  for,  or  confiscates  the  goods  concerned. 

"Art.  58.— (Follows  Art.  29.) 

"Art.  59.— (Not  settled.) 

"  Art.  60. — The  following  Articles  prohibited  to  be  imported  and  exported,  in  accord- 
ance with  Article  15  of  the  Regulations  for  Land  Trade  of  1881,  if  carried  through  the 
Stations  Manchuria  and  Pogranitchnaya  will  be  considered  as  contraband  articles  and  liable 
to  confiscation :  Powder,  Artillery  Ammunition,  Cannon,  Guns,  Rifles,  Pistols  and  all 
kinds  of  Fire  Arms,  Military  Munitions  and  Implements  of  War,  Salt,  Opium.  Likewise  it 
is  prohibited  to  export  from  China  through  the  Stations  Manchuria  and  Pogranitchnaya 
Rice  and  Chinese   Copper  Coins. 


656  CHINA  TREATIES  AND  AGREEMENTS 

"  Rules  Regarding  Passengers'  Luggage. 

"  Art.  61. — Passengers'  luggage   is  passed  after   examination   duty   free. 

"  Art.  62. — As  luggage  are  generally  recognised  all  articles  accompanying  a  passenger 
whether  intended  for  his  personal  use  or  required  on  the  journey. 

"  Art.  63. — Should  there  be  discovered  among  the  passengers'  luggage  articles  pro- 
hibited to  be  imported  or  exported,  they  will  be  confiscated. 

"  Art.  64. — Dutiable  articles  whether  of  the  nature  of  goods  or  in  excessive  quantity  evi- 
dently intended  for  sale,  carried  among  the  luggage,  must  be  declared  before  examination 
by  the  owner  when  questioned  by  the  examining  officer,  otherwise  the  articles  will  be  con- 
fiscated and  the  owner  may  be  fined. 

"  NOTE. — In  case  of  any  changes  made  in  the  rules  existing  in  the  Chinese  Mari- 

tome  Customs  at  the  ports  regarding  luggage  these  will  also  be  extended  to  the  Chinese 

Customs  established  after  the  pattern  of  the  latter  at  the  terminal  points  of  the  Railway. 

"  Art.  65. — The  examination  of  passengers  and  their  luggage  arriving  from  Russia  will 
be  carried  out  by  the  officers  of  the  Chinese  Customs  in  presence  of  a  Russian  Customs 
Official  and,  if  articles  prohibited  by  the  Russian  law  for  exportation  into  China  be  discovered, 
such   will   be   handed   over   to    the   Russian    Customs   to    deal    with. 

'■  The  examination  of  passengers  and  their  luggage  proceeding  from  Manchuria  into 
the  Russian  Empire  will  be  carried  out  in  the  presence  of  an  offi.cer  of  the  Chinese  Customs 
by  the  Russian  Customs ;  should  any  article  prohibited  to  be  exported  from  China  be  dis- 
covered, such  will  be  handed  over  to  the  Chinese  Customs  to  deal  with.  Articles  liable  to 
Export  duty  will  be  charged  duty  on. 

"  Rules  Regarding  Postal  Parcels. 
"  1.   general  rules. 

"  Art.  66. — Postal  parcels  imported  into,  and  exported  from,  China  are,  like  other  goods, 
subject  to  Customs  examination  and  payment  of  duty  according  to  general  rules. 

"  Art.  67. — All  regulations  relative  to  duty  payment  at  reduced  rate  or  exemption  from 
duty  are  equally  applicable  to  articles  sent  by  postal  parcels  from  within,  or  into,  the  station 
areas. 

"  Art.  68. — Postal  parcels  going  in  transit  by  railway  are  exempted  from  payment  of 
Import  and  Export  duties. 

"  Art.  69. — Postal  parcels  are — besides  Import  and  Export  duties — liable  to  Transit 
dues  or  Likin  according  to  general  rules. 

"  Art.  70. — Articles  which  are  prohibited  to  be  imported  into,  or  exported  from,  China 
may  not  be  sent  in  postal  parcels. 

"  II.      SPECIAL    RULES. 

"A.   Parcels  sent  to  China. 

"Art.  71. — Parcels  addressed  to  places  in  China  must  be  accompanied  by  Customs 
Declarations  in  duplicate  on  the  lines  given  in  the  Parcel  Post  rules  of  the  Rome  Conven- 
tion (Detailed  Regulations,  Art.  VI,  1.). 

"  Art.  72. — In  the  declarations  must  be  given :  place  of  despatch,  denomination  of 
contents,  quantity,  gross  and  net  weight,  value  of  contents,  form  of  packing,  place  of  destina- 
tion and  name  of  addressee. 

"  Art.  73. — On  arrival  of  parcels  at  the  Stations  Manchuria  and  Pogranitchnaya  the 
Postal  department  hands  in  to  the  Custom  House  a  List  of  parcels  in  duplicate  together  with 
two  copies  of  the  corresponding  declarations.  In  the  list  the  parcels  must  be  grouped  to- 
gether as  far  as  possible  according  to  their  places  of  destination. 

"  Art.  74. — The  Custom  House  either  demands  the  presentation  of  all,  or  a  part  of, 
parcels  for  examination,  or  sends  an  Officer  to  examine  them  at  the  Post  Office,  or  on  the 
strength  of  declarations  passes  the  parcels  without  examination. 

"  Art.  75. — The  amount  of  duty,  if  any  is  due,  will  be  marked  on  the  declarations  and  in 
the  list,  of  each  of  which  the  Custom  House  retains  one  copy  and  returns  the  duplicate 
copies  of  the  list  and  declarations  to  the  Post  Office. 

"  Art.  76. — Parcels  not  liable  to  duty  will  be  marked  in  the  list  and  on  the  declarations 
'  duty  free.' 

"  Art.  77. — If  addressees  of  parcels  are  in  a  place  where  there  is  a  Custom  House  they 
are  to  pay  the  duty  to  the  Customs  which  issue  receipts  on  the  presentation  of  which 
the  Post  office  delivers  the  parcel.  Duty  may  also  be  paid  to  the  Post  office  which  in  such 
cases  transmits  the  sums  collected  to  the  Custom  House. 

"The  issue  of  parcels  for  which  duty  had  been  fixed  by  the  Customs  is  not  to  take 
place  before  the  presentation  of  Customs  receipt  or  until  the  amount  of  duty  had  been  paid 
to  the  Post  office. 

"  Art.  78. — Parcels  addressed  to  other  places  in  China  where  there  are  no  Custom 
Houses  are  to  be  sent  to  the  Post  office  nearest  to  the  place  of  residence  of  the  addressee 


NUMBER  1907/11 :  JULY  30,  1907  657 

accompanied  by  declarations  and  with  a  remark  'duty  free'  or  'duty  amounting  to   

Roubles copecks  to  be  collected  before  delivery,'   (which  resembles  to  Trade  charges 

for  the  amount  of  duty  due). 

"Art.  79. — Sums  collected  by  Post  offices  from  the  addressees  of  parcels  will  be  re- 
mitted by  them  to  the  entering  Customs  concerned  or  to  the  Harbin  Custom  House  in  full 
at  the  expense  of  receivers  of  parcels. 

"Art.  80. — For  the  execution  of  such  Customs  formalities  the  Postal  department  has 
the  right  to  exact  from  addressees  a  commission  at  the  rate  fixed  by  International  or 
Russian  Postal  regulations. 

"Art.  81. — In  case  of  a  refusal  of  the  addressee  to  pay  the  duty  parcels  will  be  dealt 
with  in  accordance  with  the  existing  Postal  regulations;  but  if  it  be  decided  to  sell  such 
parcel  the  duty  assessed  must  be  paid  by  the  purchaser. 

"  B.   Parcels  sent  from  China. 

"  Art.  82. — Parcels  to  be  exported  from  Manchuria  and  despatched  from  the  Stations 
Manchuria  and  Pogranitchnaya  or  from  places  where  there  is  a  Custom  House  must  be 
first  presented  to  the  Customs  for  examination  and  payment  of  duty,  whenever  such  is  due, 
and  to  receive  a  permit  without  which  the  Post  office  will  not  accept  parcels  (for  trans- 
mission), 

"  Art.  83. — When  conveying  such  duty-paid  parcels  through  the  Stations  Manchuria  and 
Pogranitchnaya  a  List  of  parcels  together  with  one  copy  of  Customs  declarations  is  to  be 
presented  by  the  Postal  department  to  the  Custom  House  concerned.  Parcels  of  this 
category  must  as  far  as  possible  be  packed  up  separately  from  other  parcels  which  have 
not  paid  duty.  Such  packages  at  the  option  of  the  Customs  will  travel  under  seals  of  the 
Custom  House  which  levied  duty  as  far  as  the  frontier  station  where  the  seals  will  be 
removed   by   the   leaving   Customs. 

"  Art.  84. — Whenever  parcels  are  to  be  sent  from  places  where  there  is  no  Custom 
House  a  Customs  declaration  in  triplicate  must  simultaneously  be  handed  in  to  the  Post 
Office  and  duty  paid  at  the  rate  of  5%  on  the  value  declared.  The  amount  of  duty  is  to  be 
simultaneously  forwarded  to  the  leaving  Customs  at  the  expense  of  the  sender. 

"  Art.  85. — On  arrival  of  such  parcels  at  the  frontier  station  a  List  in  duplicate  to- 
gether with  Customs  declarations  in  triplicate  is  to  be  presented  to  the  Customs.  The 
amount  of  duty  levied  and  remitted  must  be  marked  in  the  List  and  on  Declarations. 

"  Art.  86. — The  Custom  House  either  demands  the  presentation  of  all,  or  of  a  part  of, 
passing  parcels  for  examination,  or  sends  an  Officer  to  examine  at  the  Post  office  (or  !n  the 
Postal  car),  or  gives  permission  for  the  parcels  to  be  sent  on  without  examination,  and 
retains  one  copy  each  of  the  List  and  Declarations. 

"  Art.  87. — If  at  the  examination  a  discrepancy  between  the  contents  of  a  parcel  and  the 
declaration  be  discovered  giving  ground  to  suspect  intention  to  defraud  the  Customs,  such 
parcels  will  be  liable  to  confiscation. 

"  Art.  88. — In  case  of  too  low  a  declaration  of  the  value  on  the  basis  of  which  duty  was 
levied  by  the  Postal  department  at  the  place  of  despatch  of  a  parcel,  the  release  of  such  a 
parcel  for  abroad  may  be  deferred  by  the  Customs  until  the  deficient  amount  had  been 
paid  up." 


NUMBER  1907/11. 

JAPAN  AND  RUSSIA. 
Political  Convention.'^ — July  30,  1907. 

The  Government  of  his  Majesty  the  Emperor  of  Japan  and  the  Government 
of  his  Majesty  the  Emperor  of  All  the  Russias,  desiring  to  consolidate  the  rela- 

*  Translation  from  the  French  text  as  printed  in  Traites  et  Conventions,  p.  60.  French 
text  printed  also  in  the  Russian  Yellow-Book,  Documents  relatifs  a  la  Conclusion  entre  la 
Russie  et  le  Japan  de  la  Convention  Politique  du  17/30  juillef,  1907  (St.  Petersburg,  1907)  ; 
Hertslet,  p.  619;  Am.  Int.  Law  Journal,  Supplement,  1907,  p.  396  (French  text  and  trans- 
lation). 

See  also  the  Russo-Japanese  conventions  of  July  4,  1910  (No.  1910/1,  post),  and  of 
July  3,  1916  (No.  1916/9,  post). 


558  CHINA  TREATIES  AND  AGREEMENTS 

tions  of  peace  and  good  neighbourhood  which  have  happily  been  re-established 
between  Japan  and  Russia,  and  wishing  to  remove  for  the  future  every  cause  of 
misunderstanding  in  the  relations  of  the  two  Empires,  have  agreed  upon  the  fol- 
lowing provisions : — 

Art.  I. — Each  of  the  High  Contracting  Parties  engages  to  respect  the  actual 
territorial  integrity  of  the  other,  and  all  the  rights  accruing  to  one  and  the  other 
Party  from  the  treaties,  conventions  and  contracts  in  force  between  them  and 
China,  copies  of  which  have  been  exchanged  between  the  Contracting  Parties 
(in  so  far  as  these  rights  are  not  incompatible  with  the  principle  of  equal  oppor- 
tunity), from  the  treaty  signed  at  Portsmouth  on  the  5th  of  September  (23rd 
of  August),  1905,t  as  well  as  from  the  special  conventions  concluded  between 
Japan  and  Russia. 

Art.  II. — The  two  High  Contracting  Parties  recognise  the  independence  and 
the  territorial  integrity  of  the  Empire  of  China  and  the  principle  of  equal  oppor- 
tunity in  whatever  concerns  the  commerce  and  industry  of  all  nations  in  that 
empire,  and  engage  to  sustain  and  defend  the  maintenance  of  the  status  quo  and 
respect  for  this  principle  by  all  the  pacific  means  within  their  reach. 

In  witness  whereof,  the  undersigned,  duly  authorized  by  their  respective  Gov- 
ernments, have  signed  this  Convention  and  have  affixed  their  seals. 

Done  at  St.  Petersburg,  the  30th  day  of  the  7th  month  of  the  40th  year  of 
Meiji,  corresponding  to  the  30th   (17th)   of  July,  1907. 

(Signed)  I.   Motono. 

(Signed)  Iswolsky 


NUMBER  1907/12. 

RUSSIA  (Chinese  Eastern  Railway  Company)   AND  CHINA   (Heilungkiang 

Province). 

Agreement  regarding  the  operation  of  coal  mines  in  Heilungkiang  Province.'^ — 

August  30,  1907. 

With  a  view  to  establishing  definite  rules  for  the  exploration  and  operation 
of  coal  deposits  in  Heilungkiang  Province  for  the  needs  of  the  Chinese  Eastern 
Railway,  we  the  undersigned.  Major  General  Horvath,  Manager  of  the  Chinese 
Eastern  Railway,  and  Mr.  Daniel,  Plenipotentiary  of  the  Manager  of  the  Chinese 
Eastern  Railway,  parties  of  the  first  part,  and  Expectant  Taotai  Sun-syao-lyan, 

*  Translation  from  the  Russian  text  as  printed  in  Soglashenia.  p.  42.  To  the  text  as 
there  given  is  appended  a  note  that  an  agreement  regarding  the  operation  of  coal  mines  in 
Kirin  Province,  in  identical  terms  (mutatis  mutandis),  was  signed  on  the  same  date,  by 
the  same  parties  on  the  Russian  side,  and  by  Tu  Hsiao-Ying,  Expectant  Taotai,  as  the 
delegate  of  Kirin  Province.    See  also  Note  to  this  document,  post,  p.  661. 

t  No.  1905/8,  ante. 


NUMBER  1907/12:  AUGUST  30,  1907  659 

Wearer  of  the  Peacock  Feather,  Delegate  of  Heilungkiang  Province,  party  of 
the  second  part,  have  concluded  the  following  agreement : 

1.  The  right  is  granted  to  the  Chinese  Eastern  Railroad  to  work  the  coal 
within  certain  regions  of  Heilungkiang  Province. 

The  places  where  the  coal  may  be  worked  within  the  limits  of  these  regions, 
and  the  mode  of  working  it,  shall  be  determined  by  the  management  of  the  railway 
itself.  However,  when  explorations  are  made,  a  Chinese  official  must  be  present 
in  order  to  ascertain  whether  there  are  any  objections  to  the  work,  the  question 
whether  or  not  there  are  such  objections  being  determined  by  the  distance  of  the 
shafts  from  Chinese  settlements  or  cemeteries,  as  follows :  Shafts  shall  not  be 
sunk  nearer  than  two  Chinese  //  to  large  commercial  settlements,  not  nearer  than 
one  Chinese  li  to  villages  of  not  over  ten  dwellings,  and  not  nearer  than  one-half 
Chinese  //  to  large  cemeteries  and  sacred  groves. 

2.  Within  a  zone  of  thirty  Chinese  li  on  either  side  of  the  roadbed  of  the 
railroad,  the  right  to  explore  and  work  the  coal  deposits  shall  belong  to  the  rail- 
road. However,  Chinese  shall  also  be  allowed  the  right  to  work  the  coal  deposits 
within  the  limits  of  a  zone  thirty  Chinese  li  wide  on  either  side  of  the  road, 
provided  this  does  not  interfere  with  mines  previously  operated  by  the  manage- 
ment of  the  road;  and  the  management  shall  not  offer  any  opposition  thereto.  If 
there  should  be  other  foreigners,  or  Chinese  and  foreigners,  who  have  gathered 
capital  and  desire  to  operate  the  coal  deposits  within  the  radius  of  a  zone  thirty 
Chinese  //  wide,  they  shall  not  be  allowed  to  proceed  with  such  operation  until 
receiving  permission  from  the  Chinese  authorities  as  w^ell  as  the  consent  of  the 
management  of  the  road.  As  regards  lands  situated  outside  the  thirty  li  zone, 
they  do  not  concern  the  management  of  the  road,  and  the  permission  for  Chinese 
or  foreigners  to  explore  or  operate  the  coal  deposits  therein  shall  depend  entirely 
on  the  Chinese  authorities,  the  management  of  the  road  not  having  any  right  to 
interfere  in  such  matters.  If  the  management  of  the  road  should  desire  to  make 
explorations  of  coal  deposits  outside  the  thirty  li  zone,  it  must  first  receive  per- 
mission from  the  proper  governor,  whereupon  it  may  proceed,  but  in  this  case  the 
rights  of  the  management  of  the  road  shall  in  no  wise  differ  from  those  of  Chinese 
or  foreigners. 

3.  In  order  not  to  deprive  the  inhabitants  of  coal  regions  of  mineral  fuel, 
the  residents  of  villages  in  the  vicinity  of  shafts  belonging  to  the  Chinese  Eastern 
Railway  Company  shall  have  a  right  to  buy  coal  from  the  company  at  prices  fixed 
by  the  management  of  the  Chinese  Eastern  Railway  for  each  deposit  separately. 
The  prices  fixed  shall  be  published  by  the  management  for  general  information 
and  communicated  to  the  Tsiao-she-tsii  at  Harbin  for  the  same  purpose. 

4.  If  in  the  vicinity  of  a  place  selected  for  the  mining  of  coal  there  are  settle- 
ments of  not  over  five  dwellings  or  cemeteries  of  not  over  ten  graves,  the  Chinese 
Eastern  Railway  Company  shall  enter  into  arrangements  with  the  owners  of  the 
dwellings  or  cemeteries  for  the  removal  thereof  to  other  places,  with  the  require- 
ment that  the  matter  be  discussed  and  settled  in  agreement  with  the  official  of  the 
Tsiao-she-tsii,  whereupon  it  shall  be  necessary  to  communicate  the  matter  to  the 
local  governor  for  his  information. 

5.  In  each  individual  case  when,  as  a  result  of  prospecting,  it  is  ascertained 


560  CHINA  TREATIES  AND  AGREEMENTS 

that  coal  may  be  worked  in  a  particular  place,  the  question  of  the  dimensions  of 
the  tract  to  be  worked  shall  be  discussed  by  the  management  of  the  road  with  the 
official  of  the  Tsiao-she-tsii  and  the  owner  of  the  land.  Upon  the  tract  to  be 
worked  being  determined,  a  fair  rental  or  purchase  price  must  be  fixed,  and  not 
until  this  question  has  been  settled  shall  permission  for  proceeding  with  the  work 
be  granted.  Lands  which,  after  being  explored,  prove  useless,  shall  be  releveled 
at  the  expense  of  the  management  of  the  road  and  returned  to  the  owner,  for 
the  management  of  the  road  is  not  granted  ownership  of  the  surface  of  the  land. 
For  any  injuries  caused  to  forests  or  crops  the  management  of  the  road  shall 
likewise  be  obliged,  in  company  with  the  official  of  the  Tsiao-she-tsii,  to  reach  an 
agreement  with  the  owners  and  grant  them  just  compensation. 

6.  Any  timber  found  within  the  limits  of  the  tract  purchased,  and  necessary 
for  the  operation  of  the  coal  deposits,  may  be  prepared  by  the  management  of 
the  road  at  its  discretion.  With  respect  to  forests  situated  on  private  land  outside 
the  limits  of  the  purchased  tract,  the  management  of  the  road  must  come  to  an 
agreement  with  the  owner  of  the  land  and  proceed  in  accordance  with  the  forestry 
regulations  established  by  agreement  with  the  manager  of  the  road.  In  regard 
to  government  lands,  it  shall  also  be  necessary  to  proceed  in  accordance  with  the 
forestry  regulations  mentioned. 

7 .  For  every  1,000  kin  of  coal  extracted,  the  Chinese  Eastern  Railway  Com- 
pany shall  pay  into  the  Heilungkiang  treasury  12/100  of  a  Heilungkiang  tael 
quarterly,  that  is,  at  the  end  of  March,  June,  September,  and  December.  More- 
over, for  each  active  shaft,  the  Chinese  Eastern  Railroad  Company  shall  pay 
annually  at  the  rate  of  17.64  Heilungkiang  taels  in  silver,  making  the  payment  at 
the  end  of  June. 

8.  With  respect  to  government  lands,  it  shall  also  be  necessary  to  make 
explorations  in  company  with  a  Chinese  official,  it  being  necessary  to  determine 
the  boundaries,  and,  with  the  consent  of  the  management  of  the  road,  a  rental 
shall  be  fixed  which  cannot,  however,  exceed  the  amount  of  charges  collected 
upon  the  colonization  of  lands  of  similar  quality. 

9.  All  questions  on  which  no  final  agreement  has  been  reached  between  the 
company  and  private  individuals  or  the  government  treasury,  as  well  as  all 
misunderstandings  which  may  arise  at  the  place  where  the  work  is  going  on,  shall 
be  examined  and  finally  decided  by  the  Tsiao-she-tsii  of  Harbin. 

10.  All  the  foregoing  provisions  of  the  present  agreement  relate  solely  to 
the  Chinese  Eastern  Railway  Company  and  are  in  no  case  applicable  to  Chinese 
subjects  who  are  engaged  in  the  mining  of  anthracite  coal  at  the  present  time  or 
who  may  receive  permission  for  such  work  in  future.  All  such  persons  shall  be 
exclusively  subject  to  the  Chinese  laws  already  existing  on  the  subject,  the  Chinese 
Eastern  Railway  Company  taking  no  part  in  the  matter. 

11.  The  present  agreement  shall  be  written  in  the  Chinese  and  Russian 
languages  in  duplicate.  In  case  any  dispute  arises,  the  Chinese  text  shall  be  taken 
as  a  basis. 

12.  The  Tsiao-she-tsii  of  Heilungkiang  Province  shall  send  a  Chinese  dele- 
gate to  all  coal  mines  being  worked  by  the  Chinese  Eastern  Railway  Company, 
.which  delegate  shall  remain  at  the  place  of  operations,  keep  track  of  the  amount 


NUMBER  1907/12:  AUGUST  30,  1907:  NOTE  661 

of  coal  extracted,  and,  in  company  with  the  Russian  superintendent  of  the  mines, 
prepare  reports.  Quarters  shall  be  assigned  to  him  by  the  management  of  the 
road.  The  boundaries  of  the  coal  deposits  shall  be  accurately  defined,  or  the 
deposits  shall  be  surrounded  by  a  fence.  In  case  Chinese  who  have  committed 
some  offense  conceal  themselves  within  the  limits  of  the  mining  regions,  the 
Chinese  police  may  be  allowed  access  thereto,  provided  the  local  authorities  first 
communicate  with  the  superintendents  of  the  mines,  the  latter  then  appointing 
persons  to  cooperate  with  the  Chinese  police  in  searching  for  and  arresting  the 
guilty  parties. 

(Signed)         Major  General  Horvath, 
Manager  of  the  Chinese  Eastern  Raihvay. 
E.  Daniel, 
Agent   empozuered   by   Manager   of   the 
Chinese  Eastern  Raihvay  to  deal  zvith 
the  Chinese  authorities. 
(Chinese     signature),     Expectant     Taotai, 
Wearer  of  the  Peacock  Feather,  Delegate 
of  Hcilungkiang  Province. 
Harbin,  August  17/30,  1907  (22d  day,  7th  moon,  33d  year  of  the  Reign  of 
Kuang  Hsii. 


Note. 

The  following  is  a  translation  from  the  Chinese  text  of  an  agreement  for  the  mining 
of  coal  in  the  Province  of  Heilungkiang,  which  had  been  concluded  on  January  1/14,  1902 : 

Agreement  for  Coal  Mining  in  Heilungkiang,  January  14,  1902. 

"On  the  1st  of  January,  1902,  Russian  Calendar,  being  the  5th  of  the  Twelfth  Moon, 
XXVII  Year  of  Kuanghsii,  Chinese  Calendar  (January  14th,  1902),  Ta-nieh-erh  (Tarnier),' 
being  appointed  by  the  Engineer-in-Chief  of  the  Chinese  Eastern  Railway,  Ju-ko-wei-chih 
(Jugovitch)  as  his  agent  with  full  powers,  has  entered  into  the  following  Articles  of 
Agreement  with  Sa,  who  is  by  Imperial  appointment  the  Acting  Tartar  General  of  the 
Province  of  Hei-lung-chiang: — 

"  I. — The  Tartar  General  of  the  Province  of  Hei-lung-chiang,  being  desirous  of  pre- 
serving the  forests  of  that  province,  has  given  to  the  Railway  Company  authority  to 
prospect  for  coal  and  to  mine  coal  without  hindrance  in  the  said  province,  the  said  Com- 
pany being  at  liberty  to  determine  for  itself  in  what  places  and  by  what  methods  to  so 
prospect  and  mine. 

"  II. — When  prospecting  for  coal  or  mining  the  same,  it  will  be  necessary  to  observe 
the  following  three  conditions ; — 

"  (a)  The  Railway  Company  shall  have  the  exclusive  right  to  prospect  for  coal  and 
to  mine  coal  within  not  more  than  30  Chinese  //  on  either  side  of  the  railway  line. 

"  (&)  Should  any  foreigners,  either  some  other  company  or  some  combination  of 
Chinese  and  foreign  share-holders,  desire  to  prospect  for  coal  or  mine  coal  outside  the 
30  li  limit  on  either  side  of  the  railway,  the  Tartar  General  agrees  that  before  granting 
them  permission  so  to  do  he  will  first  consult  with  the  Chinese  Eastern  Railway  Company. 

"  (c)  Should  the  Chinese  Eastern  Railway  Company  desire  to  prospect  for  coal  or 
mine  coal  outside  the  30  li  limit  on  either  side  of  the  railway,  the  said  Chinese  Eastern 
Railway  shall  be  accorded  precedence  over  all  other  applicants,  but  it  shall  be  necessary 
for  the  said  Company  to  observe  the  general  Regulations  of  China  governing  the  mining 
of  coal. 

"  III. — In  order  that  the  people  living  in  the  vicinity  of  the  mines  may  not  be  deprived 
of  fuel  from  the  mines,  the  villagers  of  the  region  round  about  the  mines  of  the  Chinese 
Eastern  Railway  Company  shall  be  permitted  to  purchase  coal  from  the  said  Railway 
Company,  but  the  conditions  of  these  various  mines  are  not  alike,  and  it  will  be  necessary 
to  adhere  to  the  prices  to  be  fixed  by  the  Head  Company,  and  after  the  prices  shall  have 


662  CHINA  TREATIES  AND  AGREEMENTS 

been  decided  upon  by  the  Head  Company,  they  shall  be  published  for  the  information  of 
all  concerned  and  notice  of  the  same  shall  be  sent  to  the  Hei-lung-chiang  General  Bureau  of 
Railway  Affairs  at  Harbin  for  purposes  of  verification. 

"  IV. — Any  hamlet  in  any  region  selected  for  the  mining  of  coal,  if  it  be  in  close 
proximity  to  a  mine  and  if  it  shall  contain  not  more  than  five  families,  and  any  grave 
plot  which  shall  contain  not  more  than  ten  graves,  may  be  removed,  provided  the  Railway 
Company  shall  consult  with  the  owners  of  said  property  about  the  removal  and  the  price 
to  be  paid  as  compensation.  But  the  price  to  be  paid  must  be  agreed  to  by  both  parties 
concerned,  and  the  Hei-lung-chiang  General  Bureau  of  Railway  Affairs  at  Harbin  shall 
use  its  good  ofiices  to  secure  agreement  upon  a  fair  price. 

"  V. — Should  there  be  any  large  grave  near  to  any  mine,  not  less  than  half  a  Chinese  li 
shall  be  reserved  between  it  and  any  mining  operations.  If  there  be  hamlets  of  ten  families 
or  more,  such  mining  operations  must  not  be  carried  nearer  to  them  than  one  Chinese  li, 
and  in  the  case  of  a  large  market  town  not  nearer  than  two  Chinese  li. 

"VI. — Should  any  injury  be  done  to  ground  planted  with  trees,  the  Railway  Company 
shall  pay  the  owner  for  the  same  at  the  rate  per  mou  paid  for  the  land  on  which  the  rail- 
way line  is  built.  If  injury  be  done  to  fields  bearing  crops,  the  Company  shall  come  to 
an  amicable  arrangement  with  the  proprietors  for  compensation  and  pay  the  same. 

"  VII. — Should  openings  be  made  in  places  which  are  afterwards  abandoned,  the 
Railway  Company  must  appropriate  money  to  pay  for  filling  them,  or  compensation  must 
be  made  by  the  Company  for  any  land  that  is  damaged,  which  land  shall  nevertheless 
remain  in  the  possession  of  its  owner. 

"VIII. — All  timber  needed  for  construction,  and  any  other  materials  needed  for  use, 
as  well  as  all  timber  cut  down  either  inside  or  outside  of  the  area  prospected  or  mined 
shall  be  paid  for  at  a  price  amicably  agreed  upon  with  the  owner,  in  the  case  of  private 
lands,  and,  in  the  case  of  timber  cut  on  Government  lands,  the  Hei-lung-chiang  royalty 
shall  be  paid,  amounting  to  8%  of  the  price  at  which  such  timber  may  be  bought  in  the 
market,  or  8%  of  contractor's  price  for  the  same. 

"IX. — Every  thousand  catties  (Chinese)  of  coal  taken  out  of  the  mines  for  its  own 
use  by  the  Railway  Company  shall  pay  to  the  treasury  of  the  Hei-lung-chiang  Province 
Chiang-p'ing  Taels  0.08,  to  be  paid  every  quarter  at  the  end  of  March,  June,  September, 
and  December,  Russian  Calendar.  In  addition  to  this  at  the  end  of  June  each  year  the 
Railway  Company  shall  pay  for  each  coal  shaft  opened  an  annual  tax  of  Chiang-p'ing 
Taels  17.64. 

"  X. — All  unsettled  questions  between  the  Railway  Company  on  the  one  hand  and 
officials  or  private  persons  on  the  other,  and  all  misunderstandings  that  may  arise  during 
the  mining  of  coal  shall  be  settled  by  the  Hei-lung-chiang  General  Bureau  of  Railway 
Affairs  at  Harbin. 

"  XI. — The  foregoing  Regulations  have  been  agreed  upon  with  exclusive  reference  to 
coal  mines  opened  by  the  Railway  Company.  Coal  mines  operated  by  Chinese,  no  matter 
whether  new  or  old,  no  matter  in  what  place  situated,  are  all  to  be  operated  in  accordance 
with  the  old  regulations  of  China,  and  the  Railway  Company  is  in  no  wise  concerned  there- 
with. These  Regulations  apply  only  to  those  places  in  which  the  mines  are  located,  and 
do  not  refer  to  any  other  mining  property  whatsoever. 

"XII. — This  agreement  is  written  in  Chinese,  Russian,  and  French,  there  being  two 
copies  of  each,  and  has  been  signed  by  the  Acting  Tartar  General  of  the  Hei-lung-chiang, 
Sa,  and  by  Ta-nieh-erh  (Tarnier),  the  agent  of  the  Engineer-in-chief,  whom  he  is  fully 
empowered  to  represent,  and,  after  it  shall  have"  been  signed,  as  is  necessary,  by  the 
Engineer-in-chief  of  the  Chinese  Eastern  Railway,  Ju-ko-wei-chih  (Jugovitch)  and  the 
Assistant  Engineer,  I-ko-na-chai-wu-ssu,  one  copy  of  each  text  shall  be  given  to  the 
Tartar  General  of  Hei-lung-chiang,  and  one  to  the  Engineer-in-chief.  Should  any  dispute 
arise  as  to  the  sense,  the  I'rench  text  shall  be  considered  authoritative.  Kuanghsii  XXVII 
Year,  12th  Moon,  5th  Day,  i.e.,  Jan.  1,  1902,  Russian  Calendar  (January  14th,  1902)." 


NUMBER  1907/13 :  AUGUST  30,  1907  ^2 


NUMBER  1907/13. 

RUSSIA   (Chinese  Eastern  Railway  Company)   AND  CHINA   (Heilungkiang 

Province). 

Contract  for  the  expropriation  of  lands  in  Heilungkiang  Province* — August  jo, 

1907. 

In  order  to  establish  a  definite  system  for  the  expropriation  of  lands  in 
Heilungkiang  Province  for  the  requirements  of  the  Chinese  Eastern  Railway,  we 
the  undersigned,  Major  General  Horvath,  General  Manager  of  the  Chinese  East- 
ern Railway,  and  Daniel,  Agent  of  the  General  Manager  of  the  Chinese  Eastern 
Railway,  on  the  one  hand,  and  Expectant  Taotai  Sung  Hsiao-lien,  Decorated 
with  the  Peacock  Feather,  Delegate  of  Heilungkiang  Province,  on  the  other,  have 
concluded  the  following  agreement: 

Article  1. — x^fter  the  conclusion  of  this  present  agreement  both  contract- 
ing parties  must  strictly  observe  it,  and  since  the  whole  quantity  of  land  required 
for  the  railway  has  been  included  in  this  agreement,  the  Chinese  Eastern  Railway 
Company  will  never  make  any  further  expropriations. 

Article  2. — The  total  quantity  of  land  expropriated  in  Heilungkiang 
Province  is  fixed  at  one  hundred  and  twenty-six  thousand  Chinese  shang,  begin- 
ning at  the  Chinese  frontier  at  the  western  station  of  Manchuria  and  going 
eastward  as  far  as  the  station  of  Zaton  on  the  northern  bank  of  the  river  Sungari 
at  the  city  of  Harbin.  This  quantity  shall  be  divided  among  the  stations  and 
along  the  line  in  accordance  with  the  special  schedule  attached  to  this  contract, 
and  the  boundaries  of  the  expropriated  land  shall  be  indicated  by  ditches.  When 
paid  for,  the  lands  shall  pass  into  the  possession  of  the  Chinese  Eastern  Railway 
Company  in  accordance  with  the  contract  for  the  construction  of  this  road. 

Article  3. — The  prices  of  lands  belonging  to  private  owners  lately  expro- 
priated (with  the  exception  of  those  already  paid  for)  are  fixed  according  to  the 
following  three  categories : 

(a)  For  cultivated  lands:  At  the  stations  of  Zaton  or  Peichiangtzu,  for  each 
Chinese  shang,  sixty  rubles ;  at  Tueichingshan,  Tsitsihar  and  Fuliaerhti,  forty 
rubles ;  at  Yientungtun  and  Kukuluh,  thirty-three  rubles. 

(&)  For  good  lands  that  are  not  cultivated:  At  Zaton,  for  each  Chinese 
shang,  twenty-five  rubles ;  at  Tueichingshan,  Tsitsihar  and  Fuliaerhti,  twenty 
rubles ;  at  Yientungtun  and  Kukuluh,  fifteen  rubles ; 

(c)  For  wet  meadows :  At  Zaton,  for  each  Chinese  shang,  thirteen  rubles ;  at 
Tueichingshan,  Tsitsihar,  Fuliaerhti,  Yientungtun,  and  Kukuluh,  ten  rubles. 

Article  4. — The  Chinese  Eastern  Railway  Company  agrees  also  to  pay  for 
government  land   expropriated,   at   the   rate   of   eight   rubles   for  each   Chinese 

*  Translation  from  the  Russian  text  as  printed  in  Soglashcnia,  p.  33. 
In  connection  with  this  contract  see  also  a  similar  contract  in  regard  to  Kirin  Province 
(No.  1907/14,  post). 


564  CHINA  TREATIES  AND  AGREEMENTS 

shang  of  land,  irrespective  of  quality.  Lands  belonging  to  towns  and  villages 
shall  be  paid  for  at  the  same  rate.  Payment  shall  be  made  upon  completion  of 
the  surveys. 

Article  5.— When  investigating  the  local  conditions  and  fixing  the  bound- 
aries of  large  and  small  stations  in  conjunction  with  the  Chinese  officials,  suitable 
tracts  of  land  that  shall  be  sufficient  for  Chinese  traders,  shall  be  set  aside.  These 
tracts  shall  be  under  the  jurisdiction  of  the  Chinese  administration. 

Article  6. — At  the  five  large  stations  of  Manchuria,  Hailar,  Tsitsihar, 
Anda  and  Tueichingshan  appropriate  places,  situated  near  the  station  building, 
shall  be  set  apart  for  the  construction  of  quarters  for  the  reception  of  Chinese 
officials,  and  lots  shall  also  be  set  apart  for  the  construction  of  branch  offices  of 
the  Tiehlu  Chiaoshieh  Tsung  Chu  at  all  stations  on  the  line.  The  Chinese  Eastern 
Railway  Company  shall  not  pay  for  these  lands,  and  they  shall  be  under  Chinese 
jurisdiction,  which  however  should  not  interfere  with  administrative  measures  or 
public  order. 

Article  7. — Towns,  villages,  houses,  market  places  and  graves  situated  at 
the  expropriated  stations  should  be  passed  around,  in  accordance  with  Article 
2  of  the  agreement  for  the  construction  of  the  Chinese  Eastern  Railway.  Such 
sums  as  have  already  been  paid  for  this  and  also  for  the  lands  which  are  being 
returned,  are  to  be  deducted  by  the  Chinese  Eastern  Railway  Company  from  the 
payments  due  for  lands  expropriated  under  the  present  agreement.  If,  however, 
these  lands  shall  be  really  indispensable  for  the  railway  and  it  would  be  difficult 
to  pass  around  them,  payment  should  be  made  by  the  Chinese  Eastern  Railway 
Company  for  the  houses,  yards,  wells,  trees  and  graves,  at  a  price  that  will  be 
fair  in  view  of  the  actual  conditions,  so  that  they  can  be  removed  to  another 
place  and  be  rebuilt. 

Article  8. — When  choosing  locations  for  the  construction  of  railway  bridges 
over  navigable  rivers,  the  locations  should  be  examined  in  conjunction  with  a 
Chinese  official  in  order  not  to  interfere  with  navigation.  In  the  same  manner, 
if  it  shall  be  found  that  there  are  not  enough  places  where  sand,  lime,  stone  and 
water  can  be  obtained  on  the  lands  expropriated  by  this  present  agreement,  and 
also  if  it  shall  become  necessary  to  take  measures  against  floods,  the  lands 
necessary  for  these  purposes  may  be  acquired  only  after  an  examination  in  con- 
junction with  a  Chinese  official,  and  with  the  approval  of  the  Chinese  authorities, 
it  being  understood,  moreover,  that  the  quantity  of  such  lands  shall  not  be  con- 
siderable, and  that  they  shall  be  used  only  for  the  purposes  above  set  forth. 

Article  9. — Trees  growing  on  the  expropriated  land,  whether  belonging  to 
the  government  or  to  private  owners,  must  be  paid  for  separately.  If  mineral 
deposits  shall  be  found  to  exist  on  the  expropriated  area  it  will  be  necessary  to 
come  to  a  special  agreement  in  order  to  work  them,  and  no  claim  can  be  based  on 
this  agreement  in  case  such  questions  shall  arise. 

Article  10. — The  owners  of  buildings  situated  on  the  expropriated  lands 
may  use  them  for  the  period  of  three  years  from  the  date  that  this  agreement  is 
signed.  If,  however,  the  Chinese  Eastern  Railway  Company  shall  find  it  neces- 
sary, the  said  buildings  must  be  surrendered  and  the  money  due  must  be  paid  in 
accordance  with  Article  7  of  this  agreement. 


NUMBER  1907/13:  AUGUST  30,  1907  665 

Article  11. — Surveyors  and  Chinese  officials  should  be  detailed  by  the 
Chinese  Eastern  Railway  Company  and  by  the  Chinese  authorities  to  inspect  and 
measure  in  shaiigs  the  expropriated  areas,  in  accordance  with  the  annexed  sched- 
ule, and  to  fix  the  boundaries  of  the  concession,  after  which  a  plan  and  a  list 
of  the  expropriated  lands  shall  be  prepared.  One  copy  of  the  plan  and  list  shall 
be  delivered  through  the  Chinese  authorities  to  the  governor  for  his  information. 
The  total  quantity  of  land,  both  that  which  has  been  paid  for  and  that  which  has 
not  been  paid  for,  in  the  various  sections  must  be  verified,  and  must  not  exceed 
the  total  area  fixed  by  this  present  agreement.  The  deeds  should  be  compared 
with  the  old  documents,  and  they  should  be  paid  for  fairly. 

Article  12. — The  Chinese  Eastern  Railway  Company  will  make  its  forth- 
coming payments  for  privately  owned  land  in  the  presence  of  Chinese  officials  who 
shall  be  sent  for  the  purpose  by  the  Chinese  authorities,  immediately  upon  receipt 
of  notice  from  the  management  of  the  railway. 

The  deeds  and  plans  shall  be  authenticated  by  the  seal  of  the  Chinese 
authorities. 

Article  13. — After  the  conclusion  of  this  present  agreement,  the  agreement 
formerly  concluded  by  the  management  of  the  railway  with  Taotai  Chou  i\Iien 
shall  be  considered  as  void. 

Article  14. — This  agreement  shall  be  w^ritten  in  the  Chinese  and  Russian 
languages  and  shall  be  signed  and  sealed  by  both  parties.  One  copy  of  this 
agreement  shall  be  kept  in  the  Yamen  of  the  Governor  of  Heilungkiang,  and  the 
other  in  the  general  office  of  the  railway.  In  case  of  dispute  the  Chinese  text  shall 
be  considered  authoritative. 

The  original  was  signed  by : 

Major  General  Horvath, 
General  Manager  of  the  Chinese  Eastern  Railway. 
Daniel, 
Agent  of  the  General  Manager  of  the 
Chinese  Eastern  Railway  for  Relations  tvitJi  the  Chinese  Authorities. 

(Signed  in  Chinese) 
Expectant  Taot'ai  Decorated  with  the  Peacock  Feather, 
Delegate  of  Heilungkiang  Province. 
Harbin,  August  17,  1907  (August  30,  1907,  new  style)  ;  22nd  day  of  the 
7th  month  of  the  33rd  year  of  the  reign  of  Kuang  Hsii. 

SCHEDULE  OF  THE  LANDS  EXPROPRL\TED  ON  THE  WESTERN  LINE. 

Versts.  Names  of  Stations.  Number  of 

Shang. 

1  Manchuria    Station    6.000 

8          2  Abagatui  Siding,  No.  1    350 

17          3  Kosinovo  Siding,  No.  2  350 

29          4  Talainor     Station    6.000 

37          5  Mutnv  Siding,  No.  3   571 

46          6  Argun  Siding,  No.  4  890 

57         7  Jakang  Station 1,000 

67         8  Holmy  Siding,  No.  5 350 

75          9  Bezvodny  Siding,  No.  6  350 

85        10  Harhontu  Station  •  • 600 

97        11  Peschany  Siding,  No.  7  300 


666  CHINA  TREATIES  AND  AGREEMENTS 

Versts.  Names  of  Stations.  Number  of 

Shang. 

Stepnoi  Siding,  No.  8  300 

Wankung  Station 600 

Ravniny  Siding,   No.  9   350 

Mergal  Siding,  No.  10  350 

Ukunor    Station    ' 600 

Vysoki  Siding,  No.  11 300 

Kulakofski  Siding,  No.  12 300 

Hailar  Station   6,500 

Ryzhofski  Siding,  No.  13   350 

Zalivnoi  Siding  No.  14 350 

Hakei   Station 1,700 

Mokry  Siding,  No.  15 350 

Bozhko  Siding,  No.  16  300 

Jaromte   Station    1,000 

Pesochny  Siding,  No.  17  300 

Nizina  Siding,  No.   18   300 

Yakoshi   Station    • 1,500 

Jadungol  Siding,  No.  19 350 

Nadriechny  Siding,  No.  20 350 

Mientuho  Station 6,000 

Krivoi  Siding,  No.  21 350 

Serbski   Siding,   No.  22    350 

Unur  Station   1,000 

Korgo   Siding,   No.  24    350 

Puchinny   Siding,   No.  25    350 

Irekte    Station     600 

Hingan  Station  600 

Petlya  Siding,  No.  26  500 

Saltanovo  Siding,  No.  27   350 

Puhato  Station    6,000 

Moroz    Siding,    No.   28    

Gorigol  quarry    2,600 

Debidergol    Siding    No.    29    

Yalu    Station 1,000 

Tryacina  Siding,  No.  30  350 

Lamashan  Siding,  No.  31   700 

Barim  Station 800 

Plafski   Siding,   No.  32 350 

Abnur   Siding,   No.  33    850 

Halasu    Station 1,200 

Amiho  Siding,  No.  34   350 

Semenof ski    Siding,    No.    35    350 

Jalantun  Station 6,000 

Sara  Siding,   No.  36 600 

Kulikin  Siding,  No.  37 350 

Jenghiskhan   Station    3,000 

Goriely   Siding,   No.  38    350 

Kosinho  Siding,  No,  39  500 

Nientzushan  Station, 3,000 

Suhoi  Siding,  No.  40 350 

Imahino   Siding,   No.   41 350 

Turchiha   Station 3,000 

Gershevo  Siding,  No.  42 461 

Litifangtzu  Siding,  No.  43   461 

PRIVATE  LAND. 

Kukuluh  Station  1,545 

Fuliaerhti    Siding,    No.   44    1,746 

Tsitsihar   Station 6,500 

Unuchi  Siding,  No.  46 461 

Uchiatzu  Siding,  No.  47 461 

Yientutun    Station 2,057 

Utai  Siding,   No.  48 461 

Lieschik   Siding,   No.  49   •• 461 

Hsiaohaotzu   Station 1,543 

Wungchihai  Siding,  No.  50  461 


106 

12 

116 

13 

126 

14 

137 

15 

146 

16 

154 

17 

166 

18 

175 

19 

185 

20 

194 

21 

201 

22 

210 

23 

219 

24 

227 

25 

236 

26 

245 

27 

252 

28 

262 

29 

272 

30 

283 

31 

293 

32 

302 

33 

312 

34 

323 

35 

332 

36 

346 

37 

348 

38 

354 

39 

364 

40 

372 

41 

379 

42 

43 

389 

44 

399 

45 

409 

46 

419 

47 

429 

48 

439 

49 

448 

50 

459 

51 

469 

52 

479 

53 

489 

54 

496 

55 

506 

56 

517 

57 

526 

58 

535 

59 

544 

60 

554 

61 

564 

62 

573 

63 

582 

64 

592 

65 

602 

66 

611 

67 

623 

68 

631 

69 

640 

70 

653 

71 

661 

72 

669 

73 

678 

74 

688 

75 

NUMBER  1907/14:  AUGUST  30,  1907  667 

Versts.  Names  of  Stations.  Number  of 

Shang. 

698        76    Bezlyudny   Siding,  No.  51 461 

707        77    Lamatientzu   Station    1,594 

717        78    Solonchaki  Siding,  No.  52  .  • 461 

727        79     Saertu  Station 1,544 

737        80     Siding  No.  53 461 

748        81     Siding  No.  54   461 

757        82     Abta   Station 6,000 

767        83     Siding  No.  55 421 

777        84    Siding  No.  56 461 

787        85     Sung  Station    1,539 

797        86    Siding  No.  57 461 

807        87     Siding  No.  58 771 

817        88    Mongko  Station 1,543 

827        89    Siding  No.  59   771 

837        90    Siding  No.  60 771 

847        91     Tueichingshan   Station 1.813 

857        92     Siding  No.  61 769 

867        93     Siding  No.  62 771 

877        94    Zaton    Station 6,800 

For  the  line  between  the  stations,  sidings  and  platforms,  544  versts,  at  11.25 

shang  per  verst,  the  width  being  35  sazhen  (245  ft.)    6,098 


The  original  was  signed  by : 


Total    126,000* 

Major  General  Horv.ath, 
General  Manager  of  the  Chinese  Eastern  Railway. 

Daniel, 
Agent  of  the  General  Manager  of  the  Chinese  Eastern 
Railway  for  Relations  with  the  Chinese  Authorities. 

(Signature  in  Chinese) 
Expectant  Taot'ai,  Decorated  with  the  Peacock 
Feather,  Delegate  of  Heiltmgkiang  Province. 


•      NUMBER  1907/14. 

RUSSIA  (Chinese  Eastern  Railway  Company)  AND  CHINA  (Kirin  Province). 
Contract  for  the  expropriation  of  lands  in  Kirin  Province.'^ — August  30,  1907. 

In  order  to  establish  a  definite  system  for  the  expropriation  of  lands  in 
Kirin  Province  for  the  requirements  of  the  Chinese  Eastern  Railway,  we  the 
undersigned,  Major  General  Horvath,  General  Manager  of  the  Chinese  Eastern 
Railway,  and  Daniel,  Agent  of  the  General  Manager  of  the  Chinese  Eastern 
Railway,  on  the  one  hand,  and  Expectant  Taot'ai  Tu  Hsiao-Ying,  Decorated  with 
the  Peacock  Feather,  Delegate  of  Kirin  Province,  on  the  other,  have  concluded 
the  following  agreement : 

Art.  1. — After  the  conclusion  of  this  present  agreement  both  contracting 
parties  must  strictly  observe  it  forever,  and  since  the  whole  quantity  of  land 

*  120,000  shang  equal  220,500  acres  or  344^2  square  miles. 
t  Translation  from  the  Russian  text  as  printed  in  Sogla-shenia,  p.  38. 
In  connection  with  this  contract  see  also  a  similar  contract  in  regard  to  Heilungkiang" 
Province  (No.  1907/13,  ante). 


668  CHINA  TREATIES  AND  AGREEMENTS 

required  for  the  railway  has  been  included  in  this  agreement,  the  Chinese  Eastern 
Railway  Company  will  never  make  any  further  expropriation. 

Art.  2. — The  total  quantity  of  land  expropriated  along  the  eastern  line 
in  Kirin  Province  is  fixed  at  fifty-five  thousand  Chinese  shang,  starting  from 
Pogranitchnaya  Station  on  the  east  and  continuing  westward  as  far  as  Ashiho 
Station.  This  quantity  shall  be  divided  among  the  stations  and  along  the  line  of 
the  railway  in  accordance  with  the  special  schedule  attached  to  this  agreement,  and 
the  boundaries  of  the  expropriated  land  shall  be  indicated  by  ditches.  When  paid 
for,  the  lands  shall  pass  into  the  possession  of  the  Chinese  Eastern  Railway 
Company  in  accordance  with  the  contract  for  the  construction  of  this  road. 

Art.  3. — The  prices  of  lands  belonging  to  private  owners  lately  expropri- 
ated (with  the  exception  of  those  already  paid  for)  are  fixed  according  to  the 
following  three  categories : 

(a)  For  cultivated  lands :  At  Ashiho  Station,  seventy-two  rubles ;  at  the 
stations  of  Erhtsungtientzu,  Hailin,  Maoershan,  Pogranitchnaya,  Imianpo,  and 
Hungtaohotzu,  forty-five  rubles;  at  the  stations  of  Uchimi,  Shaosuifen,  Shaoyeh- 
ling,  Kaolingtzu,  Weishaho,  Mutanchiang,  Taimako,  Shangshi,  Mulin,  Shitohotzu, 
Mutaoshi,  Machiaho,  Taipingling,  and  Shilinho,  thirty-seven  ruoles,  for  each 
Chinese  shang. 

(b)  For  good  lands  that  are  not  cultivated;  Ashiho,  thirty  rubles ;  Erhtsung- 
tientzu and  others  (six  places),  twenty-two  rubles;  Uchimi  and  others  (fourteen 
places),  sixteen  rubles  50  kopecks  for  each  Chinese  shang. 

(c)  For  wet  meadows:  Ashiho,  fifteen  rubles;  the  remaining  twenty  places, 
eleven  rubles,  for  each  Chinese  shang. 

Art.  4. — The  Chinese  Eastern  Railway  Company  agrees  also  to  pay  for 
government  land  expropriated,  at  the  rate  of  eight  rubles  for  each  Chinese 
shang  of  land,  irrespective  of  quality.  Lands  belonging  to  towns  and  villages 
shall  be  paid  for  at  the  same  rate.  Payment  shall  be  made  upon  completion  of 
the  surveys. 

Art.  5. — When  investigating  the  local  conditions  and  fixing  the  boundaries 
of  the  large  and  small  stations  in  conjunction  with  the  Chinese  officials,  tracts 
of  land  near  the  stations,  that  shall  be  suitable  and  sufficient,  in  view  of  local 
conditions,  shall  be  set  apart  for  Chinese  traders.  These  tracts  shall  be  under 
the  jurisdiction  of  the  Chinese  administration. 

Art.  6. — At  the  four  large  stations  of  Ashiho,  Imianpo,  Hungtaohotzu 
and  Pogranitchnaya,  appropriate  places,  situated  near  the  station  building,  shall 
be  set  apart  for  the  construction  of  quarters  for  the  reception  of  Chinese 
officials,  and  lots  must  also  be  set  apart  for  the  construction  of  branch  offices 
of  the  Tiehlu  Chiaoshieh  Tsung  Chu  at  all  stations  on  the  line.  The  Chinese 
Eastern  Railway  Company  shall  not  pay  for  these  lands,  and  they  shall  be  under 
Chinese  jurisdiction,  which  however  should  not  interfere  with  administrative 
measures  or  public  order. 

Art.  7. — Towns,  villages,  houses,  market  places  and  graves  situated  at  the 
expropriated  stations  should  be  passed  around,  in  accordance  with  Article  2 
of  the  agreement  for  the  construction  of  the  Chinese  Eastern  Railway.  Such 
sums  as  have  already  been  paid  for  this  and  also  for  the  lands  which  are  being 


NUMBER  1907/14:  AUGUST  30,  1907  669 

returned,  are  to  be  deducted  by  the  Chinese  Eastern  Railway  Company  from 
the  payments  due  for  lands  expropriated  under  the  present  agreement.  If, 
however,  these  lands  shall  be  really  indispensable  for  the  railway  and  it  would  be 
difficult  to  pass  around  them,  payment  should  be  made  by  the  Chinese  Eastern 
Railway  Company  for  the  houses,  yards,  wells,  trees  and  graves,  at  a  price  that 
will  be  fair  in  view  of  the  actual  conditions,  so  that  they  can  be  removed  to 
another  place  and  be  rebuilt. 

Art.  8. — When  choosing  locations  for  the  construction  of  railway  bridges 
over  navigable  rivers,  the  locations  should  be  examined  in  conjunction  with  a 
Chinese  official  in  order  not  to  interfere  with  navigation.  In  the  same  manner,  if 
it  shall  be  found  that  there  are  not  enough  places  where  sand,  lime,  stone  and 
water  can  be  obtained  on  the  lands  expropriated  by  this  present  agreement,  and 
also  if  it  shall  become  necessary  to  take  measures  against  floods,  the  lands 
necessary  for  these  purposes  may  be  acquired  only  after  an  examination  in 
conjunction  with  a  Chinese  official,  and  with  the  approval  of  the  Chinese  author- 
ities, it  being  understood,  moreover,  that  the  quantity  of  such  lands  shall  not  be 
considerable,  and  that  they  shall  be  used  only  for  the  purposes  above  set  forth. 

Art.  9. — Trees  growing  on  the  expropriated  land,  whether  belonging  to  the 
government  or  to  private  owners,  must  be  paid  for  separately.  If  mineral  de- 
posits shall  be  found  to  exist  on  the  expropriated  area  it  will  be  necessary  to 
come  to  a  special  agreement  in  order  to  work  them,  and  no  claim  can  be  based 
on  this  agreement  in  case  such  questions  shall  arise. 

Art.  10. — The  owners  of  buildings  situated  on  the  expropriated  lands  may 
use  them  for  the  period  of  three  years  from  the  date  that  this  agreement  is 
signed.  If,  however,  the  Chinese  Eastern  Railway  Company  shall  find  it  neces- 
sary, the  said  buildings  must  be  surrendered  and  the  money  due  must  be  paid  in 
accordance  with  Article  7  of  this  present  agreement. 

Art.  11. — Surveyors  and  Chinese  officials  should  be  detailed  by  the  Chinese 
Eastern  Railway  Company  and  by  the  Chinese  authorities  to  inspect  and  measure 
in  sJiangs  the  expropriated  areas,  in  accordance  with  the  annexed  schedule,  and 
to  fix  the  boundaries  of  the  concession,  after  which  a  plan  and  a  list  of  the  ex- 
propriated lands  shall  be  prepared.  One  copy  of  the  plan  and  list  shall  be  de- 
livered through  the  Chinese  authorities  to  the  governor  for  his  information. 
The  total  quantity  of  land,  both  that  which  has  been  paid  for  and  that  which 
has  not  been  paid  for,  in  the  various  sections  must  be  verified,  and  must  not 
exceed  the  total  area  fixed  by  this  present  agreement.  The  deeds  should  be  com- 
pared with  the  old  documents,  and  they  should  be  paid  for  fairly. 

Art.  12. — The  Chinese  Eastern  Railway  Company  will  make  its  forth- 
coming payments  for  privately  owned  land  in  the  presence  of  Chinese  officials 
who  shall  be  sent  for  the  purpose  by  the  Chinese  authorities,  immediately  upon 
receipt  of  notice  from  the  management  of  the  railway. 

The  deeds  and  plans  shall  be  authenticated  by  the  seal  of  the  Chinese 
authorities. 

Art.  13. — This  agreement  shall  be  written  in  the  Chinese  and  Russian 
languages,  and  shall  be  signed  and  sealed  by  both  parties.  One  copy  of  this  agree- 
ment shall  be  kept  in  the  Yamen  of  the  Governor  of  Kirin  and  the  other  in  the 


670  CHINA  TREATIES  AND  AGREEMENTS 

general  office  of  the  railway.     In  case  of  dispute  the  Chinese  text  shall  be  con- 
sidered authoritative. 

(Signed)  Major   General  Horvath, 

General  Manager  of  the  Chinese  Eastern  Railway. 

Daniel, 
Agent  of  the  General  Manager  of  the  Chinese  Eastern 
Railway  for  Relations  with  the  Chinese  Authorities. 

(Signature  in  Chinese.) 
Expectant     Taot'ai,     Decorated    with     the     Peacock 
Feather,  Delegate  of  Kirin  Province. 

Harbin,  August   17,   1907   (August  30,   1907,  new 
^  style)  ;  22nd  day  of  the  7th  Month  of  the  33rd  year  of 

the  Reign  of  Kuang  Hsii. 

[Seal  of  the  Governor  of  Kirin  Province.] 

SCHEDULE  OF  THE  LANDS  EXPROPRIATED  ON  THE  EASTERN  LINE. 

Versts.  Names  of  Stations  and  Sidings.                                  Number  of 

Shang. 

934          1     Ashiho  Station   1,000 

943                Tai-wa-ko  Platform,  No.  132 300 

953          2     Erh-tsung-tien-tzu    Station    800 

959                Lime   Platform,   No.   133 400 

978               Erh-tao-ho-tzu,  No.  134   600 

989          4     Mao-erh-shan    Station,   and   quarry 1,200 

999               Hunghutze  Siding,  No.  135  400 

1,010               New  Siding,  No.  136 400 

1,018          5     U-chi-mi  Station 1,100 

1,028               U-chi-mi-ho  Siding,   No.  137   600 

1,037               Ya-ku-niang  Platform,  No.  138  800 

1,047          6     I-mian-po    Station     5,600 

1,056               Lukashoff  Platform,  No.  139   200 

1,065               Samchvalovo  Siding,  No.  140 200 

1.075  7    Wei-sha-ho   Station    1,000 

1,085                Kozantzevo  Siding,  No.  141    300 

1,094               Yablonya  Siding,  No.  142 250 

1,104          8     Shi-to-ho-tzu  Station   1,500 

1,108               Tu-tao-ho-tzu  Siding,  No.  143   100 

1,115               Li-tao-ho-tzu  Siding,  No.  144  100 

1,121                Shi-ma-ho-tzu   Siding,  No.   145 100 

1,128          9    Kao-lingtzu   Station    300 

1,133               Wei-la-ho-tzu    Platform,    No.    146 200 

1,139               Sa-la-ho-tzu  Siding,   No.  147 400 

1,144                ]\Iiedviezhii   Platform,   No.   148    200 

1,149        10    Hung-tao-ho-tzu   Station    3,500 

1,159                Shan-tao-wa-ti  Siding,  No.  149 500 

1,170                Chi-lin-tzu  Platform,  No.  150 400 

1.179        11     Shang-shi    Station 1,000 

1,189               Hsi-han  Siding,  No.   151 200 

1,198  Ah-tu   Platform,  No.   152 200 

1,207        12    Hailin   Station 1,500 

1,217               La-chu  Platform,  No.  153 750 

1,227  13     Mu-tan-chiang    Station 1,400 

1.237               Platform    No.    155 700 

1,233        14    Yeho  Station 5,500 

1,248        15     Mu-tao-shi  Station 600 

1,254               Siding  No.  156  100 

1,259               Nagornii  Siding,  No.  157  100 

1,266                Siding  No.  158  200 

1.272        16    Tao-ma-ko    Station    800 

1,277               Tieh-ling-ho  Siding,  No.  159 300 


NUMBER  1907/15 :  AUGUST  30,  1907  671 

1,284               Siding  No.  160  200 

1,290               Siding  No.  161   700 

1,297        17     Mu-lin  Station 3,500 

1,308                Ilyinski  Siding,  No.  162 300 

1.318                Sueh-ching-tzu  Siding,  No.  163   200 

1,327        18    Ma-chia-ho  Station 900 

1,332                Platform    No.    164    200 

1,339                Mu-mien-ho    Siding,    No.    165    200 

1,343                La-mien-ho   Platform,  No.   166    ....'. 200 

1,349        19    Tai-ping-ling  Station    700 

1.354               Tiefenbach  Siding,  167  350 

1,361                Lishnii  Platform,  No.  168 300 

1,364        20    Shi-lin-ho    Station    •• 700 

1,374               Siding  No.  169  200 

1.384        21     Shao-sui-fen   Station 750 

1,394               Pei-la-ho-tzu  Siding,   No.   170 200 

1,400                Platform  No.  171    500 

1,407        22     Pogranitchnaya    Station    •  • 5,000 

1,413                Platform •  •  500 

For   the    line   between   the   stations,   sidings  and   platforms,   at   a   width    of 

Z2  sazhen  (224  feet),  10.3  shangs  per  verst,  300  versts  3,100 

Total   55,000 1 

The  original  was  signed  by : 

Major  General  Horvath, 

General  Manager  of  the  Chinese  Eastern  Railway. 
Daniel, 

Agent    of    the    General    Manager    of    the    Chinese 
Eastern  Raihvay  for  Relations  zvith  the  Chinese  Au- 
thorities. 
(Signed  in  Chinese.) 
Expectant  Taotai,  Decorated  with  the  Peacock  Feather,  Delegate  of  Kirin  Province. 


NUMBER  1907/15. 

RUSSIA  (Chinese  Eastern  Railway  Company)  AND  CHINA  (Kirin  Province). 
Agreement  for  the  Felling  of  Timber  in  Kirin  Province.'^ — August  50,  1907. 

Tu  HsuEH-YiNG,  Expectant  Taotai,  with  Peacock's  Feather,  Special  Delegate  of 
the   Kirin   province ; 

Major-General  Horward,  manager  of  the  Chinese  Eastern  Railway  Company ;  and 
E.  Daniel,  representative  of  the  said  manager  with  full  powers ;  have  agreed 
upon  the  following  regulations  governing  the  cutting,  within  certain  specified 
sections,  by  the  Chinese  Eastern  Railway  Company,  of  the  timber  required 
for  the  Company's  use. 
1. — The  Chinese  Eastern  Railway  Company  shall  be  allowed  to  fell  all  kinds 

of  timber  at  three  places  in  the  Kirin  province  as  follows : — 

*  Translation,  from  the  Chinese  text,  as  printed  in  Customs,  vol.  I,  p.  260.  Russian 
text  printed  in  Soglashcnia,  p.  51. 

In  connection  with  this  agreement,  see  also  the  similar  agreement  in  regard  to  Heilung- 
kiang  Province,  April  5,  1908  (No.  1908/6,  post). 

$55,000  shang  equal  96,107  acres  or  150  square  miles. 


672  CHINA  TREATIES  AND  AGREEMENTS 

(a.)  A  section  near  Shih-t'ou-ho-tzu,  the  plan  of  which  is  hereto  appended. 

(b.)  A  section  near  Kao-Hng-tzu,  the  plan  of  which  is  hereto  appended. 

Those  two  sections  comprise  the  former  Frank's  concession,  measur- 
ing 85  //  in  length. 

(c.)  A  section  near  I-mien-po,  which  shall  not  exceed  25  li  in  length  or 
breadth,  or  625  square  li  in  area.  The  plan  of  this  section,  when  pre- 
pared, shall  be  annexed  hereto. 

2. — Prior  to  the  commencement  of  felling  operations,  the  Railway  Company 
shall  notify  to  the  Head  Office  for  Foreign  Business  connected  with  the  railway 
the  quantity  and  kind  of  timber  to  be  felled,  applying  for  the  necessary  license,  in 
which  the  same  particulars  shall  be  given.  On  payment  of  one-third  of  the 
amount  of  license  fees  due  on  the  quantity  of  timber  as  apphed  for  by  the  Rail- 
way Company,  the  license  shall  be  issued  by  the  Chinese  authorities,  and  the 
remainder  of  the  fees  due  on  the  actual  quantity  taken,  as  noted  on  the  license, 
shall  be  paid  after  all  the  timber  has  been  collected. 

3. — On  the  1st  day  of  the  8th  month  in  every  year  (Russian  calendar)  new 
licenses  for  timber  felling  shall  be  issued  to  the  Railway  Company  to  be  valid  for 
one  year,  at  the  end  of  which  the  license  fees  due  on  the  actual  quantity  of 
timber  felled  during  the  period  shall  be  calculated  and  paid.  In  the  event  of  the 
quantity  of  timber  actually  felled  being  less  than  one-third  of  the  total  quantity 
as  stated  in  the  license,  the  license  fees  prepaid  thereon  shall  belong  to  the 
Chinese  Government  and  shall  not  be  refunded ;  and  in  the  event  of  the  timber 
felled  exceeding  the  quantity  stated  in  the  license,  the  fees  on  the  surplus  shall 
be  paid  in  accordance  with  these  regulations.  If  the  Railway  Company  fails  to 
pay  the  license  fees  when  due  or  infringes  any  of  the  articles  of  this  Agreement, 
the  licenses  issued  shall  be  annulled,  and  the  timber-cutting  rights  in  the  specified 
sections  shall  be  withdrawn.  So  long  as  the  Railway  Company  pays  the  license 
fees  in  accordance  with  the  regulations  and  adheres  to  the  articles  of  this  Agree- 
ment, the  Chinese  authorities  shall  renew  the  licenses  annually,  according  to  these 
regulations,  on  the  date  above  stated. 

4. — The  Railway  Company  shall,  at  its  own  expense,  mark  the  boundaries 
of  the  sections  granted  to  it  for  timber  felling.  The  Railway  Company  shall 
not  cut  timber  outside  these  boundaries,  while  the  Chinese  authorities  shall  not 
allow,  and  shall  do  their  utmost  to  prevent,  the  cutting  of  timber  by  others  within 
the  assigned  sections. 

5. — The  Railway  Company  shall  leave  sufficient  space  for  thoroughfares  at 
such  places  as  touch  the  railway  line. 

6. — The  Railway  Company  shall  make  its  own  arrangements  in  connection 
with  the  felling  of  timber  in  the  aforesaid  sections  for  which  licenses  shall  have 
been  issued,  and  shall  be  at  liberty  to  stack  timber,  to  put  up  sawmills,  to  erect 
dwelling-houses,  and  to  make  side  roads  for  the  transportation  of  timber.  The 
Railway  Company  shall  permit  Chinese  soldiers  to  go  within  the  boundaries  for 
the  capture  of  brigands,  and  shall  in  no  way  interfere  with  Chinese  who  may  be 
hunting  or  gathering  ginseng  within  the  boundaries.  If  there  be  any  tillable  land 
within  the  timber-felling  sections,  the  Chinese  authorities  remain  at  liberty  to 
bring  in  emigrants  to  open  up  the  land,  and  to  this  the  Railway  Company  shall 


NUMBER  1907/15:  AUGUST  30,  1907  673 

offer  no  obstruction.  The  local  inhabitants  shall  be  permitted  to  cut  timber 
within  the  said  sections  for  their  own  use,  for  purposes  of  building,  and  for  fuel, 
but  on  such  occasions  the  resident  Weiyiian  shall  notify  the  Railway  Company, 
and  the  section  on  which  the  cutting  is  to  take  place  will  be  indicated,  the  quantity 
of  timber  to  be  taken  will  be  settled,  and  a  special  permit  will  be  issued.  On  no 
account  shall  such  timber  be  sold  to  outsiders.  On  the  grass  lands  within  the 
said  sections  the  Railway  Company  shall  be  at  liberty  to  feed  their  cattle  and 
to  cut  grass  for  their  sheep  on  payment  to  the  Chinese  authorities  at  the  rate  of 
1  copeck  for  every  pound. 

7. — For  all  timber  cut  under  a  license  the  Railway  Company  shall  pay  license 
fees  at  the  rate  of  four-tenths  of  a  copeck  for  every  length  of  1  arshine  (equal 
to  2  feet  2  inches  building  measure)  with  a  thickness  of  1  vershok  (equal  to 
1.375  inches  building  measure).  This  applies  only  to  large  timber  measuring  16 
inches  (Russian)  in  diameter  and  12  feet  (Russian)  in  length. f  When  the 
timber  exceeds  these  dimensions,  either  of  length  or  diameter,  the  charge  shall 
be  half  a  copeck  for  every  arshine  in  length  and  every  vershok  in  thickness.  The 
license  fees  on  firewood  shall  be  one  ruble  for  every  ku-pang,X  and  on  railway 
sleepers  3%  copecks  apiece.  The  diameter  of  large  timber  shall  be  that  of  the 
small  end,  and  in  this  measurement  a  fraction  exceeding  six-tenths  of  a  Russian 
inch  shall  be  taken  as  a  full  Russian  inch,  and  a  fraction  of  less  than  six-tenths 
shall  not  be  counted.  In  measuring  the  length  of  timber,  fractions  less  than  one- 
fourth  of  a  Russian  foot  shall  not  be  taken  into  account. §  The  scale  of  license 
fees  now  fixed  shall  hold  good  for  five  years  from  the  date  of  the  signature  of 
this  Agreement,  and  shall  then  be  reconsidered.  Should  the  Railway  Company 
purchase  timber  from  merchants  whom  the  Chinese  authorities  shall  have  per- 
mitted to  fell  timber,  the  Company  shall  pay  license  fees  according  to  the  above 
scale  on  the  timber  so  purchased  at  the  time  when  it  is  taken  over. 

8. — The  Chinese  authorities  shall  send  Weiyiian  to  reside  permanently  in  the 
defined  areas  in  order  to  supervise  the  timber  felling  and  to  note  the  kinds,  di- 
mensions, and  quantities,  of  which,  conjointly  with  the  Russian  officials,  they 
shall  keep  a  record  to  serve  as  a  basis  for  the  calculation  of  license  fees. 

9. — For  land  taken  up  by  the  Railway  Company  for  making  side  tracks,  stack- 
ing timber,  erecting  machine  buildings  and  dwelling-houses,  etc.,  the  rental  for 
every  Chinese  shang  without  distinction  as  to  quality  shall  be  3  rubles  per 
annum  in  the  case  of  Government  land.  In  the  case  of  land  belonging  to  indi- 
viduals, the  consent  of  the  owner  shall  be  obtained  and  an  annual  rental 
paid. 

10. — As  all  forests  are  now  under  the  care  of  the  Chinese  Government,  the 
Railway  Company  in  cutting  timber  shall  not  contravene  the  forestry  regula- 
tions which  the  Chinese  Government  may  issue. 

11. — Under  present  circumstances  there  is  required  for  railway  purposes 
in  the  Kirin  province  200,000  ku-pang  of  firewood,  800,000  railway  sleepers,  and 
200,000  pieces  of  large  timber  annually,  but  the  Chinese  authorities  will  consent 

t  The  Russian  text  here  gives  16  vershok  in  diameter  and  12  arshine  in  length. 

t  The  Russian  text  here  gives  "cubic  sajen"  =343  English  cubic  feet. 

§  In  the  Russian  text  the  fractions  are  six-tenths  vershok  and  one-quarter  arshine. 


674  CHINA  TREATIES  AND  AGREEMENTS 

to  an  increase  in  these  quantities  if  the  future  development  or  improvement  of 
the  railway  should  make  it  necessary. 

12. — If  it  is  desired  to  sell  any  surplus  of  timber  cut  for  railway  purposes, 
such  timber  shall  pay  taxes  according  to  the  established  tariff. 

13. — After  the  signature  of  this  Agreement  it  shall  be  observed  by  both 
parties,  and  all  other  agreements  previously  made  and  all  licenses  previously  issued 
shall  be  cancelled. 

14. — This  Agreement  is  done  in  duplicate,  in  Chinese  and  Russian,  with 
plans  II  annexed  of  the  sections  in  which  timber  may  be  felled,  and  after  it  has 
been  signed  and  sealed  by  both  parties,  one  copy  will  be  kept  in  the  yamen  of  the 
Kirin  Governor  and  one  copy  by  the  Chinese  Eastern  Railway  Company.  In 
the  event  of  any  dispute  arising  as  to  the  interpretation  of  this  Agreement,  the 
Chinese  version  shall  be  held  to  be  correct. 

Dated  at  Harbin : 

22nd  day,  7th  moon,  33rd  year  of  Kuang  Hsu: 
17th  day,  8th  month,  1907  (Russian  calendar). 


NUMBER  1907/16. 

GREAT  BRITAIN  AND  RUSSIA. 
Convention  relating  to  Persia,  Afghanistan,  and  Thibet* — August  31,  1907. 

His  Majesty  the  King  of  the  United  Kingdom  of  Great  Britain  and  Ireland 
and  of  the  British  Dominions  beyond  the  Seas,  Emperor  of  India,  and  His 
Majesty  the  Emperor  of  All  the  Russias,  animated  by  the  sincere  desire  to 
settle  by  mutual  agreement  different  questions  concerning  the  interests  of  their 
States  on  the  Continent  of  Asia,  have  determined  to  conclude  Agreements 
destined  to  prevent  all  cause  of  misunderstanding  between  Great  Britain  and 
Russia  in  regard  to  the  questions  referred  to,  and  have  nominated  for  this 
purpose  their  respective  Plenipotentiaries,  to  wit : 

His  Majesty  the  King  of  the  United  Kingdom  of  Great  Britain  and  Ireland 
and  of  the  British  Dominions  beyond  the  Seas,  Emperor  of  India,  the  Right 
Honourable  Sir  Arthur  Nicolson,  His  Majesty's  Ambassador  Extraordinary  and 
Plenipotentiary  to  His  Majesty  the  Emperor  of  All  the  Russias; 

His  Majesty  the  Emperor  of  All  the  Russias,  the  Master  of  his  Court 
Alexander  Iswolsky,  Minister  for  Foreign  Affairs; 

*  Translation,  as  printed  in  Am.  Int.  Law  Journal,  supplement,  1907,  p.  398,  from 
French  text.  Printed  also  in  British  Treaty  Series.  1907.  No.  34,  and  in  Hertslet,  p.  620 
(omitting  conventions  in  regard  to  Persia  and  Afghanistan). 

In  connection  with  this  convention,  see  also  the  convention  between  Great  Britain  and 
China  respecting  Tibet,  April  27,  1906  (No.  1906/2,  ante). 

II  Not  printed. 


NUMBER  1907/16:  AUGUST  31,  1907  675 

Who,  having  communicated  to  each  other  their  full  powers,  found  in  good 
and  due  form,  have  agreed  on  the  following : — 

AGREEMENT  CONCERNING   PERSIA. 

The  Governments  of  Great  Britain  and  Russia  having  mutually  engaged  to 
respect  the  integrity  and  independence  of  Persia,  and  sincerely  desiring  the 
preservation  of  order  throughout  that  country  and  its  peaceful  development,  as 
well  as  the  permanent  establishment  of  equal  advantages  for  the  trade  and  in- 
dustry of  all  other  nations; 

Considering  that  each  of  them  has,  for  geographical  and  economic  reasons, 
a  special  interest  in  the  maintenance  of  peace  and  order  in  certain  provinces 
of  Persia  adjoining,  or  in  the  neighborhood  of,  the  Russian  frontier  on  the  one 
hand,  and  the  frontiers  of  Afghanistan  and  Baluchistan  on  the  other  hand ;  and 
being  desirous  of  avoiding  all  cause  of  conflict  between  their  respective  interests 
in  the  above-mentioned  provinces  of  Persia ; 

Have  agreed  on  the  following  terms : — 

I. — Great  Britain  engages  not  to  seek  for  herself,  and  not  to  support  in 
favour  of  British  subjects,  or  in  favour  of  the  subjects  of  third  Powers,  any 
Concessions  of  a  political  or  commercial  nature — such  as  Concessions  for  rail- 
ways, banks,  telegraphs,  roads,  transport,  insurance,  &c. — beyond  a  line  starting 
from  Kasr-i-Shirin,  passing  through  Isfahan,  Yezd,  Kakhk,  and  ending  at  a 
point  on  the  Persian  frontier  at  the  intersection  of  the  Russian  and  Afghan 
frontiers,  and  not  to  oppose,  directly  or  indirectly,  demands  for  similar  Conces- 
sions in  this  region  which  are  supported  by  the  Russian  Government.  It  is  under- 
stood that  the  above-mentioned  places  are  included  in  the  region  in  which  Great 
Britain  engages  not  to  seek  the  Concessions  referred  to. 

II. — Russia,  on  her  part,  engages  not  to  seek  for  herself  and  not  to  support, 
in  favour  of  Russian  subjects,  or  in  favour  of  the  subjects  of  third  Powers,  any 
Concessions  of  a  political  or  commercial  nature — such  as  Concessions  for  rail- 
ways, banks,  telegraphs,  roads,  transport,  insurance,  &c. — beyond  a  line  going 
from  the  Afghan  frontier  by  way  of  Gazik,  Birjand,  Kerman,  and  ending  at 
Bunder  Abbas,  and  not  to  oppose,  directly  or  indirectly,  demands  for  similar 
Concessions  in  this  region  which  are  supported  by  the  British  Government.  It 
is  understood  that  the  above-mentioned  places  are  included  in  the  region  in  which 
Russia  engages  not  to  seek  the  Concessions  referred  to. 

III. — Russia,  on  her  part,  engages  not  to  oppose,  without  previous 
arrangement  with  Great  Britain,  the  grant  of  any  Concessions  whatever  to 
British  subjects  in  the  regions  of  Persia  situated  between  the  lines  mentioned 
in  Articles  I  and  II. 

Great  Britain  undertakes  a  similar  engagement  as  regards  the  grant  of 
Concessions  to  Russian  subjects  in  the  same  regions  of  Persia. 

All  Concessions  existing  at  present  in  the  regions  indicated  in  Articles  I  and 
II  are  maintained. 

IV. — It  is  understood  that  the  revenues  of  all  the  Persian  customs,  with  the 
exception  of  those  of  Farsistan  and  of  the  Persian  Gulf,  revenues  guaranteeing 
the  amortization  and  the  interest  of  the  loans  concluded  by  the  Government  of  the. 


576  CHINA  TREATIES  AND  AGREEMENTS 

Shah  with  the  "  Banque  d'Escompte  et  des  Prets  de  Perse  "  up  to  the  date  of  the 
signature  of  the  present  Agreement,  shall  be  devoted  to  the  same  purpose  as  in  the 
past. 

It  is  equally  understood  that  the  revenues  of  the  Persian  customs  of  Farsistan 
and  of  the  Persian  Gulf,  as  well  as  those  of  the  fisheries  on  the  Persian  shore  of 
the  Caspian  Sea  and  those  of  the  Posts  and  Telegraphs,  shall  be  devoted,  as  in  the 
past,  to  the  service  of  the  loans  concluded  by  the  Government  of  the  Shah  with  the 
Imperial  Bank  of  Persia  up  to  the  date  of  the  signature  of  the  present  Agreement. 

V. — In  the  event  of  irregularities  occurring  in  the  amortization  or  the  pay- 
ment of  the  interest  of  the  Persian  loans  concluded  with  the  "  Banque  d'Escompte 
et  des  Prets  de  Perse  "  and  with  the  Imperial  Bank  of  Persia  up  to  the  date  of 
the  signature  of  the  present  Agreement,  and  in  the  event  of  the  necessity  arising 
for  Russia  to  establish  control  over  the  sources  of  revenue  guaranteeing  the 
regular  service  of  the  loans  concluded  with  the  first-named  bank,  and  situated  in 
the  region  mentioned  in  Article  II  of  the  present  Agreement,  or  for  Great  Britain 
to  establish  control  over  the  sources  of  revenue  guaranteeing  the  regular  service 
of  the  loans  concluded  with  the  second-named  bank,  and  situated  in  the  region 
mentioned  in  Article  I  of  the  present  Agreement,  the  British  and  Russian  Gov- 
ernments undertake  to  enter  beforehand  into  a  friendly  exchange  of  ideas  with  a 
view  to  determine,  in  agreement  with  each  other,  the  measures  of  control  in 
question  and  to  avoid  all  interference  which  would  not  be  in  conformity  with 
the  principles  governing  the  present  Agreement. 

CONVENTION    CONCERNING  AFGHANISTAN. 

The  High  Contracting  Parties,  in  order  to  ensure  perfect  security  on  their 
respective  frontiers  in  Central  Asia  and  to  maintain  in  these  regions  a  solid  and 
lasting  peace,  have  concluded  the  following  Convention : — 

Article  I. — His  Britannic  Majesty's  Government  declare  that  they  have  no 
intention  of  changing  the  political  status  of  Afghanistan. 

His  Britannic  Majesty's  Government  further  engage  to  exercise  their  in- 
fluence in  Afghanistan  only  in  a  pacific  sense,  and  they  will  not  themselves  take, 
nor  encourage  Afghanistan  to  take,  any  measures  threatening  Russia. 

The  Russian  Government,  on  their  part,  declare  that  they  recognize 
Afghanistan  as  outside  the  sphere  of  Russian  influence,  and  they  engage  that  all 
their  political  relations  with  Afghanistan  shall  be  conducted  through  the  inter- 
mediary of  His  Britannic  Majesty's  Government;  they  further  engage  not  to  send 
any  Agents  into  Afghanistan. 

Article  II. — The  Government  of  His  Britannic  Majesty  having  declared  in 
the  Treaty  signed  at  Kabul  on  the  21st  March,  1905,  that  they  recognize  the 
Agreement  and  the  engagements  concluded  with  the  late  Ameer  Abdur  Rahman, 
and  that  they  have  no  intention  of  interfering  in  the  internal  government  of 
Afghan  territory,  Great  Britain  engages  neither  to  annex  nor  to  occupy  in  con- 
travention of  that  Treaty  any  portion  of  Afghanistan  or  to  interfere  in  the  in- 
ternal administration  of  the  country,  provided  that  the  Ameer  fulfils  the  engage- 
ments already  contracted  by  him  towards  His  Britannic  Majesty's  Government 
under  the  above-mentioned  Treaty. 


NUMBER  1907/16:  AUGUST  31,  1907  677 

Article  III. — The  Russian  and  Afghan  authorities,  specially  designated  for 
the  purpose  on  the  frontier  or  in  the  frontier  provinces,  may  establish  direct 
relations  with  each  other  for  the  settlement  of  local  questions  of  a  non-political 
character. 

Article  IV. — His  Britannic  Majesty's  Government  and  the  Russian  Gov- 
ernment affirm  their  adherence  to  the  principle  of  equality  of  commercial  oppor- 
tunity in  Afghanistan,  and  they  agree  that  any  facilities  which  may  have  been, 
or  shall  be  hereafter,  obtained  for  British  and  British-Indian  trade  and  traders, 
shall  be  equally  enjoyed  by  Russian  trade  and  traders.  Should  the  progress  of 
trade  establish  the  necessity  for  Commercial  Agents,  the  two  Governments  will 
agree  as  to  what  measures  shall  be  taken,  due  regard,  of  course,  being  had  to 
the  Ameer's  sovereign  rights. 

Article  V. — The  present  arrangements  will  only  come  into  force  when 
His  Britannic  Majesty's  Government  shall  have  notified  to  the  Russian  Govern- 
ment the  consent  of  the  Ameer  to  the  terms  stipulated  above. 


agreement    concerning    THIBET.f 

The  Governments  of  Great  Britain  and  Russia  recognizing  the  suzerain 
rights  of  China  in  Thibet,  and  considering  the  fact  that  Great  Britain,  by  reason 
of  her  geographical  position,  has  a  special  interest  in  the  maintenance  of  the 
status  quo  in  the  external  relations  of  Thibet,  have  made  the  following  Agree- 
ment : — 

Article  I. — The  two  High  Contracting  Parties  engage  to  respect  the  terri- 
torial integrity  of  Thibet  and  to  abstain  from  all  interference  in  its  internal 
administration. 

Article  II. — In  conformity  with  the  admitted  principle  of  the  suzerainty 
of  China  over  Thibet,  Great  Britain,  and  Russia  engage  not  to  enter  into  negotia- 
tions with  Thibet  except  through  the  intermediary  of  the  Chinese  Government. 
This  engagement  does  not  exclude  the  direct  relations  between  British  Commercial 
Agents  and  the  Thibetan  authorities  provided  for  in  Article  V  of  the  Convention 
between  Great  Britain  and  Thibet  of  the  7th  September,   1904,  and  confirmed 

t  Simultaneously  with  the  conclusion  of  this  convention,  an  agreement  was  effected  by 
an  exchange  of  notes  of  which  the  tenor  is  indicated  by  the  following  translation  of  the 
note  of  the  British  Ambassador  to  the  Russian  Minister  for  Foreign  Affairs : 

"  With  reference  to  the  Agreement  regarding  Thibet,  signed  to-day,  I  have  the  honour 
to  make  the  following  Declaration  to  your  Excellency : — 

"His  Britannic  Majesty's  Government  think  it  desirable,  so  far  as  they  are  concerned, 
not  to  allow,  unless  by  a  previous  agreement  with  the  Russian  Government,  for  a  period  of 
three  years  from  the  date  of  the  present  communication,  the  entry  into  Thibet  of  any 
scientific  mission  whatever,  on  condition  that  a  like  assurance  is  given  on  the  part  of  the 
Imperial   Russian   Government. 

"His  Britannic  Majesty's  Government  propose,  moreover,  to  approach  the  Chinese 
Government  with  a  view  to  induce  them  to  accept  a  similar  obligation  for  a  correspond- 
ing period  :  the  Russian  Government  will,  as  a  matter  of  course,  take  similar  action. 

"  At  the  expiration  of  the  term  of  three  years  above  mentioned  His  Britannic  Majesty's 
Government  will,  if  necessary,  consult  with  the  Russian  Government  as  to  the  desirability 
of  any  ulterior  measures  with  regard  to  scientific  expeditions  to  Thibet." 

This  agreement  was  not  renewed  upon  its  expiration  on  August  31,  1910:  notice  of 
its  lapse  was  published  on  the  authority  of  the  Information  Bureau  in  the  Novoye  Vremya 
and  other  St.  Petersburg  newspapers  of  December  29/January  11,  1911. 


678  CHINA  TREATIES  AND  AGREEMENTS 

by  the  Convention  between  Great  Britain  and  China  of  the  27th  April,  1906 ;  % 
nor  does  it  modify  the  engagements  entered  into  by  Great  Britain  and  China  in 
Article  I  of  the  said  Convention  of  1906. 

It  is  clearly  understood  that  Buddhists,  subjects  of  Great  Britain  or  of 
Russia,  may  enter  into  direct  relations  on  strictly  religious  matters  with  the 
Dalai  Lama  and  the  other  representatives  of  Buddhism  in  Thibet;  the  Govern- 
ments of  Great  Britain  and  Russia  engage,  so  far  as  they  are  concerned,  not  to 
allow  those  relations  to  infringe  the  stipulations  of  the  present  Agreement. 

Article  III. — The  British  and  Russian  Governments  respectively  engage 
not  to  send  Representatives  to  Lhassa. 

Article  IV. — The  two  High  Contracting  Parties  engage  neither  to  seek 
nor  to  obtain,  whether  for  themselves  or  their  subjects,  any  Concessions  for 
railways,  roads,  telegraphs,  and  mines,  or  other  rights  in  Thibet. 

Article  V. — The  two  Governments  agree  that  no  part  of  the  revenues  of 
Thibet,  whether  in  kind  or  in  cash,  shall  be  pledged  or  assigned  to  Great  Britain 
or  Russia  or  to  any  of  their  subjects. 

annex    to    the    agreement    between    great    BRITAIN    AND    RUSSIA    CONCERNING 

THIBET 

Great  Britain  reaffirms  the  Declaration,  signed  by  his  Excellency  the  Viceroy 
and  Governor-General  of  India  and  appended  to  the  ratification  of  the  Convention 
of  the  7th  September,  1904,  to  the  effect  that  the  occupation  of  the  Chumbi 
Valley  by  British  forces  shall  cease  after  the  payment  of  three  annual  instal- 
ments of  the  indemnity  of  2,500,000  rupees,  provided  that  the  trade  marts 
mentioned  in  Article  II  of  that  Convention  have  been  effectively  opened  for 
three  years,  and  that  in  the  meantime  the  Thibetan  authorities  have  faithfully 
complied  in  all  respects  with  the  terms  of  the  said  Convention  of  1904. §  It  is 
clearly  understood  that  if  the  occupation  of  the  Chumbi  Valley  by  the  British 
forces  has,  for  any  reason,  not  been  terminated  at  the  time  anticipated  in  the 
above  Declaration,  the  British  and  Russian  Governments  will  enter  upon  a 
friendly  exchange  of  views  on  this  subject. 

The  present  Convention  shall  be  ratified,  and  the  ratifications  exchanged  at 
St.  Petersburg  as  soon  as  possible. || 

In  witness  whereof  the  respective  Plenipotentiaries  have  signed  the  present 
Convention  and  affixed  thereto  their  seals. 

Done  in  duplicate  at  St.  Petersburgh,  the  18th  (31st)  August,  1907. 

(L.  S.)  .A.  NicoLSON. 

(L.  S.)  ISWOLSKY. 

tNo.  1906/2,  ante. 
^  %Hertslet  (p.  622)  notes  that  the  final  instalment  of  the  indemnity  was  paid  on  January 
27,  1908,  and  the  Chumbi  Valley  was  evacuated  on  February  8,  1908. 
II  Ratifications  were  exchanged  on  September  23,  1907. 


NUMBER  1907/17:  OCTOBER  7,  1907  679 

NUMBER  1907/17. 

RUSSIA  (Chinese  Eastern  Railway  Company)  AND  CHINA. 

Agreement  in  regard  to  the  zvorking  of  the  telegraph  lines  of  the  Chinese  Eastern 

Railzvay.*— October  7,  1907. 

Agreement  made  the  1-st  day  of  the  9-th  moon  of  the  33-rd  year  of  the 
reign  of  Kwang-Hsu  corresponding  with  the  7-th  day  of  October  1907  between  the 
Imperial  Chinese  Telegraph  Administration  (hereinafter  called  the  Telegraph 
Administration)  of  the  one  part  and  the  Chinese  Eastern  Railway  Administra- 
tion (hereinafter  called  the  Railway  Administration)  of  the  other  part. 

Whereas  the  forwarding  or  permitting  others  to  forward  public  telegraph 
messages  within  the  Empire  of  China  is  an  Imperial  prerogative  administered 
by  the  Telegraph  Administration, 

and  whereas  the  concession  granted  by  the  Imperial  Chinese  Government  to 
the  Railway  Administration  permits  the  latter  to  erect  and  work  such  telegraph 
lines  as  may  be  necessary  for  the  working  of  its  railway  system,  restricting, 
however,  the  use  of  such  telegraph  lines  to  the  special  requirements  of  the 
railway  service, 

and  whereas  it  is  considered  to  be  in  the  mutual  interests  of  the  two  Adminis- 
trations to  have  an  understanding  regarding  the  working  of  the  telegraph  lines 
within  the  sphere  comprised  under  the  concession  granted  to  the  Railway 
Administration, 

It  is  therefore  mutually  agreed  upon  between  the  parties  hereto,  each  of 
them  agreeing  for  and  in  respect  of  the  acts  and  observances  in  and  by  this  agree- 
ment made  and  expressed  to  be  made  obligatory  upon  it,  as  follows : 

Article  1. — A.  In  order  to  facilitate  the  exchange  of  telegraphic  traffic,  the 
Telegraph  Administration  will  connect  the  more  important  railway  stations  with 
its  own  local  telegraph  stations. 

B.  At  the  actual  railway  stations  the  Railway  Administration  undertakes  to 
accept  and  transmit  telegraph  messages  from  the  public  and  will,  for  those  mes- 
sages destined  for  places  on  the  railway,  or  within  the  Russian  Empire,  when 
forwarded  exclusively  over  the  Railway  and  Russian  Telegraph  lines,  charge  such 
rates  as  may  be  fixed  by  the  Russian  Government,  but  on  all  such  traffic  (both 
forwarded  and  received)  the  Railway  Administration  will  credit  the  Telegraph 
Administration  a  terminal  fee  of  two  Mexican  Dollar  cents  per  word,  it  being, 
however,  understood  that  messages  dealing  exclusively  with  the  railway  service  are 
exempt  from  all  tax,  as  well  as  messages  to  or  from  Russian  telegraph  stations 
transiting  the  Chinese  Eastern  Railway  telegraph  system. 

C.  All  other  traffic  handed  in  at  the  railway  stations  will  be  transmitted  to  the 
Telegraph  Administration's  nearest  public  telegraph  station,  and  on  such  traffic 

*  Text  as  printed  in  5"o5'/avr/ie«ja,  p.  57.  ,  ,,       ^,    ,«„-    .xr      ,^a^  ,.        xx 

In  connection  with  this  agreement  see  also  that  of  May  23,  1907  (No.  1907/4,  ante), 
and  Note  to  this  document,  post,  p.  681. 


680  CHINA  TREATIES  AND  AGREEMENTS 

(as  well  as  on  that  under  B  specified  traffic  if  handed  over  to  the  Telegraph 
Administration)  the  Railway  Administration  will  credit  the  Telegraph  Adminis- 
tration full  further  transmission  less  five  Mexican  Dollar  cents  per  word,  these 
five  cents  being  considered  as  the  fee  due  to  the  Railway  Administration  for 
handling  this  traffic. 

D.  The  Telegraph  Administration  will  at  its  various  public  offices  accept 
telegrams  for  all  places  on  the  railway  and  will,  at  its  nearest  telegraph  station, 
transmit  such  messages  to  the  Railway  Administration  for  further  transmission 
and  credit  it  five  Mexican  Dollar  cents  per  word  for  all  such  traffic. 

Article  IL — The  Railway  Administration  undertakes  under  no  circum- 
stances to  establish  competition,  by  lower  rates  or  other  means,  against  the  Tele- 
graph Administration,  except  for  traffic  destined  for  those  places  which  are 
specified  in  Article  I  under  B  when  forwarded  exclusively  over  the  Railway  and 
the  Russian  lines. 

Article  III. — The  rules  laid  down  in  the  International  Telegraph  Convention 
and  the  Service  Regulations  attached  thereto  as  to  the  general  treatment  of  tele- 
graphic messages  shall  be  followed  by  the  contracting  parties  with  regard  to  all 
messages  handled  by  them. 

Article  IV. — Special  accounts  of  all  telegraphic  traffic  exchanged  shall  be 
kept  at  the  stations  where  such  exchange  takes  place,  these  accounts  to  be  com- 
pared and  checked  daily. 

All  telegrams  referring  to  the  service  or  to  the  settlement  of  accounts  shall  be 
transmitted  free  of  charge. 

The  settlement  of  accounts  shall  take  place  at  the  end  of  each  month,  and 
the  resulting  balance  shall  be  paid  two  months  after  the  end  of  the  month  in 
account  to  the  Railway  Administration  in  Harbin  or  to  the  Telegraph  Adminis- 
tration in  Shanghai. 

The  month  shall  be  reckoned  according  to  the  European  Calendar. 

Article  V. — The  collection  of  charges  at  all  the  stations  as  well  as  the  liqui- 
dation of  the  mutual  accounts  shall  be  made  in  Mexican  Dollars. 

As  regards  outpayments  to  Telegraph  Administrations  beyond  China,  the 
collecting  rate  shall  be  agreed  upon  between  the  contracting  parties  during  the 
month  preceding  each  quarter  on  the  basis  of  the  average  rate  of  exchange  during 
the  three  months  preceding  that  during  which  the  rate  is  fixed. 

Article  VI. — During  the  rebuilding  or  repairs  of  any  part  of  the  lines 
belonging  to  the  Telegraph  Administration  or  when  it  is  found  necessary  to  inspect 
the  lines  or  telegraph  stations  near  the  railway,  the  employes,  whether  foreign  or 
Chinese,  of  the  Telegraph  Administration  shall  be  entitled  to  a  free  pass  (1-st, 
2-nd,  or  3-rd  class  as  the  case  may  be)  with  all  trains  over  the  section  under  con- 
struction, repairs  or  inspection. 

The  free  pass  to  be  returned  to  the  Railway  Administration  as  soon  as  the 
work  is  completed. 

AH  instruments,  stores  and  telegraph  material  emanating  from  and  destined 
for  telegraph  stations  belonging  to  the  Telegraph  Administration  and  situated 
within  the  sphere  of  the  railway  shall  be  transported  by  the  Railway  Administra- 
tion at  three-quarters  of  the  ordinary  freight  for  their  respective  kinds,  but  shall 


NUMBER  1907/17:  OCTOBER  7,  1907:  NOTE  681 

nevertheless  be  forwarded  with  the  same  despatch  and  care  as  if  paying  full 
freight. 

Article  VII. — Neither  the  Telegraph  Administration  nor  the  Railway- 
Administration  will  engage  into  their  service  any  person  who  is  engaged  or  who 
has  within  three  months  previously  been  engaged  on  the  staff  of  the  other 
Administration,  without  in  each  case  obtaining  the  special  consent  of  the  latter. 

Article  VIII.— All  telegraph  lines  constructed  by  the  Russian  Government 
in  the  North  of  Manchuria  outside  the  railway  territory  will,  at  the  signing  of 
the  present  convention,  be  handed  over  to  the  Telegraph  Administration  at  a 
price  mutually  agreed  upon  between  the  two  contracting  parties. 

Article  IX. — In  case  that  the  Japanese  and  the  Russian  railway  system  or 
railway  telegraphs  in  Manchuria  should  be  connected,  it  is  understood  that  the 
Railway  Administration  will  only  allow  bona  fide  railway  service  telegrams  to  be 
exchanged  over  the  two  systems. 

Article  X. — Should  there  be  any  discussion  regarding  the  interpretation  of 
the  sense  as  expressed  in  this  agreement,  the  English  text  shall,  in  all  cases, 
be  held  as  the  correct  one. 

The  present  agreement  shall  come  into  force  from  the  1-st  of  November 
1907  and  will  remain  in  force  until  twelve  months  after  one  of  the  contracting 
parties  shall  have  given  notice  of  the  intention  to  modify  or  to  abrogate  it. 

This  agreement  shall  be  confirmed  by  the  Russian  Minister  to  Peking  and 
the  Chinese  Foreign  Office. 

In  witness  whereof  the  undersigned  duly  authorized  to  this  effect  have  signed 
the  present  agreement. 

Done  at  Peking  in  the  English  language  and  in  the  Chinese  language.  Two 
expeditions,  duly  compared  and  found  to  be  in  agreement,  have  been  signed  in 
each  of  these  languages  on  the  7-th  day  of  the  month  of  October  1907  correspond- 
ing with  the  1-st  day  of  the  9-th  moon  of  the  33-rd  year  of  the  reign  of  Kwang- 
Hsu. 

(Signed)         J.  Cheshev.  (L.  S.) 

(Signed)         Yang  Wen-chun.   (L.  S.) 
Read  and  approved  October  2  (15),  1907. 

(Sgd.)  D.  Pokotiloff.         (Seal.) 

Signed  by  the  Vice-President  of  the  Wai-wu-pu, 

Liang  Tun-yen. 
(Seal  of  the  Wai-wu-pu.) 


Note. 

With  the  text  of  this  agreement  as  given  in  Soglashcnia  is  printed  the  following  letter 
to  the  Russian  Minister  in  behalf  of  the  Chinese  Telegraph  Administration: 

"Peking,  October  16th,  1907. 
"  His  Excellency 

"  The  Minister  for  Russia 
"  Peking. 
"Sir: 

"  In   connection   with   the   Telegraph   Convention    made   between   the    Imperial    Chinese 
Telegraph  Administration  and  the  Russian  Chinese  Eastern  Railway  Administration,  which 


582  CHINA  TREATIES  AND  AGREEMENTS 

convention  was  ratified  by  Your  Excellency  and  the  Wai-wu-pu  on  the  15th  of  October,  1907, 
1  hereby  on  behalf  of  the  Director  General  of  the  Imperial  Chinese  Telegraph  Admin- 
istration beg  to  confirm  the  additional  verbal  arrangement  made  regarding  the  future 
working  of  the  two  existing  Harbin-Mihailo-Semenovsk  telegraph  wires,  viz. : 

"While  the  two  wires  in  question  are  the  actual  property  of  the  Imperial  Chinese 
Telegraph  Administration  and  are  under  its  absolute  management  and  control,  it  is  hereby 
agreed  that  if  the  Railway  Administration  at  a  future  date  should  for  the  sake  of  the 
exchange  of  bona  fide  service  telegrams,  consider  it  necessary  to  lease  one  of  the  two  wires, 
the  Telegraph  Administration  will  agree  to  place  one  of  these  wires  at  the  disposal  of  the 
Railway  Administration  on  conditions  hereafter  to  be  agreed  upon  between  the  two  parties 
concerned. 

"  I  have  the  honor,  etc. 

"  (Signed)  F.   N.  Dresing, 

"Foreign  Adviser  and  Chief  Superintendent 

Imperial  Chinese  Telegraph  Administration." 


NUMBER  1907/18. 

INTERNATIONAL  AND  CHINA. 

Conventions  and  declarations  of  the  First  and  Second  Hague  Peace  Conferences, — 
July  29,  1899,  and  October  18,  1907. 

[The  international  acts  concluded  at  the  First  Peace  Conference  at  The  Hague,  under 
date  of  July  29,  1899,  and  those  concluded  at  the  Second  Conference,  under  date  of  October 
18,  1907,  appear  not  to  have  such  a  particular  interest  in  reference  to  China  as  to  warrant 
their  inclusion  in  the  present  compilation.  The  texts  (in  English  translation)  are  to  be 
found  in  The  Hague  Conventions  and  Declarations  of  i8gg  and  1907,  edited  by  James 
Brown  Scott  (Carnegie  Endowment  for  International  Peace,  Division  of  International  Law: 
New  York:  Oxford  University  Press;  1915),  and  in  Malloy,  pp.  2016-2057,  and  2220-2389. 

The  action  taken  by  the  Chinese  Government  in  reference  to  the  several  acts  of  those 
conferences  is  indicated  by  the  following  table  (condensed  from  those  given  in  Scott,  op. 
cit.,  pp.  229  and  240)  : 

(I)     Convention  I  of  1899  for  the  Pacific  Settlement  of  International  Disputes.! 
Signature,  July  29,  1899;  ratification,  November  21.  1904. 
Convention  I  of  1907  for  the  Pacific  Settlement  of  International  Disputes.f 
Signature,  October  18,  1907 ;  ratification,  November  27,  1909. 
(II)     Convention   II   of   1907  respecting  the  Limitation   of  the   Employment  of   Force 
for  the  Recovery  of  Contract  Debts. 
Adherence,  January  15,  1910. 

(III)  Convention  III  of  1907  relative  to  the  Opening  of  Hostilities. 

Adherence,  January  15,  1910. 

(IV)  Convention  II  of  1899  respecting  the  Laws  and  Customs  of  War  on  Land. 

Adherence,  June  12,  1907. 

(China  neither  signed  nor  adhered  to  the   similar  convention  of   1907.) 
(V)     Convention  V  of  1907  respecting  the  Rights  and  Duties  of  Neutral  Powers  and 
Persons  in  Case  of  War  on  Land. 
Adherence,  January  15,  1910. 
(VI)     Convention  VI  of  1907  relating  to  the  Status  of  Enemy  Merchant  Ships  at  the 
Outbreak  of  Hostilities. 

(China  neither  signed  nor  adhered.) 


t  In  connection  with  the  conventions  for  the  pacific  settlement  of  international  disputes, 
it  is  to  be  noted  that  China  is  a  party  to  the  following  conventional  acts  with  particular 
Governments:  With  Brazil,  Arbitration  Convention,  August  3,  1909  (No.  1909/5,  post); 
with  the  Netherlands,  Treaty  providing  for  obligatory  arbitration,  June  1,  1915  (No. 
1915/9,  post);  with  the  United  States,  Arbitration  Convention,  October  8,  1908  (No. 
1908/14,  post),  and  Treaty  for  the  advancement  of  the  general  cause  of  peace,  Septem- 
ber 15,  1914  (No.  1014/10,  post). 


NUMBER  1907/19:  NOVEMBER  19,  1907 


683 


(VII)     Convention    VII    of    1907    relating   to    the    Conversion    of    Merchant    Ships    into 
War-Ships. 

(China  neither  signed  nor  adhered.) 
(VIIIj     Convention  VIII  of   1907  relative  to  the  Laying  of  Automatic   Submarine  Con- 
tact Mines. 

(China  neither  signed  nor  adhered.) 
(IX)     Convention  IX  of  1907  concerning  Bombardment  by  Naval  Forces  in  Time  of  War. 

Adherence,  January  15,  1910. 
(X)     Convention   III  of   1899   for  the  Adaptation  to   Maritime  Warfare  of   the   Prin- 
ciples of  the  Geneva  Convention. 

Signature,  July  29,  1899;  ratification,  November  21,  1904. 
Convention   X   of    1907   for  the   Adaptation   to   Maritime   Warfare   of  the   Prin- 
ciples of  the  Geneva  Convention. 

Signature,  October  18,   1907,  and  ratification,   November  27,   1909,  under 
reservation  of  Article  21. 
(XI)     Convention  XI  of  1907  relative  to  certain  Restrictions  with  regard  to  the  Exer- 
cise of  the  Right  of  Capture  in  Naval  War. 
(China  neither  signed  nor  adhered.) 
(XII)     Convention  XII  of  1907  relative  to  the  Creation  of  an  International  Prize  Court. 
(China  neither  signed  nor  adhered.) 

(XIII)  Convention  XIII  of  1907  concerning  the  Rights  and  Duties  of  Neutral  Powers 

in  Naval  War. 

Adherence,  January  IS,  1910,  with  reservation  of  paragraph  2  of  Article 
14,  paragraph  3  of  Article  19,  and  Article  27. 

(XIV)  Declaration   1    of   1899  to  prohibit  the  Launching  of   Projectiles   and   Explosives 

from  Balloons. 

Signature,  July  29,  1899;  ratification,  November  21,  1904. 
Declaration   XIV   of   1907  prohibiting  the   Discharge   of    Projectiles   and   Explo- 
sives from  Balloons. 

Signature,  October  18,  1907 ;  ratification,  November  27,  1909. 
(XV)     Declaration  2  of  1899  concerning  Asphyxiating  Gases. 

Signature,  July  29,  1899;  ratification,  November  21,  1904. 
(XVI)     Declaration  3  of  1899  concerning  Expanding  Bullets. 

Signature,  July  29,  1899;  ratification,  November  21.  1909. 
(XVII)     Final  Act  of  the  First  International  Peace  Conference  at  The  Hague. 
Signature,  July  29,  1899.t. 
Final  Act  of  the  Second  International  Peace  Conference  at  The  Hague, 
Signature,  October  18,  1907.t] 


NUMBER  1907/19. 


CHINA. 

Experimental  regulations  for  the  collection  of  duty  on  native  and  foreign  goods 
shipped  to  the  new  ports  in  Manchuria* — November  ip,  ipo/. 

I. — All  foreign  goods  which  have  paid  the  regular  import  duty  at  Tientsin, 
New-chwang,  Antung,  or  Dalny,  as  well  as  all  native  goods  which  have  paid  the 
coast-trade  half-duty  (except  such  as  may  be  sent  into  the  interior  either  under 
transit  pass  or  by  paying  likin,  as  may  still  be  done  at  the  discretion  of  the  owner 
and  under  the  old  regulations)  and  which  are  intended  for  transhipment  to  any 
of   the  newly  opened  ports  in   Manchuria,   will  be  given  a   special   certificate 

*  Translation,  as  printed  in  For.  Rel.,  1908,  p.  127,  from  Chinese  text. 

In  connection  with  these  regulations,  see  the  additional  agreement  between  Japan  and 
China,  December  22,  1905    (No.  1905/18,  ante),  particularly  Article   1. 

t  The  final  acts  being  summaries  of  the  proceedings  of  the  conferences,  are  not  con- 
ventional agreements  and  accordingly  are  not  ratified. 


684  CHINA  TREATIES  AND  AGREEMENTS 

exempting  them  from  the  payment  of  further  duty,  and  this  is  irrespective  of  how 
such  goods  are  to  be  transhipped  to  their  destination.  This  special  certificate 
will  be  stamped  in  accordance  with  regulations,  and  will  be  good  for  two  months 
only. 

Whenever  such  certificates  are  applied  for,  a  signed  declaration  must  be 
presented  showing  to  what  port  the  goods  are  consigned,  and  stating  that  in  case 
evidence  of  the  arrival  of  the  goods  in  the  port  mentioned  is  not  forthcoming  with- 
in the  two  months  limit,  the  applicant  will  be  willing  to  forfeit  three  times  the 
amount  of  the  half-duty.  In  order  to  avoid  the  trouble  of  preparing  a  guarantee 
on  each  occasion,  however,  it  will  be  permissible  to  draw  up  a  bond  of  a  similar 
nature  which  will  hold  for  a  year,  and  to  deposit  the  same  in  the  Customs-house. 
Such  bond,  if  presented  by  a  foreigner,  must  be  sealed  by  a  consular  officer,  and 
if  presented  by  a  Chinese,  must  be  sealed  by  the  Commissioner  of  Customs.  If  a 
yearly  bond  is  not  furnished,  then  a  signed  declaration  made  for  each  shipment  will 
suffice.  The  forms  for  these  bonds  and  declarations  shall  be  determined  upon  by 
the  Imperial  Maritime  Customs. 

II. — In  all  cases  where  goods  are  shipped  to  the  newly  opened  ports  under 
special  certificate,  such  goods  must  correspond  exactly  with  the  declaration. 

In  case  of  any  discrepancy  or  of  the  shipment  of  any  goods  not  on  the 
declaration,  not  only  will  the  Customs-house  where  such  declaration  was  made 
collect  a  fine  amounting  to  three  times  the  half-duty  levied  upon  the  entire  ship- 
ment, but  the  goods  which  have  been  shipped  to  the  newly  opened  port  will  there 
be  confiscated. 


NUMBER  1908/1. 

GERMANY  (Deutsch-Asiatische  Bank),  GREAT  BRITAIN  (Chinese  Central 
Railways,  Limited)  AND  CHINA. 

Agreement  for  the  Imperial  Chinese  Government  five  per  cent  Tientsin-Pukou 
Railway  loan."^ — January  i^,  ipo8. 

This  Agreement  is  made  at  Peking  on  the  10th  day  of  the  12th  Moon  of  the 
33rd  year  of  Kuang  Hsii,  corresponding  to  the  13th  day  of  January,  1908,  and 
the  contracting  parties  are : 

His  Excellency  Liang  Tunyen,  Acting  Junior  Vice  President  of  the 
Wai-wu  Pu,  duly  authorized  to  act  on  behalf  of  the  Imperial  Government  of 
China,  of  the  one  part,  and  (a)  the  Deutsch-Asiatische  Bank,  Shanghai,  (b)  the 
Chinese  Central  Railways,  Limited,  London,  hereinafter  called  "  The  Syndicate," 
of  the  other  part. 

Article  I. — The  Imperial  Government  of  China  authorizes  the  Syndicate  to 
issue  a  5%  Gold  Loan  for  an  amount  of  five  million  pounds  sterling  (£5,000,- 
000.00).    The  loan  shall  be  of  the  date  on  which  the  first  series  of  bonds  is  issued 

*  Text  as  printed  in  Wang,  p.  395.     See  Note  to  this  document,  post,  p.  694. 


NUMBER  1908/1 :  JANUARY  13,  1908  685 

to  the  public  and  shall  be  called  the  "  Imperial  Chinese  Government  Five  Percent 
Tientsin-Pukou  Railway  Loan." 

Article  II. — The  loan  is  designed  to  provide  capital  for  the  construction  of 
a  government  railway  line  from  a  point  connecting  the  Imperial  Railways  of 
North  China  at  or  near  Tientsin  through  Techou  and  Tsinanfu  to  Ihsien  near 
the  southern  frontier  of  Shantung,  hereinafter  known  as  the  Northern  Section 
of  the  Tientsin-Pukou  Railway  Line,  and  from  Ihsien  to  a  point  at  or  near  Pukou 
(opposite  Nanking  on  the  Yangtze-kiang),  hereinafter  known  as  the  Southern 
Section  of  the  Tientsin-Pukou  Railway  Line.  'I'he  total  length  of  these  two 
sections  being  about  1085  kilometres,  equal  to  about  2170  Chinese  Li.  The  survey 
line  shall  be  open  to  revision  by  the  Director  General  of  the  Railway. 

Article  III. — The  capital  so  provided  shall  be  solely  devoted  to  the  con- 
struction of  the  railway  line  including  the  purchase  of  land,  rolling  stock  and 
other  equipment,  and  to  the  working  of  the  line  and  to  payment  of  interest  on  the 
loan  during  the  period  of  construction,  which  is  estimated  at  four  years  from  the 
actual  beginning  of  the  works,  the  commencement  of  the  works  not  to  be  delayed 
beyond  six  months  after  this  agreement  has  been  signed,  within  which  period  the 
Syndicate  shall  notify  the  Director  General  that  the  sum  of  five  hundred  thousand 
pounds  (£500,000.00)  has  been  placed  at  his  disposal,  to  be  held  in  Europe 
or  remitted  to  China  as  he  may  direct,  as  a  first  instalment  on  account  of  the 
proceeds  of  the  loan.  This  amount  of  £500,000.00,  or  whatever  portion  thereof 
is  actually  advanced,  together  with  interest  thereon  not  exceeding  a  charge  of 
six  percent  per  annum,  shall  be  deducted  from  the  proceeds  of  the  first  sale  of 
the  bonds. 

Article  IV.— The  rate  of  interest  for  the  loan  shall  be  five  per  cent  per 
annum  on  the  nominal  principal  and  shall  be  paid  to  the  bondholders  half-yearly. 
The  said  interest  shall  be  calculated  from  the  date  on  which  the  loan  is  issued 
to  the  public  and  shall  be  paid  by  the  Imperial  Chinese  Government  during  the 
time  of  construction  either  from  the  proceeds  of  the  loan  or  from  other  sources, 
and  afterwards,  in  the  first  place,  out  of  the  revenue  of  the  Railway,  and  then 
from  such  other  revenues  as  the  Chinese  Government  may  think  fit  to  use  for  the 
purpose  in  half-yearly  instalments  according  to  the  amounts  specified  in  the 
schedule  attached  to  this  agreement  and  fourteen  days  before  their  due  dates, 
Western  Calendar,  as  calculated  half-yearly  from  the  date  on  which  the  loan  is 
issued  to  the  public. 

Article  V. — The  term  of  the  loan  shall  be  thirty  years.  Repayment  of 
principal  shall  commence  after  the  expiry  of  ten  years  from  the  date  of  the  loan 
and  except  as  provided  in  Article  VI.  hereinafter,  shall  be  made  by  yearly 
amortization  to  the  Deutsch-Asiatische  Bank  and  the  Hongkong  and  Shanghai 
Banking  Corporation  in  half-yearly  instalments  out  of  the  revenues  of  the  line  or 
such  other  revenue  as  the  Chinese  Government  may  think  fit  to  use  for  the  pur- 
pose, according  to  the  amount  specified  in  the  schedule  attached  to  this  agreement, 
but  fourteen  days  before  their  due  date.  Western  Calendar,  as  calculated  half- 
yearly,  from  the  date  on  which  the  loan  is  issued  to  the  public. 

Article  VI. — If  at  any  time  after  the  lapse  of  ten  years  from  the  date  of 
the  loan  the  Imperial  Chinese  Government  should  desire  to  redeem  the  whole 


586  CHINA  TREATIES  AND  AGREEMENTS 

outstanding  amount  of  the  loan,  or  any  part  of  it,  not  yet  due  for  repayment  in. 
accordance  with  the  schedule  of  repayments  hereto  attached,  it  may  do  so  until 
the  20th  year,  by  payment  of  a  premium  of  2>^  per  cent,  on  the  face  value  of  the 
bonds  (that  is  to  say,  by  payment  of  £102.  10s.  for  each  £100  bond)  and  after  the 
20th  year  without  premium ;  but  in  each  and  every  case  of  such  extra  redemption, 
the  Imperial  Chinese  Government  shall  give  six  months  notice  in  writing  to  the 
Syndicate  and  such  redemption  shall  be  effected  by  additional  drawings  of  bonds, 
to  take  place  on  the  date  of  an  ordinary  drawing,  as  provided  for  in  the  prospectus 
of  the  loan. 

Article  VII. — The  Deutsch-Asiatische  Bank  and  the  Hongkong  and  Shang- 
hai Banking  Corporation  having  been  appointed  by  the  German  and  British  parties 
of  the  Syndicate,  respectively.  Agents  for  the  service  of  the  loan,  the  half-yearly 
payments  due  for  amortisation  and  interest,  referred  to  in  Articles  IV.  and  V., 
shall  be  made,  in  accordance  with  the  amounts  of  the  Schedule  attached  to  this 
Agreement,  and  fourteen  days  before  their  due  dates  as  fixed  by  Articles  IV. 
and  v.,  to  those  Banks  by  the  Director  General  of- the  Railway,  who  shall  hand 
to  said  Banks  in  Shanghai  or  in  Tientsin  fourteen  days  before  the  said  due  dates, 
in  shares  to  be  arranged  by  the  Banks,  funds  in  Shanghai  or  Tientsin  sycee 
sufficient  to  meet  such  payments  in  gold  in  Europe,  exchange  for  which  shall  be 
settled  with  the  said  Banks  on  the  same  day,  the  Railway  Administration  having, 
however,  the  option  of  settling  exchange  with  the  two  banks  at  any  date  or  dates 
within  six  months  previous  to  any  due  date  for  the  repayment  of  interest  and 
principal.  These  payments  may,  however,  be  made  in  gold,  if  the  Imperial 
Chinese  Government  should  happen  to  have  gold  funds  boiid  fide  at  their  disposal 
in  Europe  not  remitted  from  China  for  the  purpose  and  desire  so  to  use  them. 

In  reimbursement  of  expenses  connected  with  the  payment  of  interest  and 
the  repayment  of  principal  of  the  loan,  the  Hongkong  and  Shanghai  Banking 
Corporation  and  the  Deutsch-Asiatische  Bank  will  receive  a  commission  of  one 
quarter  per  cent,  on  the  annual  loan  service. 

Article  VIII. — The  Imperial  Government. of  China  hereby  engages  that  the 
interest  and  principal  of  this  loan  shall  duly  be  paid  in  full,  and  should  the 
revenue  of  the  Railway  and/or  the  proceeds  of  the  loan  not  be  sufficient  to  provide 
for  the  due  and  full  payment  of  interest  and  repayment  of  principal,  the  Director 
General  shall  memorialize  the  Throne  and  the  Imperial  Government  of  China  will 
thereupon  make  arrangements  to  ensure  that  the  amount  of  the  deficiency  shall 
be  met  from  other  sources  and  handed  over  to  the  banks  on  the  date  upon  which 
funds  are  required,  to  complete  full  payment  of  interest  and  repayment  of 
principal. 

Article  IX. — The  loan  is  hereby  secured : 

1.  By  likin  and  internal  revenues  of  the  province  of  Chihli  to  the  amount  of 
1,200.000  Haikuan  taels  a  year. 

2.  By  likin  and  internal  revenues  of  the  province  of  Shantung  to  the  amount 
of  1.600,000  Haikuan  taels  a  year,  and 

3.  By  the  revenue  of  the  Nanking  likin  collectorate  (to  the  amount  of 
900.000  Haikuan  taels  a  year)  and  of  the  Huai-an  native  customs  (to  the 
amount  of  100,000  Haikuan  taels  a  year)  in  the  province  of  Kiangsu. 


NUMBER  1908/1 :  JANUARY  13,  1908  687 

The  provincial  revenues  as  above  stated  are  hereby  declared  to  be  free  from 
all  other  loans,  charges  or  mortgages. 

So  long  as  principal  and  interest  of  the  loan  are  regularly  paid,  there  shall 
be  no  interference  with  these  provincial  revenues ;  but  if  the  principal  or  interest 
of  the  loan  be  in  default  at  due  date,  then,  after  a  reasonable  period  of  grace, 
likin  and  suitable  internal  revenues  of  the  three  provinces  sufficient  to  provide 
the  amounts  above  stated  shall  forthwith  be  transferred  to  and  administered  by 
the  Imperial  ]\Iaritime  Customs,  in  the  interest  of  the  bondholders.  And  so  long 
as  this  loan  or  any  part  thereof  shall  remain  unredeemed,  it  shall  have  priority 
both  as  regards  principal  and  interest  over  all  future  loans,  charges  and  mortgages 
charged  on  the  above-mentioned  revenues  of  the  three  provinces.  No  loan,  charge 
or  mortgage  shall  be  raised  or  created  which  shall  take  precedence  of,  or  be  on 
equality  with  this  loan,  or  which  shall  in  any  manner  lessen  or  impair  its  security 
over  the  revenues  of  the  three  provinces  as  above  stated ;  and  any  further  loan, 
charge  or  mortgage  charged  on  the  said  revenues  of  the  three  provinces  shall  be 
made  subject  to  this  loan,  and  it  shall  be  so  expressed  in  every  agreement  for 
every  such  future  loan,  charge  or  mortgage. 

It  is  understood  and  agreed  that  so  long  as  this  loan  is  unredeemed  the 
railway  shall  under  no  circumstances  be  mortgaged  nor  its  receipts  given  as 
security  to  any  other  party. 

In  the  event  of  the  Chinese  Government,  during  the  currency  of  this  loan, 
entering  upon  definite  arrangements  for  the  revision  of  customs  tariff  accompanied 
by  stipulations  for  the  decrease  or  abolition  of  likin,  it  is  hereby  agreed,  on  the  one 
hand  that  such  revision  shall  not  be  barred  by  the  fact  that  this  loan  is  secured  by 
likin  and  provincial  revenues,  and,  on  the  other  hand,  that  whatever  likin  is 
required  to  provide  the  security  of  this  loan  shall  neither  be  decreased  nor 
abolished  except  by  previous  arrangement  with  the  Syndicate,  and  then  only  in  so 
far  as  an  equivalent  is  substituted  for  it  in  the  shape  of  a  first  charge  upon  the 
increase  of  customs  revenue  consequent  upon  such  revision. 

Article  X. — The  Syndicate  is  hereby  authorized  to  issue  to  the  subscribers 
to  the  loan,  Bonds  for  the  total  amount  of  the  loan  for  such  amounts  as  may 
appear  advisable  to  the  Syndicate.  The  form  of  the  Bonds  shall  be  settled  by 
the  Syndicate  in  consultation  with  the  Director  General  or  the  Chinese  minis- 
ters in  London  and  Berlin.  The  Bonds  shall  be  engraved  in  English  or 
Chinese  and  German  as  may  be  required ;  they  shall  bear  the  facsimile  of  the 
signature  of  the  Director  General  and  of  his  Seal  of  Office,  in  order  to  dispense 
with  the  necessity  of  signing  them  all  in  person.  But  the  Chinese  ]\Iinister  in 
London  or  Berlin,  as  the  case  may  be,  shall,  previous  to  the  issue  of  any  Bonds, 
put  his  seal  upon  each  Bond  with  a  facsimile  of  his  signature,  as  a  proof  that  the 
issue  and  sale  of  the  bonds  are  duly  authorized  by,  and  binding  upon,  the  Imperial 
Chinese  Government,  and  the  representatives  of  the  Syndicate  in  London  and/or 
Berlin  shall  countersign  the  bonds  as  agents  for  the  issue  of  the  loan. 

In  the  event  of  bonds  issued  for  this  loan  being  lost,  stolen  or  destroyed,  the 
Syndicate  shall  immediately  notify  the  Director  General  and  the  Chinese  Minister 
in  London  and/or  Berlin,  as  the  case  requires,  who  shall  authorize  the  Syndicate 
to  insert  an  advertisement  in  the  public  newspapers  notifying  that  payment  of  same 


688  CHINA  TREATIES  AND  AGREEMENTS 

has  been  stopped  and  to  take  such  other  steps  as  may  appear  advisable  or  neces- 
sary according  to  the  laws  and  customs  of  the  country  concerned,  and  should 
such  bonds  not  be  recovered  after  a  lapse  of  time  to  be  fixed  by  the  Syndicate, 
the  Director  General  or  the  Chinese  Minister  in  London  or  Berlin,  as  the  case  may 
be,  shall  seal  and  execute  duplicate  bonds  for  a  like  amount  and  hand  them  to  the 
Syndicate,  by  whom  all  expenses  in  connection  therewith  shall  be  defrayed. 

Article  XI. — All  bonds  and  coupons  and  payments  made  and  received  in 
connection  with  the  service  of  this  loan  shall  be  exempt  from  all  Chinese  taxes 
and  imposts  during  the  currency  of  this  loan. 

Article  XII. — All  details  necessary  for  the  prospectus  and  connected  with 
the  payment  of  the  interest  and  repayment  of  the  principal  of  this  loan,  not 
herein  explicitly  provided  for,  shall  be  left  to  the  arrangement  of  the  Syndicate 
in  consultation  with  the  Chinese  Ministers  in  London  and  Berlin.  The  Syndicate 
is  hereby  authorized  to  issue  the  prospectus  of  the  loan  as  soon  as  possible  after 
the  signing  of  this  Agreement;  and  the  Imperial  Government  will  instruct  the 
Chinese  Ministers  in  London  and  Berlin  to  co-operate  with  the  Syndicate  in  any 
matters  requiring  conjoint  action  and  to  sign  the  prospectus  of  the  loan. 

Article  XIII. — The  loan  shall  be  issued  to  the  public  in  two  or  more  series 
of  bonds,  the  first  issue  to  be  made  to  the  amount  of  £3,000,000  as  soon  as  possi- 
ble after  the  signature  of  this  agreement  and  not  later  than  twelve  months  from 
the  date  thereof.  The  price  to  the  Imperial  Chinese  Government  of  the  first 
series  of  bonds  shall  be  93  per  cent,  of  their  nominal  value.  The  second  and  any 
subsequent  series  shall  be  issued  in  time  to  permit  of  uninterrupted  continuance  of 
the  work  of  construction,  in  amounts  to  be  determined  by  the  Director  General, 
and  the  price  payable  to  the  Chinese  Government  in  respect  of  these  series  shall 
be  the  actual  rate  of  their  issue  to  the  public,  less  flotation  charges  of  5^  points 
retainable  by  the  Syndicate  (that  is  to  say,  a  charge  of  £S  10s.  Od.  for  every  ilOO 
bond  issued).  Subscriptions  will  be  invited  by  the  Syndicate  in  Europe  and  in 
China  both  from  Chinese  and  Europeans  on  equal  conditions,  preference  being 
given  to  the  application  of  the  Chinese  Government,  provided  such  application  be 
made  before  the  issue  of  the  prospectus  to  the  public. 

Article  XIV. — The  proceeds  of  the  loan  shall  be  paid  to  the  credit  of  the 
Tientsin-Pukou  Government  Railway  account  with  the  Hongkong  and  Shanghai 
Banking  Corporation  and  the  Deutsch-Asiatische  Bank  in  China,  London  or 
Berlin,  as  the  case  may  be.  Payments  of  loan  proceeds  into  the  credit  of  this 
account  shall  be  made  in  instalments  and  on  dates  conforming  to  the  conditions 
allowed  to  the  subscribers  to  the  loan.  Interest  at  the  rate  of  4  per  cent,  per 
annum  shall  be  granted  on  the  credit  balance  of  the  portion  of  this  account  kept 
in  London  and  Berlin,  and  interest  on  the  credit  balance  of  the  portion  kept  in 
China  will  be  allowed  at  the  Banks'  rates  for  current  account  or  fixed  deposits, 
as  the  case  may  be,  to  be  arranged.  After  deduction  of  the  funds  required 
for  the  service  of  interest  and  for  commission  on  this  service  during  the 
time  of  construction,  the  Banks  will  hold  the  net  proceeds  with  accrued  interest 
to  the  order  of  the  Director  General,  who,  in  ordering  payment  of  any  sums 
exceeding  i20,000  shall  give  notice  to  the  Banks  ten  days  before  the  day  on  which 
they  are  required.     Requisitions  on  the  loan  funds  will  be  drawn  in  amounts  to 


NUMBER  1908/1 :  JANUARY  13,  1908  689 

suit  the  progress  of  construction  of  the  Railway  by  orders  on  the  Hongkong  and 
Shanghai  Banking  Corporation  and  the  Deutsch-Asiatische  Bank  respectively, 
signed  by  the  Managing  Director  of  the  Railway,  or,  in  his  absence,  by  his  duly 
authorized  representative,  and  accompanied  by  his  certificates  stating  the  nature 
and  cost  of  the  work  to  be  paid  for. 

Such  amounts  as  may  be  required  in  China  may  at  any  time  be  trans- 
ferred by  the  Managing  Director,  at  his  discretion,  to  Shanghai,  the  transfers 
being  effected  through  the  Hongkong  and  Shanghai  Banking  Corporation  and 
the  Deutsch-Asiatische  Bank  respectively,  and  the  transferred  funds  shall  remain 
on  deposit  with  those  banks  until  required  for  railway  purposes. 

The  accounts  of  the  railway  will  be  kept  in  Chinese  and  English  in  accordance 
with  accepted  modern  methods,  and  will  be  supported  by  all  necessary  vouchers. 
During  the  period  of  construction  the  said  accounts  and  vouchers  will  be  open  at 
any  time  to  the  inspection  of  an  Auditor,  appointed  and  paid  by  the  Syndicate, 
whose  duties  will  be  confined  to  certifying  to  the  Syndicate  to  the  due  expenditure 
of  the  loan  funds  in  accordance  with  the  provisions  of  Article  3  of  this  agreement, 
and  to  certifying  to  a  monthly  statement  of  the  foreign  materials  purchased  by 
the  railway  administration  under  the  provisions  of  Article  18  hereinafter.  He  will 
arrange  with  the  Railway  Administration  that  his  inspections  shall  take  place 
on  such  dates  and  at  such  intervals  as  will  enable  him  to  efficiently  carry  out  his 
duties  as  herein  provided.  The  Railway  Administration  will  publish  annually 
upon  the  close  of  its  financial  year,  a  report,  in  the  Chinese  and  English  languages, 
showing  the  working  accounts  and  traffic  receipts  of  the  Railway,  which  report 
shall  be  procurable  by  the  public  on  application. 

Article  XV. — If  during  the  time  of  construction  the  net  proceeds  of  the 
present  loan  with  accrued  interest  should,  after  deduction  of  the  sums  necessary 
for  the  service  of  interest  on  the  loan,  not  be  sufficient  to  complete  the  construc- 
tion and  equipment  of  the  railway  line,  the  amount  of  deficiency  shall  be  provided, 
in  the  first  place,  from  such  Chinese  funds  as  may  be  available  so  as  to  permit  of 
the  uninterrupted  continuance  of  the  work  of  construction,  any  balance  then 
uncovered  being  supplemented  by  a  further  foreign  loan  for  the  amount  required, 
to  be  issued  by  the  Syndicate. f  The  interest  and  other  conditions  of  such  supple- 
mentary loan  will  be  the  same  as  in  the  present  Agreement,  and  the  price  will  be 
determined  as  in  the  case  of  the  second  and  subsequent  issues  of  the  present  loan. 
If  after  the  completion  of  the  line  there  should  be  a  balance  at  credit  of  the  rail- 
way account,  such  unused  balance  will  be  transferred  to  the  credit  of  the  interest 
reserve  fund  hereinafter  mentioned  in  Article  21  as  a  provision  for  payments 
for  which  the  Imperial  Chinese  Government  is  responsible  under  this  Agreement. 

Article  XVI. — If,  before  the  publication  of  the  prospectus  for  the  issue  of 
the  loan,  any  political  or  financial  crises  should  take  place  by  which  the  market 
and  the  prices  of  existing  Chinese  Government  stocks  are  so  aflfected  as  to  render, 
in  the  opinion  of  the  Syndicate,  the  successful  issue  of  the  loan  impossible  on  the 
terms  herein  named,  the  Syndicate  shall  be  granted  further  extension  of  time, 
but  not  beyond  18  months  from  the  date  of  this  Agreement,  for  the  performance 
of  their  contract.     If  within  this  time  limit  the  first  series  of  the  loan  shall  not 

t  See  the  supplementary  loan  agreement  of  September  28,  1910  (No.  1910/4,  post). 


590  CHINA  TREATIES  AND  AGREEMENTS 

have  been  issued,  then  this  contract  shall  become  null  and  void,  and  any  advances 
made  by  the  Syndicate  under  the  provisions  of  Article  3  shall  be  repaid  by  the 
Chinese  Government  with  accrued  interest,  but  without  any  other  compensation 
or  remuneration  whatsoever. 

Article  XVII. — The  construction  and  control  of  the  railway  will  be  entirely 
vested  in  the  Imperial  Chinese  Government.  For  the  work  of  construction  of  the 
Northern  and  Southern  sections  respectively  the  Imperial  Chinese  Government 
will  select  and  appoint  fully  qualified  German  and  British  Chief  Engineers,  accept- 
able to  the  Syndicate.  In  the  event  of  the  Syndicate  objecting  to  any  proposed 
appointment,  the  cause  of  such  objection  shall  be  definitely  stated.  These  two 
Chief  Engineeers  shall  be  under  the  orders  of  the  Managing  Director,  or,  in  his 
absence,  his  duly  authorized  representative,  and  will  carry  out  all  the  wishes  of  the 
Railway  administration  with  regard  to  the  plan  and  construction  of  the  line.  In 
their  general  conduct  they  shall  pay  all  due  respect  to  the  Director  General  and 
the  Managing  Director,  The  terms  of  their  respective  agreements  will  be  ar- 
ranged by  the  Director  General  at  his  sole  authority. 

Whenever  appointments  are  to  be  made  or  functions  are  to  be  defined  of  the 
technical  employes  on  the  railway  staff  as  well  as  in  the  case  of  their  dismissal, 
the  Managing  Director  or,  in  his  absence,  his  duly  appointed  representative,  will 
act  in  consultation  with  the  Chief  Engineer  of  the  section  concerned  and,  in  the 
case  of  disagreement,  the  matter  will  be  referred  to  the  Director  General  whose 
decision  shall  be  final. 

After  completion  of  construction  the  Imperial  Chinese  Government  will 
administer  both  sections  as  one  undivided  Government  Railway  and  will  appoint 
an  Engineer-in-Chief, — who  during  the  period  of  the  loan  shall  be  a  European, — 
without  reference  to  the  Syndicate. 

Article  XVIII. — For  the  Northern  and  Southern  sections  of  the  Railway 
respectively  the  Deutsch-Asiatische  Bank  and  the  Chinese  Central  Railways 
Limited  will  act  as  Agents  of  the  Railway  Administration  during  construction 
for  the  purchase  of  all  materials,  plant  and  goods  required  to  be  imported 
from  abroad.  For  all  important  purchases  of  such  materials,  tenders  shall  be 
called  for  by  the  Managing  Director;  in  the  case  of  all  tenders,  indents  and 
orders  for  the  importation  of  goods  and  materials  from  abroad,  the  said  Agents 
shall  purchase  the  materials  required  on  the  terms  most  advantageous  to  the 
Railway,  and  shall  charge  the  original  net  cost  of  the  same  plus  a  commission  of 
five  per  cent.  It  is  understood  that  no  orders  for  materials  shall  be  executed 
or  any  expenditure  incurred  without  due  authorization  by  the  Managing  Director. 

In  return  for  payment  of  commission  as  above  stated  the  Deutsch-Asiatische 
Bank  and  the  Chinese  Central  Railways  Limited  as  Agents  within  their  respective 
sections,  shall  be  prepared  to  superintend  the  purchase  of  all  foreign  materials 
required  for  the  construction  and  equipment  of  the  Railway,  which  shall  be  pur- 
chased in  the  open  market  at  the  lowest  rate  obtainable,  it  being  understood  that 
all  such  materials  shall  be  of  good  and  satisfactory  quality,  and  that  the  Railway 
Administration  shall  have  the  right  to  reject  on  arrival  in  China  materials  which 
do  not  come  up  to  specifications.  At  equal  rates  and  qualities  goods  of  German 
and  British  manufacture  shall  be  given  preference  over  other  goods  of  foreign 


NUMBER  1908/1 :  JANUARY  13,  1908  691 

origin  for  the  Northern  and  Southern  sections  respectively.  The  Railway  Admin- 
istration reserves  the  right,  while  paying  the  above  stipulated  commission  to  the 
said  Agents  in  respect  of  all  purchases  of  foreign  materials,  to  avail  itself  of  the 
services  of  other  agents  in  China  or  abroad  should  it  see  fit  to  do  so.  Original 
invoices  and  inspector's  certificates  are  to  be  submitted  to  the  Managing  Director ; 
all  return  commissions  and  rebates  of  every  description  shall  be  credited  to  the 
Railway;  and  all  purchases  made  by  the  Agents  on  behalf  of  the  Railway  shall 
be  supported  by  manufacturer's  original  invoices  and  inspector's  certificates. 

No  commission  shall  be  paid  to  the  Agents  except  as  above  provided ;  but  it 
is  understood  that  the  Railway  Administration  shall  provide  out  of  the  Railway 
funds  for  the  remuneration  of  consulting  engineeers  whenever  their  services  are 
engaged. 

With  a  view  to  the  encouragement  of  Chinese  industries,  preference  will  be 
given,  at  equal  prices  and  qualities,  over  British,  German  or  other  foreign  goods, 
to  Chinese  materials  and  goods  manufactured  in  China.  No  commission  will  be 
paid  on  purchases  of  such  materials  and  goods. 

It  is  understood  and  agreed  that  after  the  construction  of  the  line  is  completed, 
the  Deutsch-Asiatische  Bank  and  the  Chinese  Central  Railways  Limited,  within 
their  respective  sections,  will  be  given  the  preference  for  such  agency  business 
during  the  currency  of  the  loan  for  the  supply  of  foreign  materials  as  the  Railway 
Administration  may  require,  on  terms  to  be  hereafter  mutually  agreed  upon. 

Article  XIX. — Branch  lines  in  connection  with  the  Railway  line  mentioned 
in  this  agreement  that  may  appear  profitable  or  necessary  later  on  shall  be  built 
by  the  Imperial  Chinese  Government  with  funds  at  their  disposal  from  Chinese 
sources,  and  if  foreign  capital  is  required  preference  will  be  given  to  the 
Syndicate. 

Article  XX. — By  the  preliminary  agreement  under  Imperial  sanction  a 
participation  of  20  per  cent,  of  the  net  profits  of  the  Railway  had  been  promised  to 
the  Syndicate  in  remuneration  for  their  general  responsibility  and  services.  In 
commutation  of  this  participation  in  net  profits  the  Syndicate  is  granted  the 
right  to  retain  £200,000  out  of  the  first  issue  of  this  loan,  in  instalments  and  on 
dates  based  on,  and  in  proportion  to,  the  terms  of  subscription  to  the  loan  as 
stated  in  the  prospectus.  No  further  payment  in  respect  of  commutation  of 
profits  will  be  allowed  on  any  subsequent  series  of  the  loan,  or  on  any  supple- 
mentary loan. 

Article  XXI. — After  payment  of  interest  and  repayment  of  principal  of 
the  loan  for  any  current  year,  the  Railway  Administration  will  deposit  with  the 
Deutsch-Asiatische  Bank  and  the  Hongkong  and  Shanghai  Banking  Corporation 
in  Shanghai  or  Tientsin  any  surplus  of  the  net  revenue  of  the  railway  line  for  that 
year  up  to  the  amount  required  to  pay  the  following  year's  instalments  of  interest 
on  the  loan;  the  rate  of  interest  on  the  deposit  being  arranged  with  the  Banks 
from  time  to  time  with  due  regard  to  the  conditions  of  the  market. 

Article  XXII.— The  Deutsch-Asiatische  Bank  and  the  Chinese  Central 
Railways  Limited  may,  subject  to  all  their  obligations  under  this  agreement,  trans- 
fer or  delegate  all  or  any  of  their  rights,  powers  and  discretions  thereunder  to 
any  German  or  British  Company,  Directors,  or  Agents  with  power  of  further 


692 


CHINA  TREATIES  AND  AGREEMENTS 


transfer,  and  sub-delegation;  such  transfer,  sub-transfer,  delegation  or  sub- 
delegation  to  be  subject  to  the  approval  of  the  Director  General. 

Article  XXIII. — This  Agreement  is  signed  under  authority  of  an  Imperial 
Edict  dated  this  10th  day  of  the  12th  Moon  of  the  33rd  year  of  Kuang  Hsu, 
corresponding  to  the  13th  day  of  January,  1908,  Western  Calendar,  which  has 
been  officially  communicated  to  the  ministers  of  Great  Britain  and  Germany  in 
Peking  by  the  Wai-wu  Pu. 

Article  XXIV. — Five  sets  of  this  Agreement  are  executed  in  English  and 
Chinese,  three  sets  to  be  retained  by  the  Imperial  Chinese  Government  and  two 
by  the  Syndicate. 

In  the  event  of  any  doubt  arising  regarding  the  interpretation  of  the  Contract 
the  English  text  shall  rule. 

Signed  at  Peking  by  the  contracting  parties  this  10th  day  of  the  12th  Moon 
of  the  33rd  year  of  Kuang  Hsu,  corresponding  to  the  13th  day  of  January,  1908, 
Western  Calendar. 

[Seal  of  Waiwupu.]  Liang  Tunyen. 

H.    CORDES, 

For  Deutsch-Asiatische  Bank. 

J.  O.  P.  Bland, 
For  Chinese  Central  Railways  Limited, 

Their  Representative. 


TiENTsiN-PuKou  RAILWAY  LoAN.    £5,000,000  AT  5%,  30  Years. 
Schedule  of  payments  of  interest  and  repayments  of  principal. 


Years. 

Interest. 

Principal. 

Total 

principal 

repaid. 

Principal 
still  out- 
standing. 

1 

il25.000 
125.000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,D00 
125,000 
125.000 
125,000 
125,000 

£5,000,000 

2...              

5.000,000 

3 

5.000,000 

4 

5,000,000 

5 

5,000,000 

6 

5,000.000 

7 

5,000,000 

8 

5,000,000 

9 

5,000,000 

NUMBER  1908/1 :  JANUARY  13,  1908 


693 


Years. 


10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 


Interest. 


Principal. 


125,000 

125,000 

125,000 

125,000 

118,750 

118,750 

112,500 

112,500 

106,250 

106,250 

100,000 

100,000 

93,750 

93,750 

87,500 

87,500 

81,250 

81,250 

75,000 

75,000 

68,750 

68,750 

62,500 

62,500 

56,250 

56,250 

50,000 

50,000 

43,750 

43,750 

37,500 

37.500 

31,250 

31,250 

25,000 

25,000 

18,750 

18,750 

12,500 

12,500 

6,250 

6,250 


il25,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 
125,000 


Total 

principal 

repaid. 


£250,000 
500,000 
750,000 
1,000,000 
1,250,000 
1,500,000 
1,750,000 
2,000,000 
2,250,000 
2,500,000 
2,750,000 
3,000,000 
3,250,000 
3.500,000 
3,750,000 
4,000,000 
4.250.000 
4,500.000 
4,750,000 
5,000,000 


Principal 
still  out- 
standing. 


5,000,000 
4,750,000 
4,500,000 
4,250,000 
4,000,000 
3,750,000 
3,500,000 
3,250,000 
3.000,000 
2,750,000 
2.500,000 
2,250,000 
2,000,000 
1,750,000 
1,500,000 
1,250,000 
1,000,000 
750,000 
500,000 
250,000 


Note. — Pending  the  issue  of  the  final  series  of  this  loan  in  terms  of  Article  13  of  the 
agreement,  the  half-yearly  interest  on  the  series  actually  issued  shall  be  calculated  pro  rata 
in  respect  to  the  amounts  of  such  series  on  the  basis  of  the  present  schedule  for  the  total 
amount  of  i5,000,000,  but  it  shall  be  so  arranged  that  the  dates  of  payment  of  the  second 
and  any  subsequent  series  shall  coincide  with  those  of  the  first  series,  in  such  way  that, 
when  all  the  series  have  been  issued,  the  half-yearly  service  of  principal  and  interest  of 
the  loan  may  be  brought  into  line  in  respect  to  dates  of  payment. 


694  CHINA  TREATIES  AND  AGREEMENTS 

Note. 

RockhiU,  p.  355,  reproduces  from  China,  1900,  No.  1,  p.  175,  the  text  of  the  following 
preliminary  agreement  relating  to  the  construction  of  a  railway  between  Tientsin  and 
Chinkiang,  which  was  signed  May  18,  1899,  and  ratified  May  24,  1899: 

Preliminary  Agreement  for  Tientsin-Chinkiang  Railway,  May  i8,  1899. 

"  This  Preliminary  Agreement  relating  to  the  construction  of  railways  between 
Tien-tsin  and  Chinkiang  is  made  between  their  Excellencies  Hsu  and  Chang,  duly 
authorized  to  act  on  behalf  of  the  Imperial  Government  of  China,  hereinafter  called  'the 
Imperial  Directors,'  of  the  one  part;  and  (a)  the  Deutsch-Asiatische  Bank;  {b)  the 
Hong  Kong  and  Shanghae  Banking  Corporation  for  themselves  and  on  behalf  of  Messrs. 
Jardine,  Matheson,  and  Co.,  as  Joint  Agents  for  the  British  and  Chinese  Corporation 
(Limited),  hereinafter  called  'the  Syndicate,'  of  the  other  part. 

"  1. — The  Imperial  Government  of  China  authorizes  the  Syndicate  to  issue  an  Imperial 
Government  5  per  cent,  gold  loan  for  an  amount  of  about  7,400,000/.^  this  amount  being 
subject  to  modification  later  after  the  completion  of  the  survey. 

"2. — The  loan  is  designed  to  provide  the  capital  for  the  construction  of  Government 
railway  lines  from  a  point  at  or  near  Tien-tsin,  through  Titchow  and  Tsinanfu  to  Thsien 
[sic.  Ihsien?]  near  the  southern  frontier  of  Shangtung,  hereinafter  known  as  the  northern 
part  of  the  Tien-tsin-Chinkiang  railway  lines,  and  from  Thsien  to  Kuachao  (Chinkiang) 
on  the  Yang-tsze  Kiang,  hereinafter  known  as  the  southern  part  of  the  Tien-tsin-Chinkiang 
railway  lines,  the  total  length  of  these  lines  being  about  982  kilom.,  equal  to  about  1,800 
Chinese  li. 

"  3. — The  capital  so  provided  will  include  the  funds  required  for  rolling  stock  and 
other  equipment  and  for  working  the  lines  together  with  interest  on  the  loan  during  the 
period  of  construction,  which  is  estimated  to  occupy  about  five  years  from  the  date  of  the 
loan,  but  which  will  finally  be  fixed  after  survey. 

"  4. — The  rate  of  interest  for  the  loan  shall  be  5  per  cent,  per  annum  on  the  nominal 
principal  and  shall  be  paid  during  the  time  to  be  fixed  for  the  construction  out  of  the 
proceeds  of  the  loan,  and  afterwards  out  of  the  revenue  of  the  lines  named,  in  half-yearly 
instalments,  according  to  the  amounts  and  dates  of  a  Schedule  which  will  be  attached  to 
the  Final  Agreement. 

"  5. — The  term  of  the  loan  shall  be  fifty  years.  Repayment  of  principal  shall  com- 
mence in  the  eleventh  year  from  the  date  of  the  loan,  and  shall  be  made  by  a  yearly  sink- 
ing fund  in  shares  to  be  determined  in  the  Final  Agreement  to  the  Deutsch-Asiatische 
Bank,  and  the  Hong  Kong  and  Shanghae  Banking  Corporation  m  yearly  instalments  out 
of  the  revenue  of  the  lines  according  to  the  amounts  and  dates  of  the  Schedule  to  be 
attached  to  the  Final  Agreement. 

"  6. — In  the  event  of  the  Imperial  Government  of  China  wishing  to  redeem,  after  the 
lapse  of  thirty  years  from  the  date  of  the  loan,  the  outstanding  amount  of  the  loan,  or 
any  portion  of  it  not  yet  due,  from  funds  bond  fide  belonging  to  the  Chinese  Government 
or  subscribed  by  Chinese  merchants,  the  conditions  for  such  redemption  must  first  be 
arranged  with  the  Syndicate  when  the  time  arrives. 

"  7. — The  yearly  payments  due  for  amortization  and  the  half-yearly  payments  due  for 
interest,  except  as  otherwise  provided  in  clause  4,  shall  be  made  in  accordance  with  the 
amounts  and  dates  of  a  Schedule  to  be  attached  to  the  Final  Agreement,  in  shares  to  be 
determined  by  the  Final  Agreement,  out  of  the  joint  net  revenues  of  the  railway  lines  to 
the  Deutsch-Asiatische  Bank  and  the  Hong  Kong  and  Shanghae  Banking  Corporation  by 
the  Boards  of  Commissioners  hereinafter  mentioned,  who  shall  hand  to  those  banks,  at 
their  branches  in  Shanghae,  twenty-one  days  before  the  due  date  named  in  the  Schedule 
funds  in  Shanghae  Sycee,  sufficient  to  meet  such  payment  in  sterling  in  Europe,  the  rate 
of  exchange  for  which  shall  be  settled  with  those  two  banks  on  the  same  day  on  a  fair 
basis. 

"  In  reimbursement  of  expenses  connected  with  the  service  of  interest  and  principal 
of  the  loan,  the  two  banks  will  receive  a  commission  of  one-quarter  per  cent,  on  the 
annual  loan  service. 

"8. — The  Imperial  Government  of  China  hereby  engages  that  the  interest  and  principal 
of  this  loan  shall  duly  be  paid  in  full,  and  should  the  revenues  of  the  railways  not  be 
sufficient  to  provide  for  the  due  and  full  payment  of  interest  and  repayment  of  principal 
of  this  loan,  the  Imperial  Directors  must  memorialize  the  Throne,  and  the  Imperial  Gov- 
ernment of  China  will  thereupon  make  arrangements  to  insure  that  the  amount  of  defi- 
ciency shall  be  met  from  other  sources  and  handed  over  to  the  banks  twenty-one  days 
before  the  due  date  of  the  funds  required  to  complete  full  payment  of  interest  and  repay- 
ment of  principal. 

"  This  clause  to  be  open  to  reconsideration  in  the  Final  Agreement. 

"  9. — This  entire  loan  shall  be  secured  by  a  first  mortgage  on  the  permanent  way  roll- 
ing stock  and  entire  property  together  with  the  revenue  of   the  lines  named  in  clause  2. 


NUMBER  1908/1 :  JANUARY  13,  1908 :  NOTE  695 

No  further  loan,  charge  or  mortgage,  shall  be  charged  on  this  security,  except  with  the 
written  consent  of  the  two  banks,  until  the  present  loan  is  returned.  In  the  event  of 
default  in  payment  of  interest  or  repayment  of  principal  of  this  loan  on  due  date  the 
railway  lines  and  property  so  mortgaged  shall  be  handed  over  to  the  Syndicate  to  be  dealt 
with  in  such  a  manner  as  may  be  legal  and  necessary  for  the  full  and  effective  protection 
of  the  bondholders.  When  the  loan  is  completely  redeemed,  clause  29  of  this  Agreement 
shall  take  effect. 

"  10. — The  Syndicate  will  be  authorized  to  issue  to  the  subscribers  to  the  loan,  bonds 
for  the  total  amount  of  the  loan  in  pounds  sterling  in  such  form,  in  such  languages,  and 
for  such  amounts  as  shall  appear  advisable  to  the  Syndicate,  and  these  bonds  shall  be 
sealed  in  China  by  the  Imperial  Directors  and  in  Europe  by  the  Minister  for  China,  in 
Berlin  or  London  as  evidence  that  the  Imperial  Government  of  China  is  bound  thereby  as 
debtor  of  the  loan.  Provision  will  be  made  in  the  Final  Agreement  for  the  case  of  bonds 
lost,  stolen,  or  destroyed. 

"11. — All  bonds  and  coupons  and  payments  made  and  received  in  connection  with  the 
service  of  this  loan  shall  be  exempt  from  all  Chinese  taxes  and  imposts  for  ever. 

"  12. — All  details  necessary  for  the  prospectus  and  connected  with  the  service  of  the 
interest  and  repayment  of  the  principal  of  this  loan,  not  explicitly  provided  for  by  the 
Final  Agreement,  shall  be  left  to  the  arrangement  of  the  Syndicate  who  will  be  authorized 
to  issue  a  prospectus  of  the  loan  as  soon  as  possible  after  the  signing  of  the  Final  Agree- 
ment. 

"  The  Imperial  Government  of  China  will  instruct  the  Chinese  Ministers  in  Berlin 
and  London  to  co-operate  with  the  representatives  of  the  Syndicate  in  any  matters  requir- 
ing conjoint  action,  and  the  Chinese  Alinister  in  Berlin  will  sign  the  prospectus  of  the  loan 
as  required  by  the  Rules  of  the  Berlin  Stock  Exchange. 

"  13. — The  loan  shall  be  floated  in  one  or  more  series  at  the  discretion  of  the  Syndicate, 
due  regard  being  had  to  the  interest  of  China ;  but  the  floating  of  the  loan  shall  not  be 
delayed  more  than  necessary,  subscriptions  being  invited  by  the  Syndicate  in  Europe  and 
in  China  from  both  European  and  Chinese  on  equal  conditions. 

"  14. — The  price  of  the  loan  shall  be  90  per  cent,  net  on  the  nominal  principal  to  the 
Chinese  Government.  The  proceeds  of  the  loan  shall  be  paid  to  the  credit  of  a  Tien-tsin- 
Chinkiang  Imperial  Government  railway  account  with  the  Deutsch-Asiatische  Bank,  Berlin, 
and  to  the  credit  of  a  Tien-tsin-Chinkiang  Imperial  Government  railway  account  with  the 
Hong  Kong  and  Shanghae  Banking  Corporation,  London.  The  payment  into  the  credit  of 
these  accounts  shall  be  made  in  such  instalments  and  on  such  dates  as  the  conditions 
allowed  to  the  subscribers  to  the  loan  shall  admit. 

"  Interest  at  a  rate  to  be  arranged  from  time  to  time  shall  be  granted  on  the  credit 
balance  of  the  railway  accounts. 

"  After  deduction  of  the  funds  required  for  the  service  of  interest  and  for  commis- 
sion on  this  service  during  the  time  of  construction,  the  Deutsch-Asiatische  Bank  will  hold 
the  proceeds  with  accrued  interest  to  the  order  of  the  Board  of  Commissioners  appointed 
for  the  northern  part  of  the  Tien-tsin-Chinkiang  Railway  lines,  and  the  Hong  Kong  and 
Shanghae  Banking  Corporation  will  hold  the  proceeds  with  accrued  interest  to  the  order 
of  the  Board  of  Commissioners  appointed  for  the  southern  part  of  the  Tien-tsin-Chinkiang 
Railway  line.  The  Commissioners,  in  drawing  the  sums  necessary  for  the  construction, 
shall  give  notice  to  the  banks  fourteen  days  before  the  day  on  which  they  are  required. 

"  15. — If  during  the  time  of  construction  the  whole  amount  of  the  instalments  with 
accrued  interest  to  be  paid  by  the  Syndicate  should,  after  deduction  of  the  sums  necessary 
for  the  service  of  interest  on  the  loan,  not  be  sufficient  for  the  construction  of  the  railway 
lines,  the  amount  of  deficiency  shall  be  provided  by  a  supplementary  loan  to  be  issued 
by  the  Syndicate,  the  interest  and  other  conditions  of  which  are  to  be  the  same  as  in  this 
Agreement,  but  the  price  must  be  arranged  when  the  time  arrives. 

"  If  after  the  completion  of  the  lines  there  should  be  a  balance  at  credit  of  the 
Tien-tsin-Chinkiang  Railway  account,  the  Syndicate  shall  transfer  such  unused  balance  to 
the  credit  of  the  loan  service  reserve  fund,  hereinafter  mentioned  as  a  provision  for  pay- 
ments to  which  the  Government  is  bound  by  clause  8  of  this  agreement. 

"  16. — If  before  the  publication  of  the  prospectus  for  the  issue  of  the  loan  any  political 
or  financial  crisis  should  take  place  in  Europe  or  elsewhere,  by  which  the  markets  and 
the  prices  of  existing  Chinese  Government  stocks  are  so  affected  as  to  render  the  suc- 
cessful issue  of  the  loan  impossible  on  the  terms  herein-named,  the  Syndicate  shall  be 
granted  such  extension  of  time  for  the  performance  of  their  contract  as  the  circumstances 
demand,  or  shall  have  the  right  to  withdraw  from  their  contract  with  the  Chinese  Imperial 
Government,  which  shall  in  that  case  become  null  and  void. 

"  17. — The  Deutsch-Asiatische  Bank  on  the  one  side,  and  the  Hong  Kong  and  Shanghae 
Banking  Corporation  for  themselves  and  on  behalf  of  ^lessrs.  Jardine,  Matheson,  and  Co., 
as  joint  agents  for  the  British  and  Chinese  Corporation  (Limited),  on  the  other  side, 
shall  take  the  loan  in  shares  to  be  agreed  upon  by  the  Syndicate,  and  without  respon- 
sibility for  each  other. 

"  18. — The    northern    part   of    the    railway    lines    shall    be    constructed,    equipped,    and 


596  CHINA  TREATIES  AND  AGREEMENTS 

worked  on  behalf  of  the  Imperial  Chinese  Government  by  the  Deutsch-Asiatische  Bank, 
and  the  southern  part  of  the  railway  lines  shall  be  constructed,  equipped,  and  worked  on 
behalf  of  the  Imperial  Chinese  Government  by  the  British  and  Chinese  Corporation 
(Limited),  under  conditions  as  follows: — For  each  of  these  parts  a  Board  of  Commis- 
sioners shall  be  appointed  to  superintend  the  construction,  equipment  and  working  of  the 
railway  lines  in  accordance  with  regulations  to  be  arranged  between  the  Imperial  Directors 
and  the  Deutsch-Asiatische  Bank  and  the  British  and  Chinese  Corporation   (Limited). 

'•  19. — An  office  shall  be  provided  for  the  Imperial  Directorate,  and  a  head  office  shall 
be  established  for  each  Board  of  Commissioners.  The  Board  of  Commissioners  for  the 
northern  and  southern  parts  of  the  lines  respectively  appointed  to  superintend  the  con- 
struction and  administration  shall  each  consist  of  five  members :  two  Chinese  managers 
representing  the  Imperial  Directors  and  nominated  by  them,  and  three  European  mem- 
bers, namely,  a  representative  of  the  Bank  concerned,  the  Manager  and  the  Chief  Engineer, 
to  be  nominated  by  the  Deutsch-Asiatische  Bank,  and  the  British  and  Chinese  Corporation 
(Limited). 

"  In  case  any  foreign  or  Chinese  members  of  the  Boards  of  Commissioners  do  not 
work  well  together,  it  shall  be  open  to  the  Imperial  Directors,  the  Deutsch-Asiatische 
Bank,  and  the  British  and  Chinese  Corporation  (Limited),  to  mutually  discuss  means  to 
arrange  and  deal  with  the  matter. 

"  The  foreign  and  Chinese  railway  staff,  including  a  T'i-tiao,  shall  be  appointed  by 
the  Boards  of  Commissioners,  who  will  report  the  appointment  to  the  Imperial  Directors. 
In  the  event  of  an  important  appointment  the  two  Chinese  members  of  the  Boards  may 
first  consult  the  Imperial  Directors. 

"  The  principal  members  of  the  railway  staff  shall  be  capable  and  experienced 
Europeans,  but  Chinese  with  sufficient  experience  in  engineering  or  traffic  may  also  be 
appointed. 

"  Foreign  and  Chinese  members  of  the  railway  staff  shall,  in  the  event  of  incapacity 
or  misconduct,  be  dismissed  by  the  Boards  of  Commissioners,  who  will  inform  the  Impe- 
rial Directors  of  the  same. 

"  The  salaries  of  the  five  members  of  each  Board  of  Commissioners  and  of  the  foreign 
and  Chinese  railway  staff  shall  be  arranged  by  the  Deutsch-Asiatische  Bank,  the  British 
and  Chinese  Corporation  (Limited),  and  the  Imperial  Directors,  and  paid  by  the  head 
office  of  their  respective  sections. 

"  20. — The  plans,  estimates  and  all  matters  relating  to  survey  must  be  submitted  for 
approbation  to  the  Board  of  Commissioners.  The  Chief  Engineer  shall  indicate  to  the 
(ihinese  Commissioners  the  land  which  it  is  necessary  to  purchase,  and  which  must  be 
sufficient  for  the  construction  of  a  permanent  way  with  double  lines  and  dependencies, 
and  the  Chinese  Commissioners  shall  thereupon  effect  such  purchases  at  a  price  to  be 
based  on  a  scale  to  be  arranged  after  survey.  In  the  event  of  the  route  proposed  by  the 
Chief  Engineer  passing  through  towns,  villages,  graveyards,  or  other  points,  where  much 
obstruction  is  encountered,  the  Chief  Engineer  will,  together  with  the  Board  of  Com- 
missioners, consider  means  of  diverting  the  proposed  railway  route  in  order  to  avoid 
difficulties. 

"21. — After  completion  of  the  survey  and  due  inquiry  as  to  the  prevailing  provincial 
li-kin  and  customs  dues,  the  Imperial  Directors  will  arrange  with  the  Deutsch-Asiatische 
Bank  and  the  British  and  Chinese  Corporation  (Limited),  regulations  for  the  payment 
of  li-kin  and  duty  upon  merchandize  and  live-stock  in  transit  over  the  railway  lines. 

"  22. — All  materials  necessary  for  the  construction  and  working  of  the  lines  obtained 
either  from  foreign  countries  or  from  other  provinces  of  China  and  the  revenues  derived 
from  the  railway  shall  be  exempt  from  duty  or  taxation  of  all  kinds,  and  the  Imperial 
Government  of  China  will  instruct  the  customs  and  li-kin  authorities  accordingly. 

"  All  material,  plant  and  goods,  shall  be  ordered  from  the  Deutsch-Asiatische  Bank 
and  the  British  and  Chinese  Corporation  (Limited),  on  conditions  to  be  arranged  in  the 
Final  Agreement. 

"  The  plans,  estimates  and  requisitions  for  materials  shall  be  submitted  to  the  Board 
of  Commissioners  by  the  Chief  Engineer  for  reference  at  their  discretion  to  the  Imperial 
Directors,  and  the  same  shall  be  furnished  by  the  Deutsch-Asiatische  Bank  and  the  British 
and  Chinese  Corporation  on  the  best  possible  terms. 

"  Due  consideration  will  be  extended  to  materials  from  the  Hanyang  Iron  Works,  if 
available  when  required  and  of  a  quality  satisfactory  to  the  Chief  Engineers  of  the 
Syndicate. 

"23.— The  Deutsch-Asiatische  Bank  and  the  British  and  Chinese  Corporation  (Limited), 
shall  during  the  working  of  the  lines  maintain  the  railways,  buildings,  works,  rolling 
stock  and  dependencies  in  good  order  and  condition. 

"  24. — Branch  lines  or  extensions  in  connection  with  the  Tien-tsin-Chinkiang  Railway 
lines  that  may  appear  profitable  or  necessary  later  on  shall  be  the  subject  of  negotiations 
between  the  Imperial  Directors  and  the  Syndicate. 

"  25. — The  tariff  to  be  introduced  by  the  European  Manager  shall  be  approved  by  the 
Boards   of   Commissioners   who   will   take   into  consideration    the  tariffs   of   other   existing 


NUMBER  1908/1:  JANUARY  13,  1908:  NOTE  697 

railway  lines  in  China,  while  keeping  in  view  the  necessity  for  attracting  traffic.  The 
European  Manager  may  also  be  instructed  to  enter  into  arrangements  for  tariffs  on 
through  traffic  over  connecting  lines.  In  case  of  war,  foreign  or  internal,  the  railway 
lines  shall  be  reserved  in  the  first  instance  for  the  transport  of  Chinese  troops,  commis- 
sariat and  munitions  of  war  under  the  order  of  Imperial  Directors  and  at  half  the  ordinary 
tariff  rates,  and  the  railways  shall  not  engage  in  any  service  injurious  to  China.  In  case 
of  famine,  grain  will  also  be  transported  over  the  lines  at  half  the  ordinary  tariff  rate 
under  orders  of  the  Imperial  Directors. 

"  26. — All  payments  made  and  received  in  connection  with  the  railway  lines  will  be 
subject  to  the  control  of  the  Boards  of  Commissioners,  and  after  the  line  is  working  esti- 
mates of  receipts  and  expenditure  shall  be  similarly  submitted  to  the  Boards.  Regular 
accounts  shall  be  furnished  through  the  Imperial  Directors  to  the  Railway  and  Mining 
Bureau  of  the  Tsung-li  Yamen  and  the  Board  of  Revenue,  Peking.  All  payments  made 
must  be  represented  by  Chinese  or  foreign  vouchers,  as  the  case  may  be. 

"27. — The  profits  from  working  completed  sections  of  the  railways  during  the  time 
of  construction  shall  be  credited  to  railway  construction  account. 

"  28. — Should  any  traffic  business  be  apparent  later  on  as  likely  to  benefit  the  Impe- 
rial Government  of  China  and  increase  the  earning  power  of  the  railway  lines,  the  Deutsch- 
Asiatische  Bank  and  the  British  and  Chinese  Corporation  (Limited)  shall  represent  the 
same  to  the  Imperial  Directors,  and  request  them  to  obtain  the  necessary  authority  to 
arrange  the  business. 

"29. — The  Deutsch-Asiatische  Bank  and  the  British  and  Chinese  Corporation  (Limited) 
shall  work  the  lines  on  behalf  of  the  Imperial  Government  of  China  until  the  present  loan 
is  redeemed.  As  soon  as  the  loan  has  been  completely  redeemed,  this  Agreement  shall 
become  null  and  void,  and  the  railway  lines  and  property  named  in  this  Agreement  shall 
be  handed  over  to  the  absolute  disposal  of  the  Chinese  Government. 

"30. — The  annual  net  revenue  is  understood  to  be  that  resulting  from  the  gross  receipts 
of  the  passengers  and  goods  traffic  and  the  income  from  other  sources,  after  deducting 
all  working  expenses,  including  maintenance  of  the  permanent  way,  repairs  and  renova- 
tion of  machinery  and  rolling  stock,  and  all  expenses  of  administration,  besides  deducting 
an  amount  to  be  determined  by  the  Deutsch-Asiatische  Bank  and  the  British  and  Chinese 
Corporation  (Limited)  as  sufficient  for  accumulating  a  reserve  fund  for  extraordinary 
improvements  or  repairs.  Of  the  surplus  of  the  joint  net  annual  revenue  of  the  northern 
and  southern  railway  lines,  after  payment  of  interest  and  repayment  of  principal  of  the 
loan,  first,  a  participation  of  20  per  cent,  will  be  granted  to  the  Syndicate  in  remuneration 
for  their  management  of  the  construction  and  the  working  of  the  railway  lines;  secondly, 
an  amount  equal  to  10  per  cent,  of  the  gross  earnings  will  be  transferred  to  a  loan  service 
reserve  fund,  deposited  with  the  two  Banks,  and  the  remainder  will  be  at  the  disposal  of  the 
Imperial  Government  of  China.  An  account  of  the  said  loan  service  reserve  fund  will  be 
rendered  yearly  to  the  Railway  and  Mining  Bureau  of  the  Tsung-li  Yamen  and  to  the 
Board  of  Revenue,  and  the  fund  will  be  drawn  upon  only  in  the  case  of  the  revenue  of  the 
railway  lines  being  insufficient  to  meet  the  service  of  interest  and  principal  of  the  loan. 
On  redemption  of  the  loan  being  completed,  the  balance  of  this  fund  will  revert  to  the 
Chinese  Government. 

'<31._The  powers  and  authority  given  and  delegated  to  the  Imperial  Directors  by  the 
Imperial  Government  of  China  shall,  in  the  case  of  their  promotion  or  removal,  be  trans- 
ferred to  their  successors,  and  the  Deutsch-Asiatische  Bank,  the  Hong  Kong  and  Shanghae 
Banking  Corporation,  Messrs.  Jardine,  Matheson,  and  Co.,  and  the  British  and  Chinese 
Corporation  (Limited)  may,  subject  to  all  their  obligations,  transfer  or  delegate  all  or  any 
of  their  rights,  powers,  and  discretions  to  any  German  or  English  Company,  Directors,  or 
agents  with  or  without  power  of   further  transfer  and   sub-delegation. 

"32. — Differences  arising  between  the  Imperial  Directors  and  the  Syndicate  will  be 
taken  up  and  decided  with  equity  and  justice  by  the  Tsung-li  Yamen  on  the  one  side,  and 
the  Minister  for  Germany  and  the  Minister  for  Great  Britain  in  China  on  the  other  side. 

"33.— As  soon  as  possible  after  the  signature  of  this  Agreement  the  Engineers  of  the 
Syndicate  will  be  authorized  by  the  Imperial  Chinese  Government  to  survey  and  report  upon 
the  proposed  railway  lines,  when,  subject  to  such  report  being  satisfactory  to  the  Syndicate, 
this  Preliminary  Agreement  will  be  ratified  by  the  Syndicate  and  replaced  by  a  Fmal  Agree- 
ment containing  all  necessary  details.  Modifications  in  the  conditions  of  this  Prelimmary 
Agreement  may  be  made  subject  to  the  consent  of  both  parties. 

"34 —The  provision^  of  this  Prcliminarv  Agreement  shall,  immediately  after  signature. 
be  ratified  by  an  Imperial  Edict,  which  shall  be  communicated  by  the  Tsung-li  Yamen  to 
the  Ministers  for  Germany  and  Great  Britain  in  Peking. 

"35 —Five  sets  of  this  Agreement  are  executed  in  English  and  Chinese,  one  set  to  be 
retained  by  the  Tsung-li  Yamen,  one  by  the  Railway  and  Mining  Bureau,  and  one  by  each 

Contracting  Party.  ,.        ,      .  •  r  ..      /-     ^      *.    4.u^ 

"  In  the  event  of  any  doubt  arising  regarding  the  interpretation  of  the  Contract,  the 

English  text  shall  rule." 


698  CHINA  TREATIES  AND  AGREEMENTS 

NUMBER  1908/2. 

GREAT  BRITAIN  (Pekin  Syndicate,  Ltd.)  AND  CHINA  (Shansi  Province). 

Agreement  for  the  redemption  of  the  syndicate's  mining  rights  «'«  the  Province 

of  Shansi  * — January  21,  1908. 

In  1898  the  Shansi  Bureau  of  Trade  and  the  Pekin  Syndicate,  Limited,  agreed 
upon  twenty  regulations  for  opening  mines,  working  iron,  and  transporting  mine 
products  of  all  kinds  in  the  province  of  Shansi,  Subsequently  in  1905  a  supple- 
mentary covenant  in  four  articles  was  entered  into  by  H.  E.  Sheng,  Director 
General  of  Railways,  and  the  Pekin  Syndicate. f 

Difftculties  having  arisen  as  to  the  fulfilment  of  these  covenants  and  H.  E. 
Ting  Pao-chuan,  Provincial  judge  of  Shansi  Province,  having  been  summoned  by 
imperial  command  to  come  to  Peking  and  negotiate  for  a  settlement  of  all  ques- 
tions connected  therewith,  now,  it  has  been  mutually  agreed  as  follows : 

1. — The  Shansi  Bureau  of  Trade  has  now  made  to  the  Pekin  Syndicate  a 
proposal  to  redeem  these  principal  and  supplementary  convenants  and  the  Pekin 
Syndicate,  after  discussion,  having  recognized  the  earnest  desire  of  the  Shansi 
people  to  manage  their  own  mining  affairs,  has  consented  in  the  interest  of 
public  peace,  and  international  comity,  after  full  consideration  of  all  the  circum- 
stances, to  allow  the  province  of  Shansi  to  redeem  the  aforesaid  convenants  for 
mining,  working  of  iron  and  transporting  of  minerals,  in  order  that  the  province 
itself  may  carry  out  the  work  detailed  therein. 

2. — The  Shansi  Bureau  of  Trade  undertakes  to  pay  to  the  Pekin  Syndicate 
in  full  on  the  due  dates  the  amount  agreed  upon  for  redemption  of  the  aforesaid 
covenants,  namely :  Hong-Ping-Hua-Pao  taels  two  millions  seven  hundred  and 
fifty  thousand  (H-P-H-P  taels  2,  750,000). 

3. — The  sum  mentioned  in  the  foregoing  article  is  to  be  paid  by  the  Province 
of  Shansi  and  accepted  by  the  Pekin  Syndicate  as  full  indemnity  for  all  claims, 
losses,  and  damages  of  whatsoever  kind  on  the  part  of  the  syndicate  in  connection 
with  the  aforesaid  covenants.  When  this  amount  has  all  been  paid,  money  spent 
by  the  Pekin  Syndicate  in  enterprises  in  other  provinces  is  no  concern  of  the 
Province  of  Shansi. 

4 — It  is  agreed  that,  of  the  redemption  amount  mentioned  above,  one-half 
namely  Hong-Ping-Hua-Pao  taels  one  million  three  hundred  and  seventy-five 
thousand  (H-P-H-P  taels  1,375,000)  shall  be  paid  in  cash  on  the  21st  day  of 
February  1908  and  that  the  balance  shall  be  divided  into  three  equal  instalments, 
each  to  be  paid  on  the  1st  day  of  the  4th  Chinese  month  of  each  immediately 
succeeding  year  commencing  with  1909,  namely  on  the  19th  day  of  May  1909 
the  first  instalment  of  Hong-Ping-Hua-Pao  taels   four  hundred  and  fifty-eight 

*In  reference  to  the  syndicate's  rights  in  the  Province  of  Honan,  see  the  regu- 
lations of  June  21,  1898  (No.  1898/12,  ante),  and  agreement  of  May  7,  1915  (No. 
1915/6,  post).  As  to  the  syndicate's  rights  in  the  Taokow-Chinghua  Railway,  see  the 
agreements  of  July  3,  1905    (No.  1905/5,  ante). 

t  See  Note  to  this  document,  post,  p.  700. 


NUMBER  1908/2:  JANUARY  21,  1908  699 

thousand  three  hundred  and  thirty-three  (H-P-H-P  taels  458,333)  ;  on  the 
9th  day  of  May  1910  the  second  instahnent  of  Hong-Ping-Hua-Pao  taels  four 
hundred  and  fifty-eight  thousand  three  hundred  and  thirty-three  (H-P-H-P 
taels  458,333)  ;  and  on  the  29th  April  1911  the  third  instalment  of  Hong-Ping- 
Hua-Pao  taels  four  hundred  and  fifty-eight  thousand  three  hundred  and  thirty- 
four  (H-P-H-P  taels  458,334). 

5. — The  redemption  amount  is  to  be  paid  in  the  Hong-Ping-Hua-Pao  taels 
without  any  deduction  of  discount  whatsoever.  The  responsibility  for  remittance 
charges  between  Shansi  and  Pekin  together  with  the  interest  on  money  borrowed 
in  advance  for  this  purpose  shall  be  borne  by  the  Province  of  Shansi. 

6. — This  case  originated  in  a  request  of  the  Shansi  Bureau  of  Trade  which 
was  granted  by  the  Governor  of  Shansi  and  afterwards  authorized  by  the 
Throne  on  a  memorial  from  the  Tsung-li  Yamen.  Now,  since  the  Province  of 
Shansi  is  providing  funds  to  redeem  and  cancel  the  covenants,  the  Wai-wu-pu 
should  be  moved  to  instruct  the  Governor  of  Shansi  to  see  to  it  that  the  money 
is  paid  by  the  Bureau  of  Trade  on  the  due  dates  not  permitting  any  excuse. 

7. — The  Province  of  Shansi  having  recovered  control  of  its  mining  affairs 
for  its  own  working  and  the  Pekin  Syndicate  having  surrendered  all  its  rights 
under  the  principal  and  supplementary  agreements  for  the  opening  of  mines, 
working  of  iron  and  transport  of  minerals,  the  Province  of  Shansi  has  no 
intention  whatsoever  of  raising  a  foreign  loan,  but  seeing  that  the  Pekin  Syndi- 
cate has  hereby  made  a  complete  surrender  of  all  its  privileges  if  by  any  possible 
chance  the  Province  of  Shansi  shall  hereafter  desire  to  raise  a  foreign  loan  in 
connection  with  mines,  working  of  iron,  or  transporting  of  minerals,  the  Province 
of  Shansi  shall  notify  the  Pekin  Syndicate  and  if  the  Pekin  Syndicate's  proposals 
are  in  all  respects  fair  and  moderate  shall  then  proceed  to  further  negotiations, 
otherwise  arrangements  with  others  may  be  made  for  a  loan  and  neither  party 
shall  object. 

8. — All  that  the  Pekin  Syndicate  possesses  at  Ping-ting-chou  in  the  way  of 
compounds  and  buildings  shall  be  evacuated  and  with  all  machinery  now  there 
shall  be  delivered  over  to  the  Bureau  of  Trade  within  three  months  of  the  signing 
of  this  settlement.  The  Syndicate  will  surrender  any  and  every  property  acquired 
in  any  of  the  five  areas  mentioned  in  the  original  convenant. 

9. — All  claims  for  compensation  on  the  part  of  employees  of  the  Syndicate, 
whether  engineers  or  otherwise,  for  loss  of  occupation  and  prospects  shall  be 
borne  by  the  Syndicate. 

10. — The  amount  for  indemnity  shall  be  raised  in  advance  by  the  Bureau  of 
Trade  from  the  people  of  Shansi  by  appropriating  the  whole  of  the  funds  of  the 
Shansi  Province  acreage  tax  {mu-chnan)  which  is  a  fund  managed  by  the  people 
as  a  whole  for  the  general  good  of  the  Province  and  should  therefore  be  used 
to  redeem  the  mineral  resources  which  are  the  inheritance  of  the  people  as  a 
whole.  This  acreage  tax  shall  not  be  changed  in  character  nor  reduced  so  long 
as  any  part  of  the  indemnity  remains  unpaid  to  the  Syndicate.  Should  the 
acreage  tax  prove  insufficient  for  the  purpose  it  shall  be  supplemented,  as  required, 
by  the  provincial  authorities  from  other  funds. 

11. — As  the   original   covenant  in   twenty  articles   was   confirmed   by   the 


700  CHINA  TREATIES  AND  AGREEMENTS 

Tsung-li  Yamen  so  this  document  of  a  settlement  should  also  be  confirmed 
by  the  Wai-vvu-pu  and  recognized  by  the  British  Minister  who  respectively 
guarantee  its  fulfilment  by  their  respective  nationals. 

12.— Done  in  English  and  Chinese  this  21st  day  of  January  1908  in  duplicate 
one  copy  being  held  as  evidence  by  each  party. 
Signed  on  21st  of  January  1908. 

By         Liu   Tu   Ch'ing, 
{Head  of  the  Shansi  Bureau  of  Trade.) 
George  Brown, 
(General  Agent  Pekin  Syndicate.) 


Note. 

The  text  of  the  supplementary  covenant  of  1905  is  not  available :  the  regulations  of 
May  21,  1898,  are  reprinted  in  Rockhill,  p.  305,  from  China,  1899,  No.  1,  p.  112,  as  follows: 

Regulations  for  Mining  Purposes,  etc.,  in  Shansi,  May  21,  1898. 

"  Regulations  agreed  upon  by  the  Shansi  Bureau  of  Trade  and  the  Pekin  Syndicate 
for  mining  purposes,  ironworks,  and  transporting  mine  products  of  all  kinds  in  the  Prov- 
ince of  Shansi. 

"  1.— The  Governor  of  Shansi  having  sanctioned  the  request  of  the  Shansi  Bureau  of 
Trade  for  the  special  right  to  open  and  work  coal  and  iron  mines  throughout  the  districts 
of  Yu-hsien  and  Ping-ting-chou,  and  the  Prefectures  of  Luan-fu,  Tsechow-fu  and  Ping- 
wang-fu  and  also  petroleum  wherever  found,  the  several  concessions  granted  are  now 
transferred  for  operation  to  the  Pekin  Syndicate  for  the  period  of  sixty  years. 

"  Mining  engineers  shall  first  be  sent  to  find  in  what  township  and  hills  the  mines 
are  situated  and  what  they  produce,  and  make  maps  thereof  with  explanations  inserted 
which  shall  be  submitted  to  the  Governor  of  Shansi,  that  he  may  see  that  local  conditions 
present  no  obstacle  to  the  proposed  works ;  and  he  shall  report  thereon  to  the  Tsung-li 
Yamen  for  record,  and  at  the  same  time  issue  a  permit  for  the  mines  to  be  opened  with- 
out the  least  delay.  If  mining  lands  belong  to  the  people,  lease  or  purchase  shall  be  made 
by  arrangement  with  the  owners  for  a  reasonable  price;  if  it  be  Government  land,  the 
tax  to  be  paid  on  it  shall  be  double  the  ordinary  land  tax  for  that  locality. 

"  2. — The  Governor  of  Shansi  has  authorized  the  Bureau  of  Trade  to  negotiate  a 
foreign  loan  not  to  exceed  10,000,000  taels.  Should  the  mining  engineers  employed  find 
this  sum  insufficient,  the  Bureau  may  borrow  more  only  of  the  Pekin  Syndicate. 

"3. — All  matters  of  administration,  exploitation,  employes,  and  finances  shall  be  con- 
trolled by  the  Board  of  Directors  of  the  Pekin  Syndicate,  and  the  Chief  of  the  Shansi 
Bureau  of  Trade  shall  co-operate. 

"  4. — Each  mine  must  have,  one  foreign  and  one  Chinese  manager,  the  foreigner  to 
control  the  works,  the  Chinese  to  attend  to  all  matters  between  natives  and  foreigners. 
Accounts  will  be  kept  by  the  foreign  system  ;  receipts  and  payments  of  money  to  be  con- 
trolled by  the  foreign  manager  and  audited  by  the  Chinese  manager.  At  all  mines  Chinese 
should  be  employed  as  much  as  possible.     All  salaries  to  be  paid  by  the  Syndicate. 

"5. — When  prospecting  for  mines,  if  there  be  any  boring  or  sinking  of  pits  to  examine 
mineral  deposits,  an  arrangement  should  first  be  made  with  the  land-owner  to  compensate 
him  for  any  crops  injured.  If  any  mine  be  opened  on  private  land,  an  arrangement  must 
be  made  with  co-operation  of  the  local  officials  to  lease  or  buy  the  land  for  a  price  fair 
to  both  parties  as  a  measure  of  justice.  Whenever  land  leased  or  bought  for  mines  con- 
tains cemeteries  or  mortuary  shrines,  some  plan  must  be  devised  to  avoid  them :  there 
must  be  no  excavation.  After  mines  are  opened,  should  there  be  damage  to  life  or  build- 
ings from  subsidence  in  the  mines,  the  Syndicate  shall  make  charitable  compensation. 

"  6. — Wherever  mines  are  worked  there  shall  be  paid  yearly  to  the  Chinese  Govern- 
ment as  producers  tax  {'  lo-ti-shui')  5  per  cent,  on  the  cost  of  extracting  the  output  of 
the  mines.  From  the  profits  shown  by  the  yearly  accounts  there  shall  first  be  paid  6  per 
cent,  on  the  capital  employed,  and  next  10  per  cent,  shall  be  set  aside  as  a  sinking  fund 
for  yearly  repayment  of  capital  and  consequent  reduction  of  interest,  payments  to  sinking 
fund  ceasing  when  the  invested  capital  is  wholly  repaid ;  and  from  the  remaining  net 
profit  25  per  cent,  shall  be  paid  to  the  Chinese  Government,  and  the   remainder  shall  go 


NUMBER  1908/2:  JANUARY  21,  1908:  NOTE  701 

to  the  Syndicate  for  its  own  disposition.  In  future,  wherever  capital  is  used  to  work 
coal  or  iron  mines  in  China  this  rule  for  a  5  per  cent.  Government  tax  on  the  output  shall 
be  enforced,  so  that  all  may  be  treated  alike.  This  capital  being  money  lent  by  merchants 
for  mining  purposes,  the  Chinese  Government  will  not  in  any  way  be  responsible  for  losses 
incurred  in  the  business. 

"7. — The  area  of  the  mineral  districts  of  Yu-hsien,  Ping-ting-chou,  Tsechou-fu, 
Luan-fu  is  very  extensive,  and  many  mines  may  be  worked  therein.  But  the  accounts  and 
profits  of  each  mme  must  be  kept  distinct  from  the  others ;  the  gains  of  one  mine  should 
not  be  made  to  offset  the  losses  of  another,  and  so  cause  the  Government  income  to 
suffer  reduction. 

"  8. — All  machinery,  materials,  and  supplies  needed  for  the  mines  shall  on  importation 
be  subject  to  the  rules  in  force  with  the  Kaifung  and  other  mining  Companies,  and  pay 
one  custom  duty  and  a  half  to  the  maritime  customs,  and  shall  be  exempt  from  all  inland 
li-kin  taxes.  The  products  of  the  mines  when  exported  from  a  seaport  shall  pay  export 
duty  according  to  the  Customs  1  ariff. 

"  9. — The  Syndicate  is  to  control  the  mines  for  sixty  years,  on  expiration  of  which 
term  all  the  mines  of  the  Syndicate,  whether  new  or  old,  profitable  or  not,  shall,  with  all 
plant,  materials,  buildings,  land,  railways,  bridges,  and  all  property  acquired  by  the  capital 
of  the  mines,  be  handed  over  gratis  to  the  Chinese  Government,  and  in  due  time  the 
Bureau  shall  request  the  Governor  of  Shansi  to  send  Deputies  to  take  delivery. 

"  10. — It  is  important  that  at  each  mine  measures  should  be  taken  to  prevent  discord 
between  officials  and  people.  For  this  purpose  the  Bureau  should  request  the  Governor 
to  appoint  a  Deputy,  and  the  Syndicate  should  nominate  one  of  the  gentry,  the  salaries  of 
both  to  be  paid  by  the  Syndicate. 

"  11. — On  first  opening  of  the  mines  foreigners  must,  of  course,  be  employed  as  mining 
engineers  and  foremen,  but  later  on  the  Bureau  and  the  Syndicate  should  arrange  to  select 
for  such  positions  any  Chinese  who  may  be  proficient  in  mining,  engineering,  or  managing 
work.  For  subordinate  positions  of  little  responsibility  Chinese  should  be  entirely  employed, 
and  Shansi  natives  as  much  as  possible,  so  as  to  encourage  improvement. 

"  12. — The  miners  employed  should  be  chiefly  Shansi  men,  and  should  be  paid  fair 
wages.  After  the  mines  are  opened  the  Bureau  and  the  Syndicate  should  select  from 
European  and  American  Mining  Regulations  suitable  ones  to  apply  to  questions  of  com- 
pensation to  miners  for  injuries  while  at  work,  to  pensions  for  the  aged  after  long  service, 
the  limit  of  daily  working  hours,  &c.,  and  obtain  for  such  Regulations  the  approval  of 
the  Governor. 

"  13. — In  opening  the  mines  the  Syndicate  shall  establish  a  school  of  engineering  on 
mining  in  some  locality  convenient  to  the  mines,  and  there  shall  be  selected  twenty  or 
thirty  promising  youths  by  the  local  officials  and  gentry  to  study  in  this  school  under 
foreign  instructors,  and  thus  prepare  for  future  employment  on  railways  and  in  mines. 
The  expenses  for  this  school  to  be  met  by  the  Syndicate. 

"  14.— The  10,000,000  of  silver  taels  to  be  loaned  to  the  Bureau  of  Trade  by  the  Pekin 
Syndicate  is  an  estimated  sum.  After  the  capital  necessary  for  opening  each  mine  has 
been  supplied  by  the  Syndicate,  the  Syndicate  will  be  authorized  to  print  shares,  certificates, 
and  conditions  for  the  capital  furnished,  and  fix  the  time  of  sale.  Chinese  merchants  who 
apply  for  shares  within  a  fixed  time  shall  be  allowed  to  buy  of  shares  for  sale  any  number 
they  wish. 

"  15. — Chinese  merchants  who  wish  to  buy  shares  may  get  them  from  the  Bureau,  who 
will  procure  them  at  current  market  rates  :  or  they  may  themselves  buy  or  sell  the  shares 
at  pleasure.  If  any  Chinese  gentry  or  merchants  shall,  within  the  term  of  sixty  years, 
acquire  three-fourths  of  all  the  shares  of  any  one  mine,  that  mine  may  then  be  redeemed 
from  the  Syndicate,  and  the  Bureau  shall  report  upon  same,  and  direct  that  shareholder 
to  take  charge  of  the  mine. 

"16. — If  within  the  area  authorized  for  opening  mines  there  be  mines  already  worked 
by  the  people,  such  private  mines  shall  not  be  appropriated,  but  if  a  proprietor  be  willing 
to  lease  or  sell  his  mine  the  Bureau  and  the  Syndicate  shall  offer  a  reasonable  price  for 
it,  but  no  compulsion  shall  be  used. 

"17. — Whenever  it  may  be  necessary  for  any  mine  to  make  roads,  build  bridges,  open 
or  deepen  rivers  or  canals,  or  construct  branch  railways  to  connect  with  main  lines  or 
with  water  navigation  to  facilitate  transport  of  Shansi  coal,  iron,  and  all  other  mineral 
products  from  the  province,  the  Syndicate  on  reporting  to  the  Governor  of  Shansi  is 
authorized  to  proceed  with  the  works,  using  its  own  capital,  without  asking  for  Govern- 
ment funds.  Regulations  for  branch  railways  are  to  be  made  in  due  time.  With  reference 
to  the  Chengting  to  Taiyuan  Railway,  for  the  construction  of  which  the  Bureau  has  bor- 
rowed capital  from  others,  the  Pekin  Syndicate,  to  avoid  disputes,  shall  not  construct  any 
railway  within  100  li  on  each  side  of  it.  Private  land  required  for  the  works  authorized 
as  above  shall  be  leased  or  bought  according  to  the  Rules  already  in  force  with  other 
public  Companies.  No  encroachment  of  private  property  shall  be  allowed,  and  the  local 
authorities  must  be  applied  to  for  protection. 

"  18. — At  the  end  of  every  year  a  printed  account  of  profit  and  loss  shall  bc  rendered 


702  CHINA  TREATIES  AND  AGREEMENTS 

by  each  mine  to  the  Bureau,  and  each  mine  shall  appoint  one  Chinese  and  one  foreign 
auditor  to  examine  the  accounts  and  certify  that  they  are  correct ;  and  a  general  account 
of  profit  and  loss  for  all  the  mines  shall  be  jomtly  prepared  and  submitted  to  the  Gov- 
ernor, who  will  send  copies  to  the  Tsung-li  Yamen  and  Board  of  Revenue  for  audit. 
Payments  due  to  the  Government  shall  be  reported  at  the  same  time. 

"  19. — These  mines  being  under  the  sovereignty  of  China,  should  China  ever  be  at 
war  with  another  country,  the  Syndicate  will  obey  the  orders  of  the  Chinese  Government 
prohibiting  any  aid  to  the  enemy. 

"  20. — These  Regulations  shall  be  made  out  both  in  Chinese  and  foreign  text ;  each 
party  to  have  a  copy  for  reference. 

"  Signed  in  Peking  on  this  21st  day  of  May,  1898,  being  the  second  day  of  the  fourth 
month  of  the  twenty-fourth  year  of  the  Emperor  Kuang  Hsii. 

"  Seals  of  Mr.  A.  Luzzatti,  General  Agent  of  the  Pekin  Syndicate  (Limited),  and  of 
the  Shansi  Bureau  of  Trade." 


NUMBER  1908/3. 

GREAT  BRITAIN  (British  &  Chinese  Corporation,  Limited)  AND  CHINA. 

Agreement  for  the  Imperial  Chinese  Government  five  per  cent.  Shanghai-H ang- 
chow-Ningpo  Railway  Loan* — March  6,  1908  . 

This  Agreement  is  made  at  Peking  on  the  fourth  day  of  the  second  month  of 
the  thirty-fourth  year  of  Kuang  Hsu,  corresponding  to  the  sixth  day  of  March 
1908,  and  the  contracting  parties  are : — 

The  Waiwupu   (Board  of  Foreign  Affairs)   and 

The  Yuchuanpu  (Board  of  Communications),  acting  under  the  authority  of 
an  Imperial  Decree,  of  the  one  part,  and  the  British  and  Chinese  Corporation, 
Limited  (hereinafter  called  "The  Corporation")  of  the  other  part. 

Article  1. — The  Imperial  Government  of  China  authorizes  the  Corporation 
to  issue  a  five  per  cent  gold  loan  for  the  amount  of  £1,500,000  sterling.  The  loan 
shall  be  of  the  date  on  which  it  is  issued  to  the  public  and  shall  be  called  "  The 
Imperial  Chinese  Government  five  per  cent  Shanghai-Hangchow-Ningpo  Railway 
Loan." 

Article  2. — The  loan  is  designed  to  provide  capital  for  the  construction  of  a 
railway  fine  (hereinafter  called  *'  the  railway  ")  from  a  point  connecting  with  the 
Shanghai-Nanking  Railway  at  or  near  Shanghai  in  Kiangsu  to  the  cities  of  Hang- 
chow  and  Ningpo  in  Chekiang.  The  railway  shall  follow  a  line  from  Shanghai 
through  Fengchingchen  to  Kahsingfii ;  and  thence  to  Hushu  and  Hangchow ;  and 
thence  from  Chiangkan  to  Ningpo,  on  which  line  certain  construction  work  has 
already  been  locally  undertaken  under  authority  of  the  Imperial  Chinese  Govern- 
ment. 

The  survey  line  shall  be  open  to  revision  by  the  Yuchuanpu. 

Article  3. — The  Chinese  Government  guarantees  that  the  capital  so  pro- 
vided shall  be  solely  devoted  to  the  construction  of  the  railway  including  the 

*Text  as  printed  in  Wang,  p.  467.  Printed  also  in  "China's  foreign  raihvay  agree- 
ments," in  supplement,  November.  1909,  F.  E.  Revieiv,  vol.  V,  p.  127.  See  Note  to  this 
document,  post,  p.  711. 


NUMBER  1908/3 :  MARCH  6,  1908  703 

purchase  of  rolling  stock  and  other  equipment  and  to  the  working  of  the  line 
during  construction ;  it  is  understood,  however,  that  the  cost  of  the  land  required 
for  the  railway  and  the  payment  of  interest  on  the  Loan  during  construction  are 
not  to  be  met  out  of  Loan  funds,  but  will  be  paid  by  the  Imperial  Chinese  Govern- 
ment from  other  sources.  It  is  understood  that  the  railway  will  be  completed 
within  three  years  from  the  date  of  signature  of  this  Agreement ;  and  that  within 
a  period  of  six  months  from  that  date  the  Corporation  shall  notify  the  Yuchuanpu 
that  the  sum  of  £100,000  has  been  placed  at  their  disposal,  to  be  held  in  Europe 
or  remitted  to  China  as  they  may  direct,  as  a  first  instalment  on  account  of  the 
proceeds  of  the  Loan.  This  amount  of  i  100,000,  or  whatever  portion  thereof 
is  actually  advanced,  together  with  interest  thereon  not  exceeding  a  charge  of 
six  per  cent  per  annum,  shall  be  deducted  from  the  proceeds  of  the  sale  of  the 
bonds. 

Article  4. — The  rate  of  interest  for  the  Loan  shall  be  five  per  cent  per 
annum  on  the  nominal  principal  and  shall  be  paid  to  the  bondholders  half-yearly. 
The  said  interest  shall  be  calculated  from  the  date  on  which  the  Loan  is  issued 
to  the  public  and  shall  be  paid  by  the  Imperial  Chinese  Government  during  the 
time  of  construction  from  Chinese  sources,  and  afterwards,  in  the  first  place 
out  of  the  revenues  of  the  railway,  and  should  these  be  insufficient  then  from  the 
surplus  earnings  of  the  Imperial  Railways  of  North-China  (excluding  the  section 
of  the  Hsinmintun-Mukden  line  to  the  East  of  the  Liao  River)  and  thereafter, 
if  necessary,  from  such  other  revenues  as  the  Chinese  Government  may  see 
fit  to  use  for  the  purpose,  in  half-yearly  instalments  according  to  the  amounts 
specified  in  the  schedule  attached  to  this  Agreement  and  fourteen  days  before 
their  due  dates.  Western  Calendar,  as  calculated  half-yearly  from  the  date 
on  which  the  Loan  is  issued  to  the  public. 

Article  5. — The  term  of  the  Loan  shall  be  thirty  years.  Repayment  of 
principal  shall  commence  after  the  expiry  of  ten  years  from  the  date  of  the  Loan, 
and,  except  as  provided  in  Article  6  hereinafter,  shall  be  made  by  yearly  amortisa- 
tion to  the  Hongkong  and  Shanghai  Banking  Corporation  in  half-yearly  instal- 
ments, out  of  the  revenues  of  the  railway,  and  should  these  be  insufficient,  then 
from  the  surplus  earnings  of  the  Imperial  Railways  of  North-China  (excluding 
the  section  of  the  Hsinmintun-Mukden  line  to  the  East  of  the  Liao  River)  and 
thereafter,  if  necessary,  from  such  other  revenues  as  the  Imperial  Chinese 
Government  may  think  fit  to  use  for  the  purpose,  according  to  the  amounts 
specified  in  the  schedule  attached  to  this  Agreement,  and  fourteen  days  before 
their  due  dates,  Western  Calendar,  as  calculated  half-yearly  from  the  date  on 
which  the  Loan  is  issued  to  the  public. 

Article  6. — If  at  any  time  after  the  lapse  of  ten  years  from  the  date  of 
the  Loan,  the  Imperial  Chinese  Government  should  desire  to  redeem  the  whole 
outstanding  amount  of  the  Loan,  or  any  portion  of  it,  not  yet  due  for  repayment 
in  accordance  with  the  schedule  of  repayments  hereto  attached,  it  may  do  so 
until  the  twentieth  year  by  payment  of  a  premium  of  2^  per  cent  on  the  face 
value  of  the  bonds  (that  is  to  say,  by  payment  of  £102.10/-  for  each  £100  bond) 
and  after  the  twentieth  year,  without  premium;  but  in  each  and  every  case 
of  such  extra  redemption  the  Imperial  Chinese  Government  shall  give  six  months 


704  CHINA  TREATIES  AND  AGREEMENTS 

notice  in  writing  to  the  Corporation,  and  such  redemption  shall  be  effected  by 
additional  drawings  of  bonds,  to  take  place  on  the  date  of  an  ordinary  drawing 
as  provided  for  in  the  prospectus  of  the  Loan. 

Article  7. — The  Hongkong  and  Shanghai  Banking  Corporation  having  been 
appointed  by  the  British  and  Chinese  Corporation,  Limited,  Agents  for  the 
service  of  the  Loan,  the  half-yearly  payments  due  for  amortization  and  interest, 
referred  to  in  Articles  4  and  5,  shall  be  made  in  accordance  with  the  amounts  of 
the  schedule  attached  to  this  Agreement,  and  fourteen  days  before  their  due  dates, 
as  fixed  by  Articles  4  and  5,  to  the  Hongkong  and  Shanghai  Banking  Corporation 
by  the  Yuchuanpu  or  its  duly  appointed  representative,  who  shall  hand  to  the 
said  Bank  in  Shanghai,  fourteen  days  before  the  said  due  dates,  funds  in 
Shanghai  sycee  sufficient  to  meet  such  payments  in  sterling  in  London,  exchange 
for  which  shall  be  settled  with  the  Bank;  the  Yuchuanpu,  or  its  duly  appointed 
representative,  having,  however,  the  option  of  settling  exchange  with  the  Bank 
at  any  date  or  dates  within  six  months  previous  to  any  due  date  for  the  repay- 
ment of  interest  and  principal.  These  payments  may,  however,  be  made  in 
Gold  if  the  Imperial  Chinese  Government  should  happen  to  have  Gold  funds 
"  bona  fide  "  at  their  disposal  in  Europe,  not  remitted  from  China  for  the  pur- 
pose, and  desire  so  to  use  them. 

In  reimbursement  of  expenses  connected  with  the  payment  of  interest  and 
the  repayment  of  principal  of  the  Loan,  the  Hongkong  and  Shanghai  Banking 
Corporation  will  receive  a  commission  of  one  quarter  per  cent  on  the  annual 
Loan  service. 

Article  8. — The  Imperial  Government  of  China  hereby  engages  that  the 
interest  and  principal  of  this  Loan  shall  duly  be  paid  in  full,  and  should  the 
revenues  of  the  Railway,  together  with  the  surplus  earnings  of  the  Imperial 
Railways  of  North  China  (excluding  the  section  of  the  Hsinmintun-Mukden 
line  to  the  East  of  the  Liao  River)  not  be  sufficient  to  provide  for  the  due  and 
full  payment  of  interest  and  repayment  of  principal,  the  Yuchuanpu  shall  me- 
morialize the  Throne  and  the  Imperial  Government  of  China  will  thereupon 
make  arrangements  to  ensure  that  the  amount  of  deficiency  shall  be  met  from  other 
sources  and  handed  over  to  the  Bank  at  the  date  upon  which  funds  are  required 
to  complete  full  payment  of  interest  and  repayment  of  principal. 

Article  9. — The  Loan  is  hereby  secured  upon  the  surplus  earnings  of  the 
Imperial  Railways  of  North  China  (excluding  the  section  of  the  Hsinmintun- 
Mukden  line  to  the  East  of  the  Liao  River),  that  is  to  say,  that  after  deducting 
from  the  net  earnings  of  that  railway  the  amounts  required  to  meet  the  payments 
of  interest  and  repayments  of  principal  due  in  terms  of  the  Agreement  of 
10th  October,  1898  (Kuang  Hsu  24th  year,  8th  moon,  25th  day)  to  the  bond- 
holders of  the  Imperial  Chinese  Government  Loan  of  that  year,  then  the  payment 
of  interest  and  repayment  of  principal  of  the  present  Loan  shall  be  a  first 
charge  upon  the  said  surplus  earnings  of  the  Imperial  Railways  of  North  China 
(excluding  the  section  of  the  Hsinmintun-Mukden  line  to  the  East  of  the  Liao 
River)  and  no  deductions  or  payments  shall  be  made  from  the  earnings  of  the 
said  railway  other  than  those  required  to  meet  the  obligations  stated  in  the  Loan 
Agreement  of  10th  October.  1898  (Kuang  Hsu  24th  year,  8th  moon,  25th  day) 


NUMBER  1908/3 :  MARCH  6,  1908  705 

until  an  amount  sufficient  to  pay  the  next  half-yearly  instalment  of  interest  and 
principal  of  the  present  Loan  shall  have  been  placed  on  deposit  with  the  Hong- 
kong and  Shanghai  Banking  Corporation  as  security  for  the  due  payment  of  the 
same. 

Article  10. — The  Corporation  is  hereby  authorized  to  issue  to  subscribers 
to  the  Loan,  bonds  for  the  total  amount  of  the  Loan  for  such  amounts  as  may 
appear  advisable  to  the  Corporation.  The  form  of  the  bonds  shall  be  settled 
by  the  Corporation  in  consultation  with  the  Yuchuanpu  or  its  duly  authorized 
representative  or  with  the  Chinese  Minister  in  London.  The  bonds  shall  be 
engraved  in  Chinese  and  English ;  they  shall  bear  the  facsimile  of  the  signature 
of  the  Yuchuanpu's  duly  authorized  representative  and  of  his  seal  of  office  (in 
order  to  dispense  with  the  necessity  of  his  signing  them  all  in  person),  but  the 
Chinese  Minister  in  London  shall,  previous  to  the  issue  of  any  bonds,  put  his  seal 
upon  each  bond  with  a  facsimile  of  his  signature  as  a  proof  that  the  issue  and 
sale  of  the  bonds  are  duly  authorized  by,  and  binding  upon,  the  Imperial  Chinese 
Government,  and  the  representative  of  the  Corporation  in  London  shall  counter- 
sign the  bonds  as  agents  for  the  issue  of  the  Loan. 

If  any  of  the  bonds  herein  mentioned  are  lost  or  destroyed  a  reissue  of  any 
thereof  is  to  be  made  in  the  amounts  respectively  called  for  by  such  lost  or 
destroyed  bonds,  but  proper  proof  of  the  loss  or  destruction  must  be  given  in 
the  usual  form  to  the  Corporation  and  the  Chinese  Minister  in  London  for 
examination  and  record,  and  the  requisite  guarantee  is  to  be  obtained  by  the 
Corporation  from  the  respective  claimants  concerned,  who  shall  defray  all 
expenses  connected  with  such  reissue  of  bonds  lost  or  destroyed  and  who  under 
the  said  guarantee  shall  undertake  to  indemnify  the  Imperial  Chinese  Government 
and/or  the  Corporation  for  any  loss  sustained  by  reason  of  the  issue  of  bonds 
in  the  place  of  bonds  lost  or  destroyed. 

Article  IL — All  bonds  and  coupons  and  payments  made  and  received  in 
connection  with  the  service  of  this  Loan  shall  be  exempt  from  all  Chinese  taxes 
and  imposts  during  the  currency  of  this  Loan. 

Article  12. — All  details  necessary  for  the  prospectus  and  connected  with 
the  payment  of  the  interest  and  repayment  of  the  principal  of  this  Loan  not 
herein  explicitly  provided  for  shall  be  left  to  the  arrangement  of  the  Corporation 
in  consultation  with  the  Chinese  Minister  in  London.  The  Corporation  is  hereby 
authorized  to  issue  the  prospectus  of  the  Loan  as  soon  as  possible  after  the  signing 
of  this  Agreement  and  the  Imperial  Government  will  instruct  the  Chinese 
Minister  in  London  to  co-operate  with  the  Corporation  in  any  matters  requiring 
conjoint  action  and  to  sign  the  prospectus  of  the  Loan. 

Article  13.— The  Loan  shall  be  issued  to  the  public  in  one  series  of  bonds, 
as  soon  as  possible  after  signature  of  this  Agreement  and  not  later  than  twelve 
months  from  the  date  thereof.  The  price  to  the  Imperial  Chinese  Government 
shall  be  93%  of  the  nominal  value  of  the  bonds.  Subscriptions  will  be  invited 
by  the  Corporation  in  England  and  in  China  both  from  Chinese  and  Europeans 
on  equal  conditions,  preference  being  given  to  the  application  by  the  Chinese 
Government  provided  that  such  application  be  made  before  the  issue  of  the 
prospectus  to  the  public. 


706  CHINA  TREATIES  AND  AGREEMENTS 

Article  14. — The  proceeds  of  the  Loan  shall  be  paid  to  the  credit  of  the 
Yuchuanpu  with  the  Hongkong  and  Shanghai  Banking  Corporation  in  China 
or  London  as  the  case  may  be.  Payments  of  the  Loan  proceeds  into  the  credit 
of  this  account  shall  be  made  in  instalments  and  on  dates  conforming  to  the 
conditions  allowed  to  the  subscribers  to  the  Loan.  Interest  at  the  rate  of  four  per 
cent  per  annum  shall  be  granted  on  the  credit  balance  of  the  portion  of  this 
account  kept  in  London  and  interest  on  the  credit  balance  of  the  portion  kept 
in  China  will  be  allowed  at  the  Bank's  rates  for  current  account  or  fixed  deposits, 
as  the  case  may  be,  to  be  arranged. 

The  Bank  will  hold  the  net  proceeds  of  the  Loan  with  accrued  interest  to 
the  order  of  the  Yuchuanpu,  or  its  duly  authorized  representative,  who,  in 
ordering  payment  of  any  sums  exceeding  £20,000  shall  give  notice  to  the  Bank 
ten  days  before  the  day  on  which  they  are  required.  Requisitions  on  the  Loan 
funds  will  be  drawn  in  amounts  to  suit  the  progress  of  construction  of  the  Rail- 
way by  orders  on  the  Hongkong  and  Shanghai  Banking  Corporation,  signed  by 
the  Yuchuanpu  or  its  duly  authorized  representative,  and  accompanied  by  his 
certificates  or  those  of  the  said  Board  stating  the  nature  and  cost  of  the  work  to 
be  paid  for. 

Such  amounts  as  may  be  required  for  expenditure  in  China  may  be  trans- 
ferred under  the  instructions  of  the  Yuchuanpu  at  their  discretion,  to  Shanghai, 
the  transfers  being  effected  through  the  Hongkong  and  Shanghai  Banking  Cor- 
poration, and  the  transferred  funds  shall  remain  on  deposit  with  that  Bank  until 
required  for  railway  purposes. 

The  Yuchuanpu  will  cause  to  be  published  annually,  upon  the  close  of  the 
Railway's  financial  year,  a  report  in  the  Chinese  and  English  languages  showing 
the  working  accounts  and  traffic  receipts  of  the  Railway,  which  report  shall  be 
procurable  by  the  public  on  application. 

Article  15. — If,  during  the  time  of  construction  the  net  proceeds  of  the 
present  Loan  with  accrued  interest  should  not  be  sufficient  to  complete  the  con- 
struction and  equipment  of  the  Railway  line,  the  amount  of  deficiency  shall  be 
provided  in  the  first  place  from  such  Chinese  funds  as  may  be  available  so  as  to 
permit  of  the  uninterrupted  continuance  of  the  work  of  construction,  any 
balance  then  uncovered  being  supplemented  by  a  further  foreign  loan  for  the 
amount  required,  to  be  issued  by  the  Corporation.  The  interest  and  other  con- 
ditions of  such  supplementary  Loan  will  be  the  same  as  in  the  present  agreement, 
and  the  price  payable  to  the  Imperial  Chinese  Government  will  be  the  actual  rate 
of  its  issue  to  the  public  less  flotation  charges  of  5}4  points  retainable  by  the 
Corporation,  that  is  to  say,  £5.  10/-  for  every  ilOO  bond  issued. 

If,  after  completion  of  the  line,  there  should  remain  a  balance  of  Loan 
funds  at  the  credit  of  the  Railway  account,  such  unused  balance  shall  be  at  the 
disposal  of  the  Yuchuanpu  to  be  used  either  for  the  purpose  of  paying  interest 
on  the  Loan  or  for  the  equipment  of  the  Railway,  or  for  the  construction  and 
equipment  of  branch  lines  beneficial  to  the  Railway. 

Article  16. — If,  before  the  publication  of  the  prospectus  for  the  issue  of 
the  Loan,  any  political  or  financial  crisis  should  take  place  by  which  the  market 
and  the  prices  of  existing  Chinese  Government  stocks  are  so  affected  as  to  render 


NUMBER  1908/3 :  MARCH  6,  1908  707 

in  the  opinion  of  the  Corporation  the  successful  issue  of  the  Loan  impossible 
on  the  terms  herein  named,  the  Corporation  shall  be  granted  further  extension 
of  time,  but  not  beyond  eighteen  months  from  the  date  of  this  Agreement,  for 
the  performance  of  their  contract.  If,  within  this  time  limit  the  Loan  shall  not 
have  been  issued,  this  contract  shall  become  null  and  void,  and  any  advances 
made  by  the  Corporation  under  the  provisions  of  Article  3  shall  be  repaid  by 
the  Chinese  Government  with  accrued  interest,  but  without  any  other  compensa- 
tion or  remuneration  whatsoever. 

Article  17. — The  construction  and  control  of  the  Railway  will  be  entirely 
vested  in  the  Imperial  Chinese  Government.  For  the  work  of  construction  the 
Yuchuanpu,  or  its  duly  appointed  Managing  Director,  will  select  and  appoint  a 
British  Chief  Engineer,  who  shall  be  a  professional  man  of  established  reputa- 
tion to  be  selected  either  in  England  or  from  the  staff  of  one  of  the  existing 
Chinese  Government  Railways.  The  Chief  Engineer  will  be  under  the  orders 
of  the  Managing  Director,  or,  in  his  absence,  of  his  duly  authorized  representa- 
tive. In  his  general  conduct  he  shall  pay  all  due  respect  to  the  Managing 
Director.  The  terms  of  the  Chief  Engineer's  agreement  will  be  arranged  by  the 
Yuchuanpu  or  its  duly  appointed  Managing  Director. 

Whenever  appointments  are  to  be  made  or  functions  are  to  be  defined  of 
the  technical  employees  on  the  Railway  staff,  as  well  as  in  the  case  of  their 
dismissal,  the  Managing  Director,  or  in  his  absence,  his  duly  appointed  repre- 
sentative, will  act  in  consultation  with  the  Chief  Engineer  and,  in  the  case  of  dis- 
agreement, the  matter  will  be  referred  to  the  Yuchuanpu,  whose  decision  shall  be 
final.  After  completion  of  construction  the  Imperial  Chinese  Government  will 
retain  the  services  of  an  Engineer-in-Chief  who  during  the  period  of  the  Loan 
shall  be  a  British  subject. 

Article  18. — During  the  construction  of  the  Railway  the  Corporation  will 
act  as  its  Agents  for  the  purchase  of  all  materials,  plant  and  goods  required  to 
be  imported  from  abroad.  For  all  important  purchases  of  such  materials,  tenders 
shall  be  called  for  by  the  Managing  Director;  in  the  case  of  all  tenders,  indents 
and  orders  for  the  importation  of  goods  and  materials  from  abroad  the  said 
Agents  shall  purchase  the  materials  required  on  the  terms  most  advantageous  to 
the  Railway.  It  is  understood  that  no  orders  for  materials  shall  be  execcuted 
or  any  expenditure  incurred  without  due  authorization  by  the  Managing 
Director. 

As  remuneration  for  its  services  as  Agents  of  the  Railway  during  con- 
struction, the  Corporation  shall  receive  the  sum  of  £35,000,  half  of  which  shall 
be  paid  when  the  construction  work  is  half  completed  but  not  later  than  eighteen 
(18)  months  from  the  date  of  this  agreement,  and  the  other  half  upon  completion 
of  the  line.  This  amount  shall  be  regarded  as  commutation  of  all  commissions 
to  which  the  Corporation  and  its  Agents  would  properly  be  entitled  and  of 
payments  for  all  services  rendered  in  the  construction  and  equipment  of  the  Rail- 
way in  respect  of  the  present  Loan;  but  in  the  event  of  a  further  Loan  being 
required  under  the  provisions  of  Article  15  hereinabove,  then  a  further  payment  of 
commuted  commission,  proportionate  to  the  amount  of  such  supplementary  Loan 
and  calculated  at  the  same  rate  as  the  commutation  hereinabove  mentioned,  shall 


708  CHINA  TREATIES  AND  AGREEMENTS 

be  made  to  the  Corporation  as  commutation  of  its  commission  for  all  services  in 
respect  of  construction. 

In  return  for  this  commuted  commission  the  Corporation  as  Agents  shall 
be  prepared  to  superintend  the  purchase  of  all  foreign  materials  required  for 
the  construction  and  equipment  of  the  Railway  which  shall  be  purchased  in  the 
open  market  at  the  lowest  rate  obtainable,  it  being  understood  that  all  such 
materials  shall  be  of  good  and  satisfactory  quality.  At  equal  rates  and  qualities 
goods  of  British  manufacture  shall  be  given  preference  over  other  goods  of 
foreign  origin.  The  Managing  Director  shall  have  the  right,  while  paying  the 
above  stipulated  commutation  of  commission  to  the  said  Agents,  in  respect  of 
all  purchases  of  foreign  materials,  to  avail  himself  of  the  services  of  other  Agents 
in  China  or  abroad  should  he  see  fit  to  do  so. 

Original  invoices  and  inspectors'  certificates  are  to  be  submitted  to  the 
Managing  Director ;  all  return  commissions  and  rebates  of  every  description  shall 
be  credited  to  the  Railway ;  and  all  purchases  made  by  the  Agents  on  behalf  of 
the  Railway  shall  be  supported  by  manufacturers'  original  invoices  and  inspectors' 
certificates. 

No  commission  shall  be  paid  to  the  Agents  except  as  above  provided ;  but 
it  is  understood  that  the  Yuchuanpu  or  its  duly  authorized  representative  shall 
provide  out  of  Railway  funds  for  the  remuneration  of  Consulting  Engineers 
whenever  their  services  are  required  for  general  assistance  and  advice  or  for  the 
inspection  abroad  of  materials  requiring  supervision  of  technical  experts. 

With  a  view  to  the  encouragement  of  Chinese  industries,  preference  shall  be 
given,  at  equal  prices  and  qualities,  over  British  and  other  foreign  goods,  to 
Chinese  goods  and  materials  manufactured  in  China.  No  commission  will  be 
paid  on  purchases  of  such  materials  and  goods. 

It  is  understood  and  agreed  that  after  the  construction  of  the  line  is  com- 
pleted, the  Corporation  will  be  given  the  preference  for  such  Agency  business 
during  the  currency  of  the  Loan  for  the  supply  of  foreign  materials  as  may  be 
required  for  the  Railway,  on  terms  to  be  hereafter  mutually  agreed  upon. 

Article  19. f — Branch  lines  in  connection  with  the  Railway  mentioned  in  this 
Agreement,  that  may  appear  profitable  or  necessary  later  on,  shall  be  built  by  the 
Imperial  Chinese  Government  with  funds  at  their  disposal  from  Chinese  sources, 
and  if  foreign  capital  is  required,  preference  will  be  given  to  the  Corporation. 

Article  20. — By  the  preliminary  agreement  dated  October  15,  1898  (Kuang 
Hsu  24th  Year,  9th  Moon,  1st  Day)J  participation  of  twenty  per  cent  of  the  net 
profits  of  the  Railway  had  been  promised  to  the  Corporation  in  remuneration 
for  their  general  responsibility  and  services.  In  commutation  of  this  participation 
in  net  profits,  the  Corporation  is  granted  the  right  to  retain  £67,500  out  of  the 

fit  is  understood  that  in  a  note  dated  June  21,  1918,  the  Wai  Chiao  Pu  had  occasion 
to  address  the  British  Legation  to  the  following  effect : 

"  Regarding  the  claim  based  on  the  Hu-Hang-Yung  (Shanghai-Hangchow-Ningpo) 
Agreement,  in  the  19th  Article  of  the  said  Agreement  it  is  specifically  stated  that  the 
Agreement  includes  the  construction  of  branch  roads.  The  Wen-Hang  (Wenchow- 
Hangchow)  Railway  is  a  main  line  of  the  Chinese  system,  in  length  400  to  500  //,  and 
cannot  be  considered  a  branch  road  of  the  Hu-Hang-Yung  line.  Since  this  road  cannot 
be  considered  a  branch  of  the  Hu-Hang-Yung  Railway,  Article  19  of  the  Agreement  can 
have  no  reference  to  it." 

t  No  text  of  this  preliminary  agreement  is  available. 


NUMBER  1908/3 :  MARCH  6,  1908  709 

proceeds  of  the  Loan  in  instalments  and  on  dates  in  proportion  to,  and  based  on, 
the  terms  of  subscription  to  the  Loan,  as  stated  in  the  prospectus.  No  further 
payment  in  respect  of  commutation  of  profits  will  be  allowed  on  any  supple- 
mentary Loans. 

Article  21. — After  payment  of  interest  and  repayment  of  principal  of  the 
Loan  for  any  current  year,  the  Yuchuanpu  shall  deposit  with  the  Hongkong  and 
Shanghai  Banking  Corporation  in  Shanghai  any  surplus  of  the  net  revenue  of  the 
Railway  line  for  that  year  up  to  the  amount  required  to  pay  the  following  year's 
instalments  of  interest  on  the  loan;  the  rate  of  interest  on  the  deposit  being 
arranged  with  the  Bank  from  time  to  time  with  due  regard  to  the  conditions  of 
the  market. 

Article  22. — The  Corporation  may,  subject  to  all  its  obligations  under  this 
Agreement,  transfer  or  delegate  all  or  any  of  its  rights,  powers  or  discretions 
thereunder  to  any  British  Company,  Director  or  Agent,  with  power  of  further 
transfer  and  subdelegation,  such  transfer,  subtransfer,  delegation  or  subdelegation, 
to  be  subject  to  the  approval  of  the  Yuchuanpu. 

Article  23. — This  Agreement  is  signed  under  authority  of  an  Imperial 
Decree  of  this  date  which  has  been  officially  communicated  to  the  Minister  of 
Great  Britain  in  Peking  by  the  Waiwupu. 

Article  24. — Three  sets  of  this  agreement  are  executed  in  English  and 
Chinese,  two  sets  to  be  retained  by  the  Imperial  Chinese  Government  and  one  by 
the  Corporation;  in  the  event  of  any  doubt  arising  regarding  the  interpretation 
of  the  contract  the  English  text  shall  rule. 

Signed  at  Peking  by  the  contracting  parties  this  fourth  day  of  the  second 
month  of  the  thirty-fourth  year  of  the  Emperor  Kuang  Hsu,  being  the  sixth  day 
of  March  nineteen  hundred  and  eight. 

[Signed  in  Chinese] 
[Seal  of  Waiwupu].  Hu  Wei-teh. 

Liang  Shih-yi. 
Kao  Erh-ch'ien. 
For  the  British  and  Chinese  Corporation,  Ltd., 

J.  O.   P.  Bland, 
Representative  in  China. 


710 


CHINA  TREATIES  AND  AGREEMENTS 

SHANGHAI-HANGCHOW-NINGPO  RAILWAY. 

£1,500,000  at  5%.     30  Years. 

Amortisation  Schedule. 


Years 


1 

2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 


Interest 


37,500 
37,500 
37,500 
37,500 
37,500 
37,500 
37,500 
37,500 
37,500 
37,500 
37,500 
37,500 
37,500 
37,500 
37,500 
37,500 
37,500 
37,500 
37,500 
37,500 
37,500 
37,500 
35,625 
35,625 
33,750 
33,750 
31,875 
31,875 
30,000 
30,000 
28,125 
28,125 
26,250 
26,250 
24,375 
24,375 
22,500 
22,500 
20.625 
20.625 
18,750 
18,750 
16,875 
16,875 
15,000 
15,000 
13,125 
13,125 
11,250 
11,250 
9,375 
9,375 
7,500 
7,500 
5,625 
5,625 
3.750 
3.750 
1,875 
1,875 


Principal 
£ 


37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37,500 

37.500 

37,500 

37,500 


Principal 
Repaid 


37,500 
75,000 
112,500 
150,000 
187,500 
225,000 
262,500 
300,000 
337.500 
375,000 
412,500 
450,000 
487.500 
525,000 
562,500 
600,000 
637,500 
675,000 
712,500 
750,000 
787,500 
825,000 
862,500 
900,000 
937,500 
975,000 
1,012,500 
1,050,000 
1,087,500 
1,125.000 
1,162,500 
1.200,000 
1,237,500 
1,275,000 
1,312,500 
1,350,000 
1,387,500 
1,425,000 
1.462,500 
1,500,000 


Principal 
Outstanding 


1,500,000 
1,500,000 
1,500,000 
1,500,000 
1,500,000 
1,500,000 
1,500,000 
1,500,000 
1,500,000 
1,500,000 
1,425,000 
1,350,000 
1,275,000 
1,200,000 
1,125,000 
1,050,000 
975,000 
900,000 
825,000 
750,000 
675,000  . 
600,000 
525,000 
450,000 
375,000 
300,000 
225,000 
150,000 
75,000 


NUMBER  1908/3:  MARCH  6,  1908:  NOTE  711 

Note. 

The  construction  of  the  railway  was  in  fact  undertaken  by  Chinese  provincial  enter- 
prise— the  Shanghai-Fengching  section  by  the  Kiangsu  Provincial  Railway  Company,  and 
the  section  from  there  to  Ningpo  by  the  Chekiang  Provincial  Railway  Company,— under 
concessions  from  the  Central  Government. 

The  Far  Eastern  Review  of  July,  1913  (vol.  X,  p.  72)  gives,  without  indication  of 
date  or  source,  the  following  version  (presumably  translated  from  a  Chinese  text)  of 
an  agreement  for  the  nationalization  of  the  Kiangsu  section  of  this  railway : 

Agreement  with  Provincial  Company  for  Nationalization  of  Kiangsu  Section  of 
Shanghai-Hangchow-Ningpo  Railway. 

"  Agreement  made  between  the  Kiangsu  Railway  Company  (hereinafter  called  the 
Company)  represented  by  Yang  Ting-tung  (hereinafter  called  the  Representative)  of  the 
one  part,  and  the  ^linistry  of  Communications  (hereinafter  called  the  Ministry)  of  the 
other  part,  for  the  nationalization  of  a  Railway  line  belonging  to  the  Company,  under 
the  following  terms  and  conditions : 

"Article  1. — The  Company  hereby  agrees  to  surrender  completely  to  the  Government, 
according  to  the  resolution  of  the  Shareholders'  Meeting  of  the  Company,  all  the  properties 
and  privileges  of  the  Shanghai-Kashing  Line,  i.e.  the  Railway  Line  from  Shanghai  to 
Fengching,  which  shall  be  controlled  and  managed  direct  by  the  IMinistry ;  and  to  cancel 
the  concession  of  all  privileges  previously  granted  to  the  Company  by  the  Government. 

"Article  2. — The  ^linistry  hereby  agrees  to  refund  to  the  Company  all  the  Capital 
of  the  line,  namely :— Proper  Shares  $3,476,523  and  Interest  Shares  $1,073,895  (the  latter 
amount  is  not  yet  considered  settled  until  proper  calculation  is  made),  by  issuing  to  the 
Company  a  number  of  Bonds  of  fi.xed  dates.  This  Capital  shall  be  repaid  in  five  years 
from  the  date  of  the  taking  over  of  the  line,  and  the  repayment  shall  be  made  in  three 
instalments  in  each  year,  in  accordance  with  the  separate  schedule.  It  is,  however,  under- 
stood that  any  of  the  instalments  of  each  year  may  be  made  before  the  stipulated  time, 
provided  two  months'  previous  notice  shall  be  given  by  the  Ministry  to  the  Company  to 
this  effect. 

"Article  3. — From  the  date  of  the  taking  over  of  the  line,  the  Capital  which  has  not 
yet  been  repaid  by  the  Ministry  shall  also  bear  yearly  interest  at  the  usual  rate  originally 
decided  upon  by  the  Company,  and  this  interest  shall  be  paid  by  the  Ministry  at  the  same 
time  together  with  the  repayments  of  the  Capital,  when  the  instalments  become  due. 

"Article  4. — All  Bonus  or  Founder's  Shares  which  formerly  existed  shall  be  null  and 
void.  They  shall  not  be  considered  as  Capital  nor  shall  they  be  entitled  to  the  repayment 
of  principal  or  the  payment  of  interest. 

"Article  5. — Of  the  14  Regulations  regarding  Deposits  of  the  Kiangsu  and  Chekiang 
Railways,  drawn  up  by  the  former  Board  of  Posts  and  Communications  on  the  ISth 
day,  3rd  month,  of  the  34th  year  of  Kuang  Hsii  in  the  late  Ching  Dynasty,  all  those 
which  refer  to  the  Kiangsu  Railway  shall  be  annulled  from  the  date  of  the  taking  over 
of  the  line. 

"  Article  6. — After  the  closing  of  the  Company,  an  organ  of  account-calculation 
shall  be  established.     How  this  organ  is  to  be  established  shall  be  decided  separately. 

"Article  7. — All  the  liabilities  and  assets  which  really  belong  to  the  Company  shall  be 
transferred  to  the  Ministry,  but  the  amounts  of  them  shall  be  determined  by  those  con- 
tained in  the  6th  Report  of  the  Company. 

"Article  8. — After  the  signing  of  this  Agreement  and  before  the  taking  over  of  the 
line,  the  Company  shall  be  fully  responsible  for  all  the  properties,  incomes  and  expenses 
of  the  Company  itself. 

"Article  9.— With  the  exception  of  cases  having  special  reasons,  all  the  terminable 
agreements  and  contracts  of  employment,  transportation,  lease,  etc.,  entered  into  between 
the  Company  and  other  parties,  shall  continue  to  be  in  force  until  the  expiration  of  their 
respective  terms. 

"Article  10.— On  the  signing  of  this  agreement,  the  Ministry  shall  depute  officials  to 
the  Company  to  calculate  carefully  the  accounts,  and  the  Company  shall  instruct  its  respon- 
sible officers  to  prepare  detailed  lists  of  properties  together  with  all  the  books,  documents 
and  vouchers,  and  to  submit  them  to  the  ^Ministerial  Officials  for  comparison  and  signature. 

"Article  11.— It  is  mutuallv  agreed  that  the  taking  over  of  the  line  shall  be  effected 
on  the  1st  day  of  the  7th  month,  of  the  2nd  year  of  the  Republic  [i.e.,  July  1,  1913]. 

"Article  12.— The  Ministry  shall  not  be  responsible  for  the  repayment  of  any  money 
that  has  not  been  stipulated  in  this  agreement. 

"Article  13.— Should  any  detailed  procedure  be  required  for  carrying  out  the  terms 
and  conditions  of  this  agreement,  it  shall  be  decided  by  the  Representative  and  the  Mm- 
istry  after  mutual  agreement." 

The  Ministrv  of  Communications  thereafter  (on  February  14,  1914),  concluded  with 
the  British  and  Chinese  Corporation,  Limited,  a  memorandum  of  agreement  for  the  pay- 


712  CHINA  TREATIES  AND  AGREEMENTS 

ment,  from  the  proceeds  of  the  loan  of  1908,  of  the  funds  required  for  the  redemption  and 
nationalization  of  this  section  of  the  railway,  the  text  of  which  agreement  is  thus  given 
in  Wang,  p.  497: 

Agreement  with  British  &  Chinese  Corporation  regarding  Nationalization  of  Kiangsu 
Section    of    Shanghai-Hangchow-Ningpo    Railway,    February    14,    1914. 

"  WHEREAS  arrangements  have  been  concluded  between  the  Ministry  of  Communi- 
cations (hereinafter  called  'the  Ministry')  and  the  Kiangsu  Provincial  Railway  Com- 
pany (hereinafter  called  'the  Company')  for  the  resumption  as  a  Government  Railway 
of  the  railway  constructed  by  the  Company  from  Shanghai  to  Fengching: 

"  and  WHEREAS  the  said  railway  was  placed  on  January  1,  1914,  under  a  Managing 
Director  appointed  by  the  Ministry  and  it  is  now  necessary  to  commence  making  payment 
of  the  instalments  of  redemption  money  which  the  Ministry  has  agreed  to  pay  to  the 
Company : 

"  and  WHEREAS  the  British  and  Chinese  Corporation  Limited  (hereinafter  called 
'the  Corporation')  has  agreed  that  the  Company  shall  be  paid  from  the  funds  of  the 
Chinese  Government  5%  Shanghai-Hangchow-Ningpo  Railway  Loan  of  1908  such  amount 
as  may  represent  the  actual  value  of  the  said  railway,  on  condition  that  the  said  railway  be 
forthwith  administered  as  a  Government  line  in  a  satisfactory  manner: 

"  This  AGREEMENT  between  the  IMinistry,  of  the  one  part,  and  the  Corporation,  of 
the  other  part,  WITNESSETH  AS  FOLLOWS: 

"  1. — The  Ministry  declares  the  said  railway  to  be  free  from  all  mortgage  of  property 
or  charge  on  revenue,  and  that  all  outstanding  liabilities  of  the  Company  are  provided  for 
in  the  payments  which  the  Ministry  has  agreed  to  make  to  the  Company. 

"2. — The  actual  value  of  the  railway  having  been  estimated  by  the  INIinistry  and  the 
Corporation  at  Shanghai  Taels  3,150,000  it  is  hereby  agreed  that  the  following  amounts 
shall  be  paid  from  the  loan  funds  aforesaid  on  the  dates  herein  stated,  namely : 

On  February    20th,  1914,  Shanghai  Taels     •  • 1,150,000 

On  May             20th,  1914,  Shanghai  Taels     920,000 

On  August        20th,  1914,  Shanghai  Taels     770.000 

On  November  20th,  1914,  Shanghai  Taels     310,000 

"  The  said  amounts  will  be  held  available  to  the  order  of  the  Ministry  by  the  Hongkong 
and  Shanghai  Banking  Corporation,  Shanghai. 

"3. — From  the  date  of  the  first  payment  of  loan  funds  as  above  agreed  the  railway  will 
be  effectively  administered  by  the  Ministry,  and  it  has  been  agreed  by  the  Company  that 
they  will  from  that  date  relinquish  all  their  rights  in  respect  to  the  railway  and  will  look 
solely  to  the  Chinese  Government  for  the  payment  of  all  further  instalments,  without 
recourse  against  the  Railway :  a  declaration  to  which  effect  will  be  stamped  on  the  Chinese 
Government  bonds  which  are  to  be  issued  to  the  Company  by  the  Ministry. 

"  4. — The  administration  of  the  railway  will  be  conducted  by  a  Chinese  Managing 
Director.  An  Engineer-in-Chief,  a  Traffic  Manager  and  a  Chief  Accountant,  all  of  whom 
shall  be  British  subjects  acceptable  to  the  Corporation,  shall  be  appointed  forthwith, 
together  with  the  necessary  staff.  The  aforesaid  officers  shall  be  under  the  orders  of  the 
Managing  Director  or  his  duly  authorised  representative. 

"  The  connection  of  the  railway  with  the  Shanghai-Nanking  Railway  shall  be  under- 
taken by  the  Administration  of  the  railway  without  delay. 

"  5. — The  Chief  Accountant  shall  have  sole  charge  under  the  authority  of  the  Managing 
Director  of  all  receipts  and  disbursements  of  railway  funds,  and  shall  sign  in  conjunction 
with  the  Managing  Director  all  documents  appertaining  to  the  disbursements  of  railway 
funds.  The  receipts  of  the  railway  will  be  deposited  by  him  to  the  credit  of  the  railway 
account  with  the  Hongkong  and  Shanghai  Banking  Corporation  at  Shanghai :  and  any  net 
revenue  after  payment  of  working  expenses  will  be  available  for  the  payment  of  interest 
on  the  bonds  of  the  Shanghai-Hangchow-Ningpo  Railway  loan  of  1908. 

"6. — This  Memorandum  of  Agreement  is  made  subject  to  and  in  amplification  of  the 
Shanghai-Hangchow-Ningpo  Railway  loan  agreement  of  March  6th,  1908.  In  the  event  of 
any  doubt  arising  regarding  its  interpretation  the  English  text  shall  rule. 

"  Signed  at  Peking,  this  fourteenth  day  of  February,  1914,  corresponding  to  the  four- 
teenth day  of  the  second  month  of  the  third  year  of  the  Chinese  Republic. 

"  [Chinese  signature  of 

■'  Chu  Ch'i-ch'ien. 

and  seal  of 

THE  MINISTER  OF  COMMUNICATIONS.] 

(Signed)  S.  F.   Mayers. 

for   THE  BRITISH  AND   CHINESE   CORPORATION   LIMITED." 

(Seal) 


NUMBER  1908/3:  MARCH  6,  1908:  NOTE  713 

The  Kiangsu  Railway  had  meanwhile  been  mortgaged,  at  the  time  of  the  revolution, 
as  security  for  a  loan  of  Yen  3,000,000  from  Okura  &  Company  to  the  Nanking  Provisional 
Government ;  and  the  funds  for  the  redemption  of  that  mortgage  were  borrowed  by  the 
Chinese  Government  from  the  British  and  Chinese  Corporation  under  an  agreement  of 
February  14,  1914,  of  which  the  text  is  thus  given  in  Wang,  p.  503: 

Agreement  for  a  Loan  for  Redemption  of  Mortgage  on  Kiangsu  Section  of  Shanghai- 
Hangchow-Ningpo  Railway,  February  14,  1914. 

"WHEREAS  AX  AGREEMENT  dated  January  27th,  1912,  was  made  between  the 
NANKING  PROVISIONAL  GOVERNMENT  and  MESSRS.  OKURA  of  Japan  for  a 
loan  of  Yen  three  millions,  secured  by  mortgage  of  the  Kiangsu  Section  of  the  Shanghai- 
Hangchow-Ningpo  Railway : 

AND  WHEREAS  the  Chinese  Government  is  now  desirous  of  redeeming  the  said  loan 
and  lifting  the  said  mortgage  which  conflicts  with  the  Shanghai-Hangchow-Ningpo  Railway 
loan  agreement  of  Ivlarch  6th,  1908,  the  present  AGREEMENT  is  made  between  the  Gov- 
ernment of  the  Republic  of  China  acting  through  its  Ministry  of  Communications,  of  the 
one  part,  hereinafter  called  'the  Ministry,'  and  the  British  and  Chinese  Corporation 
Limited,  hereinafter  called  '  the  Corporation,'  of  the  other  part. 

"Article  1. — The  Ministry  hereby  contracts  to  borrow  from  the  Corporation  a  loan  of 
£375,000  to  be  evidenced  by  the  issue  of  Chinese  Government  bonds  for  that  amount  which 
the  Corporation  is  hereby  authorised  to  prepare  in  such  form  and  for  such  amounts  as 
the  Corporation  shall  decide  in  consultation  with  the  Chinese  Minister  in  _  London.  The 
bonds  shall  bear  the  facsimile  of  the  signature  of  the  Minister  of  Communications  and  of 
his  seal  of  office,  and  the  Chinese  Minister  in  London  shall  sign  and  seal  them  in  the  usual 
manner  as  a  proof  that  their  sale  is  duly  authorised  by  and  binding  upon  the  Chinese  Gov- 
ernment. The  loan  shall  be  entitled :  '  The  Chinese  Government  6%  Shanghai-Fengching 
Railway  Mortgage  Redemption  loan  of  1914.' 

"  The  proceeds  of  the  loan  will  be  placed  by  the  Corporation  to  the  credit  of  the  Min- 
istry at  the  Hongkong  and  Shanghai  Banking  Corporation  in  London  on  the  date  upon 
which  duly  executed  bonds  (or  provisional  certificates  representing  the  same)  are  handed 
to  the  Corporation  by  the  Chinese  IMinister  in  London. 

"  Article  2.— These  bonds  shall  bear  interest  at  the  rate  of  six  per  cent.  (6%)  per 
annum  on  the  nominal  principal  which  will  be  paid  to  the  Corporation  half-yearly.  The 
said  interest  shall  be  calculated  from  the  date  on  which  the  bonds  (or  provisional  certifi- 
cates representing  the  same)  are  handed  to  the  Corporation  and  shall  be  paid  by  the  Min- 
istry from  Chinese  Government  sources,  and  should  these  be  insufficient  then  from  the 
surplus  earnings  of  the  Peking-Mukden  Railway,  as  laid  down  in  Article  4  hereinafter. 

"  The  payment  of  interest  to  the  Corporation  will  be  made  through  its  duly  appointed 
Agents,  the  Hongkong  and  Shanghai  Banking  Corporation,  in  accordance  with  the  amounts 
of  the  schedule  attached  to  this  agreement  and  14  days  before  their  due  date,  by  the 
Ministry,  who  shall  hand  to  the  said  Bank  in  Shanghai  14  days  before  due  date,  funds 
in  Shanghai  sycee  and/or  coin  of  the  National  Currency  so  soon  as  the  said  currency  shall 
have  been  effectively  established,  sufficient  to  meet  such  payment  in  sterling  in  London, 
exchange  for  which  shall  be  settled  with  the  Bank.  These  payments  may  however  be  made 
in  Gold  if  the  Ministry  should  happen  to  have  Gold  funds  'bona  fide'  at  their  disposal 
in  Europe  and  desire  so  to  use  them. 

"  In  reimbursement  of  expenses  connected  with  the  payment  of  interest  and  repay- 
ment of  principal  of  the  loan  the  Hongkong  and  Shanghai  Banking  Corporation  will  receive 
a  commission  of  %%  on  the  annual  loan  service.  •     ,     ,    ,, 

"  Article  3.— The  term  of  the  loan  shall  be  20  years.  Repayment  of  principal  shall 
commence  after  the  expiry  of  10  years  from  the  date  on  which  the  bonds  (or  provisional 
certificates  representing  the  same)  are  handed  to  the  Corporation,  and  shall  be  made  by 
yearly  amortisation  to  the  Hongkong  and  Shanghai  Banking  Corporation  from  the  surplus 
earnings  of  the  Peking-Mukden  Railway  as  laid  down  in  Article  4  hereinafter,  and  if 
necessary,  from  such  other  sources  as  the  Ministry  may  think  fit  to  use  for  the  purpose 
according  to  the  amounts  specified  in  the  schedule  attached  to  this  agreement,  and  14 
days  before  their  due  dates,  as  calculated  from  the  date  on  which  the  bonds  (or  provi- 
sional certificates  representing  the  same)   are  handed  to  the  Corporation. 

"If  at  any  time  after  the  lapse  of  10  years  from  the  date  on  which  the  bonds  (ot 
provisional  certificates  representing  the  same)  are  handed  to  the  Corporation  the  Ministry 
should  desire  to  redeem  the  loan  or  any  portion  of  it  not  yet  due  for  repayment  m  accord- 
ance with  the  schedule  of  repayments  hereto  attached,  it  may  do  so  by  payment  of  a 
premium  of  2i/4%  on  the  face  value  of  the  bonds,  that  is  to  say  by  payment  of  £102.  lU/— tor 

each  £100  bond.  ,    ^-l-        1       u  ^.u-,*    tUa. 

"  Article  4 —The  Government  of  the  Republic  of  China  hereby  engages  that  the 
interest  and  principal  of  this  loan  shall  duly  be  paid  in  full,  and  pledges  as  security  for 
the  loan  the  surplus  earnings  of  the  Peking-Mukden  Railway  (excluding  the  section  of 
the  Hsinmintun-Mukden  line  to  the  East  of  the  Liao  River)  that  is  to  say,  that  after 
deducting  from  the  net  earnings  of  that   railway  the  amounts   required  to  meet  the  pay- 


714  CHINA  TREATIES  AND  AGREEMENTS 

ments  of  interest  and  repayments  of  principal  due  in  terms  of  the  agreement  of  October 
10th,  1898,  to  the  bondholders  of  the  Chinese  Government  loan  of  that  year,  and  after 
deducting  from  the  balance  of  the  net  earnings  of  that  railway  the  amounts  required  to 
meet  the  payments  of  interest  and  repayments  of  principal  due  in  terms  of  the  Agreement 
of  March  6th,  1908,  to  the  bondholders  of  the  Chinese  Government  Shanghai-Hangchow- 
Ningpo  Railway  loan  of  that  year,  then  the  payment  of  interest  and  repayment  of  prin- 
cipal of  the  present  loan  shall  be  a  first  charge  upon  the  said  surplus  earnings  of  the 
Peking-Mukden  Railway  (excluding  the  section  of  the  Hsinmintun-Mukden  line  to  the 
East  of  the  Liao  River)  and  no  deduction  or  payments  shall  be  made  from  the  earnings 
of  the  said  railway  other  than  those  required  to  meet  the  obligations  stated  in  the  Loan 
Agreements  of  October  10th,  1898,  and  6th  March,  1908,  until  an  amount  sufficient  to  pay 
the  next  half-yearly  instalment  of  interest  and  yearly  instalment  of  principal  of  the  present 
loan  shall  have  been  placed  on  deposit  with  the  Hongkong  and  Shanghai  Banking  Cor- 
poration as  security  for  the  due  payment  of  the  same. 

"  Article  5. — The  Corporation  undertakes  to  purchase  the  aforesaid  bonds  to  the  total 
nominal  value  of  £375,000  at  the  price  of  £91  for  each  £100  bond. 

"  Article  6. — The  Ministry  hereby  undertakes  that  the  proceeds  of  this  loan  shall  be 
solely  devoted  to  the  redemption  of  the  loan  of  Yen  3,000,000  mentioned  in  the  preamble 
of  this  Agreement,  and  hereby  declares  formally  that  on  redemption  of  the  said  loan  the 
Kiangsu  Section  of  the  Shanghai-Hangchow-Ningpo  Railway  will  be  free  from  all  loans, 
charges  or  mortgages  whatsoever  (the  Chinese  Government  5%  Shanghai-Hangchow- 
Ningpo  Railway  Loan  of  1908,  and  outstanding  liabilities  of  the  Company  for  which  the 
Ministry  of  Communications  has  made  provision,  excepted)  and  that  the  Chinese  Goyern- 
rnent  will  not  permit  any  other  loan  charge  or  mortgage  to  be  created  by  the  Provincial 
Company  of  Kiangsu  on  the  security  of  the  aforesaid  section  of  the  Shanghai-Hangchow- 
Ningpo  Railway. 

"  Article  7. — If  any  of  the  bonds  mentioned  in  this  agreement  are  lost  or  destroyed 
a  reissue  of  any  thereof  will  be  made  in  the  amounts  respectively  called  for  by  such  lost 
or  destroyed  bonds,  but  proper  proof  of  the  loss  or  destruction  must  be  given  in  the  usual 
form  by  the  Corporation  to  the  IMinistry.  All  expenses  connected  with  the  reissue  of  such 
lost  or  destroyed  bonds  will  be  borne  by  the  Corporation. 

"  Article  8. — All  bonds  and  coupons  and  payments  made  and  received  in  connection 
with  the  service  of  this  loan  shall  be  exempt  from  all  Chinese  taxes  and  imposts  during 
the  currency  of  this  loan. 

"  Article  9. — This  Agreement  is  signed  under  the  authority  of  a  Presidential  Order 
of  February  14th,  1914,  which  has  been  officially  communicated  to  the  Minister  of  Great 
Britain  in  Peking  by  the  Waichiaopu. 

"  Article  10. — Three  sets  of  this  agreement  are  executed  in  English  and  Chinese,  two 
sets  to  be  retained  by  the  Ministry  and  one  by  the  Corporation :  in  the  event  of  any  doubt 
arising  regarding  the  interpretation  of  the  agreement  the  English  text  shall  rule. 

"  Signed  at  Peking  by  the  contracting  parties  this  fourteenth  day  of  February,  Nine- 
teen hundred  and  fourteen. 

[Chinese  signatures  &  seals  of 
"  Chu  ch'i-ch'ien, 

"Minister  of  Communications. 
"  Chou  Tzu-ch'i, 

Minister  of  Finance. 

(Sgd.)  "S.   F.   Mayers. 

"for  The  British  and  Chinese  Corporation, 
Limited. 


NUMBER  1908/3:  MARCH  6,  1908:  NOTE 


715 


"  SHANGHAI-FENGCHING  RAILWAY :  MORTGAGE  REDEMPTION  LOAN 

AGREEMENT. 

£375,000  at  6%.    20  Years. 
AMORTISATION  SCHEDULE. 


Years 


1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 


Interest 


£11,250 

11,250 

11,250 

11,250 

11,250 

11,250 

11,250 

11,250 

11,250 

11,250 

11,250 

11,250 

11,250 

11,250 

11,250 

11,250 

11,250 

11,250 

11,250 

11,250 

11,250 

11,250 

10,125 

10,125 

9,000 

9.000 

7,875 

7,875 

6,750 

6,750 

5,625 

5,625 

4.500 

4.500 

3,375 

3,375 

2,250 

2,250 

1,125 

1,125 


Principal 

Principal 
Outstanding 

£375,000 

375,000 

375,000 

375,000 

375,000 

375.000 

375,000 

375,000 

375,000 

375,000 

£37,500 

337,500 

37,500 

300,000 

37,500 

262,500 

37,500 

225,000 

37,500 

187,500 

37,500 

150,000 

37,500 

112,500 

37,500 

75,000 

37,500 

37,500 

37,500 

The  Chekiang  section  of  the  railway  was  likewise  nationalized  by  an  agreement  (of 
which  no  version  is  available)  with  the  Chekiang  Provincial  Railway  Company,  the  funds 
for  the  purpose  being  obtained  by  the  Chinese  Government  from  the  proceeds  of  the  loan 
of  1908,  under  the  terms  of  a  memorandum  of  agreement,  dated  September  19,  1914,  of 
which  the  text  is  thus  given  in  Wang,  p.  491 : 

Agreement  with  British  &  Chinese  Corporation  regarding  Nationalization  of  Chekiang 
Section  of  Shanghai-Hangchow-Ningpo  Railway,  September  ig,  1914. 

"  WHEREAS  arrangements  have  been  concluded  between  the  Ministry  of  Communi- 
cations (hereinafter  called  'the  Ministry')  and  the  Chekiang  Provincial  Railway  Com- 
pany (hereinafter  called  'the  Company')  for  the  resumption  as  a  Government  Railway 
of  the  Chekiang  Section  of  the  Shanghai-Hangchow-Ningpo  Railway  (hereinafter  called 
'the  Section  ')  : 

"  AND  WHEREAS  the  said  section  was  placed  on  June  16th,  1914,  under  a  Managing 
Director  appointed  by  the  Ministry,  and  it  is  now  necessary  to  commence  making  payment 


716  CHINA  TREATIES  AND  AGREEMENTS 

of  the   instalments   of    redemption   money   which    the    Ministry   has   agreed   to   pay   to    the 
Company : 

"AND  WHEREAS  the  British  and  Chinese  Corporation  Limited  (hereinafter  called 
'the  Corporation')  has  agreed  that  the  Company  shall  be  paid  from  the  funds  of  the 
Chinese  Government  5%  Shanghai-Hangchow-Ningpo  Railway  Loan  of  1908  such  amount 
as  may  represent  the  actual  value  of  the  said  Section,  on  condition  that  the  entire  Shanghai- 
Hangchow-Ningpo  Railway  (hereinafter  called  'the  Railway')  be  forthwith  administered 
as  a  Government  line  in  a  satisfactory  manner. 

"  THIS  AGREEMENT  between  the  Ministry,  of  the  one  part,  and  the  Corporation,  of 
the  other  part. 

"WITNESSETH  AS  FOLLOWS:— 

"  1.  The  Ministry  hereby  declares  the  said  Section  to  be  free  from  all  mortgage  of 
property  or  charge  on  revenue,  and  that  all  outstanding  liabilities  of  the  Company  are 
provided  for  in  the  payments  which  the  Ministry  has  agreed  to  make  to  the  Company. 

"2.  The  actual  value  of  the  Section  having  been  estimated  by  the  Ministry  and  the 
Corporation  at  Shanghai  Taels  8,000,000  it  is  hereby  agreed  that  the  following  amounts 
shall  be  paid  from  the  loan  funds  aforesaid  on  the  dates  herein  stated,  namely. 

On  September  24th,  1914,  Shanghai  Taels   2,000,000 

On  December   24th,  1914,  Shanghai  Taels  2,000,000 

On  March         24th,  1915,  Shanghai  Taels  2,000,000 

On  June  24th,  1915,  Shanghai  Taels  2,000,000 

"  The  said  amounts  will  be  held  available  to  the  order  of  the  Ministry  by  the  Hong- 
kong and  Shanghai  Banking  Corporation,  Shanghai,  but  with  the  condition  that  if  after 
defraying  from  loan  funds,  from  time  to  time,  the  expenditure  for  repairing  and  construc- 
tion work  of  the  railway  and  for  constructing  the  connecting  line  with  the  Shanghai- 
Nanking  Railway  there  should  be  insufficient  loan  funds  remaining  over  to  meet  the  final 
instalment  above  stated  the  deficiency  shall  be  met  from  the  proceeds  of  the  Shanghai- 
Hangchow-Ningpo  Railway  Supplementary  Loan. 

"  3.  From  the  date  of  the  first  payment  of  loan  funds  as  above  agreed  the  railway  will 
be  effectively  administered  by  the  Ministry,  and  it  has  been  agreed  by  the  Company  that 
they  will  from  that  date  relinquish  all  their  rights  in  respect  to  the  Section  and  will  look 
solely  to  the  Chinese  Government  for  the  payment  of  all  further  instalments,  without 
recourse  against  the  Railway;  a  declaration  to  which  effect  will  be  stamped  on  the  Chinese 
Government  bonds  which  are  to  be  issued  to  the  Company  by  the  Ministry. 

"  4.  The  administration  of  the  Railway  will  be  conducted  by  a  Chinese  Managing 
Director.  An  Engineer-in-Chief,  a  Traffic  Manager,  a  Locomotive  Superintendent  and  a 
Chief  Accountant,  all  of  whom  shall  be  British  subjects  acceptable  to  the  Corporation, 
shall  be  appointed  forthwith,  together  with  the  necessary  staff,  including  a  Chief  Store- 
keeper, who  shall  be  a  British  subject.  The  aforesaid  officers  shall  be  under  the  orders 
of  the  Managing  Director  or  his  duly  authorised  representative :  and  in  order  to  secure 
efficiency  and  economy  of  administration  the  said  Chinese  Managing  Director  and  officers 
shall  be  the  Chinese  Managing  Director  and  staff  of  the  Shanghai-Nanking  Railway.  Their 
full  salaries  and  allowances  shall  be  charged  to  the  administration  of  the  Shanghai-Nanking 
Railway  and  the  Shanghai-Hangchow-Ningpo  Railway  in  proportion  to_  the  respective 
mileage  of  these  lines.  The  connection  of  the  railway  with  the  Shanghai-Nanking  Rail- 
way shall  be  undertaken  immediately  on  signature  of  the  present  Memorandum  of  Agree- 
ment. Funds  for  the  purchase  of  the  necessary  land  will  be  furnished  by  the  Ministry, 
and  the  expenditure  necessary  for  the  construction  of  this  connecting  line  will  be  met 
from  loan  funds. 

"  The  completion  of  the  Railway  from  Hangchow  to  Ningpo  shall  be  undertaken  by 
the  Administration   as  soon   as  practicable. 

"  5.  The  Chief  Accountant  shall  have  sole  charge  under  the  authority  of  the  Managing 
Director  of  all  receipts  and  disbursements  of  railway  funds  and  shall  sign  in  conjunction 
with  the  Managing  Director  all  documents  appertaining  to  the  disbursement  of  railway 
funds.  The  receipts  of  the  railway  will  be  deposited  by  him  to  the  credit  of  the  Railway 
Account  with  the  Hongkong  and  Shanghai  Banking  Corporation  at  Shanghai ;  and  any 
net  revenue  after  payment  of  working  expenses  will  be  available  for  the  payment  of 
interest  on  the  bonds  of  the  Shanghai-Hangchow-Ningpo  Railway  Loan  of  1908. 

"6.  This  Memorandum  of  Agreement  in  English  and  Chinese  is  made  subject  to  and 
in  amplification  of  the  Shanghai-Hangchow-Ningpo  Railway  Loan  Agreement  of  March  6th, 
1908.  In  the  event  of  any  doubt  arising  regarding  its  interpretation  the  English  text  shall 
rule. 

"  Signed  at  Peking,  this  nineteenth  day  of  September,  1914,  corresponding  to  the  nine- 
teenth day  of  the  ninth  month  of  the  third  year  of  the  Chinese  Republic. 

"  [Chinese  signature  and  Seal  of 
"THE  MINISTER   OF  COMMUNICATIONS] 

(Sgn.)  "S.  F.  Mayers 

(Seal)   "for  The  British  and  Chinese  Corporation, 

Limited." 


NUMBER  1908/4:  MARCH  12,  1908  717 

NUMBER  1908/4. 

CHINA. 

Memorial  of  the  Ministry  for  Foreign  Affairs,  and  imperial  rescript,  in  regard 

to  the  revision  of  the  procedure  governing  intercourse  betiveen  the  local 

officials  and  missionaries* — March  12,  1908. 

A  memorial  was  presented  by  the  former  Tsung  Li  Yamen,  enclosing  five 
articles  on  the  subject  of  intercourse  between  the  local  officials  and  missionaries, 
which  was  approved  by  an  imperial  rescript,  dated  Kuang  Hsu,  25th  Year,  2nd 
Month,  5th  day  (March  16,  1899). f 

We  would  note  that  in  the  memorial  it  is  stated  that  when  the  Archbishops 
or  Bishops  apply  for  an  interview  with  the  Viceroys,  Governors,  Provincial 
Judges,  Taotais,  Prefects,  or  District  Magistrates,  the  said  officials  will  treat  with 
them  according  to  their  respective  ranks. 

At  the  time  the  memorial  was  presented  the  Tsung  Li  Yamen  hoped  that  the 
procedure  which  they  drew  up  to  govern  intercourse  between  the  local  officials 
and  missionaries  would  be  of  benefit  to  the  church.  But  the  Bishops  and  others 
who  are  preaching  the  Gospel  in  China  can  not  be  said  to  have  official  rank, 
and  they  certainly  can  not  hold  the  same  rank  as  Viceroys,  Governors,  and  other 
officials. 

Of  late  the  practice  of  the  local  officials,  based  on  treaty,  in  their  relations 
with  the  missionaries,  does  not  agree  with  the  conditions  which  were  prevalent 
at  the  time  the  last  regulations  were  drawn  up.  Furthermore,  since  the  regula- 
tions in  question  were  put  into  eiTect,  the  missionaries  and  others  have  constantly 
made  use  of  the  ceremonial  customs  and  insignia  of  the  local  officials,  thereby 
causing  misunderstandings  among  the  stupid  people.  Such  was  certainly  not  the 
original  intent  of  the  regulations,  and  it  is  urgently  necessary  to  draw  up  a  pro- 
cedure more  in  accord  with  present  conditions. 

We  accordingly  petition  the  Throne  to  cancel  the  memorial  of  the  Tsung 
Li  Yamen.  In  future  the  intercourse  between  the  local  officials  and  the  mis- 
sionaries should  be  carried  on  as  before,  in  accordance  with  the  treaties. 

When  the  Throne  has  approved  this  memorial,  this  board  will  communicate 
with  the  different  provinces  that  they  may  issue  instructions  to  have  the  memorial 
observed. 

Reverently  submitted  to  Their  Majesties,  the  Empress  Dowager  and  the 
Emperor. 

RESCRIPT :     Approved. 

Kuang  Hsu,  34th  Year,  2nd  Month,  10th  day  (March  12,  1908). 

*  Translation  from  the  official  Chinese  text, 
t  See  Note  to  this  document,  post,  p.  718. 


713  CHINA  TREATIES  AND  AGREEMENTS 

Note. 

Rockhill,  p.  424,  and  Hertslet,  p.  1154,  reprint  from  China,  1900,  No.  1,  p.  142,  the  fol- 
lowing translation  of  that  memorial: 

Memorial  and  Rescript  concerning  Intercourse  between  local  Officials  and 
Missionaries,  March  i6,  1899. 

"  China  has  long  ago  given  her  consent  to  the  establishment  of  Mission  stations  of  the 
Roman  Catholic  religion  in  the  various  provinces.  With  the  desire  of  maintaining  peaceful 
relations  between  ordinary  Chinese  subjects  and  the  converts,  and  of  facilitating  protective 
measures,  the  following  proposals  as  to  the  reception  of  missionaries  by  local  officials  are 

submitted : —  .... 

"  1.— To  define  the  various  ranks  of  missionaries. 

"  Bishops  rank  with  Governors-General  and  Governors.  They  may  ask  for  interviews 
with  these  officers.  If  a  Bishop  returns  to  his  country  or  vacates  his  post  on  account  of 
sickness,  the  priest  who  acts  for  him  can  also  ask  for  interviews  with  the  Governor-General 

and  Governor.  ,     ,       .  .  •  ,    ^^  t   j  j 

"  Provicaires  and  Head  Priests  can  ask  for  interview  with  Treasurers,  Judges,  and 
Taotais.     Other  priests  can  ask  for  interviews  with  Prefects  and  Magistrates. 

"  The  Chinese  officials  of  all  ranks  above  mentioned  will  return  the  courtesy  in  accord- 
ance with  the  rank  of  the  priest. 

"2.— Bishops  must  furnish  the  provincial  authorities  with  a  list  giving  the  names  of 
the  priests  deputed  to  transact  international  business  with  the  Chinese  officials,  and  of  the 
places  where  missions  are  established,  so  that  the  provincial  authorities  can  instruct  their 
subordinates  to  treat  with  such  priests  according  to  these  regulations. 

"  All  those  priests  who  ask  for  interviews,  and  those  specially  deputed  to  transact  such 
business,  must  be  Westerners,  but  in  cases  in  which  the  Western  Priest  cannot  speak 
Chinese,  a  Chinese  priest  may  interpret. 

"  3.— In  cases  in  which  the  Bishop  lives  away  from  the  provincial  capital,  he  need  not 
naturally  go  to  the  said  capital  to  ask  for  an  interview  with  the  Governor-General  or  Gov- 
ernor without  cause.  On  occasions  of  a  change  of  Governors  or  Bishops,  or  of  New  Year's 
congratulations,  the  Bishop  may  write  to  the  provincial  authorities  or  send  his  card  as  a 
matter  of  courtesy,  and  the  provincial  authorities  will  reciprocate. 

"  In  cases  of  change  of  priests,  the  newcomer  must  have  a  letter  from  the  Bishop, 
before  he  can  ask  for  interviews  with  the  Chinese  officials  as  above. 

"  4. — In  grave  cases  connected  with  the  mission.  Bishops  and  priests  must  request  the 
Minister  of  the  nation  specially  intrusted  by  the  Pope  with  the  protection  of  Roman 
Catholic  missionaries  or  the  Consul  of  that  nation  to  arrange  the  affairs  with  the  Tsung-li 
Yamen  or  the  local  officials.  They  may  also  discuss  and  arrange  the  matter  in  the  first 
instance  with  the  local  officials,  so  as  to  avoid  complications.  The  local  officials,  when  applied 
to  in  such  cases,  must  at  once  discuss  and  arrange  the  affair  in  an  equitable  and  friendly 
manner. 

"  5. — The  local  officials  must,  as  occasion  arises,  exhort  and  constrain  the  ordinary 
Chinese  to  look  upon  the  converts  as  comrades,  and  not  to  pick  quarrels  with  them. 

"  The  Bishops  and  priests  on  their  side  must  instruct  their  converts  to  lead  blameless 
lives,  and  so  preserve  the  good  name  of  the  religion  and  the  respect  and  goodwill  of  the 
non-converts. 

"  Should  lawsuits  arise  between  converts  and  others,  the  local  authorities  must  decide 
the  same  with  impartiality.  The  priests  must  not  interfere  or  favour  their  people.  Thus  it 
may  be  hoped  that  converts  and  people  will  live  together  on  friendly  terms. 

"  The  same  day  the  Imperial  assent  was  given." 


NUMBER  1908/5 :  MARCH  25,  1908  719 

NUMBER  1908/5. 

GREAT  BRITAIN  (British  and  Chinese  Corporation,  Limited)  AND  CHINA. 

Agreement  in   regard   to   the   Shanhaikuan-Sinminting   section   of   the   Peking- 
Mukden  Raikvay.*— March  25,  1908. 

THIS  AGREEMENT  is  made  at  Peking  on  the  twenty-third  day  of  the 
second  month  of  the  thirty-fourth  year  of  Kuang  Hsu,  corresponding  to  the 
twenty  fifth  day  of  March  1908,  between  the  Director  General  of  the  Imperial 
Railways  office  of  the  Board  of  Communications,  hereinafter  referred  to  as  the 
Director  General  of  the  one  part,  and  the  British  and  Chinese  Corporation 
Limited  hereinafter  called  "  The  Corporation  "  of  the  other  part. 
WHEREAS : 

L— In  the  year  1899  the  Chinese  Imperial  Railway  5%  Gold  Loan  was 
issued  for  the  total  sum  of  £2,300,000  sterling  in  23,000  Bearer  Bonds  of  ilOO 
each,  the  said  loan  being  unconditionally  guaranteed  by  the  Imperial  Government 
of  China  and  each  of  the  said  bonds  being  sealed  by  the  Chinese  Minister  in 
London  and  being,  by  the  terms  of  the  bond,  declared  to  be  entitled  to  a  first 
charge  upon  the  permanent  way  rolling  stock  and  entire  property  with  the  freight 
and  earnings  of  the  then  existing  railway  lines  then  partly  constructed  or  in  the 
course  of  construction  or  about  to  be  constructed  from  Shanhaikuan  to  Sinmin- 
ting  and  from  a  point  on  the  last  mentioned  line  near  Shih-san-chan  to  Yingtzu  and 
(by  way  of  a  branch  line)  from  Nu-erh-ho  to  the  collieries  of  Nanpiao  and  each 
of  the  said  bonds  being  expressed  to  be  issued  subject  to  and  with  the  benefit 
of  the  agreement  next  hereinafter  stated. 

2. — Under  an  Agreement  (hereinafter  called  the  "Loan  Agreement") 
dated  the  10th  October  1898  f  and  made  between  H.  E.  Hu  Governor  of  Peking 
as  Director  General  of  the  Railways  of  North  China  within  and  without  Shan- 
haikuan acting  under  the  authority  of  the  Imperial  Chinese  Government  of  the 
one  part,  and  the  Hongkong  and  Shanghai  Banking  Corporation  (hereinafter 
called  "the  said  Bank")  for  themselves  and  on  behalf  of  the  firm  of  Jardine 
Matheson  &  Company  representing  as  Joint  Agents  the  Corporation  of  the  other 
part,  the  said  loan  was  issued  on  behalf  of  the  Director  General  aforesaid  by  the 
Corporation. 

3. — By  the  provisions  of  the  loan  agreement  the  proceeds  of  the  loan  were  to 
be  paid  over  in  London  to  the  order  of  the  Director  General  and  were  to  be 
applied  (amongst  other  purposes)  to  the  construction  of  the  said  railways  men- 
tioned in  the  said  bonds  as  being  then  partly  constructed  or  in  course  of  construc- 
tion or  about  to  be  constructed  including  the  said  branch  line  from  Nu-erh-ho  to 
the  collieries  of  Nanpiao. 

4. — The  said  railways  mentioned  in  the  said  bonds  as  being  then  partly  con- 
structed or  in  course  of  construction  or  about  to  be  constructed  (except  the  said 

*  Text  as  printed  in  Wang,  p.  169. 
tNo.  1898/20,  ante. 


720  CHINA  TREATIES  AND  AGREEMENTS 

branch  line  from  Nu-erh-ho  to  Nanpiao)  have  now  been  constructed  and  opened 
for  traffic  and  it  is  contended  by  the  Director  General  that  the  several  purposes  for 
which  the  proceeds  of  the  said  loan  were  applicable  under  the  loan  agreement 
except  the  construction  of  the  said  branch  line  to  Nanpiao  have  been  fulfilled. 

5. — In  accordance  with  the  provisions  of  the  said  bonds  and  of  the  loan 
agreement,  bonds  to  the  aggregate  amount  of  £57,500  were  drawn  and  paid  off  in 
each  of  the  years  1905,  1906  and  1907  (except  certain  drawn  bonds  which  have 
not  yet  been  presented  for  payment)  with  the  result  that  the  outstanding  bonds 
of  the  said  loan  do  not  in  the  aggregate  exceed  the  sum  of  £2,127,500. 

6. — All  interest  which  has  accrued  due  under  the  bonds  of  the  said  loan  up 
to  the  date  of  this  agreement  has  been  duly  paid. 

7. — At  the  time  of  the  issue  of  the  said  loan  it  was  believed  that  good  coal 
could  be  obtained  from  Nanpiao  for  general  purposes  and  in  particular  for  the 
purposes  of  working  the  said  railways  mentioned  in  the  said  bonds.  The 
Imperial  Chinese  Government  have  now  ascertained  that  the  coal  at  Nanpiao  is 
generally  of  an  inferior  quality  and  in  particular  is  of  little  use  for  locomotive 
purposes  and  consequently  the  Director  General  refuses  to  proceed  with  the 
construction  of  the  said  branch  line  to  Nanpiao. 

8. — The  estimated  cost  of  the  branch  line  from  Nu-erh-ho  to  Nanpiao  was 
£150,000,  which  estimate  is  more  than  covered  by  the  remainder  of  the  capital  of 
the  loan  so  far  unexpended  and  lying  in  the  Hongkong  and  Shanghai  Bank  in 
London  to  the  credit  of  the  Imperial  Railways  of  North  China. 

9. — Under  the  circumstances  the  Corporation  are  satisfied  that  it  will  be 
generally  for  the  benefit  of  the  security  of  the  said  bonds  that  such  arrangement 
shall  be  effected  (subject  to  the  sanction  of  the  High  Court  in  England)  as  is 
hereinafter  expressed. 

NOW  IT  IS  HEREBY  AGREED  AS  FOLLOWS:— 
1. — The  Director  General  and  the  Imperial  Chinese  Government  shall  be  free 
and  discharged  from  any  obligation  either  under  the  said  bonds  or  under  the  loan 
agreement   to  construct   the   branch   line    from   Nu-erh-ho   to    Nanpiao   or   any 
part  thereof. 

2. — No  part  of  the  unexpended  loan  funds  shall  be  reserved  for  the  construc- 
tion of  the  branch  line  from  Nu-erh-ho  to  Nanpiao,  but  all  of  the  said  unex- 
pended loan  funds  so  far  as  they  are  not  already  applicable  by  the  Imperial  Rail- 
ways of  North  China  to  reimbursement  for  work  of  construction,  improvement 
and  equipment  already  performed  by  the  latter,  shall  be  disposed  of  under  the 
terms  of  the  original  loan  agreement  of  1898,  that  is  to  say,  in  the  further  con- 
struction of  extensions  or  improvement  of  existing  lines  or  railway  equipment 
under  the  terms  of  the  said  loan  agreement  other  than  the  construction  and 
equipment  of  the  said  branch  line  from  Nu-erh-ho  to  Nanpiao. 

3. — Each  of  the  said  bonds  remaining  outstanding  is  hereby  declared  to  be 
entitled  to  a  first  charge  upon  the  permanent  way  rolling  stock  and  entire  property 
with  the  freight  and  earnings  of  the  railway  already  constructed  from  Peking  to 
Tungchow  and  also  of  all  railways  and  railway  equipment  the  construction  or 
purchase  of  which  or  of  any  part  of  which  shall  be  paid  for  out  of  the  said  funds 
standing  to  the  credit  of  the  Imperial  Railways  of  North  China  as  aforesaid  and 


NUMBER  1908/6:  APRIL  5,  1908  721 

SO  that  all  the  agreements  and  provisions  of  the  said  bonds  and  of  the  loan  agree- 
ment for  the  security  of  the  said  bonds  or  the  benefit  of  the  bondholders  shall, 
so  far  as  may  be,  apply  in  respect  of  the  said  railways  and  property  of  every 
kind  included  in  this  present  charge  in  like  manner  as  if  such  railways  and 
property  had  been  originally  included  in  the  security  of  the  said  bonds. 

4. — The  Director  General  will  execute  and  do  or  cause  to  be  executed  and 
done  all  (if  any)  instruments  acts  and  things  which  according  to  the  law  of  China 
may  be  necessary  or  proper  to  effectuate  this  agreement  and  the  charge  herein 
contained. 

5. — All  the  costs,  charges,  and  expenses  of  the  Corporation  of  and  incidental 
to  the  negotiations  for  and  the  preparation  and  execution  of  this  agreement  and 
of  and  incidental  to  the  carrying  the  same  into  effect  including  the  costs  charges 
and  expenses  of  all  parties  of  and  incidental  to  the  proceedings  to  be  taken  under 
the  next  following  clause  shall  be  paid  out  of  the  said  funds  at  the  said  Bank. 

6.— Proceedings  shall  forthwith  be  commenced  in  the  High  Court  of  Justice 
in  England  for  obtaining  the  sanction  of  the  said  Court  to  this  agreement  on 
behalf  of  the  holders  of  the  said  bonds. 

7. — This  agreement  is  to  be  sealed  with  the  official  seal  of  the  Chinese 
Minister  in  London  in  testimony  of  the  authority  of  the  Director  General  to 
execute  and  effectuate  this  agreement. 

IN  WITNESS  WHEREOF  the  contracting  parties  have  signed  this  agree- 
ment this  twenty  third  day  of  the  second  month  of  the  thirty  fourth  year  of 
Kuang  HsU;  corresponding  to  the  twenty  fifth  day  of  March  1908. 

(Sgd.)         Liang, 

Director  General. 
(Sgd.)         J.  P.  Bland, 
for  The  British  and  Chinese  Corporation  Limited. 


NUMBER  1908/6. 

RUSSIA  (Chinese  Eastern  Railway  Company)   AND  CHINA   (Heilungkiang 

Province). 

Agreement  for  the  felling  of  timber  in  Heilungkiang  Province* — April  5,  1908. 

Article  I.— The  Chinese  Eastern  Railway  Company  is  hereby  granted  the 
privilege  of  felling  all  kinds  of  timber  in  the  Province  of  Heilungkiang:  (1) 
Huo  Liao  Kou,  near  branch  line  No.  384,  in  length  not  more  than  thirty 
Chinese  //,  in  breadth  not  more  than  ten  Chinese  //";  (2)  P'i  de  I,  near  Pa  Lin 
Station,  in  length  not  over  thirty  li,  in  breadth  not  more  than  ten  li;  (3)  along 

*  Translation  from  Chinese  text.    Russian  text  printed  in  Soglashenia,  p.  46. 
In    connection    with    this    agreement,    see    the    similar    agreement    in    regard    to    Kirin 
Province,  August  30,  1907  (No.  1907/15.  ante). 


722  CHINA  TREATIES  AND  AGREEMENTS 

the  banks  of  the  Ch'uan  Lin  River,  from  the  point  where  it  enters  the  Sungari 
River,  upstream  for  the  distance  of  fifty  li,  in  breadth  twenty  li  on  the  right  bank 
and  fifteen  li  on  the  left  bank. 

Article  II' — The  said  railway  company  shall,  before  commencement  of  the 
operations  of  felling  any  timber,  notify  the  Chief  Bureau  of  railway  relations  of 
the  region,  of  the  quantity  and  kinds  of  timber  the  said  company  intends  to  fell,  and 
request  the  authority  of  the  said  Bureau  that  a  license  be  issued  in  which  are 
enumerated  the  desired  quantity  and  kinds  of  timber.  The  said  license  shall  be 
issued  after  one-third  of  the  fee  required  for  the  enumerated  quantity  and  kinds 
of  timber  has  been  received ;  the  other  two-thirds  shall  be  paid  after  the  quantity 
as  enumerated  in  the  license  has  been  felled. 

Article  III. — A  timber  license  shall  be  issued  annually  on  the  first  day 
of  August  (Russian  Calendar)  in  favor  of  the  said  railway  company,  which 
license  is  to  last  one  year.  All  fees  of  the  previous  year  shall  be  fully  paid  at 
the  above  date.  If  at  the  end  of  the  year  the  quantity  of  timber  felled  is  not 
equal  to  one-third  of  that  stated  in  the  license,  the  fees  already  paid  shall, 
according  to  the  Chinese  Treasury  rules,  not  be  refunded.  If  on  the  contrary, 
the  quantity  of  timber  felled  exceeds  one-third,  a  proportionate  fee,  shall,  how- 
ever, be  paid,  according  to  the  rate  fixed  in  this  agreement.  In  case  the  license 
fee  due  at  the  end  of  the  stated  period  is  not  paid,  or  the  said  company  fails 
to  comply  with  the  articles  of  this  agreement,  the  license  already  issued  shall  be 
nullified  and  the  privilege  of  felling  timber  withdrawn.  If  the  said  company  duly 
pays  the  license  fee,  and  acts  according  to  the  articles  of  this  agreement,  the 
Chinese  authority  shall,  in  accordance  with  the  provisions  of  this  agreement, 
renew  the  license  annually  on  the  dates  stated  above. 

Article  IV. — The  area  granted  to  the  said  company  on  which  to  procure 
timber  shall  be  marked  out  clearly  in  the  locality  at  the  said  company's  expense. 
The  said  company  shall  not  procure  timber  beyond  the  limits  thus  marked  out.  The 
Chinese  authority  shall  not  grant  the  privilege  of  felling  timber  within  the  said 
areas  to  any  other  party.  The  Chinese  authority  will  make  every  effort  to  stop 
the  unauthorized  felling  of  timber  within  the  said  areas  by  any  other  party. 

Article  V. — Sufficient  space  must  be  reserved  in  the  said  timber  areas 
near  the  railway  for  public  roads,  spacious  enough  for  the  passage  of  vehicles, 
horses,  etc. 

Article  VI. — The  said  railway  company  may  make  any  arrangements 
within  the  said  timber  areas  for  the  felling  of  timber,  the  storage  of  the  same, 
the  establishment  of  sawmills,  the  erection  of  dwelling  houses,  the  repair  of 
branch  lines  for  the  transportation  of  wood.  Chinese  police  must  be  permitted 
to  enter  said  areas  for  the  arrest  of  criminals.  Chinese  subjects  shall  not  be 
prevented  from  entering  the  said  areas  for  the  purpose  of  hunting  and 
the  collection  of  ginseng  roots.  Chinese  authority  shall  be  at  liberty  to 
dispose  of  any  tillable  land  that  may  be  found  within  the  said  areas  to  Chinese 
subjects  for  agricultural  purposes ;  the  said  company  shall  not  exercise  any  inter- 
ference. The  inhabitants  of  the  said  timber  area  may  procure  therefrom  such 
timber  as  is  used  for  building  material  and  fuel,  but  this  must  be  made  known  to 
the  said  railway  company  through  the  deputy  residing  in  the  areas,  who  will 


NUMBER  1908/6 :  APRIL  5,  1908  723 

designate  the  locality,  make  an  estimate  of  the  quantity  of  timber,  and  issue  a 
special  certificate,  but  the  wood  thus  procured  shall  not  be  sold  to  another 
party.  If  any  pasturage  is  found  within  the  said  areas,  the  said  company  may 
breed  cattle  thereon,  and  procure  therefrom  hay  for  sheep  and  goats.  One  kopeck 
shall  be  paid  to  the  Chinese  government  treasury  for  each  pood  of  hay. 

Article  VII. — The  said  company  shall  procure  such  timber  from  the  said 
areas  as  are  stated  in  the  license.  Four-tenths  (4/10)  of  a  kopeck  shall  be  paid 
for  each  arshin  (twenty-eight  English  inches)  length  and  one  vershok  (1.75 
English  inches)  in  thickness  of  wood;  this  applies  to  lumber  sixteen  inches  (Rus- 
sian inch  same  as  English),  Russian  measure,  in  diameter,  and  twelve  feet  (Rus- 
sian foot  same  as  English),  Russian  measure,  in  length  only;  for  any  size  exceed- 
ing this,  half  a  kopeck  shall  be  paid  for  each  arshin  (twenty-eight  English  inches) 
length  and  one  vershok  (1.75  English  inches)  in  thickness  of  wood.  One  rouble 
shall  be  paid  for  every  cubic  sashen  (one  sashen  equals  seven  English  feet)  of 
wood  used  for  fuel.  Three  and  one-half  kopecks  shall  be  paid  for  each  piece 
of  track  wood  (sleeper?).  The  diameter  of  any  lumber  of  large  size  shall  be 
measured  by  the  small  end.  Any  fraction  more  than  six-tenths  of  an  inch  shall 
be  considered  as  one  inch;  if  less  than  six-tenths  the  fraction  shall  be  dropped. 
As  to  lengths,  such  sizes  as  reach  one-fourth  of  a  foot  will  be  taken  into  account. 
This  tariff  shall  continue  in  force  for  five  years  after  the  date  on  which  this 
agreement  is  signed.  After  the  expiration  of  that  period,  the  license  questions 
shall  be  taken  up  for  reconsideration.  If  the  said  railway  company  shall  pur- 
chase any  lumber  from  merchants  who  received  their  permission  from  the 
Chinese  authorities,  the  said  company  shall  pay  license  fees  according  to  the 
tariff  of  this  article,  upon  receiving  the  consignment  of  lumber. 

Article  VIII. — The  Chinese  authority  shall  appoint  deputies  to  reside  in 
the  areas  above  stated,  who  will,  in  conjunction  with  the  Russian  officers,  keep 
records  of  the  varieties,  sizes  and  quantities  of  lumber  procured  from  the  said 
areas,  for  the  purpose  of  calculating  the  license  fee. 

Article  IX. — For  every  shang  (0.6  acre)  of  government  land,  without 
reference  to  quality  of  soil,  that  may  be  occupied  for  the  purpose  of  the  building 
of  dwelling  houses,  the  storage  of  lumber,  and  the  establishment  of  factories  at 
the  junction  of  roads,  the  said  company  shall  pay  three  roubles  annually  as  rental. 
If  it  be  private  land,  the  annual  rental  shall  be  agreed  upon  with  the  owner. 

Article  X. — As  the  forests  are  subject  to  the  conservation  measures  of  the 
Chinese  Government,  the  privilege  of  felling  timber  granted  to  the  said  railway 
company  shall  not  interfere  with  any  regulations  that  may  be  promulgated  by  the 
government  for  the  conservation  of  forests. 

Article  XL — According  to  the  present  condition  of  the  railway  in  Heilung- 
kiang  Province,  two  hundred  thousand  cubic  sashen  are  consumed  annually  as 
fuel,  eight  hundred  thousand  pieces  of  track  wood  (sleepers?),  and  two  hundred 
thousand  pieces  of  timber  of  considerable  size.  If,  in  future,  the  railway  prospers 
and  consumes  or  requires  more  wood  than  the  present  estimates,  the  Chinese 
authorities  may  grant  more. 

Article  XII. — The  said  railway  company  may  sell  such  of  its  superfluous 
wood,  but  tax  must  be  paid  according  to  the  prevailing  tariff. 


724  CHINA  TREATIES  AND  AGREEMENTS 

Article  XIII. — After  this  agreement  is  ratified,  it  shall  be  binding  upon 
both  parties.     All  previous  agreements  and  licenses  shall  be  superseded.! 

Article  XIV.— This  agreement  shall  be  drawn  in  Russian  and  Chinese,  two 
copies  of  which  shall  be  made,  with  charts  of  the  timber  areas  appended,  which 
shall  be  sealed  and  signed.  One  copy  shall  be  deposited  in  the  Yamen  of  the 
Governor  of  Heilungkiang ;  another  copy  delivered  to  the  Chinese  Eastern  Rail- 
way Company.  In  the  event  of  controversy,  the  Chinese  text  shall  be  authori- 
tative. 

34th  year  of  Kuang  Hsii,  3rd  moon,  5th  day :  Russian  Calendar,  March  23, 
1908  (April  5,  1908). 

(Signed)         Sung  Hsiao-Lien, 
Expectant  Taot'ai,  Wearer  of  the  one-eyed  Peacock  Feather. 
(Signed)         General  Horvath, 
Manager  of  the  Chinese  Eastern  Railway. 

(supplementary  agreement.) 

In  the  11th  Article  of  these  regulations  the  words  200,000  cubic  sashens  of 
fire  wood  should  be  changed  to  100,000  cubic  sazhens;  the  800,000  pieces  of 
track  wood  should  be  changed  to  300,000  pieces;  the  200,000  pieces  of  large 
timber  should  be  changed  to  100,000. 

(Signed)         Sung  Hsiao-Lien, 
Expectant  Taot'ai,  Wearer  of  the  one-eyed  Peacock  Feather. 
(Signed)         G^w^ra/ Horvath, 
Manager  of  the  Chinese  Eastern  Railway. 


NUMBER  1908/7. 

GERMANY   (Ching  Ching  Minen  Gesellschaft)   AND  CHINA. 
Agreement  in  regard  to  the  Ching  Hsing  mines.* — April  14,  1908. 

Agreement  made  between  H.  E.  Tsai  Superintendent  of  Customs  and  H.  E. 
the  Brevet  Taotai  Li,  by  appointment  of  H.  E.  the  Viceroy  of  Chihli  Yang,  Direc- 
tor General  and  Director  of  the  Chihli  Ching  Hsing  Mining  Administration  and 
all  business  connected  herewith  of  the  one  part  and  Mr.  C.  von  Hanneken  acting 
on  behalf  and  in  the  name  of  the  Ching  Ching  Minen  Gesellschaft  m.  b.  h.,  a 
German  Company,  of  the  second  part. 

Whereby  it  has  been  agreed  as  follows: — 

The  said  "  Ching  Hsing  Mining  Administration  "  being  hereafter  referred  to 
as  the  "  Administration  " — the  Ching  Ching  Minen  Gesellschaft  m.  b.  h.  as  the 

*  See  Note  to  this  document,  post.  p.  729. 

t  One  such  agreement  had  been  concluded  at  Harbin,  February  22/]\Iarch  6,   1904. 


NUMBER  1908/7:  APRIL  14,  1908  725 

"  Company  " — the  association  of  both  parties  to  bear  the  name  of  the  "  Ching 
Hsing  Mines  "  and  to  be  referred  to  in  this  Agreement  as  the  "  Mines." 

Article  1. — The  "Administration"  being  Superintendent  and  Concessionar 
over  the  geological  coal-fields  and  mineral  deposits  of  the  Chihli  District  of 
Ching  Hsing  decides  and  agrees  to  enter  into  an  association  with  the  "  Company  " 
subject  to  the  Articles  of  this  Agreement. 

Article  2. — The  "  Company  "  decides  and  agrees  to  enter  into  an  association 
with  the  "  Administration  "  and  to  hand  into  the  "  Mines  "  all  its  property  and 
assets  consisting  in  lands,  pits,  machinery,  plant,  houses,  and  buildings,  furniture, 
live  stock,  underground  developments,  stock  of  coal  and  stocks  of  materials,  tools 
and  stores.  All  the  lands  acquired  by  the  "  Company  "  for  mining  purposes  are 
to  be  returned  to  the  "  Administration,"  who  will  hand  same  to  the  "  Mines." 

Article  3. — The  business  year  of  the  "  Mines  "  shall  commence  with  the  date 
of  the  Imperial  sanction  of  this  agreement.  At  this  date  the  Company  assures  and 
warrants  that  all  accounts  and  debts  have  been  settled  and  that  any  claimants 
against  the  Company  shall  have  no  claim  against  the  "  Mines." 

Article  4. — During  the  continuance  of  the  present  agreement  the  "  Mines  " 
shall  be  worked  jointly  by  both  parties.  The  **  Administration  "  shall  appoint  by 
mutual  agreement  with  the  "  Company  "  the  Chinese  staff  and  in  particular  the 
Chinese  Manager  and  Chinese  Engineer,  the  "  Company "  shall  appoint  by 
mutual  agreement  with  the  "  Administration  "  the  Foreign  staff  and  the  For- 
eign Manager. 

Before  any  projected  works  and  innovations  are  undertaken,  they  are  to  be 
approved  of  by  the  two  co-managers  or  their  deputies  who  must  in  everything 
act  in  perfect  harmony ;  all  accounts  to  be  kept  by  competent  Foreign  or  Chinese 
accountants  and  to  be  translated  into  Chinese  so  that  they  might  be  equally  con- 
trolled, and  passed  by  both  co-managers ;  every  formal  document  to  be  signed  by 
the  two  co-managers  or  their  deputies,  who  shall  act  in  the  name  of  and  on 
account  of  the  "  Mines,"  all  official  correspondence  to  be  conducted  in  Chinese ; 
business  correspondence,  accounts  and  documents  may  be  conducted  in  English 
but  must  be  kept  on  file  in  both  languages. 

Article  5. — The  value  and  assets  of  the  "  Mines  "  to  be  accounted  for  in 
the  capital  of  the  enterprise  of  the  development  of  the  Ching  Hsing  district 
consist  of : — 

(a)  The  geological  coal-fields  within  the  district  of  Ching  Hsing  as  shown  on 
the  attached  map  f  and  declared  to  be  presently  intended  for  development 
and  estimated  to  amount  to  Hang  Ping  Taels  Two  Hundred  and  Fifty 
Thousand  (Tls.  250,000). 

(b)  The  entire  assets  of  the  **  Company  "  brought  in  by  this  Company  in 
accordance  with  Article  2  and  the  necessary  sum  of  money  for  further 
development  also  estimated  to  amount  to  Hang  Ping  Taels  Two  Hun- 
dred and  Fifty  Thousand  (Tls.  250,000)  of  which  Hang  Ping  Taels 
Two  Hundred  Thousand  represent  the  agreed  value  of  the  entire  assets 
of  the  '*  Company  "  as  per  Article  2  on  the  first  day  first  moon  of  the 
32  year  Kuang  Hsii. 

t  Not  printed. 


726  CHINA  TREATIES  AND  AGREEMENTS 

Thus  the  nominal  Capital  of  the  "  Mines  "  will  be  Hang  Ping  Taels  Five 
Hundred  Thousand,  of  which  Tls.  250,000  (fully  paid  up)  shares  will  be  handed 
to  the  Administration  and  remain  under  control  of  the  Director  General  and  Tls. 
250,000  shares,  of  which  Tls.  200,000  are  paid  up  will  be  handed  to  the 
"  Company." 

The  "  Company  "  will  have  to  pay  up  their  shares  Hang  Ping  Taels  Fifty 
Thousand  as  demand  arises  and  interest  thereon  to  begin  from  date  of  payment. 
It  is  understood  that  the  Taels  Two  Hundred  and  Fifty  Thousand  shares  handed 
to  the  "  Administration  "  will  receive  interests  and  dividends  at  the  rate  as  if 
they  were  paid  up  at  the  dates  as  the  shares  of  the  "  Company." 

Article  6. — If  in  the  course  of  time  the  funds  of  the  "  Mines  "  should 
prove  to  be  insufficient  to  carry  on  the  business  and  if  new  funds  must  be 
provided  for,  this  might  be  done  either  by  increasing  the  Capital  of  the  '*  Mines  " 
and  in  such  case  the  "  Administration  "  and  the  "  Company  "  shall  each  have 
to  provide  one  half  of  this  increase,  or  the  "  Mines  "  shall  be  authorised  to 
supply  the  necessary  funds  by  raising  a  loan.  Which  of  the  two  ways  will  have 
to  be  adopted  shall  be  a  matter  to  be  mutually  decided  by  the  two  co-managers. 

Article  7. — The  annual  net  profits  of  the  undertaking  shall  be  applied  as 
follows : 

(a)  Interest  at  the  rate  of  seven  per  cent  (7%)  per  annum  on  the  total  paid 
up  capital  of  Tls.  500,000  shall  be  paid  yearly  to  the  shareholders. 

(b)  Of  the  remaining  profits  ten  per  cent  (10%)  shall  be  paid  to  the  "Ad- 
ministration "  to  form  an  amortisation  fund,  to  refund  the  original 
capital  of  the  Company. 

(c)  A  sum  of  Hang  Ping  Taels  Five  Thousand  (Tls.  5,000)  to  be  paid  to 
the  Bureau  of  Mines  of  Chihli  Province. 

(d)  The  remaining  profit  shall  be  divided  in  equal  parts  between  the  "  Ad- 
ministration "  and  the  "  Company." 

Article  8. — This  Agreement  is  made  for  a  term  of  thirty  years  from  the 
date  of  the  Imperial  sanction  being  given.  During  the  first  fifteen  years  interest 
and  profits  shall  be  paid  as  stated  in  Article  7.  From  the  sixteenth  year  the 
amount  of  Capital  actually  invested  by  the  "  Company  "  shall  be  repaid,  by  the 
*'  Administration  "  at  the  rate  of  one  fifteenth  a  year,  so  that  in  fifteen  years 
time  the  Capital  shall  be  fully  redeemed;  the  redeemed  sums  not  bearing  any 
more  than  interest  of  7%.  During  this  term  (i.e.  from  the  16th  to  the  30th  year) 
the  division  of  the  profits  shall  be  as  follows :  one  half  to  the  '*  Administration  " 
and  one  half  to  the  '*  Company,"  from  the  16th  to  the  20th  year  whereas  from 
the  21st  to  30th  year  only  40%  of  the  total  remaining  profits  will  go  to  the  "  Com- 
pany," the  "Administration"  receiving  60%. 

At  the  end  of  the  thirtieth  year  the  total  amount  of  Capital  invested  by  the 
"  Company  "  shall  be  fully  redeemed  after  which  all  connections  between  the 
"  Administration  "  and  the  "  Company  "  will  cease  and  this  Agreement  be  void. 

Article  9. — If  at  the  end  of  the  15th  year  the  *'  Administration  "  should 
wish  that  all  connections  between  the  "  Administration  "  and  the  '*  Company  " 
should  cease  and  that  this  Agreement  should  be  terminated  the  "  Administration  " 
will  give  the  "  Company  "12  months  notice. 


NUMBER  1908/7:  APRIL  14,  1908  727 

In  such  case  the  "  Administration  "  shall  have  the  right  to  take  over,  and  the 
*'  Company  "  shall  have  the  obligation  to  deliver  all  her  interests  in  the  "  Mines  " 
against  receiving  from  the  "Administration"  the  sum  of  Tls.  250,000  as  an 
equivalent  for  the  original  Capital  invested  by  the  '*  Company  "  and  besides  a 
bonus  equal  to  15  times  the  average  dividend  as  per  Article  7  paragraph  (d) 
during  the  last  5  working  years,  after  payment  of  which  all  connections  between 
the  "  Administration  "  and  the  "  Company  "  will  cease  and  this  Agreement  be 
void. 

If  on  the  other  hand  the  "  Company "  should  desire  to  retire  from  the 
"  Mines  "  then  the  "  Administration  "  will  return  to  the  "  Company,"  the  capital 
invested  by  the  "  Company  "  and  no  other  profits  will  be  paid. 

Article  10. — It  is  understood  and  agreed  that  all  financial  obligations 
between  the  "  Administration  "  and  the  **  Company  "  provided  for  in  this  Agree- 
ment, shall  be  a  first  charge  upon  the  property  and  assets  of  the  "  Mines  "  and  in 
case  such  properties  and  assets  should  prove  insufficient  to  repay  the  share- 
value,  or  interest  thereon,  or  any  part  of  such  share-value,  no  residual  liability 
shall  rest  with  the  Chinese  Government  or  authorities  nor  with  the  members  of 
the  Shareholders  of  the  "  Administration  "  or  the  "  Company  "  beyond  their  in- 
terest in  the  "  Mines  "  themselves. 

Article  11. — During  the  continuance  of  the  association  between  the 
"  Administration "  and  the  "  Company,"  the  "  Administration "  shall  not  be 
entitled  to  enter  into  any  engagement  without  the  consent  of  the  "  Company  " 
and  preference  shall  be  given  to  the  "  Company  "  to  negotiate  or  take  up  any 
loan,  which  the  "  Administration  "  might  wish  to  raise  in  connection  with  the 
development  of  Mining  in  the  District  of  Ching  Hsing.  But  if  after  15  years 
Article  9  should  come  into  force  the  "  Administration  "  shall  be  free  to  enter  into 
engagements  or  conclude  loans  without  reference  to  the  "  Company." 

On  the  other  hand  the  "  Company  "  shall  not  without  the  consent  of  the 
"  Administration "  transfer  its  rights  or  shares  in  the  "  Mines  "  to  any  other 
party. 

Article  12. — H.  E.  the  Director  General  on  behalf  and  with  the  assistance 
of  H.  E.  the  Viceroy  of  Chihli  will  exert  all  his  influence  to  secure  for  the 
"  Mines  "  the  same  terms  and  rates  of  transportation  on  the  railways  of  China 
for  its  coal  and  other  products  and  for  its  incoming  machinery  and  supplies  as 
may  from  time  to  time  be  enjoyed  by  the  most  favored  of  other  concerns  of  the 
same  character.  The  "  Mines  "  shall  have  the  right  to  build  Byeroads  and  Rail- 
ways for  the  transportation  of  their  output  within  the  limits  of  the  geological 
property  of  the  "  Administration  "  and  further  on  to  join  on  to  the  great  trunk 
lines,  provided  such  rights  do  not  interfere  with  the  Ching-Han  Tcheng-Tai 
Railway  lines  $  and  with  the  temple  buildings  and  grave  yards. 

In  case  the  "  Mines  "  wish  to  make  use  of  this  right  beyond  a  radius  of  10 
li  from  the  mining  area,  it  will  be  necessary  to  hand  in  a  general  plan  of  such 
proposed  railways  to  the  Director  General  who  will  apply  for  a  special  permission 
from  the  Government. 

t  The   "  Ching-Han "  is   the   Peking-Hankow,   the   "  Tcheng-Tai "   is   the   Chengtingfu- 
Taiyuanfu  Railway. 


728  CHINA  TREATIES  AND  AGREEMENTS 

Article  13. — The  royalties  to  be  paid  to  the  Chinese  Government  and  to  the 
local  and  provincial  authorities  shall  not  exceed  in  the  aggregate  five  per  cent 
(5%)  on  the  tonnage  extracted  from  the  mines.  This  tax  shall  be  paid  on  the 
basis  of  the  output  at  the  pitsmouth  being  one  Ku-Ping  Hai  Kwan  Pei-Pao  tael 
per  ton.  Duty  and  Likin  shall  be  the  same  as  paid  by  the  Chinese  Engineering 
and  Mining  Company  Limited,  namely  eighty  four  (84)  large  cash  per  ton  for 
Likin  and  twelve  and  a  half  Ku-Ping  Hai  Kwan  Pei-Pao  tael  cents  (Tls.  0.125) 
per  ton  for  duty. 

Besides  the  Likin  and  Royalty  no  other  duties  shall  be  payable  except  the 
ordinary  land  tax.  Coal  sold  to  the  Railways,  Government  offices  and  other 
official  undertakings  shall  only  pay  the  official  Royalty.  It  is  agreed  that  in  the 
event  of  other  foreign-Chinese  Company's  coal  and  mining  output  paying  Likin 
and  duties  lower  than  those  mentioned,  such  reduced  rates  shall  also  be  applied 
to  the  output  from  the  "  Mines." 

In  case  of  any  new  mining  regulations  being  issued  by  the  Board  of  Agricul- 
ture Works  and  Commerce  in  the  future,  it  will  be  decided  by  his  Excellency  the 
Viceroy  of  Chihli  how  far  such  new  regulations  are  to  be  adopted  as  binding  for 
the  *'  Mines  "  who  will  act  in  conformity  with  such  decision. 

Article  14. — All  materials  and  other  things  destined  for  the  Mines  shall 
pay  the  Imperial  Customs  duty  but  shall  be  free  of  all  other  dues  or  Likin. 

Article  15. — H.  E.  the  Viceroy  of  Chihli  will  give  his  protection  and  sup- 
port to  all  the  enterprises  of  the  "  Mines,"  shall  exercise  full  authority  over  the 
"  Mines  "  and  his  orders  shall  be  obeyed  and  respected  as  far  as  they  are  not  con- 
trary to  the  interest  of  the  undertaking. 

Article  16. — In  case  disputes  shall  arise  between  the  parties  hereto,  each 
of  them,  the  "  Administration  "  and  the  "  Company  "  shall  appoint  an  arbitrator  to 
settle  the  difference  and  in  case  of  disagreement  between  the  arbitrators,  an 
umpire  shall  be  appointed  by  the  arbitrators  whose  decision  shall  be  final. 

Article  17. — ^The  Chinese  version  of  this  agreement  is  drawn  up  in  six 
copies  which  will  be  signed  by  the  Representatives  of  the  "  Administration  "  and 
the  **  Company." 

An  English  version  of  the  Agreement  shall  be  attached  to  each  copy,  both 
versions  having  been  carefully  compared  are  acknowledged  to  be  fully  alike ;  if 
however  in  later  time  any  difference  of  opinion  should  arise  as  to  the  terms  of 
this  Agreement  the  Chinese  version  thereof  shall  be  treated  as  authoritative. 

After  the  six  copies  have  been  duly  signed,  they  shall  be  submitted  to  his 
Excellency  the  Viceroy,  who  shall  affix  his  seal  thereto,  after  which  this  Agree- 
ment shall  be  presented  for  Imperial  sanction. 

One  set  shall  be  kept  in  the  Viceroy's  Yamen. 

One  set  shall  be  kept  in  the  Customs  Taotai's  Yamen. 

Two  sets  shall  be  kept  by  the  "  Administration." 

Two  sets  shall  be  kept  by  the  "  Company." 

To  each  set  is  attached  a  copy  of  the  map. 
Tientsin  the  14th  April,  1908. 


NUMBER  1908/7:  APRIL  14,  1908:  NOTE  729 


Note. 

On  June  10,  1910,  the  Ching  Hsing  Mines  entered  into  the  following  mortgage  inden- 
ture with  the  Banque  de  I'lndo-Chine : 

Mortgage  of  Ching  Hsing  Mines  to  Banque  de  I'lndo-Chine,  June  lo,  igio. 

THIS  INDENTURE  made  this  10th  day  of  June,  1910,  at  Tientsin,  in  the  Empire 
of  China. 

BY  AND  BETWEEN  THE  CHING  HSING  KUANG  WU  CHU  (Ching  Hsing 
Mines)  an  Association  formed  by  the  CHIHLI  CHING  HSING  MINING  ADMIN- 
ISTRATION, and  the  CHING  CHING  GESELLSCHAFT  m.b.h.  a  hmited  Hability  joint 
stock  company  registered  under  the  German  law  in  the  German  Consulate  at  Tientsin, 
under  the  terms  of  an  agreement  between  the  said  Administration  and  the  said  Company 
dated  the  14th  day  of  April,  1908,  and  which  received  Chinese  Govermental  sanction  by 
Imperial  Rescript  on  the  5th  day  of  August,  1908,  to  own  and  operate  certain  coal  mines 
in  the  said  District  of  Ching  Hsing  in  the  Province  of  Chihli,  of  the  Empire  of  China, 
party  of  the  first  fpart]  hereinafter  referred  to  as  the  KUANG  WU  CHU  and  the 
BANQUE  DE  LTNDO-CHINE,  a  banking  society  organized  under  the  laws  of  France 
and  having  a  branch  office  at  Tientsin  aforesaid,  hereinafter  referred  to  as  the  BANK, 

WITNESSETH  THAT: 

WHEREAS  the  aforesaid  agreement  of  association  forming  the  Kuang  Wu  Chu  by 
Article  VI  thereof,  empowers  the  Chinese  and  foreign  managers  of  the  said  Kuang  Wu 
Chu,  acting  conjointly  to  borrow  money  for  the  purposes  expressed  in  said  agree- 
ment, and,  by  Article  X  thereof,  limits  the  liability  of  the  parties  to  said  agree- 
ment to  the  actual  investment  of  the  said  parties  in  the  said  Kuang  Wu  Chu  for  the 
time  being,  and  excludes  all  liability  for  further  contribution  by  the  said  parties.  The 
Articles  VI  &  X  of  the  Agreement  of  association  between  the  Chihli  Ching  Hsing  Admin- 
istration and  the  Ching  Ching  Minen  Gesellschaft  m.b.h.  forming  the  Kuang  Wu  Chu  and 
referred  to  above  are  to  be  part  of  this  IMortgage  Indenture  and  read  in  accordance  with 
the  original  agreement  as  follows : 

"Article  VI. — If  in  the  course  of  time  the  funds  of  'the  Mines'  should  prove  to 
be  insufficient  to  carry  on  the  business  and  if  new  funds  must  be  provided  for,  this  might 
be  done  by  increasing  the  Capital  of  '  The  Mines '  and  in  such  a  case  the  '  Administra- 
tion '  and  the  'Company'  shall  have  each  to  provide  one-half  of  this  increase  or  'the 
Mines'  shall  be  authorized  to  supply  the  necessary  funds  by  raising  a  loan.  Which  of 
the  two  ways  will  have  to  be  adopted  shall  be  a  matter  to  be  mutually  decided  by  the 
two  co-managers. 

"  Article  X. — It  is  understood  and  agreed  that  all  financial  obligations  between  the 
'  Administration '  and  the  '  Company '  provided  for  in  this  agreement,  shall  be  a  first 
charge  upon  the  property  and  assets  of  '  The  Mines  '  and  in  such  a  case  such  properties 
and  assets  should  prove  insufficient  to  repay  the  share-value  or  interest  thereon  or  any 
part  of  such  share-value,  no  residual  liability  shall  rest  with  the  Chinese  Government  or 
Authorities  nor  with  the  members  of  the  shareholders  of  the  '  Administration '  or  the 
'  Company '  beyond  their  interest  in  '  The  Mines  '  themselves  "  and, 

WHEREAS  the  Kuang  Wu  Chu  by  resolution  of  its  Chinese  and  foreign  managers 
has  authorised  a  loan  of  Tientsin  Hongping  Hupao  Taels  Seven  hundred  and  Fifty  thou- 
sand (TIs.  750,000)  secured  by  bonds  to  be  issued  in  three  series  of  Tls.  250,000  each,  the 
first  series  on  the  first  day  of  July,  1910,  the  second  series  on  the  first  day  of  July,  1912, 
and  the  third  series  on  the  first  day  of  July,  1914,  or  as  to  the  second  and  third  series  at 
such  other  times  as  the  Chinese  and  foreign  co-managers  may  determine  upon  the  following 
conditions,  that  is  to  say: 

(a)  The  said  Bonds  and  the  interest  thereon  are  payable  at  the  Offices  of  the  Kuang 
Wu  Chu  in  Tientsin  in  Hupao  Silver  by  weight  in  Tientsin  Hongping  Taels,  or  if  the 
same  be  not  then  current,  in  the  reformed  Imperial  Chinese  silver  coin  when  the  same 
is  established,  at  the  rate  per  Tientsin  Hongping  Hupao  Tael  in  force  in  the  Imperial 
Government  mints  at  the  respective  times  of  payment. 

(b)  The  said  Bonds  bear  INTEREST  at  the  rate  of  SEVEN  per  centum  per  annum, 
payable  at  the  Offices  of  the  Kuang  Wu  Chu  in  Tientsin  semi-annually  on  the  first  days 
of  January  and  July  in  each  year  after  the  year  of  issue. 

(c)  The  said  Bonds  shall  be  issued  to  bearer  only. 

(d)  Repayment  of  the  principal  sum  of  the  said  Bonds  .shall  begin  on  the  first  day 
of  July,  1916,  and  shall  be  completed  by  the  first  day  of  July,  1923,  the  designation  of 
the  Bonds  to  be  repaid  in  each  year  being  made  by  lot,  but  at  any  time  within  the  eight 
year  period  of  repayment  so  provided,  the  Kuang  Wu  Chu  has  the  right  to  redeem  at 
par  on  six  months  notice  published  once  a  month  for  six  months  in  the  official  organ 
of  the  French  Municipality  at  Tientsin,  and  in  one  English  newspaper  published  in 
Tientsin,  the  whole  sum  of  Bonds,  principal  and  accrued  interest,  then  outstanding. 


730  CHINA  TREATIES  AND  AGREEMENTS 

NOW  THEREFORE,  for  the  better  security  of  the  said  Bonds,  the  Kuang  Wu  Chu 
hereby  mortgage  to  the  Bank,  its  successors  or  assigns  all  its  property  of  whatsoever 
description,  movable  or  immovable,  corporeal  or  incorporeal,  situated  within  the  Dis- 
trict  of    Ching   Hsing   or   elsewhere,   now   owned   by   the    Kuang   Wu    Chu    or    hereafter 

flCQUirCQ 

ON 'condition,  however,  that  so  long  as  the  Kuang  Wu  Chu  shall  well  and 
truly  pay  all  instalments  of  interest  and  principal  of  the  said  Bonds  as  and  when  they 
fall  due,  the  Bank  shall  not  enter  into  possession  of  the  said  property  nor  in  any  manner 
interfere  with  the  operation  of  the  Kuang  Wu  Chu  but  in  the  event  that  the  Kuang  Wu 
Chu  shall  continue  for  ten  days  in  default  in  the  complete  payment  of  any  sum  due 
according  to  the  terms  of  any  of  the  said  Bonds  outstanding  when  such  payment  is  due, 
then  the  right  of  the  Bank  to  take  possession  on  behalf  of  the  Bondholders  of  the  prop- 
erty hereby  mortgaged  shall  at  once  mature  and  shall  be  exercised  by  the  Bank.  There- 
after, in  such  event  the  Bank  shall,  so  soon  as  may  be,  by  four  weeks'  notice  published 
once  a  week  for  four  weeks  in  the  official  organ  of  the  French  Municipality  at  Tientsin, 
and  in  one  English  newspaper  published  in  Tientsin,  call  a  meeting  of  the  holders  of 
the  outstanding  Bonds  and  shall  act  in  accordance  with  the  instructions  of  any  com- 
mittee selected  by  such  meeting,  but  not  otherwise  than  to  operate  the  mines  of  the 
Kuang  Wu  Chu  and  to  employ  its  other  property  with  the  sole  object  of  recovering  by 
such  operation  and  employment,  after  payment  of  all  expenses,  the  balance  due  upon  the 
Bonds  then  outstanding,  and  the  interest  thereafter  accruing,  after  which  recovery  in  full 
the  property  taken  into  possession  by  the  Bank  shall  be  returned  to  the  Kuang  Wu  Chu. 

The  committee  appointed  at  the  first  meeting  may  be  replaced  in  whole  or  in  part, 
and  the  instructions  given  by  the  committee  to  the  Banque  de  ITndo-Chine  may  be  modi- 
fied, at  any  subsequent  meeting : 

For  the  first  meeting,  the  holders  of  a  simple  majority  of  the  Bonds  then  outstanding 
shall  constitute  a  quorum,  and  all  resolutions  shall  be  binding  which  are  carried  by  a 
majority  of  the  Bonds  represented  by  those  present.  In  the  event  of  a  failure  of  a 
quorum,  the  meeting  shall  stand  adjourned  to  reconvene  four  weeks  later,  when  any 
number  of  bonds  represented  shall  form  a  quorum. 

The  first  meeting  provided  for  in  the  paragraph  next  above  shall  establish  rules  for 
the  calling  of  subsequent  meetings  and  fix  the  powers  of  such  meetings. 

At  any  time  during  the  possession  of  the  mortgaged  property  by  the  Bank,  the  Kuang 
Wu  Chu  may  redeem  the  same  by  paying  in  full  all  amounts  then  due  on  account  of  the 
principal  and  interest  of  the  Bonds  then  outstanding  and  the  outlay  of  the  Bank  in  the 
expense  of  taking  possession  and  of  operation  and  maintenance  so  far  as  such  outlay  has 
not  been  recovered  from  profits  of  operation. 

No  sale  of  the  mortgaged  property  nor  any  part  of  it  by  the  Bank,  whether  privately 
or  by  auction,  shall  be  valid  without  the  sanction  of  the  Imperial  Government,  excepting 
always  current  sales  of  mine  products  and  sales  of  disused  or  useless  plant  and  materials, 
while  the  property  is  in  the  possession  of  the  Bank. 

During  the  life  of  this  mortgage,  the  Kuang  Wu  Chu  shall  make  no  sale  of  any  of 
the  mortgaged  property,  excepting  always  sales  of  its  mine  products  and  of  disused  or 
useless  plant  and  materials,  without  the  consent  of  the  Bank. 

So  soon  as  all  the  Bonds,  principal  and  interest  secured  by  this  mortgage,  and  all 
outlay  of  the  Bank  on  their  behalf  are  fully  paid  this  mortgage  shall  be  null  and  void, 
and  each  party  shall  cancel  and  deliver  up  to  the  other  the  original  executed  copy  held  by 
it,  otherwise  it  shall  remain  always  in  full  force. 

Neither  the  Kuang  Wu  Chu,  nor  either  party  to  the  agreement  of  association  forming 
the  Kuang  Wu  Chu,  nor  anyone  holding  a  share  therein  derived  of  either  such  party,  nor 
the  Imperial  Chinese  Government  Central,  Provincial  or  Local,  shall  be  liable  for  any 
deficit  after  the  exhaustion  of  the  property  hereby  mortgaged,  but  the  Bondholders  shall 
look  to  such  property  alone  and  the  operation  of  the  mines  hereby  mortgaged  for  repay- 
ment of  principal  and  interest. 

The  Bank  shall  have  no  liability  whatever  to  the  Bondholders  in  respect  of  any  pay- 
ment due  by  the  Kuang  Wu  Chu  or  in  respect  of  any  act  of  the  Bank  in  pursuance  of  the 
provisions  of  this  mortgage,  or,  so  soon  as  the  Bank  in  the  event  of  default  by  the  Kuang 
Wu  Chu  has  issued  a  call  for  a  meeting  of  Bondholders,  for  any  omission  of  the  Bank. 

The  Kuang  Wu  Chu  covenants  that  it  is  the  sole  proprietor  of  the  mortgaged  property 
and  that  it  has  good  right  to  mortgage  the  same. 

The  Kuang  Wu  Chu  further  covenants  that  the  mortgaged  property  is  free  and  unen- 
cumbered and  that  this  mortgage  constitutes  a  first  mortgage  upon  the  mortgaged  prop- 
erty having  priority  over  all  other  claims  whatsoever,  saving  Imperial  Chinese  Govern- 
ment taxes  which  taxes  the  Kuang  Wu  Chu  covenants  always  to  pay  as  and  when  they 
become  due. 

IN  WITNESS  WHEREOF,  the  parties  hereto  have  hereunto  set  their  names  and 
seals  by  their  duly  authorised  officers  at  Tientsin  aforesaid,  the  day  and  year  first  above 
written. 


NUMBER  1908/8:  MAY  14,  1908  731 


NUMBER  1908/8. 

JAPAN  AND  CHINA. 

Agreement  for  a  Chinese-Japanese  Joint  Stock  Lumber  Company  for  the  Ex- 
ploitation of  the  Yalu  Timber*— May  14,  1908. 

Natung,  a  Minister  of  the  Chinese  Wai-wu  Pu,  and  Baron  Gonsuke 
Hayashi,  Minister  Plenipotentiary  of  Japan,  being  duly  authorised  thereto  by 
their  respective  Governments,  have  drawn  up  Regulations  for  a  joint  Chinese 
and  Japanese  Timber  Company,  as  provided  for  in  Article  X  of  the  Supplemen- 
tary Manchurian  Agreement  of  1905,t  as  follows : — 

Article  I. — An  area  shall  be  marked  out  on  the  right  bank  of  the  Yalu, 
extending  from  Maoerhshan  to  Erhshihszetaok9U  and  measuring  60  //  inland 
from  the  main  stream.  (A  delegate  shall  be  appointed  by  the  Fengtien  province 
to  define  the  area  and  put  up  boundary  marks  conjointly  with  a  Japanese  dele- 
gate.) The  gathering  of  timber  within  the  area  will  be  carried  on  with  the 
joint  capital  and  under  the  joint  management  of  China  and  Japan.  As  a  begin- 
ning, both  countries  shall  appoint  officers  who  shall  open  offices  and  commence 
work.  At  the  end  of  a  year,  when  all  arrangements  have  been  completed  and 
agreed  on,  the  two  countries  shall  invite  their  merchants  to  take  up  the  enter- 
prise. 

Article  II. — The  joint  Chinese  and  Japanese  Timber  Company  shall  be 
styled  the  Yalu  River  Timber  Company. 

Article  III.— The  capital  of  the  Company  shall  be  $3,000,000,  of  which 
China  and  Japan  shall  each  contribute  half. 

Article  IV. — The  head  office  of  the  Company  shall  be  established  at  Antung, 
and  the  Company,  upon  report  to  the  Superintendent,  shall  open  branch  offices 
wherever  they  are  deemed  necessary. 

Article  V.— The  Company  shall  protect  the  existing  Chinese  timber-cutting 
industry.  Except  the  area  to  be  marked  out  in  accordance  with  Article  I  and 
in  which  the  Company  shall  cut  timber,  all  places  beyond  its  boundaries,  as  well  as 
the  forests  of  the  Hun  River,  shall  continue  as  before  to  be  worked  by  Chinese 
wood-cutters.  These  shall  apply  to  the  Company  for  loans  wherewith  to  carry 
on  their  industry,  and  all  timber  cut  by  them — with  the  exception  of  sleepers 
for  the  railway  companies  in  Kiangsu  and  Chekiang  provinces,  and  timber  for 
the  use  of  the  inhabitants  along  the  river,  which  shall  be  purchased  direct  from 
the  said  wood-cutters — shall  be  sold  exclusively  to  the  Company.  In  the  dis- 
posal of  timber,  the  Company  shall  sell  at  market  prices,  and  shall  not  create  a 
monopoly. 

Article  VI. — When  the  Chinese  Government,  or  Government  offices,  pur- 

*  Translation,  as  printed  in  Customs,  vol.  II,  p.  760,  from  the  Chinese  text. 
tNo.  1905/18,  ante. 


732  CHINA  TREATIES  AND  AGREEMENTS 

chase  under  huchao  timber  which  has  either  been   felled  by  the  Company  or 
bought  from  wood-cutters,  the  Company  shall  sell  at  cost  price. 

Article  VII. — The  Company  shall  be  allowed  to  carry  on  their  business  for 
a  term  of  25  years,  on  the  expiration  of  which,  if  the  Chinese  Government  shall 
be  satisfied  with  the  working  of  the  Company,  a  petition  may  be  sent  to  the 
Chinese  Government  for  an  extension  of  the  term. 

Article  VIII. — The  Company  shall  have  one  Superintendent  who  shall 
be  the  Taotai  of  the  Eastern  Circuit,  appointed  by  the  Governor  of  Fengtien ; 
and  two  Managers,  one  Chinese  and  one  Japanese,  whose  appointments  shall 
be  made  by  their  respective  countries.  Other  assistants,  skilled  employes,  etc., 
shall  be  appointed  by  joint  selection  and  consent  of  the  managers.  The  man- 
agers shall  not  employ  persons  of  other  nationalities  in  connexion  with  wood- 
cutting in  the  assigned  area  without  the  approval  of  the  Superintendent. 

Article  IX. — The  Company  shall,  at  the  end  of  each  year,  prepare  a  re- 
port on  the  year's  business  and  a  statement  of  receipts  and  expenditure,  to  be 
submitted  to  the  proper  authorities  of  the  two  countries. 

Article  X. — After  the  expenditure  of  the  Company  shall  have  been  de- 
ducted from  the  receipts,  five  per  cent,  of  the  net  profit  shall  be  appropriated 
to  the  Chinese  Government,  and  the  remainder  shall  be  distributed  among 
the  shareholders  of  the  two  countries.  The  disbursements  of  the  Company  shall 
be  under  due  control,  and  periodical  estimates  of  salaries  and  other  expenditure 
shall  be  submitted  to  the  Superintendent  for  his  approval. 

Article  XI.$ — Within  one  month  after  the  conclusion  of  this  Agreement, 
the  Governor  of  Fengtien  and  the  Japanese  Consul-General  at  Fengtien  shall 
each  appoint  a  delegate  to  draw  up  detailed  regulations  for  the  management  of 
the  Company,  which,  when  agreed  upon,  shall  become  the  regulations  of  the 
Company;  and  within  three  months  thereafter  the  Company  shall  commence 
business.  For  new  rules  subsequently  enacted  by  the  Company  the  Superin- 
tendent's approval   will  be  necessary. 

Article  XII. — As  to  the  duties  payable  by  the  Company  on  timber,  when 
the  discussion  of  the  detailed  regulations  takes  place  at  Fengtien  (Aloukden), 
the  delegates  of  the  two  countries  shall  inquire  into  the  established  rates  of 
timber  taxes  and  shall  negotiate  with  the  local  authorities  with  a  view  to  a 
reduction  of  such  taxes.  The  machinery  and  the  implements  necessary  for 
wood-cutting  imported  by  the  Company  shall  be  exempted  from  duty  and  likin. 

Article  XIII. — After  the  inauguration  of  the  Company  the  Japanese  Gov- 
ernment shall  eflfect  the  removal  of  the  timber  sheds  now  in  existence  on  the  Yalu. 

Peking : 

15th  day,  4th  moon,  34th  year  of  Kuang  Hsii: 
14th  day,  5th  moon,  41st  year  of  Meiji. 

X  See  Note  to  this  document,  post,  p.  7Zi. 


NUMBER  1908/8:  MAY  14,  1908:  NOTE  733 

Note. 

The  following  is  a  translation  from  a  Japanese  text  of  the  regulations  agreed  upon 
September  11,  1908,  in  pursuance  of  the  provisions  of  Article  XI: 

Regulations  for  Sino-Japanese  Yalu  Timber  Company,  September  ii,  1908. 

"  S.  Okabe,  His  Imperial  Japanese  Majesty's  Consul,  and  Chang  Hsi-Lan,  Imperial 
Chinese  Commissioner  of  the  Finance  Department  at  Mukden,  having  received  instructions 
from  their  respective  Governments,  have  in  accordance  with  Clause  XI  of  the  Agreement 
of  the  14th  of  May,  1908,  for  the  establishment  of  a  Yalu  Timber  Company,  agreed  upon 
the  following  regulations  for  the  governance  of  the  said  Company,  to  wit: 

_  "  1. — The  Company  will  be  conducted  in  accordance  with  the  agreement  between  the 
Chinese  and  Japanese  Governments  of  the  14th  of  May,  1908,  for  the  joint  exploitation  of 
the  Yalu  Timber,  and  in  accordance  with  the  present  Regulations  it  has  been  agreed  that 
the  Company  will  be  established  from  the  25th  of  September,  1908. 

"  2. — In  accordance  with  the  agreement  signed  in  Peking  the  two  Governments  will 
appoint  officials  to  establish  a  company. 

"  (a)  After  the  lapse  of  one  year,  when  everything  is  in  working  order,  merchants 
will  be  requested  to  undertake  the  business. 

"  (b)  Regulations  for  the  issue  of  shares  will  be  drawn  up  after  the  inauguration  of 
the  present  Company. 

"  3. — The  Capital  of  the  said  Company  is  fixed  at  $3,000,000  which  on  the  day  of  the 
establishment  of  the  Company  is  to  be  contributed  in  equal  shares  by  the  Chinese  and 
Japanese  Governments.  When  the  Company  is  transferred  to  a  merchant  association,  the 
whole  of  the  said  capital  will  be  withdrawn. 

"  4. — The  Capital  is  to  be  paid  up  in  Chinese  Dollars  and  all  receipts  and  expendi- 
tures must  be  calculated  in  such  currency.  The  money  will  be  deposited  partly  in  Chinese 
and  partly  in  Japanese  Banks  as  shall  be  determined  by  the  Managers  of   the  Company. 

"  5. — The  following  shall  be  the  officers  of  the  Company : 

1)  One  Superintendent 

2)  Two  Chief  Managers 

3)  Two  or  more  sub-Managers 

4)  Experts  and  other  officials. 

"  (a)  The  Viceroy  and  Governor  of  Fengtien  Province  have  appointed  the  Taotai  of 
the  Eastern  Frontier  as  Superintendent  of  the  Company. 

"  (b)  Of  the  Chief  Managers  one  shall  be  appointed  by  the  Chinese  and  one  by  the 
Japanese. 

"  (c)   The  sub-Managers  shall  be  appointed  by  the  Chief  Managers  in  consultation. 

"  (d)  Experts  and  other  officials  will  also  be  appointed  by  the  Chief  Managers,  but 
such  appointments  must  be  distributed  equally  between  Chinese  and  Japanese  subjects. 

"6. — The  salary  of  the  Superintendent  shall  be  $15,000  per  annum,  that  of  the  Chief 
Managers  $10,000  per  annum.  The  salaries  of  the  sub-Managers  will  be  determined  by  the 
Chief  Managers  in  consultation. 

"  7. — The  number  and  salaries  of  the  Experts  and  other  officials  will  be  determined  by  the 
Chief  Managers  in  consultation  with  the  Superintendent. 

"  8. — The  correspondence  and  accounts  of  the  Company,  being  of  the  greatest  im- 
portance, will  be  rendered  in  both  Chinese  and  Japanese.  The  two  Governments  will  ap- 
point auditors  who  will  inspect  the  working  of  the  Company  and  all  the  accounts  and  cor- 
respondence. The^  shall  be  empowered  to  demand  from  the  Company  all  kinds  of  docu- 
ments and  any  information  as  to  the  condition  of  the  Company. 

"  9 — The  accounts  of  the  Company  will  be  rendered  in  accordance  with  the  Chinese 
Calendar. 

"  (b)  When  the  Company  is  handed  over  to  a  mercantile  association  a  final  balance 
sheet  will  be  at  once  issued. 

"  10. — The  Company  is  formed  from  Capital  supplied  jointly  by  China  and  Japan.  Un- 
less by  mutual  agreement  the  Company  may  not  of  its  own  initiative  borrow  money  to 
extend  its  operations. 

"11. — Five  per  cent  of  the  profits  of  the  Company  must  be  placed  to  a  Reserve  Fund. 
When  such  reserve  fund  has  reached  an  amount  equal  to  one-third  of  the  capital  of  the 
Company,  it  shall  remain  at  that  amount.  Just  as  is  laid  down  in  the  preceding  clause 
this  reserve  must  not  be  used  except  under  mutual  agreement. 

"  12.— The  Chief  Managers  must  prepare  and  submit  to  the  Superintendent  for  ap- 
proval a  statement  of  their  estimates  for  the  receipts  and  expenditures  of  each  year.  In 
such  estimates  there  must  be  a  clear  discrimination  between  the  items  of  expenditure  and 

income.  ,.  ,,  •        1 

"13 To  all  that  relates  to  receipts  and  expenditures  as  well  as  m  other  matters  m- 

volving  joint  calculations  the  Chief  Managers  must  after  consultation  report  their  decision 
to  the  Superintendent. 


734  CHINA  TREATIES  AND  AGREEMENTS 

"  14. — As  regards  the  taxes  on  the  timber  cut  by  the  Company  they  must  be  paid  in 
accordance  with  the  old  '  Shan-chia-Ko  '  tariff  but  with  a  twenty  per  cent  reduction.  The 
Company  has  nothing  to  do  with  the  boat  tax  as  levied  under  former  conditions.  Other 
charges  such  as  inspection  of  timber,  police  protection  and  similar  taxes  are  altogether 
remitted.  If  timber  is  exported  by  steamer  the  export  duty  in  accordance  with  the  Customs 
Tariff  will  be  paid  as  a  substitute  for  the  boat  tax.  Payment  of  the  '  Shan-chia-Ko  '  tax  in 
accordance  with  precedent  will  be  made  by  the  Company  at  the  time  of  the  sale  of  the 
timber.  The  business  of  the  Company,  its  receipts,  implements  used  in  cutting  logs,  etc.,  will 
be  free  from  taxation.  The  local  land  tax  must,  however,  continue  to  be  paid,  in  accordance 
with  former  regulations. 

"  15. — The  Chekiang  Railway  Company  may  contract  for,  and  buy  timber  needed  by 
them  from  lumber  merchants,  but  a  document  must  be  given  by  the  said  Company  stating 
the  particulars  of  all  such  timber  which  must  be  presented  to  the  Taotai  of  the  Eastern 
Frontier  and  sealed  by  him.  At  the  time  of  the  export  of  any  such  consignment  the 
Superintendent  of  the  Company  will  depute  an  officer  to  inspect  the  lumber  before  releas- 
ing it. 

"  16. — With  the  exception  of  the  wood  required  for  their  own  needs,  the  settlers  on 
either  bank  of  the  Hun  river  must  sell  their  timber  exclusively  to  the  Company.  It  has 
already  been  provided  in  the  Peking  Agreement  that  the  local  authorities  must  issue  a 
proclamation  to  this  effect.  Hereafter,  if  there  should  be  any  violation  of  the  Peking 
Agreement,  the  Company  will  inform  the  local  authorities  who  shall  take  measures  to 
punish  the  offenders  without  leniency. 

"  17. — The  Company  will  undertake  the  responsibility  of  making  suitable  arrangements 
for  the  supervision  of  rafting  logs — such  arrangements  must  be  decided  upon  by  the  two 
Chief    Managers   conjointly,   and   submitted  to  the   Superintendent   for   his  approval. 

"  (b)  The  Timber  companies  now  in  existence  must  at  the  time  of  the  establishment 
of  this  Company  be  dissolved  and  the  local  authorities  shall  issue  proclamations  to  this 
effect. 

"  18. — In  accordance  with  the  Peking  Agreement  the  Company  may  cut  timber  on  the 
right  bank  of  the  Yalu  from  Maoerhshan  as  far  as  the  24th  tributary  within  a  distance 
of  sixty  (60)  Chinese  li  on  either  side  of  the  main  said  stream.  The  two  Governments  will 
appoint  officers  who  will  conjointly  make  a  survey  map  and  mark  on  it  the  extent  of  such 
concession. 

"19. — The  Company  must  investigate  the  conditions  of  the  forests  to  be  cut  down, 
the  order  in  which  the  trees  are  to  be  cut,  the  extent  of  the  district  in  which  cutting  will 
take  place  in  each  year,  and  the  nature  of  the  trees,  must  be  shown  on  a  map  and  reported 
for  the  approval  of  the  Viceroy  and  Governor. 

"20. — Chinese  laborers  only  must  be  employed  by  the  Company  in  cutting  and  moving 
timber  and  in  constructing  and  navigating  rafts,  so  as  to  help  the  inhabitants  of  the  dis- 
trict in  their  livelihood.  In  the  event  of  the  engagement  of  a  person  of  any  other  national- 
ity, the  consent  of  the  superintendent  must  be  obtained. 

"  21. — Although  the  timber  business  is  to  be  conducted  by  the  Company,  Chinese  timber 
brokers  may  continue  their  business  as  heretofore  but  at  the  proper  time  they  must  make 
satisfactory  arrangements  with  the  Company. 

"  SUPPLEMENTARY  AGREEMENT 

"  1. — The  Chinese  Dollars  mentioned  in  Clause  4  of  the  main  Agreement  are  Peiyang 
Dollars.  Hereafter,  should  the  Manchurian  dollar  obtain  a  stable  circulation  the  change 
from  Peiyang  to  Manchurian  dollars  will  be  discussed. 

"(b)  The  original  capital  may  be  subscribed  in  Taels  to  be  converted  into  Peiyang 
Dollars  at  the  current  rate  of  the  day  of  the  inauguration  of  the  Company. 

"  2. — In  accordance  with  Article  VI  of  the  Peking  Agreement  timber  required  by  the 
Chinese  Government  or  Chinese  yainens  or  offices  will  be  furnished  by  the  Company  at  the 
cost  of  labor  plus  the  duty.  The  Company  may  charge  in  addition  the  amount  of  the  wages 
of  its  employees. 

"  3. — The  initial  outlay  for  the  establishment  of  the  Company  not  exceeding  $70,000 
will  be  temporarily  advanced  by  the  two  Governments. 

"4. — Requests  to  the  banks  for  providing  money,  will  be  signed  jointly  by  the  two  Chief 
Managers. 

"  5. — China  will  make  necessary  arrangements  for  any  police  work  required  by  the 
Company. 

"  6. — The  above  arrangements  are  provisional  but  when  the  Company  is  turned  into  a 
mercantile  association,  if  found  satisfactory  they  may  be  continued. 

"(b)  At  the  time  of  handing  over  the  Company  to  the  merchants  the  question  as  to 
which  officials  in  the  employ  of  the  Company  are  to  be  retained  and  which  dropped  will  be 
continued. 

"  (Signed  and  sealed   11th   September,   1908.)  " 


NUMBER  1908/9 :  MAY  19,  1908  735 

NUMBER  1908/9. 

JAPAN  AND  THE  UNITED  STATES. 

Convention  for  the  reciprocal  protection  of  inventions,  designs,  trademarks  and 
copyrights  in  China*— May  19,  1908. 

The  President  of  the  United  States  of  America  and  His  Majesty  the  Emperor 
of  Japan  being  desirous  to  secure  in  China  reciprocal  protection  for  the  inventions, 
designs,  trade  marks  and  copyrights  of  their  respective  citizens  and  subjects  have 
resolved  to  conclude  a  convention  for  that  purpose  and  have  named  as  their  Pleni- 
potentiaries, that  is  to  say : 

The  President  of  the  United  States  of  America,  Robert  Bacon,  Acting 
Secretary  of  State  of  the  United  States ;  and 

His  Majesty  the  Emperor  of  Japan,  Baron  Kogoro  Takahira,  Shosammi, 
Grand  Cordon  of  the  Imperial  Order  of  the  Rising  Sun,  His  Ambassador  Extraor- 
dinary and  Plenipotentiary  to  the  United  States  of  America ; 

Who,  after  having  communicated  to  each  other  their  Full  Powers,  found 
to  be  in  good  and  due  form,  have  agreed  upon  and  concluded  the  following 
articles : 

Article  I. — Inventions,  designs  and  trade  marks  duly  patented  or  registered 
by  citizens  or  subjects  of  one  High  Contracting  Party  in  the  appropriate  office 
of  the  other  Contracting  Party  shall  have  in  all  parts  of  China  the  same  protec- 
tion against  infringement  by  citizens  or  subjects  of  such  other  Contracting  Party 
as  in  the  dominions  and  possessions  of  such  other  Contracting  Party. 

Article  II. — The  citizens  or  subjects  of  each  of  the  two  High  Contracting 
Parties  shall  enjoy  in  China  the  protection  of  copyright  for  their  works  of  litera- 
ture and  art  as  well  as  photographs  to  the  same  extent  as  they  are  protected 
in  the  dominions  and  possessions  of  the  other  party. 

Article  HI. — In  case  of  infringement  in  China  by  a  citizen  or  subject  of 
one  of  the  two  High  Contracting  Parties  of  any  invention,  design,  trade  mark  or 
copyright  entitled  to  protection  in  virtue  of  this  convention  the  aggrieved  party 
shall  have  in  the  competent  territorial  or  consular  courts  of  such  Contracting 
Party  the  same  rights  and  remedies  as  citizens  or  subjects  of  such  Contracting 
Party. 

Article  IV. — Each  High  Contracting  Party  engages  to  extend  to  the  citizens 
or  subjects  of  the  other  Contracting  Party  the  same  treatment  in  China  in  the 
matter  of  protection  of  their  commercial  names  as  they  enjoy  in  the  dominions 
and  possessions  of  such  Contracting  Party  under  the  convention  for  the  protec- 
tion of  industrial  property  signed  at  Paris  March  20,  1883.  "  Hong  "  marks 
shall  be  considered  to  be  commercial  names  for  the  purpose  of  this  convention. 

Article  V. — Citizens  of  possessions  belonging  to  the  United   States  and 

*Text  as  printed  in  U.  S.  Treaty  Series,  No.  507.     Printed  also  in  Malloy,  p.  1043;  Am. 
Int.  Law  Journal,  Supplement,  1908,  p.  353;  Traites  et  Conventions,  Supplement,  p.  iv. 


736  CHINA  TREATIES  AND  AGREEMENTS 

subjects  of  Korea  shall  have  in  China  the  same  treatment  under  the  present 
convention  as  citizens  of  the  United  States  and  subjects  of  Japan  respectively. 

Article  VI. — It  is  mutually  agreed  between  the  High  Contracting  Parties 
that  the  present  convention  shall  be  enforced  so  far  as  applicable  in  any  other 
country  in  which  either  Contracting  Party  may  exercise  extraterritorial  juris- 
diction. 

All  rights  growing  out  of  the  present  convention  shall  be  recognized  in  the 
insular  and  other  possessions  and  leased  territories  of  the  High  Contracting 
Parties  and  all  legal  remedies  provided  for  the  protection  of  such  rights  shall 
be  duly  enforced  by  the  competent  courts. 

Article  VII. — Any  person  amenable  to  the  provisions  of  this  convention 
who  possesses  at  the  time  the  present  convention  comes  into  force  merchandise 
bearing  an  imitation  of  a  trade  mark  owned  by  another  person  and  entitled  to 
protection  under  said  convention  shall  remove  or  cancel  such  false  trade  mark 
or  withdraw  such  merchandise  from  market  in  China  within  six  months  from  the 
date  of  the  enforcement  of  this  convention. 

Article  VIII. — Unauthorized  reproductions  by  the  citizens  or  subjects  of 
one  High  Contracting  Party  prior  to  the  operation  of  this  convention  of  the 
works  of  literature  and  art  as  well  as  photographs  of  the  citizens  or  subjects  of 
the  other  Contracting  Party  published  after  the  10th  day  of  May,  1906,  and  en- 
titled to  protection  in  virtue  of  this  convention  shall  be  withdrawn  from  sale  or 
circulation  in  China  within  one  year  from  the  date  of  the  enforcement  of  this 
convention. 

Article  IX. — The  present  convention  shall  be  ratified  and  the  ratifications 
thereof  shall  be  exchanged  at  Tokyo  as  soon  as  possible.f  It  shall  come  into 
force  together  with  the  convention  relative  to  the  protection  of  inventions,  de- 
signs, trade  marks  and  copyrights  in  Korea,  ten  days  after  such  exchange  of 
ratifications. 

In  witness  whereof,  the  respective  Plenipotentiaries  have  signed  the  present 
convention  in  duplicate  and  have  thereunto  affixed  their  seals. 

Done  at  the  City  of  Washington  the  19th  day  of  May  in  the  nineteen 
hundred  and  eighth  year  of  the  Christian  era  corresponding  to  the  19th  day  of  the 
5th  month  of  the  41st  year  of  Meiji. 

Robert  Bacon     [seal.] 
K.  Takahira      [seal.] 

t  Ratifications  exchanged  August  6,  1908. 


NUMBER  1908/10:  MAY  30,  1908  737 

NUMBER  1908/10. 

INTERNATIONAL  AND  CHINA. 
Revised  regulations  for  arms  and  ammunition* — May  30,  1908. 

1°. — Military  Arms  and  Ammunition. — Before  arms  and  ammunition  are 
imported  by  any  department  of  the  Chinese  Government,  the  particulars  (denom- 
ination, number  of  packages,  port  of  entry,  destination,  etc.)  must  be  telegraphed 
to  the  Ministry  of  War  (Lu-chiin  Pu)  by  the  Tartar  General,  Viceroy,  or  Gov- 
ernor concerned,  who  may  issue  the  necessary  Hiichao  only  after  receipt  of  the 
Ministry's  telegraphic  approval.  These  particulars  will  be  sent  on  to  the  Shui-wu 
Ch'u  by  the  Ministry  for  transmission  to  the  Superintendents  and — through  the 
Inspector  General — to  the  Commissioners  of  Customs  concerned.  Permission  to 
land  such  cargo  will  then  be  given,  provided  that  the  number  of  packages  is  found 
to  be  in  agreement  with  the  Hiichao.  The  date  of  actual  importation  is  to  be 
reported  in  every  instance  to  the  Shui-wu  Ch'u,  for  transmission  to  the  ^Ministry 
of  War. 

2°. — Samples  of  Military  Arms  and  Ammunition. — Foreign  merchants 
desiring  to  import  samples  of  arms  and  ammunition  for  exhibition  to  Chinese 
Government  departments  must  obtain  from  the  Superintendent  of  Customs, 
through  their  Consuls,  a  Permit  to  Import,  upon  presentation  of  which  at  the 
Custom  House,  together  with  the  Application,  permission  to  release  will  be 
given. 

On  each  occasion  not  more  than  four  rifles  of  any  one  kind  and  ammunition 
for  same  not  exceeding  two  thousand  rounds  in  all  may  be  imported. 

The  merchant  concerned  is  to  give  a  bond  to  the  Customs  guaranteeing  that 
the  samples  in  question  will  not  be  sold  to  any  person  whatever.  Such  samples 
of  arms,  etc.,  must  be  produced  for  Customs  inspection  whenever  demanded. 

In  the  event  of  suspicious  circumstances  the  Superintendent  of  Customs 
can  refuse  to  issue  a  Permit,  informing  the  Consul  in  writing  of  his  decision. 

3°. — Arms  and  Ammunition  for  Self-defence. — (a.)  Every  respectable 
foreigner  entering  China  from  abroad,  by  sea  or  land,  may  carry  in  his  luggage 
for  self-defence  one  pistol  and  one  revolver  and  a  supply  of  cartridges  for  the 
same  not  exceeding  five  hundred  rounds  in  all,  but  must  declare  them  at.  time  of 
entry  to  the  Customs,  who  will  release  them  after  examination.  Any  contra- 
vention of  this  provision  entails  confiscation  of  the  arms,  etc.,  not  declared. 

(&.)  Every  respectable  foreign  resident  in  China  desiring  to  import  arms 
and  ammunition   for  self-defence  must,  previous  to  their  importation,   obtain 

*  Translation  (from  Chinese  text)  furnished  by  the  Inspectorate  General  of  Customs, 
as  printed  in  the  minutes  of  the  Meeting  of  the  diplomatic  body  at  Peking,  June  13,  1908. 
Printed  also  in  Inspectorate-General's  Circular  No.  1520  (Second  Series),  May  30,  1908. 

These  regulations  were  adopted  at  the  instance  of  the  diplomatic  body,  in  amendment 
of  Rule  III  appended  to  the  revised  import  tarifif  of  1902  (here  printed  as  an  annex  to  the 
American  commercial  treaty  of  October  8,  1903,  No.  1903/5,  ante). 

See  Note  to  this  document,  post,  p.  740. 


738  CHINA  TREATIES  AND  AGREEMENTS 

from  the  Superintendent  of  Customs,  through  his  Consul,  a  Permit  to  Import, 
upon  presentation  of  which  at  the  Custom  House,  together  with  the  Application, 
permission  to  release  will  be  given.  Each  person  is  allowed  to  import  for  self- 
defence,  once  only  during  any  one  year,  one  pistol,  one  revolver,  and  a  supply 
of  cartridges  for  same  not  exceeding  five  hundred  rounds  in  all. 

In  the  event  of  suspicious  circumstances  the  Superintendent  of  Customs  may 
refuse  to  issue  a  Permit,  informing  the  Consul  in  writing  of  his  decision. 

(c.)  Foreigners,  duly  provided  with  passports,  proceeding  as  travellers  to 
the  interior  of  China,  or  to  Tibet,  Mongolia,  Turkestan,  etc.,  will  be  allowed 
to  carry  with  them,  declaration  having  been  duly  made,  arms  and  ammunition 
for  self-defence  not  exceeding  twice  the  quantities  fixed  above. 

(d.)  No  other  arms  may  be  imported  by  foreigners  for  self-defence  under 
the  above  provisions  except  pistols  and  short-barrelled  revolvers  carried  on  the 
person. 

The  importation  of  any  other  kind  of  military  and  naval  arms  and  ammu- 
nition is  only  permitted  (i)  if  they  are  for  use  as  samples  and  covered  by  a 
Permit  to  Import  issued  by  the  Superintendent  of  Customs,  (ii)  if  they  are 
imported  on  behalf  of  Chinese  Government  departments,  military,  naval,  or  civil, 
and  covered  by  a  genuine  certificate  which  has  been  duly  recognised  by  the 
Superintendent  of  Customs. 

Foreigners  must  not  fraudulently  import  military  arms  and  ammunition 
under  pretext  of  their  being  for  personal  use. 

4°. — Sporting  Arms  and  Ammunition, — (a.)  Every  respectable  foreigner 
entering  China  from  abroad,  by  sea  or  land,  may  carry  in  his  luggage  not  more 
than  three  sporting  guns  and  a  supply  of  cartridges  for  same  not  exceeding  three 
thousand  rounds  in  all,  but  must  declare  them  at  time  of  entry  to  the  Customs, 
who  will  release  them  after  examination  and  payment  of  duty.  Any  contra- 
vention of  this  provision  entails  confiscation  of  the  guns,  etc.,  not  so  declared. 
In  the  event  of  old  guns  being  thus  imported  with  fresh  ammunition,  both  may 
be  passed  free  of  duty. 

(&.)  Every  respectable  foreign  resident  in  China  desiring  to  import  sporting 
guns  or  cartridges  must,  previous  to  their  importation,  obtain  from  the  Super- 
intendent of  Customs,  through  his  Consul,  a  Permit  to  Import,  upon  presentation 
of  which  at  the  Custom  House,  together  with  the  Application,  permission  to  release 
will  be  given. 

Each  foreign  resident  is  only  allowed  to  import,  once  in  any  one  year,  a 
number  of  sporting  guns  not  exceeding  three  and  a  supply  of  cartridges  for  same 
not  exceeding  three  thousand  rounds  in  all.  In  the  event  of  suspicious  circum- 
stances the  Superintendent  of  Customs  can  refuse  to  issue  a  Permit,  informing 
the  Consul  of  his  decision  in  writing. 

(c.)  Respectable  foreign  firms  are  permitted  to  import  sporting  shot-guns 
and  ammunition  only,  for  which  they  must  likewise  obtain  a  Permit  to  Import 
from  the  Superintendent  of  Customs  through  their  Consuls.  At  the  time  of 
importation  they  must  also  hand  a  bond  to  the  Custom  House  guaranteeing  that 
■such  articles  will  not  be  sold,  directly  or  indirectly,  to  law-breakers  of  any  kind. 
The  number  of  sporting  guns  which  may  be  thus  imported  by  any  one  firm  at 


NUAIBER  1908/10:  MAY  30,  1908  739 

one  time  is  not  to  exceed  six  if  ordered  by  specified  persons,  whose  names  and 
addresses  have  to  be  reported  to  the  Custom  House  on  the  Import  Apphcation,  but 
may  not  exceed  four  if  not  so  ordered  and  if  bought  for  stock.  Registers  are 
to  be  kept  by  the  firm,  in  which  are  to  be  entered  in  detail  the  number  of  sporting 
guns  and  ammunition  thus  imported,  the  names  and  addresses  of  the  purchasers, 
and  the  dates  of  deHvery.  These  registers  will  be  open  for  Customs  inspection 
when  called  for. 

The  total  number  of  all  kinds  of  sporting  cartridges  combined  imported 
by  a  foreign  firm  in  one  consignment  must  not  exceed  ten  thousand 
rounds. 

(d.)  The  expression  "  sporting  guns  and  cartridges  imported  by  foreigners  " 
refers  exclusively  to  sporting  shot-guns  and  ammunition  for  same.  Military 
arms  and  ammunition  must  not  be  fraudulently  imported  under  any  pretext. 

5°. — Registers. — A  special  record  of  all  importations  of  arms  and  ammu- 
nition for  the  personal  use  of  foreigners,  giving  the  importer's  name  and  national- 
ity, the  date,  number  of  packages,  etc.,  will  be  kept  at  every  port  by  the  Superin- 
tendent as  well  as  by  the  Commissioner  of  Customs,  in  which  the  amount  of 
duty  collected  in  every  instance  will  also  be  noted.  Similarly,  a  special  record 
of  arms  and  ammunition  imported  by  or  for  the  Chinese  Government  is  to  be 
kept,  giving  the  purchasing  Government  department,  the  provincial  authority 
which  issued  the  Huchao  and  the  number  of  such  Huchao,  the  number  of  pack- 
ages, etc.  At  the  end  of  every  year  copies  of  these  records  will  be  submitted  to 
the  Shui-wu  Ch'u. 

6°. — Prohibition  on  Importation  of  Military  Arms  and  Ammunition. — 
The  importation  of  such  military  or  naval  arms  and  ammunition  as  have  not 
been  purchased  by  Chinese  Government  departments,  military,  naval,  or  civil, 
continues  to  be  prohibited  in  accordance  with  the  existing  treaties. 

7°. — Duty  Treatment. — Duty  at  the  rate  of  5  per  cent,  ad  valorem  will 
be  collected  on  arms  and  ammunition  imported  under  the  provisions  of  rules  2°, 
3°,  and  4°. 

8°. — Transhipment. — Permission  to  tranship  at  Shanghai  arms  and  ammu- 
nition imported  for  purposes  of  self-defence  or  sport  by  foreigners  residing  at 
other  ports  will  be  given  if  the  Shanghai  Consul  concerned  applies  to  the  Shanghai 
Customs,  giving  the  name  of  the  purchaser  and  the  number  of  packages.  On 
arrival  of  such  transhipment  cargo  at  the  port  of  destination,  the  purchaser 
will  still  have  to  obtain  from  the  Superintendent  of  Customs,  through  his  Consul, 
the  necessary  Permit  to  Import  to  be  presented  with  the  cargo  in  question  to 
the  Customs,  who  will  release  it  after  examination  and  payment  of  duty. 

9°. — Provision  against  Abuses. — The  above  regulations,  based  on  the  new 
rules  drawn  up  by  the  Shui-wu  Ch'u,  have  been  revised  in  a  liberal  sense  with  a 
view  to  obviating  certain  inconveniences  pointed  out  by  the  Diplomatic  Corps. 
They  are  to  come  into  force  from  the  1st  July  1908,  the  beginning  of  the  192nd 
quarter.  Arms  and  ammunition  imported  before  that  date  are  to  be  dealt  with 
in  accordance  with  the  original  regulations. 

The  present  revised  rules  will  be  amended  from  time  to  time  as  required, 
to  provide  against  such  abuses  as  may  arise  after  they  have  come  into  operation,. 


740  CHINA  TREATIES  AND  AGREEMENTS 

Note. 

A  tenth  (and  additional)  article,  regarding  the  procedure  for  better  control  of  arms 
and  ammunition  stored  by  Foreign  Merchants,  was  proposed  by  the  Chinese  Government 
to  the  diplomatic  body  on  November  20,  1915,  and  accepted  by  the  dean  in  its  behalf  by 
a  note  to  the  Wai  Chiao  Pu  under  date  of  January  5,  1916.  The  official  English  version  is 
as  follows: 

Tenth  (Additional)  Article  of  the  revised  Regulations  for  Arms  and  Ammunition 

May  30,  1908. 

"  (o)  With  regard  to  fire-arms  and  ammunition,  of  any  kind  whatsoever,  now  in  the 
possession  of  foreign  firms  or  merchants — with  the  exception  of  revolvers  for  personal  self- 
defence  or  sporting  guns,  as  also  ammunition  for  the  said  revolvers  and  sporting  guns,  as 
well  as  samples  of  arms  and  ammunition,  no  matter  where  they  are  stored  (foreign  settle- 
ments included)  or  when  and  under  what  authority  they  were  imported,  the  owner,  holder, 
or  agent  shall  report  to  the  Customs  before  the  31st  January,  1916,  the  exact  numbers  held 
by  him  and  deliver  a  bond  testifying  that  these  numbers  are  correct.  Should  the  report 
not  be  made  out  within  the  above  time  limit  or  should  a  false  report  be  made  out,  on  dis- 
covery or  denunciation  of  the  fact  the  stock  shall  be  confiscated  to  the  Chinese  Govern- 
ment. If  it  is  necessary  for  Chinese  officials  to  enter  a  Settlement  for  purposes  of  inspec- 
tion, an  official  communication  may  be  addressed  to  the  foreign  officials  of  the  Settlement 
requesting  their  assistance.  Inspection  shall  be  efifected  by  the  competent  foreign  authorities 
at  the  request  of  the  Chinese  officials;  the  latter  shall  be  allowed  when  it  is  deemed 
necessary  to  attend  the  said  inspection. 

"  ib)  After  the  Customs  Officers  have  verified  the  exact  figures  of  the  quantity  of 
arms  and  ammunition  declared  and  guaranteed  as  correct  by  the  owner,  holder,  or  agent 
of  the  arms  and  ammunition,  a  certificate  shall  be  issued  to  the  said  owner,  holder,  or  agent, 
who  will  remove  the  exact  quantity  of  arms  and  ammunition  specified  on  the  said  certificate 
to  the  Customs  special  warehouse. 

"  As  regards  warehouse  charges  and  all  such  matters  in  this  general  connexion,  the  said 
owner,  holder,  or  agent  must  abide  by  the  regulations  governing  the  Customs  warehouse 
concerned.  Such  arms  and  ammunition  may  not  be  sold  to  other  persons  unless  a  Huchao 
permitting  it  is  issued  by  the  Chinese  Ministry  of  War  or  of  Marine. 

"  (c)  Any  arms  and  ammunition  that  have  already  been  imported  into  a  Chinese  port 
by  a  foreign  firm  and  that  it  is  desired  to  forward  to  a  foreign  port  shall  be  reported  to  the 
Maritime  Customs,  and  the  Customs  shall  instruct  the  said  merchant  to  deliver  a  bond 
specifying  the  steamer  by  which  they  are  to  be  shipped  and  the  country  they  are  sent  to. 

"  (d)  Whenever  a  foreign  merchant  vessel  arrives  at  a  Chinese  port  the  munitions  of 
war  carried  by  the  said  vessel  for  self-defence  must  be  entered  in  a  list,  which  is  to  be 
signed  by  the  master  of  the  vessel  and  sent  to  the  Customs  for  inspection.  Should  the 
quantity  of  arms  and  ammunition  actually  carried  by  the  vessel  exceed  the  amount  specified 
in  the  list,  then  the  matter  shall  be  treated  as  a  case  of  smuggling.  When  a  merchant 
vessel  is  about  to  depart  the  Customs  officers  should  carefully  ascertain  whether  the  quantity 
of  munitions  of  war  carried  agrees  with  the  list  or  not. 

"  (e)  Arms  and  ammunition  for  foreign  troops  stationed  in  China  are  not  affected  by 
the  paragraphs  (a)  to   (d)  above." 


NUMBER  1908/11. 

SWEDEN  AND  CHINA. 

Treaty  of  friendship,  commerce  and  navigation  (zvith  additional  article  of  May 

24,  1909).''— July  2,  1908. 

His  Majesty  the  King  of  Sweden  and  His  Majesty  the  Emperor  of  China, 
desiring  to  maintain  firm,  lasting  and  sincere  friendship  and  to  extend  further 

*  Official  English  text  as  published  by  the  Swedish  Government  in  Svensk  Forfattings- 
samling,  1909,  No.  113.  Printed  also  in  Customs,  vol.  II,  p.  97;  Am.  Int.  Law  Journal, 
Supplement,  1910,  p.  2>Z7 ;  Tyau,  p.  258;  B.  ^  F.  State  Papers,  vol.  101   (1907-1908),  p.  945. 


NUMBER  1908/11 :  JULY  2,  1908  741 

the  commercial  relations  between  their  respective  countries,  and  having  resolved 
to  conclude  a  Treaty  of  Friendship,  Commerce  and  Navigation,  have  for  that 
purpose  named  as  their  Plenipotentiaries,  that  is  to  say : 

His  Majesty  the  King  of  Sweden: 

Gustaf  Oscar  Wallenberg,  His  Majesty's  Envoy  Extraordinary  and  Minister 
Plenipotentiary  at  the  Court  of  Peking,  and 

His  Majesty  the  Emperor  of  China : 

His  Excellency  Lien  Fang,  His  Majesty's  High  Commissioner  Plenipotentiary 
and  Senior  Vice-President  of  the  Wai  Wu  Pu ; 

Who  having  communicated  to  each  other  their  respective  Full  Powers,  and 
found  them  to  be  in  good  and  due  form,  have  agreed  upon  and  concluded  the 
following  Articles : 

Article  I. — There  shall  be,  as  there  have  always  been,  perpetual  peace  and 
friendship  between  His  Majesty  the  King  of  Sweden  and  His  Majesty  the  Em- 
peror of  China,  and  between  their  respective  subjects,  who  shall  enjoy  equally  in 
the  respective  countries  of  the  High  Contracting  Parties  full  and  entire  pro- 
tection of  their  persons  and  property. 

Article  H. — It  is  agreed  by  the  High  Contracting  Parties  that  His  Majesty 
the  King  of  Sweden  may,  if  he  see  fit,  accredit  a  Diplomatic  Representative  to 
the  Court  of  Peking,  and  His  Majesty  the  Emperor  of  China  may,  if  he  see  fit, 
accredit  a  Diplomatic  Representative  to  the  Court  of  Stockholm. 

The  Diplomatic  Representatives  thus  accredited  shall  enjoy  all  the  preroga- 
tives, privileges  and  immunities  accorded  by  international  usage  to  such  Repre- 
sentatives, and  they  shall  also  in  all  respects  be  entitled  to  the  treatment  extended 
to  similar  Representatives  of  the  most  favoured  nation. 

Their  persons,  families,  suites,  establishments,  residences  and  correspondence 
shall  be  held  inviolable.  They  shall  be  at  liberty  to  select  and  appoint  their 
own  employes,  couriers,  interpreters,  servants  and  attendants  without  any  kind 
of  molestation. 

His  Royal  Swedish  IMajesty's  Representative  shall  be  given  audience  of  His 
Majesty  the  Emperor  of  China  whenever  necessary  to  present  his  Letters  of 
Credence  or  any  communication  from  the  King  of  Sweden.  His  Imperial  Chinese 
Majesty's  Representative  shall  be  given  audience  of  His  Majesty  the  King  of 
Sweden  whenever  necessary  to  present  his  Letters  of  Credence  or  any  communi- 
cation from  the  Emperor  of  China.  The  ceremonial  adopted  at  the  Courts  of 
the  High  Contracting  Parties  as  regards  the  Representatives  above  mentioned 
shall  conform  in  all  respects  with  the  usages  of  nations  of  equal  rank,  without 
any  loss  of  prestige  on  one  side  or  the  other. 

The  English  text  of  all  notes  or  despatches  from  Swedish  officials,  and  the 
Chinese  text  of  all  notes  or  despatches  from  Chinese  officials,  shall  be  authori- 
tative. 

Article  III. — His  Majesty  the  King  of  Sweden  may  appoint  Consuls-Gen- 
eral, Consuls,  Vice-Consuls  and  Consular  Agents  to  reside  at  such  of  the  ports, 
cities  and  towns  of  China,  which  are  now  or  may  hereafter  be  opened  to  for- 
eign residence  and  trade,  as  the  interests  of  the  Kingdom  of  Sweden  may  require. 

His  Majesty  the  Emperor  of  China  may  appoint  Consuls-General,  Consuls, 


742  CHINA  TREATIES  AND  AGREEMENTS 

Vice-Consuls  and  Consular  Agents  to  reside  at  all  places  in  Sweden  where  Con- 
sular officers  of  other  nations  are  now  or  may  hereafter  be  allowed  to  reside,  as 
the  interests  of  the  Empire  of  China  may  require. 

The  Consuls  and  other  officials  of  the  High  Contracting  Parties  shall  treat 
each  other  with  due  respect,  and  they  shall  enjoy  each  in  the  other's  country 
all  the  attributes,  authority,  privileges  and  immunities,  which  are  or  may  hereafter 
be  extended  to  similar  officers  of  the  most  favoured  nation. 

On  the  arrival  of  a  Consul,  who  has  been  duly  appointed,  at  his  post,  it 
shall  be  the  duty  of  the  Diplomatic  Representative  to  inform  the  Minister  of 
Foreign  Affairs,  who  shall  in  accordance  with  international  usage  forthwith  issue 
the  proper  recognition  of  the  said  Consul,  without  fee  or  charge.  Such  recogni- 
tion, however,  may  be  withdrawn,  should  it  be  found  that  the  said  Consul  has 
contravened  international  usage  in  the  performance  of  his  duties.  At  places 
where  no  Consul  is  appointed  as  aforesaid,  the  Consul  of  a  friendly  nation  may 
be  requested  to  perform  the  functions.  At  places  where  there  is  no  Consular 
Representative  the  local  authorities  shall  see  that  the  subjects  of  the  other  Con- 
tracting Party  enjoy  the  benefits  of  the  present  Treaty. 

Article  IV. — Chinese  subjects  may  proceed  to  and  from  any  place  in  Sweden 
with  their  merchandise  for  purposes  of  trade.  Swedish  subjects  may  proceed 
to  and  from  any  place  in  China  which  is  now  or  may  hereafter  be  opened  to 
foreign  Commerce,  with  their  merchandise  for  purposes  of  trade.  The  subjects 
of  the  High  Contracting  Parties  may  in  accordance  with  existing  rules  and  with 
the  privileges  enjoyed  by  subjects  of  the  most  favoured  nation  carry  on  trade, 
industries  and  manufactures  or  pursue  any  other  lawful  avocations  at  all  the 
places  above  mentioned,  rent  or  purchase  houses  for  residence  and  for  business 
purposes,  rent  or  lease  land,  build  houses,  churches,  cemeteries  and  hospitals, 
and  take  persons  into  their  service  and  employ  them  in  any  lawful  capacity 
without  restraint  or  hindrance  from  the  local  authorities.  They  shall  in  all  respects 
enjoy  the  same  privileges  and  immunities  as  are  now  or  may  hereafter  be  granted 
by  the  High  Contracting  Parties  to  the  subjects  of  the  most  favoured  nation. 

Article  V. — The  Tariff  and  Tariff  Rules  f  now  in  force,  or  hereafter  con- 
cluded, between  China  and  the  Foreign  Powers  shall  be  applicable  to  all  articles 
imported  into  China  by  Swedish  subjects  or  from  Sweden,  or  exported  from 
China  by  Swedish  subjects  or  to  Sweden.  In  no  case  shall  the  import  or  export 
duty  thus  paid  be  other  or  higher  than  the  duty  on  similar  articles  which  is  paid 
by  subjects  of  the  most  favoured  nation. 

The  Tariff  Rules  now  in  force,  or  hereafter  concluded,  between  China  and 
the  Foreign  Powers  shall  also  be  applicable  to  articles  the  importation  and  ex- 
portation of  which  is  prohibited,  and  to  duty  free  articles. 

Articles  duly  imported  into  China  by  Swedish  subjects,  upon  which  import 
duty  has  been  paid,  and  which  it  is  desired  to  convey  to  an  inland  market  and 
to  clear  of  all  Transit  duties  by  payment  of  a  single  commutation  Transit  tax 
or  duty ;  and  articles  for  export  purchased  in  China  elsewhere  than  at  an  open 
port,  upon  which  export  duty  has  been  paid,  and  which  it  is  desired  to  clear  of 

t  See  tariff  and  rules,  here  printed  as  an  annex  to  the  American  commercial  treaty  of 
October  8,  1903  (No.  1903/5,  ante). 


NUMBER  1908/11:  JULY  2,  1908  743 

all  Transit  duties  by  payment  of  a  single  commutation  tax  or  duty;  shall  be 
treated  according  to  the  existing  Rules  between  China  and  the  Foreign  Powers. 
The  transit  tax  or  duty  shall  in  no  case  exceed  that  which  is  paid  by  subjects 
of  the  most  favoured  nation. 

Goods  transported  from  one  Treaty  Port  to  another,  or  temporarily  stored 
in  a  bonded  warehouse  at  a  Treaty  Port,  or  re-exported,  by  Swedish  subjects, 
shall  be  subject  to  the  general  Regulations  now  in  force,  or  the  new  supplementary 
Regulations  v/hich  may  hereafter  be  negotiated,  between  China  and  the  Foreign 
Powers. 

Chinese  articles  imported  into  Sweden,  or  articles  of  other  nations  imported 
into  Sweden  by  Chinese  subjects,  shall  pay  an  import  duty  no  higher  or  other 
than  that  which  is  paid  by  the  subjects  of  the  most  favoured  nation. 

The  Chinese  Authorities  at  the  several  open  ports  shall  adopt  such  means  as 
they  may  judge  most  proper  to  prevent  the  revenue  suffering  from  fraud  or 
smuggling. 

Article  VI.| — Swedish  merchant  vessels  may  proceed  to  all  the  Treaty  Ports 
of  China  already  opened  or  which  may  hereafter  be  opened,  for  the  transportation 
of  merchandise  and  for  purposes  of  trade.  They  may  also  proceed  to  the  inland 
waters  in  China  which  foreign  merchant  vessels  are  at  liberty  to  navigate,  and  to 
the  ports  of  call  along  the  rivers  for  the  purpose  of  landing  and  shipping  pas- 
sengers and  goods.  In  all  these  matters  they  shall  be  subject  to  the  Rules  and 
Regulations  concluded  by  China  with  other  foreign  powers. 

If  a  Swedish  vessel  should  unlawfully  enter  ports  other  than  open  ports  and 
ports  of  call  in  China,  or  carry  on  clandestine  trade  along  the  coast  or  rivers,  the 
vessel  with  her  cargo  shall  be  subject  to  confiscation  by  the  Chinese  Government. 

Chinese  merchant  vessels  may  proceed  to  and  from  any  of  the  harbours  in 
Sweden  which  other  foreign  merchant  vessels  are  at  liberty  to  frequent,  for  pur- 
poses of  trade  and  for  the  shipping  and  landing  of  passengers  and  goods. 

The  merchant  vessels  of  the  High  Contracting  Parties  shall  enjoy  most 
favoured  nation  treatment  in  each  other's  dominions. 

Merchant  vessels  of  the  High  Contracting  Parties  may  hire  boats  in  each 
other's  ports  for  the  conveyance  of  passengers  and  goods,  and  may  engage  the 
services  of  pilots  for  the  purpose  of  entering  or  leaving  port.  They  shall  pay 
the  tonnage  dues  or  other  fees  or  charges  according  to  the  existing  Regulations 
in  the  two  countries,  but  they  shall  not  be  required  to  pay  other  or  higher  tonnage 
dues  or  fees  or  charges  than  the  vessels  of  the  most  favoured  nation.  Should  a 
vessel  of  either  of  the  High  Contracting  Parties  be  stranded  or  wrecked  on  the 
coast  of  the  other,  the  local  authorities  shall  immediately  adopt  measures  for 
rescuing  the  passengers  and  crew  and  to  give  the  most  favoured  nation  treatment. 
In  the  case  of  a  vessel  sustaining  injury,  or  being  compelled  for  other  reason  to 
seek  a  place  of  refuge,  such  vessel  shall  be  permitted  to  enter  any  near  port  and  to 
anchor  there  temporarily,  without  being  subject  to  the  payment  of  tonnage  dues. 
The  cargo,  if  landed  in  order  to  effect  the  necessary  repairs  to  the  vessel,  but  not 
for  sale,  shall  not  be  liable  to  pay  duties,  provided  that  it  remains  under  the  super- 
vision of  the  Customs  Authorities. 

tin  connection  with  this  article,  see  the  additional  article  of  May  24,  1909  (p.  747). 


744  CHINA  TREATIES  AND  AGREEMENTS 

Article  VII. — The  vessels  of  both  the  High  Contracting  Parties,  which  are 
at  liberty  to  trade  freely  at  open  ports  in  time  of  peace,  shall,  in  the  event  of 
either  of  the  High  Contracting  Parties  being  at  war  with  any  foreign  nation 
and  for  that  reason  excluding  the  vessels  of  that  nation  from  her  ports,  be 
entitled  none  the  less  to  continue  to  pursue  their  commerce  in  freedom  and 
security  and  to  transport  goods  to  and  from  the  ports  of  the  belligerent  powers, 
full  respect  being  paid  to  the  neutrality  of  the  flag  in  strict  compliance  with 
the  usages  of  neutrality,  provided  that  the  said  neutral  flag  shall  not  protect 
vessels  engaged  in  the  transportation  of  troops,  and  that  the  said  flag  shall  not 
be  illegally  used  to  enable  the  enemy's  ships  with  their  cargoes  to  enter  the 
ports  of  the  High  Contracting  Party  concerned.  Vessels  offending  against 
the  above  provisions  shall  be  subject  to  confiscation  by  the  Government  offended. 

Article  VIII. — The  ships  of  war  of  either  of  the  High  Contracting  Parties, 
provided  previous  notice  has  been  given,  shall  be  admitted  into  the  ports  of  the 
other,  where  such  vessels  of  other  nations  are  allowed  to  enter,  and  shall  receive 
the  same  treatment  as  ships  of  war  of  the  most  favoured  nation.  They  shall 
receive  from  the  local  Authorities  every  facility  for  the  purchase  of  coal  and 
provisions,  for  procuring  water,  and  if  occasion  requires,  for  the  making  of 
repairs. 

Ships  of  war  shall  be  exempt  from  the  payment  of  all  duties  both  on  arrival 
and  departure. 

The  Commanders  of  ships  of  war  shall  hold  intercourse  with  the  superior 
officers  of  ports  on  terms  of  equality. 

Article  IX. — Swedish  subjects  may  travel  to  all  parts  of  the  interior  of 
China  under  passports  issued  by  Swedish  Consuls  and  countersigned  by  the 
local  authorities.  These  passports,  if  demanded,  must  be  produced  for  examina- 
tion in  the  localities  passed  through.  If  the  passports  be  not  irregular,  the 
bearers  will  be  allowed  to  proceed  and  they  shall  be  at  liberty  to  hire  persons, 
animals,  carts  or  vessels  for  their  own  conveyance  or  for  the  carriage  of  their 
personal  effects  or  merchandise.  If  the  Swedish  subjects  be  without  passports 
or  if  they  commit  any  offence  against  the  law,  they  shall  be  handed  over  to  the 
nearest  Consul  for  punishment;  but  they  shall  only  be  subject  to  necessary 
restraint  and  in  no  case  to  ill  usage.  Such  passports  shall  remain  in  force  for 
a  period  of  twelve  months  from  the  date  of  issue.  Swedish  subjects  travelling 
in  the  interior  without  passports  shall  be  liable  to  a  fine  not  exceeding  three 
hundred  taels.  They  may,  however,  go  without  passports  on  excursions  from 
any  of  the  ports  open  to  trade,  to  a  distance  not  exceeding  one  hundred  Chinese 
li  and  for  a  period  not  exceeding  five  days.  The  provisions  of  this  Article  do  not 
apply  to  crews  of  ships. 

Chinese  subjects  shall  be  at  liberty  to  travel  throughout  the  territory  of 
Sweden,  provided  that  they  conduct  themselves  peaceably  and  do  not  violate  the 
laws  and  regulations  of  the  country. 

Article  X. — The  duly  authorized  Swedish  Authorities  shall  hear  and  decide 
all  cases  brought  against  Swedish  subject  by  Swedish  subjects,  or  by  the  subjects 
or  citizens  of  any  other  foreign  Power,  without  the  intervention  of  the  Chinese 
Authorities. 


NUMBER  1908/11:  JULY  2,  1908  745 

However,  as  China  is  now  engaged  in  reforming  her  judicial  system  it  is 
hereby  agreed  that  as  soon  as  all  other  Treaty  Powers  have  agreed  to  relinquish 
their  extra-territorial  rights,  Sweden  will  also  be  prepared  to  do  so. 

Charges  or  complaints  of  a  civil  nature  brought  by  the  subjects  of  either  of 
the  High  Contracting  Parties  against  the  subjects  of  the  other  shall  be  heard  and 
decided  impartially  by  the  Authorities  who  have  jurisdiction  over  the  defendants, 
in  accordance  with  the  procedure  observed  in  similar  charges  or  complaints 
brought  by  subjects  of  the  most  favoured  nation. 

Subjects  of  either  of  the  High  Contracting  Parties  charged  with  the  commis- 
sion of  any  crimes  or  offences  shall  be  tried  by  the  Authorities  who  have  juris- 
diction over  the  accused  with  the  procedure  observed  in  similar  cases  of  the  most 
favoured  nation,  and,  if  found  guilty,  shall  be  punished  in  accordance  with  the 
laws  of  their  own  country. 

Article  XI. — If  Swedish  subjects  in  China,  who  have  committed  offences  or 
have  failed  to  discharge  debts  and  fraudulently  abscond  in  order  to  evade  a  sum- 
mons or  a  warrant  of  arrest,  should  flee  to  the  interior  of  China  or  take  refuge  in 
houses  occupied  by  Chinese  subjects  or  on  board  Chinese  ships,  the  Chinese 
Authorities  shall,  at  the  request  of  the  Swedish  Consul,  deliver  them  to  the 
Swedish  Authorities. 

In  like  manner,  if  Chinese  subjects  in  China,  who  have  committed  offences  or 
have  failed  to  discharge  debts  and  fraudulently  abscond,  should  take  refuge  in 
houses  occupied  by  Swedish  subjects  in  China  or  on  board  Swedish  ships  in 
Chinese  waters,  they  shall  be  delivered  up  at  the  request  of  the  Chinese  Authori- 
ties made  to  the  Swedish  Authorities. 

Such  offenders  shall  in  no  case  be  shielded  or  withheld  from  arrest  by  either 
of  the  High  Contracting  Parties. 

Article  XII. — The  principles  of  the  Christian  religion,  as  professed  by  the 
Protestant  and  Roman  Catholic  churches,  are  recognized  as  teaching  men  to  do 
good  and  to  do  to  others  as  they  would  have  others  to  do  to  them.  Those  who 
quietly  profess  and  teach  these  doctrines  shall  not  be  harassed  or  persecuted  on 
account  of  their  faith.  Any  person,  whether  Swedish  subject  or  Chinese  convert, 
who,  according  to  these  tenets,  peaceably  teaches  and  practises  the  principles  of 
Christianity  shall  in  no  case  be  interfered  with  or  molested  therefor.  No  restric- 
tions shall  be  placed  on  Chinese  joining  Christian  Churches.  Converts  and  non- 
converts,  being  Chinese  subjects,  shall  alike  conform  to  the  laws  of  China;  and 
living  together  in  peace  and  amity,  shall  pay  due  respect  to  those  in  authority. 
The  fact  of  being  a  convert  shall  not  protect  a  Chinese  subject  from  the  conse- 
quences of  any  offence  he  may  have  committed  before  or  may  commit  after  his 
admission  into  the  church,  or  exempt  him  from  paying  legal  taxes  levied  on 
Chinese  subjects  generally,  except  taxes  and  contributions  levied  for  the  support 
of  religious  customs  and  practices  contrary  to  their  faith.  Missionaries  shall  not 
interfere  with  the  exercise  by  the  native  authorities  of  their  jurisdiction  over 
Chinese  subjects;  nor  shall  the  native  authorities  make  any  distinction  between 
converts  and  non-converts,  but  shall  administer  the  laws  without  partiality  so 
that  both  classes  may  live  together  in  peace. 

Swedish  missionary  societies  shall  be  permitted  to  rent  and  to  lease  in  per- 


746  CHINA  TREATIES  AND  AGREEMENTS 

petuity,  as  the  property  of  such  societies,  buildings  or  lands  in  all  parts  of  the 
Empire  for  missionary  purpose,  and,  after  the  title  deeds  have  been  found  in 
order  and  duly  stamped  by  the  local  authorities,  to  erect  such  suitable  buildings 
as  may  be  required  for  carrying  on  their  good  work. 

Article  XIII. — It  is  hereby  declared  that  the  provisions  of  the  Treaty  now 
existing  between  Sweden  and  China,  in  so  far  as  they  are  not  modified  by  stipula- 
tions of  the  present  Treaty,  shall  continue  in  full  force,  and  it  is  further  expressly 
stipulated  that  the  Governments,  Officers  and  Subjects  of  both  of  the  High  Con- 
tracting Parties  shall  be  allowed  free  and  full  participation  in  all  privileges, 
immunities,  and  advantages  which  have  been  or  may  hereafter  be  granted  by 
either  of  the  High  Contracting  Parties  to  the  Governments,  Officers  and  Subjects 
of  any  other  Treaty  Powers,  in  regard  to  commerce,  navigation,  shipping,  indus- 
tries or  property. 

The  High  Contracting  Parties  reserve  to  themselves  the  right  to  conclude 
agreements  regarding  frontier  trade  with  neighbouring  countries,  and  it  is  under- 
stood that,  in  case  either  of  the  High  Contracting  Parties  should  hereafter  grant 
to  any  other  nation  advantages  subject  to  special  conditions,  the  other  High  Con- 
tracting Party  shall  enjoy  said  advantages  only  provided  it  complies  with  the 
conditions  imposed  therein  or  their  equivalent,  to  be  mutually  agreed  upon. 

Article  XIV. — The  Agreements,  Rules  and  Regulations  subsisting  between 
and  binding  both  China  and  the  Treaty  Powers,  so  far  as  they  are  applicable  and 
not  inconsistent  with  the  provisions  of  this  Treaty,  shall  be  binding  on  both  of 
the  High  Contracting  Parties. 

Article  XV. — It  is  agreed  that  either  of  the  High  Contracting  Parties  may 
demand  a  revision  of  the  Articles  of  this  Treaty  at  the  end  of  ten  years  from  the 
date  of  the  exchange  of  the  ratifications ;  but  if  no  such  demand  for  the  revision 
is  expressed  on  either  side  within  six  months  after  the  end  of  the  first  ten  years, 
then  the  Treaty  in  its  present  form  shall  remain  in  force  for  ten  years  more, 
reckoned  from  the  end  of  the  preceding  ten  years,  and  so  it  shall  be  at  the  end 
of  each  successive  period  of  ten  years. 

Article  XVI. — This  Treaty,  shall  on  the  exchange  of  ratifications  by  His 
Majesty  the  King  of  Sweden  and  by  His  Majesty  the  Emperor  of  China,  be  kept 
and  sacredly  guarded  in  the  following  manner,  viz : 

The  original  Treaty  as  ratified  by  the  Emperor  of  China  shall  be  deposited 
at  Stockholm,  the  capital  of  His  Majesty  the  King  of  Sweden,  in  charge  of  the 
Ministry  of  Foreign  Afifairs ;  and  as  ratified  by  the  King  of  Sweden  shall  be 
deposited  at  Peking,  the  capital  of  His  Majesty  the  Emperor  of  China,  in  charge 
of  the  Wai-Wu-Pu. 

The  High  Contracting  Parties  agree  that  immediately  after  the  exchange  of 
ratifications,  the  provisions  of  this  treaty  shall  be  published  in  order  that  the 
officials  and  people  of  the  two  countries  may  know  and  observe  them. 

Article  XVII. — The  present  Treaty  is  signed  in  the  Swedish,  Chinese  and 
English  languages.  In  order,  however,  to  prevent  future  discussions,  the  Pleni- 
potentiaries of  the  High  Contracting  Parties  have  agreed  that  in  case  of  any 
divergence  in  the  interpretation  between  the  Swedish  and  Chinese  text  of  the 
Treaty,  the  difiference  shall  be  settled  by  reference  to  the  English  text. 


NUMBER  1908/12:  OCTOBER  8,  1908  747 

The  ratifications  of  this  Treaty,  under  the  hand  of  His  Majesty  the  King 
of  Sweden  and  of  His  Majesty  the  Emperor  of  China  respectively,  shall  be 
exchanged  at  Peking  within  a  year  from  the  date  of  signature. § 

In  token  whereof  the  respective  Plenipotentiaries  have  signed  and  sealed  this 
Treaty — two  copies  in  Swedish,  two  in  Chinese  and  two  in  English. 

Done  at  Peking,  this  second  day  of  July  in  the  Year  of  Our  Lord  One  Thou- 
sand Nine  Hundred  and  Eight  corresponding  with  the  Chinese  date  the  Fourth 
Day  of  the  Sixth  Moon  of  the  Thirty-Fourth  Year  of  Kwang  Hsu. 

(Signed)  G.  O.  Wallenberg.     Lien  Fang. 

ADDITIONAL  ARTICLE. 

The  following  additional  article  which  has  to-day  been  concluded  and  signed 
by  the  undersigned  Gustaf  Oscar  Wallenberg,  His  Swedish  Majesty's  Envoy 
Extraordinary  and  Minister  Plenipotentiary  at  the  Court  of  Peking,  and  by  His 
Excellency  Lien  Fang  v.  President  of  the  Wai-Wu-Pu,  both  being  duly  authorised 
thereto  by  their  respective  Governments,  shall  form  part  and  be  appended  to  the 
Treaty  between  Sweden  and  China  which  was  signed  and  concluded  at  Peking  on 
the  2nd  of  July  1908,  corresponding  with  the  Chinese  date  the  Fourth  Day  of  the 
Sixth  Moon  of  the  Thirty-Fourth  Year  of  Kwang  Hsu. 

Additional  Article  : — It  is  expressly  agreed  by  the  High  Contracting 
Parties,  that  the  provisions  of  Article  IV  of  the  present  Treaty  shall  in  no  respect 
whatever  confer  upon  Swedish  subjects  in  China  or  upon  Chinese  subjects  in 
Sweden  any  privileges  or  immunities,  other  than  those  already  granted  or  which 
may  hereafter  be  granted  to  the  subjects  or  citizens  of  the  most  favoured  nation. 

Done  at  Peking,  May  twenty  fourth  in  the  Year  of  Our  Lord  One  Thousand 
Nine  Hundred  and  Nine  corresponding  with  the  Chinese  date  sixth  day  of  the 
fourth  moon  of  the  first  year  of  Hsuan  Tung. 

(Signed)  G.  O.  Wallenberg.     Lien  Fang. 


NUMBER  1908/12. 

FRANCE  (Banque  de  ITndo-Chine),  GREAT  BRITAIN  (Hongkong  &  Shang- 
hai Banking  Corporation)  AND  CHINA. 

Agreement  for  a  loan  of  £5,000,000  to  the  Board  of  Posts  and   Communica- 
tions.''—October  8,  1908. 

This  agreement  is  made  between  the  Board  of  Posts  and  Communications  at 
Peking,  acting  for  and  on  behalf  of  the  Imperial  Government  of  China  under 

*Text  as  printed  in  Wang,  p.  79.    Printed  also  in  For.  Rel,  1908,  p.  203. 

The  primary  purpose  of  this  loan  was  the  redemption  of  the  Peking-Hankow  Railway 
loan  issued  under  the  contract  of  June  26,  1898  (No.  1898/13,  ante).  See  also  the  prospectus 
of  the  seven  per  cent.  Peking-Hankow  Railway  redemption  loan  of  the  same  date  (No. 
1908/13,  post). 

§  Ratifications  were  exchanged  at  Peking,  June  14,  1909. 


748  CHINA  TREATIES  AND  AGREEMENTS 

the  authority  of  an  Imperial  Edict  dated  the  fourteenth  day  of  the  ninth  month 
of  the  thirty-fourth  year  of  the  Emperor  Kuang-hsii  (being  the  8th  day  of 
October  1908),  hereinafter  called  the  Board,  of  the  one  part,  and  the  Hongkong 
and  Shanghai  Banking  Corporation  and  the  Banque  de  I'lndo-Chine,  hereinafter 
called  the  Contracting  Banks,  of  the  other  part. 

1. — The  Imperial  Chinese  Government  hereby  authorizes  the  contracting 
Banks,  either  by  themselves  or  associated  with  others,  to  issue  an  Imperial  Chi- 
nese Government  Gold  Loan,  in  one  issue,  of  the  amount  of  Five  million  pounds 
sterling. 

Of  the  proceeds  of  this  loan  the  Imperial  Chinese  Government  will  employ 
eighty  per  cent  in  Europe  to  complete  the  redemption  of  certain  railway  loans; 
the  balance  of  the  proceeds,  namely  twenty  per  cent,  will  be  employed  by  the 
Board  of  Posts  and  Communications  in  productive  works  of  public  utility  com- 
ing within  the  Department  and  functions  of  that  Board. 

2. — The  term  of  the  loan  shall  be  thirty  years,  and  the  principal  shall  be 
repaid  to  the  bondholders  in  twenty  equal  annual  instalments  of  Two  hundred 
and  fifty  thousand  pounds  (£250,000)  commencing  with  the  eleventh  year;  but 
the  Imperial  Chinese  Government  on  giving  a  previous  notice  of  six  months  to 
the  contracting  Banks,  shall  have  the  right  to  redeem  the  whole  loan,  or  increase 
the  regular  redemption  by  extra  drawings,  after  the  fifteenth  year  and  up  to  the 
twenty-third  year  inclusive  by  the  payment  of  a  premium  of  two  and  one  half 
per  cent  upon  the  par  value  of  each  extra  bond  so  redeemed,  that  is  to  say  by  the 
payment  of  £102.10  for  each  ilOO  bond,  and  shall  have  the  right  to  redeem  the 
whole  loan  or  increase  the  regular  redemption  by  extra  drawings,  after  the 
twenty-third  year  at  par.  Any  such  extra  drawings  must  take  place  in  Europe 
on  the  date  of  an  ordinary  drawing  provided  for  in  the  Prospectus  of  the  loan. 

3. — The  loan  shall  bear  interest  during  the  first  fifteen  years  at  the  rate  of 
five  per  cent  per  annum,  and  thereafter  from  the  sixteenth  year,  at  the  rate  of 
four  and  one  half  per  cent  per  annum  on  the  nominal  principal  from  time  to  time 
outstanding,  and  the  interest  shall  be  paid  to  the  bondholders  half-yearly.  The 
interest  shall  commence  from  the  date  on  which  the  loan  is  issued  to  the  public, 
and  will  cease  upon  complete  redemption  of   the   loan. 

4. — The  service  of  principal  and  interest  of  this  loan  due  to  the  bond- 
holders shall  be  paid  in  equal  shares  to  the  contracting  Banks  in  Shanghai  by 
the  Board,  who  will  hand  to  those  Banks,  ten  days  before  the  due  date 
of  every  yearly  payment  of  principal  and  half-yearly  payment  of  interest  as 
calculated  from  the  date  of  issue  of  the  loan,  funds  in  Shanghai  sycee 
sufficient  to  meet  each  payment  in  gold  in  Europe,  the  exchange  for  which 
will  be  settled  by  the  contracting  Banks  on  the  same  day  on  a  fair  basis 
after  arrangement  with  the  Board ;  but  the  Board  will  have  the  option  of  settling 
exchange  in  equal  shares  with  the  two  contracting  banks  at  any  date  or  dates  with- 
in six  months  previous  to  the  due  date  of  any  payment.  These  payments  may  be 
made  in  gold  in  Europe  should  the  Imperial  Chinese  Government  have  funds  in 
Europe  at  its  disposal,  not  remitted  for  the  purpose,  and  desire  so  to  employ 
them. 

In  reimbursement  of  expenses  connected  with  the  payment  of  interest  and 


NUMBER  1908/12:  OCTOBER  8,  1908  749 

the  repayment  of  principal  of  the  loan  to  the  bondholders,  the  Board  will  pay  to 
the  contracting  banks  with  each  payment  of  the  loan  service  a  commission  of  two 
per  mille  on  such  payment,  that  is  to  say  a  commission  of  i2  on  every  ilOOO. 

5. — The  service  of  principal  and  interest  of  this  loan  will  be  paid  from  the 
surplus  revenues  of  the  various  productive  works  of  public  utility  controlled  by 
the  Board  of  Posts  and  Communications ;  in  the  event  of  these  surplus  revenues 
being  insufficient,  other  revenues  will  be  selected  to  make  up  the  deficiency. 

The  Board  will  further,  from  and  after  the  date  of  the  first  coupon,  and 
during  the  currency  of  this  loan,  leave  on  fixed  deposit  in  equal  shares  with  the 
two  contracting  banks  in  Shanghai,  the  estimated  silver  equivalent  of  the  pay- 
ment of  interest  next  due.  In  like  manner,  from  and  after  the  end  of  the 
tenth  year,  the  Board  will  also  leave  on  fixed  deposit  with  the  contracting 
banks  in  Shanghai  the  estimated  silver  equivalent  of  the  instalment  of  principal 
next  due.  These  fixed  deposits  will  be  renewed  and  adjusted  half  yearly  on 
the  dates  on  which  interest  coupons  become  due  to  the  bondholders,  the  silver 
equivalents  of  interest  and/or  principal  which  they  represent  being  calculated 
at  the  rate  of  exchange  or  average  rate  of  exchange,  settled  for  the  remittance  of 
loan  service  made  ten  days  previously.  Interest  on  these  deposits  shall  be  allowed 
by  the  contracting  Banks  at  their  advertised  rates  for  the  time  being  for  twelve 
months  fixed  deposits,  subject  to  any  change  of  rate  from  the  date  of  such 
change  and  will  be  payable  half-yearly. 

6. — The  contracting  Banks  shall  issue,  and  are  hereby  authorised  to  issue 
to  subscribers  to  the  loan,  bonds  for  the  total  amount  of  the  loan  in  gold,  in  such 
languages  and  for  such  amounts  as  shall  appear  advisable  to  the  contracting 
Banks.  The  form  of  the  bonds  shall  be  decided  in  consultation  with  the  Chinese 
Ministers  in  London  and  Paris,  who  shall  seal  the  bonds  with  their  official  seals 
as  evidence  that  the  Imperial  Chinese  Government  is  bound  thereby. 

Cancelled  bonds  will  be  handed  by  the  contracting  Banks  to  the  Chinese 
Minister  in  London  or  Paris. 

In  the  event  of  bonds  issued  for  this  loan  being  lost,  stolen  or  destroyed, 
the  contracting  Banks  shall  immediately  notify  the  Chinese  Minister  in  London  or 
Paris  thereof,  who  shall  authorise  the  contracting  Banks  to  insert  an  advertise- 
ment in  the  public  newspapers  notifying  that  payment  of  the  same  has  been 
stopped,  and  to  take  such  other  steps  as  required  by  the  laws  of  the  country. 
Should  such  bonds  not  be  recovered  after  the  lapse  of  time  provided  by  the 
law,  the  Banks  will  require  from  the  claimants  the  requisite  guarantees  together 
with  proof  of  loss  in  the  usual  form  for  examination  by  the  Chinese  Minister  in 
London  or  Paris  as  the  case  may  be,  who  will  then,  without  further  authority 
from  the  Chinese  Government,  seal  and  execute  duplicate  bonds  for  a  like 
amount,  and  hand  them  to  the  contracting  Banks,  by  whom  all  expenses  in  con- 
nection therewith  shall  be  defrayed. 

Coupons  and  drawn  bonds  not  presented  for  payment  within  thirty  years 
after  the  date  of  their  maturity  shall  be  forfeited  to  the  Imperial  Chinese 
Government. 

7. — The  Imperial  Chinese  Government  hereby  unconditionally  guarantees 
and  declares  itself  responsible  for  the  due  payment  of  the  principal  and  interest 


750  CHINA  TREATIES  AND  AGREEMENTS 

of  this  loan,  which  is  further  hereby  secured  by  a  first  charge,  free  from  all 
encumbrances,  upon  the  following  provincial  revenues : 

Province  of  Chekiang. 

House  tax  wine  excise,  pawn-shop  licenses,  title  deeds  tax,  amounting  per  annum 

to  . . . ; Tls.  400,000 

Old  and  new  additional  tax  on  salt,  amounting  per  annum  to  600,000 

Province  of  Kiangsu. 

New  additional  tax  on  salt,  amounting  per  annum  to  Tls.  700,000 

House  tax,  amounting  per  annum  to   300,000 

Province  of  Hupei. 
Old  and  new  additional  tax  on  Szechuan  and  Huai  Salt,  amounting  per  annum  to  Tls.  600,000 
Tax  on  tobacco,  wine  and  sugar,  house  and  land  title  deeds  tax,  amountmg  per 

annum  to    400,000 

Province  of  Chihli. 

Tobacco,  wine  and  miscellaneous  Duties,  amounting  per  annum  to Tls.  800,000 

Salt    Commissioner's    Treasury,    revenue    from    additional    salt    tax,    amounting 

per  annum  to   200,000 

New  additional  tax  on  salt,  amounting  per  annum  to  250,000 

Total  Kuping  Tads 4,250,000 

It  is  understood  that  the  security  of  this  loan  over  the  above  annual  revenues 
is  limited  to  Kuping  Taels  Four  millions  two  hundred  and  fifty  thousand  (Kuping 
Taels  4,250,000)  irrespective  of  collection;  if  more  is  collected  it  will  not  be 
included  in  the  security. 

In  the  event  of  default  of  payment  of  any  installment  of  principal  and/or 
interest  of  this  loan  at  due  date,  the  Imperial  Chinese  Government  will  instruct 
the  provincial  authorities  in  control  of  the  said  provincial  revenues  to  hand  them 
over  to  the  contracting  Banks. 

So  long  as  this  loan  or  any  part  thereof  shall  be  unredeemed,  it  shall  have 
priority,  both  as  regards  principal  and  interest,  over  all  future  loans,  charges  and 
mortgages  charged  on  the  said  security  of  the  provincial  revenues  herein  assigned. 
No  loan,  charge  or  mortgage  shall  be  raised  or  created  which  shall  take  prece- 
dence of  or  be  on  an  equality  with  this  loan,  or  which  shall  in  any  manner  lessen 
or  impair  its  security  over  the  said  provincial  revenues  as  stipulated  above,  and 
any  future  loan,  charge  or  mortgage  charged  on  the  said  provincial  revenues 
shall  be  made  subject  to  this  loan,  and  it  shall  be  so  expressed  in  every  agreement 
for  every  such  future  loan,  charge  or  mortgage. 

8. — All  bonds  and  coupons,  and  payments  made  and  received  in  connection 
with  the  service  of  this  loan,  shall  be  exempt  from  Chinese  taxes  and  imposts. 

9. — All  details  necessary  for  the  Prospectus  and  connected  with  the  service 
to  the  bondholders  of  the  interest  and  repayments  of  the  principal  of  this  loan,  not 
herein  explicitly  provided  for,  shall  be  left  to  the  arrangement  of  the  con- 
tracting Banks,  who  shall  issue  and  are  hereby  authorized  to  issue  a  Prospectus 
of  the  loan.  The  Imperial  Chinese  Government  will  instruct  the  Chinese  Ministers 
in  London  and  Paris  to  co-operate  with  the  contracting  Banks  in  any  matters 
requiring  conjoint  action,  and  the  Chinese  Ministers  in  London  and  Paris  will 
approve  and  sign  the  Prospectus  of  the  loan. 

10. — The  contracting  Banks  hereby  take  this  entire  loan  of  Five  million 
pounds  firm  at  the  price  of  Ninety-four  per  cent  (94  per  cent)  to  the  Chinese 


NUMBER  1908/12:  OCTOBER  8,  1908  751 

Government.  Of  the  resulting  net  proceeds  of  this  loan,  namely  Four  million 
seven  hundred  thousand  pounds  (£4,700,000),  the  sum  of  Three  million  seven 
hundred  and  sixty  thousand  pounds  (£3,760,000)  will  be  held  to  the  order  of  the 
Board  in  Europe  on  the  tenth  day  of  December  1908,  and  the  balance,  namely 
Nine  hundred  and  forty  thousand  pounds  (£940,000)  will  be  held  to  the  order  of 
the  Board  in  Europe  on  the  fifth  day  of  February,  1909. 

Transfers  of  the  loan  funds  to  China  will  be  made  by  the  contracting 
Banks  at  rates  of  exchange  which  wull  be  settled  on  a  fair  basis  after  ar- 
rangement with  the  Board.  The  Board  will  give  to  the  contracting  Banks  ten 
days  previous  notice  of  the  transfer  to  China  of  any  sum  exceeding  £20,000. 

If  any  of  the  loan  funds  are  left  on  deposit  with  the  contracting  Banks  in 
London  or  Paris,  interest  will  be  allowed  at  rates  to  be  settled  by  mutual  arrange- 
ment between  the  contracting  Banks  and  the  Board. 

11. — All  expenses  in  connection  with  the  flotation  and  issue  of  this  loan,  such 
as  underwriting,  commission  and  brokerage  telegraph  charges,  advertising,  postage, 
printing  of  Prospectus  and  bonds,  stamp  duty  and  legal  fees,  shall  be  borne  by  the 
contracting  Banks. 

12. — In  the  event  of  an  extraordinary  political  or  financial  crisis  in  Europe 
or  elsewhere,  by  which  the  prices  of  Chinese,  British  or  French  securities  become 
so  seriously  affected  as  to  render  it  impossible  to  float  this  loan  on  the  terms 
herein  named,  the  contracting  Banks  shall  have  the  right  to  withdraw  from 
this  contract,  which  shall  in  that  case  become  null  and  void,  subject  to  any 
arrangement  between  the  contracting  parties  for  an  extension  of  time. 

13. — The  Hongkong  and  Shanghai  Banking  Corporation  and  the  Banque  de 
ITndo-Chine  shall  take  the  loan  in  equal  shares  and  without  responsibility  for 
each  other, 

14. — This  agreement  is  signed  under  the  authority  of  an  Imperial  Edict 
dated  the  fourteenth  day  of  the  ninth  month  of  the  thirty-fourth  year  of  the 
Emperor  Kuang-hsii  (being  the  8th  day  of  October,  1908)  which  will  be  officially 
communicated  without  delay  by  the  Wai-wu-pu  to  the  Ministers  for  Great 
Britain  and   France  in   Peking. 

15. — Quadruplicate  sets  of  this  agreement  are  executed  in  English  and 
Chinese,  one  set  to  be  retained  by  the  Board,  one  set  by  the  Wai-wu-pu,  and 
one  set  by  each  of  the  contracting  Banks.  In  the  event  of  any  doubt  arising 
with  regard  to  the  interpretation  of  this  contract,  the  English  text  shall  rule. 

Signed  at  Peking  by  the  contracting  parties  this  Fourteenth  day  of  the  Ninth 
month  of  the  Thirty  fourth  year  of  the  Emperor  Kuang  Hsii,  being  the  Eighth 
day  of  October,  One  thousand  nine  hundred  and  eight,  Western  Calendar. 
[Seal]  For  the  [Seal  of  the   BOARD   OF   POSTS 

HONGKONG  AND  SHANGHAI  AND  COMMUNICATIONS] 

BANKING    CORPORATION,  [Chinese  Signatures] 

Agents, 
[Signed]     E.  G.  Hillier. 
J.  McArthur. 
[Seal  and  Signatures  of  the 

BANQUE  DE  LTNDO-CHINE] 


752  CHINA  TREATIES  AND  AGREEMENTS 

NUMBER  1908/13. 

CHINA. 

Prospectus  of  the  Seven  Per  Cent  Peking-Hankow  Raihvay  redemption  loan 
for  $10,000,000.''— October  8,  1908.^ 

1. — The  Board  of  Posts  and  Communications,  for  the  purpose  of  redeeming 
the  Peking-Hankow  Railway,  has  decided  to  raise  a  loan  to  be  called  "  The 
Peking-Hankow  Railway  Redemption  Loan." 

2.— The  total  amount  of  the  first  issue  of  the  Loan  will  be  $10,000,000  (Ten 
Million  Dollars)  payable  in  any  kind  of  dollars  obtaining  currency. 

3. — The  Loan  will  bear  interest  at  7  per  cent  per  annum  payable  half  yearly, 
in  the  3rd  and  the  9th  moon,  either  by  the  Committee  in  charge  appointed 
by  the  Board ;  or  by  the  Head  and  Branch  Offices  of  the  Chiao-tung  Bank, 
or  by  any  of  the  Chinese  Imperial  Railway  Offices,  or  by  the  Head  Office 
of  the  Chinese  Imperial  Telegraph  Administrations  and  its  branch  offices, 
or  by  the  Agents  hereafter  to  be  appointed  for  this  service  whose  addresses 
will  be  published  in  the  newspapers.  All  the  foregoing  will  be  authorised 
to  pay  the  amount  due  for  interest  and  extra  dividend  on  presentation  of 
the  Loan  Bonds  issued  by  the  Board. 

4. — In  the  event  of  the  Chinese  Government  deriving  a  profit  from  the  earnings 
of  the  Peking-Hankow  Railway,  the  Bondholders,  besides  the  yearly  interest 
on  the  Loan,  will  also  participate  in  this  profit  to  be  called  extra  dividend. 
The  capital  of  the  line  amounts  to  Tls.  58,000,000  (Fifty  Eight  Million 
Taels).  If  in  any  year  the  Government's  share  of  the  profit  should  amount 
to  Tls.  4,000,000  (Four  Million  Taels),  the  Board  will  then  reserve  one 
quarter  of  this  sum,  i.e.  Tls.  1,000,000  (One  Million  Taels),  for  distribu- 
tion as  extra  dividend  which  will  be  divided  proportionately  according  to 
the  whole  capital  of  fifty  eight  million  taels.  The  Board  will  memorialize 
the  Throne  and  publish  annually  the  amount  of  profit,  %  of  which  will 
be  made  available  for  extra  dividends.  This  privilege  of  participating  in 
the  extra  dividends  does  not  however  confer  upon  Bondholders  the  right 
to  interfere  with  or  examine  the  accounts. 

5. — The  Loan  is  guaranteed  by  the  Board  of  Posts  and  Communications  which 
undertakes  to  repay  both  the  Capital  and  Interest  under  all  circumstances. 
In  the  event  of  a  loss  in  the  working  of  the  Railway,  Bondholders  will  not 
be  held  liable  for  any  such  loss. 

6. — A  special  Committee  in  charge  of  the  Loan  service  shall  be  appointed  by 

the  Board.     The  Head  and  Branch  Offices  of  the  Chiao-tung  Bank  and 

all  the  Chinese  Imperial  Railway  and  Telegraph  Offices  are  also  authorised 

to  receive  subscriptions  for  Bonds  of  this  Loan. 

*  English  text  as  published  by  the  Board  of  posts  and  communications.     See  Note  to 
this  document,  post,  p.  755. 

t  The  date  is  that  of  the  imperial  edict  sanctioning  the  prospectus. 


NUMBER  1908/13:  OCTOBER  8,  1908  753 

7. — The  Loan  :s  fixed  for  a  term  of  12  years,  and  redeemable  by  annual  draw- 
ings commencing  from  the  8th  year,  and  thereafter  for   5  years  to  the 
12th  year. 
8. — Interest  on  the  Loan  shall  commence  from  the  day  following  that  on  which 

subscriptions  are  paid  in  at  the  Agencies. 
9. — The  drawn  Bonds  may,  for  commercial  business,  be  circulated  as  dollars 
of  currency  among  the  Head  and  all  Branch  Offices  of  the  Chiao-tung 
Bank  established  by  the  Board  of  Posts  and  Communications,  as  well  as 
at  the  Chinese  Imperial  Railway  and  Telegraph  Offices  and  all  the  Rail- 
way Stations. 

10. — The  Loan  is  issued  in  Bonds  to  Bearers  regardless  of  holders'  names  and 
they  may  be  bought  or  sold  freely.  The  Bearers  of  the  Bonds  are  rec- 
ognized only  and  all  persons  holding  them  will  be  treated  in  the  same  way 
as  native  subjects  and  must  obey  the  Regulations  of  this  Prospectus. 

11. — In  the  event  of  the  loss  or  destruction  of  Bonds,  such  loss  or  destruction 
will  be  treated  in  accordance  with  the  regulations  of  the  public  Banks  for 
the  loss  of  a  Bank  note. 

12. — Bonds,  the  words  or  numbers  of  which  have  been  either  obliterated  or 
altered,  are  declared  nil  and  useless.  The  Bonds  are  printed  in  the  Chinese 
language. 


DETAILS. 


1.— The  first  issue  of  the  Loan  will  be  for  a  sum  of  $10,000,000  (Ten  Million 
Dollars)  to  be  divided  into  one  hundred  thousand  Bonds  of  $100  (One 
Hundred  Dollars)  each  and  numbered  consecutively  1 — 100,000. 

2. — The  term  of  the  Loan  is  for  a  period  of  12  years  with  Interest  payable 
twice  a  year,  so  that  there  will  be  24  periods  for  paying  Interest.  Separate 
Interest  Coupons  are  also  given  which  are  the  only  evidence  recognized  for 
drawing  Interest  on  each  period. 

3. — All  Bonds  are  stamped  on  their  faces  with  the  Seal  of  the  Board  of  Posts 
and  Communications. 

4. — All  Bonds  are  only  marked  with  Numbers  and  not  with  the  names  of  their 
holders.  They  may  be  sold  or  bought  freely,  and  are  only  recognized  by 
their  Bearers. 

5. — The  Board  of  Posts  and  Communications  will  appoint  a  Committee  to 
control  all  the  affairs  of  the  Loan,  and  Agencies  for  other  places  will  be 
decided  upon  by  the  Board  and  made  known  to  the  public  in  due  time  by 
advertisement  in  the  newspapers. 

6. — The  dates  of  issuing,  payment,  and  closing  will  be  notified  in  the  news- 
papers by  the  Committee  in  charge  at  the  order  of  the  Board. 

7. — The  Loan  is  to  be  issued  at  par.  Each  Bond  will  be  sold  for  $100  (One 
Hundred  Dollars)  according  to  its  face  value,  and  will  be  redeemed  also 
at  par. 

8. — The  Loan,  after  deducting  the  amounts  contracted  for  by  underwriters,  is 
to  be  raised  from  the  public  by  Agents  at  different  places.     In  the  event 


754  CHINA  TREATIES  AND  AGREEAIENTS 

of  any  person  or  persons  undertaking  to  underwrite  for  the  whole  amount 
of  the  Loan,  then  there  will  be  no  necessity  for  soliciting  subscriptions 
from  the  public. 
9. — Any  one  desiring  to  sell  the  Bonds  on  behalf   of  the  Board  must  first 
register  his  name  at  the  Agent's  office. 

10. — On  the  closing  of  the  applications,  if  the  sum  applied  for  just  cover  or  be 
under  that  required,  then  the  full  number  of  Bonds  shall  be  allotted  to 
those  who  applied  for  that  number.     This  rule  excludes  the  underwriters. 

11. — But  if  the  number  of  Bonds  applied  for  be  over  that  required  to  be  raised, 
then  the  Bonds  will  be  allotted  proportionately  to  those  who  applied  for 
them.  The  allotment,  which  depends  upon  the  total  number  of  Bonds 
applied  for,  can  only  be  settled  after  the  time  of  closing.  This  rule 
excludes  the  underwriters. 

12. — Interest  on  payments  made  after  the  date  of  issuing,  but  before  the  date 
of  closing,  shall  commence  from  the  day  following  that  on  which  such 
payments  are  made. 

13. — Payments  are  to  be  accepted  in  dollars  of  currency,  and  if  it  is  paid  with 
silver  in  taels,  the  taels  must  be  reduced  into  dollars  according  to  the  local 
rate  of  exchange  on  that  date. 

14. — The  Loan  fund  shall  be  deposited  at  the  Chiao-tung  Bank,  and  an  account 
of  it  kept  for  report  to  the  Committee  in  charge  who  will  draw  on  the 
funds  from  time  to  time  to  meet  expenditures,  the  balance  to  be  treated 
under  the  Bank  regulations  governing  ordinary  Cash  deposits. 

15. — The  Interest  of  the  Loan  will  be  payable  in  two  periods  each  year,  i.e.,  on 
the  first  day  of  the  third  and  the  ninth  moon  and  may  be  drawn  any  time 
after  it  becomes  due,  but  if  not  drawn  within  three  months  after  it  is  due, 
it  will  be  carried  forward  to  the  next  period.  The  first  payment  of  the 
interest  (depending  upon  the  dififerent  dates  when  Loan  funds  are  paid), 
shall  be  reckoned  by  the  number  of  days. 

16. — When  Interest  becomes  due.  Bondholders  may  receive  or  draw  money  in 
dollars  from  the  Agents. 

17. — All  payments  of  Interest  will  be  paid  with  dollars  of  currency. 

18. — In  the  payment  of  Interest,  Coupons  are  the  only  proof  required.     When 
'  Bondholders  receive  or  draw  their  Interest  and  Extra  Dividend  they  must 
bring  the  Coupons  and  show  them  to  the  Agents.     After  being  examined 
and  paid,  the  Coupons  shall  be  stamped  and  returned  to  their  owners. 

19. — The  amount  of  Extra  Dividend  for  each  Bond  will  be  paid  once  a  year 
on  the  first  day  of  the  9th  moon  together  with  the  Interest  payable  on 
that  date.  The  Extra  Dividend  for  the  1st  year  wnll  commence  from  the 
1st  January,  1909  (Western  Calendar),  and  distributed  the  following  year 
on  the  1st  day  of  the  9th  moon  (Chinese  Calendar). 

20. — The  period  of  the  Loan  is  for  12  years.  Commencing  from  the  date  when 
the  Loan  begins  down  to  the  end  of  the  7th  year,  interest  only  is  to  be 
paid  but  not  the  Loan  Capital.  The  Loan  Capital  will  be  repaid  from  the 
8th  year  down  to  the  end  of  the  12th  year.  The  total  number  of  Bonds 
to  be  redeemed  each  year  will  be  advertised  6  months  in  advance. 


NUMBER  1908/13:  OCTOBER  8,  1908:  NOTE  755 

21. — Two  months  previous  to  the  date  of  annual  repayment  of  Loan  Capital, 
the  drawing  of  the  Bond  numbers  will  take  place.  100,000  tickets  con- 
secutively numbered  will  be  put  together  into  the  same  receiver  and  sepa- 
rately drawn  according  to  the  amount  of  repayment  required  for  that 
year.  For  instance  if  $1,000,000  (One  Million  Dollars)  are  to  be  repaid, 
10,000  (Ten  Thousand)  tickets  must  be  drawn  out.  The  Bonds  will,  when 
drawn,  be  paid  off. 

22. — The  drawn  numbers  will  be  published  next  day  in  the  new^spapers  and  in 
due  time  the  Bondholders,  on  surrendering  their  Bonds  to  their  respective 
agents,  will  be  paid  in  dollars. 

23. — Bondholders,  on  their  Bond  numbers  being  drawn,  must  take  all  their 
Bonds  and  interest  Coupons  when  going  to  their  respective  agents  for 
money,  in  order  that  these  may  be  cancelled  after  the  money  is  paid  and 
sent  to  the  Committee  in  charge  for  inspection. 

24. — If  after  three  years  from  the  due  date  of  payment,  owners  of  drawn  Bonds 
fail  to  present  their  Bonds  to  the  Agent  for  payment,  the  said  Bonds  will 
be  declared  nil  and  void. 

25. — Agents  who,  on  behalf  of  the  Board,  sell  the  Bonds  at  or  exceeding  a  value 
of  $10,000  (Ten  Thousand  Dollars)  will  be  given  a  discount  of  >^%,  at 
or  above  $100,000  (One  Hundred  Thousand  Dollars)  1%,  at  or  above 
$1,000,000  (One  Million  Dollars)  13^%,  and  at  or  above  $3,000,000 
(Three  Million  Dollars)  2%. 

26. — Agents  undertaking  to  contract  for  the  loan  for  a  sum  of  $10,000  (Ten 
Thousand  Dollars)  or  over  will  be  given  a  discount  of  1%,  at  or  above 
$100,000  (One  Hundred  Thousand  Dollars)  13^%,  at  or  above  $500,000 
(Five  FTundred  Thousand  Dollars)  2%,  at  or  above  $1,000,000  (One  Mil- 
lion Dollars)  2>4%. 

27. — Those  who  sell  Bonds  to  the  total  value  of  $125,000  (One  Hundred  and 
Twenty  Five  Thousand  Dollars)  will,  besides  their  discount,  be  given 
rewards  for  services  rendered  (by  memorial),  and  special  rewards  will  be 
given  (by  memorial)  to  those  who  sell  Bonds  to  the  total  value  of  $500,000 
(Five  Hundred  Thousand  Dollars). 

28. — The  Loan  Bonds  are  to  be  purchased  by  the  free  will  of  the  people  and 
must  not  be  given  to  the  local  officials  to  force  the  rich  gentry  to  buy 
against  their  will. 


Note. 

In  connection  with  this  loan  see  also  the  Peking-Hankow  Railway  loan  agreement  of 
June  26,  1898  (Nn.  1898/13,  ante)  :  and  the  loan  agreement  between  the  Board  of  Com- 
munications and  the  Hongkong  &  Shanghai  Bank  and  the  Banque  de  I'lndo-Chine,  October 
8,  1908   (Xo.  1908/12,  ante). 

It  is  understood  that  by  an  agreement  with  the  Chiao-tung  Bank  (i.e.,  the  Bank  of 
Communications)  under  date  of  August  1,  1910 — no  text  of  which  is  available — Messrs.  Dunn, 
Fischer  &  Company,  of  London,  purchased  bonds  of  this  redemption  loan  to  the  nominal 
value  of  $5,000,000 :  these  bonds  were  thereafter  floated  by  the  company,  jointly  with  the 
London  Citv  and  Midland  Bank,  as  indicated  by  the  following  extracts  from  their  prospectus 
of  September  24,  1910: 


756  CHINA  TREATIES  AND  AGREEMENTS 

"The  List  will  open  on  Monday,  the  26th  day  of  September,  1910,  and  close  on  or  before 
Wednesday,  the  28th  day  of  September,  1910. 

IMPERIAL  CHINESE  GOVERNMENT   7   PER   CENT.   PEKING-HANKOW 
RAILWAY  REDEMPTION  LOAN. 

(issued  by  the  board  of  posts  and  communications.) 

"Entitled  in  addition  to  the  fixed  interest  of  7  per  cent,  to  a  partkipation  in  the  profits  result- 
ing from  the  operation  of  the  Railway,  as  mentioned  herein. 

"authorized   by   imperial   edict   of   8th    OCTOBER,    1908. 

"SALE  OF  £450,000  (STERLING)  OF  BONDS. 
(part  of  the  above  loan.) 

"  represented  by  bond  certificates  as  mentioned  below. 

"  The  total  amount  of  the  first  issue  of  the  Loan  is  $10,000,000  (Peking  Currency),  but  in 
respect  of  the  $5,000,000  of  Bonds  (equal  to  £450,000  as  above),  the  Board  of  Posts  and 
Communications  of  the  Imperial  Chinese  Government  has  undertaken  to  guarantee  the  pay- 
ment of  Capital  and  Interest  in  sterling.  This  undertaking  will  be  endorsed  on  every  Bond. 

"The  Bonds  are  to  Bearer  in  denominations  of  $100  (Peking  Currency)  each,  the 
equivalent  being  fixed  at  £9  (sterling).  They  are  redeemable  at  par  by  annual  drawings 
during  the  period  commencing  in  1916  and  ending  in  1920.  The  number  of  Bonds  to  be 
redeemed  each  year  will  be  advertised  six  months  in  advance.  The  Principal  and  Interest 
of  the  Bonds  are  payable  free  from  all  Chinese  Taxes  and  Imposts,  present  or  future. 

"  The  Coupons  are  payable  at  the  Chiao-tung  Bank  in  Peking,  half-yearly,  on  the  1st  day 
of  the  3rd  and  9th  Moon  of  the  Chinese  Calendar.  The  extra  dividend  (if  any)  resulting 
from  the  profits  of  operation  of  the  railway  will  be  paid  on  the  1st  day  of  the  9th  Moon  of 
each  year. 


"THE  LONDON  CITY  &  MIDLAND  BANK,  LIMITED, 

AND 

Messrs.  DUNN,  FISCHER  &  COMPANY 
are  prepared  to  receive  applications  for  the  purchase  of  the  above-mentioned  Bond  Certifi- 
cates of  £99  each  issued  by  the  London  City  &  Midland  Executor  and  Trustee  Company,  Ltd., 
representing  £450,000  (Sterling)  7  per  cent.  Imperial  Chinese  Government  Bonds 
AT  THE  PRICE  OF  £108  PER  CENT. 
(Being  £106  18s.  5d.  for  every  Bond  Certificate  of  £99),  payable  as   follows: 
£10      0    0    on  Application. 
£11     18    5      "     Acceptance. 
£85      0    0"    23rd  October,  1910. 

£106     18    5 
"The  following  is  a  copy  of  a  letter,  addressed  to  Messrs.  Dunn,  Fischer,  and  Co.,  from 
His  Excellency  the  Minister  for  China  in  London : 

"  Chinese  Legation,  London, 

August  31st,  1910. 
"Messrs.  DUNN,  FISCHER  &  CO., 

41,  Threadneedle  Street,  London,  E.C. 
"  Gentlemen, 

"IMPERIAL    CHINESE    GOVERNMENT    7    PER    CENT.    PEKING-HANKOW 
RAILWAY  REDEMPTION  LOAN. 
"  In  reply  to  your  letters  of  the  26th,  27th,  and  29th  instant,   I   have  to  acquaint 
you  that  I  have  received  a  telegram  from  the  Board  of  Posts  and  Communications  in 
Peking  instructing  me  to  hand  to  you : — 

"  1.  Copy  of  the  Agreement  entered  into  by  you  with  Lee  Fong,  the  appointed 
Agent  of  the  Chiao-tung  Bank,  for  the  sale  to  you  of  50,000  Bonds  of  $100  each  (Peking 
Currency),  equivalent  to  £9  each,  being  part  of  the  above-mentioned  loan. 

"  2.  Power  of  Attorney  by  the  Board  of  Posts  and  Communications  authorizing 
the  said  Lee  Fong  to  enter  into  the  above-mentioned  Agreement. 

"3.  Copy  of  the  Imperial  Edict  sanctioning  the  issue  of  the  Loan,  and  translation 
of  the  same. 

"4.    Copy  of  the  Prospectus  of  issue,  and  translation  of  the  same. 
"I  further  beg  to  inform  you  that  the  Board  of  Posts  and  Communications  of  the 
Imperial  Chinese  Government  has  undertaken  to  guarantee  the  repayment  of  the  Capi- 


NUMBER  1908/13:  OCTOBER  8,  1908:  NOTE  757 

tal  of  the  aforementioned  50,000  Bonds  of  $100  each  (Peking  Currency)  in  sterling  at 
the  rate  of  nine  pounds  (£9)  for  every  Bond  and  also  to  guarantee  the  payment  of  Inter- 
est thereon  at  the  fixed  value  of  Six  Shillings  and  Three  and  Six-Tenths  Pence  (6s. 
3  6-lOd.)  for  every  Coupon,  payable  half-yearly,  free  from  all  Chinese  Taxes  and  Im- 
posts, present  or  future. 

"  I  am,  Gentlemen,  Yours  faithfully, 

"  (Signed)  Li-Ching-Fong. 

"  The  following  is  an  extract  from  the  Prospectus  issued  by  the  Board  of  Posts  and 
Communications  of  the  Imperial  Chinese  Government  in  respect  of  these  Bonds  and  relat- 
ing to  the  participation  in  the  profits  of  the  operation  of  the  railway  to  which  the  Bond- 
holders are  entitled,  viz. : — 

"  In  the  event  of  the  Chinese  Government  deriving  a  profit  from  the  earnings  of 
the  Peking-Hankow  Railway,  the  Bond-holders,  besides  the  yearly  interest  on  the  loan, 
will  also  participate  in  this  profit  to  be  called  extra  dividend." 

"The  Capital  of  the  line  amounts  to  58,000,000  Taels.  [Approximately  equivalent 
of  £7,400,000  sterling.]  If  in  any  year  the  Government  Share  of  the  profit  should 
amount  to  4,000,000  Taels,  the  Board  will  then  reserve  one-quarter  of  this  sum,  i.e., 
1,000,000  Taels,  for  distribution  as  extra  dividend,  which  will  be  divided  proprotion- 
ately  according  to  the  whole  Capital  of  58,000,000  Taels.  The  Board  will  memorialize 
the  Throne  and  publish  annually  the  amount  of  profit,  one-quarter  of  which  will  be 
rnade  available  for  extra  dividends.  This  privilege  of  participating  in  the  extra 
dividends  does  not,  however,  confer  upon  Bondholders,  the  right  to  interfere  with  or 
examine  the  accounts." 

"The  Peking-Hankow  Railway  has  a  total  length  of  approximately  760  miles. 
"  The  gross  earnings  and  the  Government's  share  of  the  net  profits  of  the  Railway  are 
officially  reported  by  the  Chiao-tung  Bank  of  Peking  as  follows : 

Government's  Share  of 
Gross  Earnings.  the  Net  Profits. 

1908  ..  ..  $11,034,610  =  £965,528  ..  $3,063,723  =  £268,0/5 

1909  ..  ..  $11,114,614  =  £972,528  ..  $3,645,797  =  £319,007 

"  In  respect  of  the  year  1910,  the  Bonds  will  only  entitle  the  Holder  to  a  pro  rata  share 
of  the  profits  (if  any)  of  the  Railway  representing  the  period  from  the  date  of  payment 
for  the  Bonds  to  the  31st  December,  1910.  Such  pro  rata  share  (if  any)  will  be  paid  on  the 
1st  day  of  the  Ninth  Moon,  1911  (22nd  October,  1911),  together  with  the  fixed  interest  then 
due." 

The  Yokohama  Specie  Bank  also  purchased  these  bonds  to  the  nominal  value  of 
$2,500,000,  by  an  agreement  with  the  Bank  of  Communications,  dated  August  15,  1910,  of 
which  the  following  is  a  summary : 

Agreement  for  Purchase  of  Bonds  of  Peking-Hankow  Redemption  Loan  by 
Yokohama  Specie  Bank,  August  15,  1910. 

"  1. — The  Yokohama  Specie  Bank  to  purchase  25,000  bonds,  each  of  the  nominal  value  of 
100  current  silver  dollars,  at  the  agreed  equivalent  of  88  yen:  repayment  of  principal  and 
payment  of  interest  to  be  reckoned  in  yen. 

"  2. — ^Bonds  to  bear  7%  interest,  payable  semi-annually  to  the  Shanghai  Branch  of  the 
Yokohama  Specie  Bank. 

"3. — Interest  coupons  to  be  met  by  the  Shanghai  Branch  of  the  Bank  of  Communi- 
cations on  the  1st  of  the  3rd  and  9th  moons,  Chinese  calendar,  each  year. 

"4. — Interest  for  the  first  period  payable  upon  receipt  of  principal;  thereafter,  Y.  3.08 
to  be  paid  as  interest,  each  half  year,  upon  each  bond. 

"  5. — The  Edict  of  October  8th,  1908,  having  provided  a  term  of  12  years,  with  interest 
payable  semi-annually,  the  first  of  the  24  interest  dates  is  to  be  taken  as  October  8th, 
1908:  amortization  to  begin  with  the  15th  period.  Three  interest  periods  having  elapsed, 
the  amortization  of  principal  will  begin  from  the  15th  period  but  will  be  decreased  to 
allow  for  the  interest  periods  already  elapsed. 

"6. — Delivery  of  the  25,000  bonds  by  the  Bank  of  Communications,  and  payment  of 
Y.  2,200.000  therefor  by  the  Yokohama  Specie  Bank,  to  be  efi"ected  in  Shanghai  by  the 
two  parties,  in  five  equal  weekly  instalments,  beginning  September  5th,  1910. 

"  7. — Payments  of  principal  and  of  interest,  and  repayments  of  principal,  all  to  be 
made  at  the  rate  of  exchange  for  the  day  for  yen  as  posted  at  the  Shanghai  Branch  of 
the  Yokohama  Specie  Bank — or,  in  case  of  difference,  at  the  rate  posted  by  the  other 
banks. 

"  8. — Issue  price  97^,  discount  to  be  reckoned  after  the  paying  in  of  the  entire  pro- 
ceeds of  the  bonds. 

"9. — Amortization  to  begin  February  3rd,  1916,  and  to  be  completed  February  7th, 
1921,  5000  of  the  bonds  purchased  by  the  Yokohama  Specie  Bank  being  drawn  by  lot  and 
redeemed  each  year  during  that  period. 

"  10. — From  the  date  of  payment  for  the  bonds,  profits  of  the  Peking-Hankow  Rail- 
way to  be  set  aside  as  security  for  them. 


758  CHINA  TREATIES  AND  AGREEMENTS 

"11. — The  Board  of  Posts  and  Communications  to  confirm  officially  the  provisions 
of  the  Agreement  in  regard  to  the  payments  of  interest  and  amortization.  The  Agree- 
ment to  be  formally  cancelled  after  redemption  of  the  bonds. 

"12. — These  Bonds  to  be  subject  to  the  original  Regulations  concerning  the  Domestic 
Loan   Bonds,  in  addition  to  the  terms  of   this   Agreement." 

Other  bonds  of  this  redemption  loan  were  subsequently  used  as  the  security  for  a 
loan  of  il50,000  from  The  City  Safe  Deposit  and  Agency  Company,  Limited,  of  London, 
under  the  following  agreement  of  December  11,  1912: — 

Agreement  for  Loan  upon  Bonds  of  Peking-Hankow  Redemption  Loan  by  City  Safe 
Deposit  and  Agency  Company,  December  ii,  1912. 

"  THIS  AGREEMENT  made  the  eleventh  day  of  December,  one  thousand  nine  hun- 
dred and  twelve,  BETWEEN  The  Chinese  Republic  acting  by  His  Excellency  Lew  Yuk 
Lin  its  officially  accredited  representative  in  London  and  duly  authorised  to  enter  into 
this  Agreement  on  its  behalf  (hereinafter  called  'the  Republic')  of  the  one  part  and 
The  City  Safe  Deposit  and  Agency  Company,  Limited,  a  company  incorporated  under  the 
Companies  Acts  1862  to  1890  whose  registered  office  is  situated  at  No.  13  Throgmorton 
Avenue  in  the  City  of  London,  England  (hereinafter  called  'the  Company')  of  the 
other  part  WHEREAS  it  has  been  arranged  that  the  Company  shall  purchase  from  the 
Republic  Treasury  Bills  of  the  Republic  for  the  amount  of  one  hundred  and  fifty  thou- 
sand pounds  AND  WHEREAS  it  is  one  of  the  terms  of  the  said  arrangement  that  the 
said  bills  shall  be  secured  as  hereinafter  provided  NOW  IT  IS  AGREED  as   follows: — 

"  1.  THE  Republic  shall  sell  and  the  Company  shall  purchase  at  par  one  hundred 
and  fifty  Treasury  Bills  of  the  Republic  each  for  the  sum  of  one  thousand  pounds  payable 
at  the  Head  Ofiice  for  the  time  being  in  London,  England  (now  No.  38  Bishopsgate  in 
the  said  City  of  London)  of  the  Chartered  Bank  of  India,  Australia  and  China  (hereinafter 
called  the  'Bank').  The  said  Bills  shall  be  a  direct  obligation  of  the  Republic  and  shall 
be  signed  by  the  said  representative  in  London  and  the  Republic  shall  give  to  the  said 
representative  due  instructions  and  authority  so  to  do. 

"2.  THE  Republic  shall  pay  to  the  Company  as  the  consideration  to  the  Company 
for  entering  into  this  Agreement  the  sum  of  Three  thousand  seven  hundred  and  fifty 
pounds  to  be  paid  to  the  Company  on  the  execution  hereof. 

"  3.  FORTHWITH  after  delivery  to  the  Company  in  London  of  the  said  Bills 
signed  as  provided  in  Clause  1  hereof  and  of  evidence  to  the  satisfaction  of  the  Com- 
pany that  the  bonds  mentioned  in  Clause  4  hereof  have  been  deposited  as  thereby  pro- 
vided and  after  the  execution  by  the  representative  of  the  Republic  to  the  satisfaction 
of  the  Company  of  this  Agreement,  the  sum  of  One  Hundred  and  fifty  thousand  pounds 
shall  be  paid  by  the  Company  to  the  Republic  in  London,  but  the  Company  shall  be 
entitled  to  deduct  thereout  the  said  sum  of  three  thousand  seven  hundred  and  fifty  pounds 
and  a  sum  of  ten  thousand  five  hundred  pounds  being  seven  per  cent  discount  on  one 
hundred  and  fifty  thousand  pounds  paying  to  the  Republic  the  balance  of  one  hundred 
and  thirty-five  thousand  seven  hundred  and  fifty  pounds. 

"  4.  THE  payment  of  the  said  Bills  to  the  holders  for  the  time  being  thereof  shall 
be  secured  by  the  deposit  with  the  bank  in  the  name  and  to  the  order  of  the  Company  as 
trustees  of  bonds  of  the  Chinese  Government  Seven  per  cent  Peking-Hankow  Railway 
Redemption  Loan  of  the  value  at  par  of  two  million  one  hundred  and  sixty  thousand 
Peking  dollars  hereinafter  called  'the  said  Bonds.' 

"5.  EACH  of  the  said  Bonds  shall  be  signed  and  sealed  by  the  Board  of  Posts  and 
Communications  of  the  Republic  and  shall  bear  a  statement  certified  by  the  signature  and 
seal  of  the  Board  to  the  effect  that  the  value  of  one  hundred  dollars  is  nine  Pounds 
English  sterling  and  that  the  said  Bonds  are  payable  in  Peking  in  English  sterling  at  that 
rate  of  exchange  both  as  to  principal  and  interest. 

"6.  THE  Bonds  shall  be  deposited  in  the  first  instance  at  the  Branch  office  of  the 
Bank  in  Peking  and/or  Tientsin  in  the  name  and  to  the  order  of  the  Company. 

"  7.  THE  Bonds  when  so  deposited  shall  be  held  in  trust  to  secure  the  payment  to 
the  holders  for  the  time  being  and  from  time  to  time  of  the  Bills  aforesaid  of  the  prin- 
cipal moneys  and  interest  payable  in  respect  of  the  said  Bills. 

"8.  THE  principal  moneys  received  by  the  Bank  in  respect  of  the  said  Bonds 
whether  upon  the  redemption  of  any  of  the  said  Bonds  according  to  their  tenor  or  other- 
wise as  well  as  any  interest  from  time  to  time  received  by  the  Bank  in  respect  of  the 
said  Bonds,  shall  be  held  by  the  Bank  in  the  name  and  to  the  order  of  the  Company  and 
together  with  all  moneys  arising  under  the  last  preceding  clause  hereof  shall  be  applicable 
by  the  Company  in  or  towards  paying  off  all  of  the  said  Bills  pari  passu  and  the  surplus 
(if  any)    shall  be  paid  to  the  Republic. 

"9.  THE  Republic  hereby  grant  to  the  Company  an  option  of  purchasing  from  the 
Republic  the  said  Bonds  at  the  price  of  ninety-seven  dollars  for  every  Bond  of  one 
hundred  dollars,  and  at  a  proportionate  price  in  respect  of  Bonds  for  amounts  greater 
or  less  than  one  hundred  dollars,  which  option  may  be  exercised  at  any  time  and  from 
time  to  time  by  notice  in  writing  to  the  Representative  of  the  Republic  in  London  specify- 


NUMBER  1908/14:  OCTOBER  8,  1908  759 

ing  the  number  of  the  said  Bonds  purchased  and  may  be  exercised  at  any  time  within  one 
year  after  the  day  of  the  execution  hereof. 

"  10.  This  Agreement  is  signed  by  the  said  Lew  Yuk  Lin  as  the  Representative  of 
the  Chinese  Government  and  will  be  forthwith  officially  communicated  to  the  Minister  of 
Great  Britain  in  Peking  by  the  Wai  Chiao  Pu  (Chinese  Foreign  Office)  and  a  copy  of 
such  formal  notification  and  any  reply  thereto  shall  be  communicated  to  the  Company. 

"The  Common  Seal  of  the  City  Safe  Deposit  and  Agency  Company,  Limited,  was 
hereto  affixed  in  the  presence  of : — 

"  (Signatures  of)  Directors 

"  (signature  of)    Asst.  Secretary." 

[Seal.] 


NUMBER  1908/14. 

THE  Ux\ITED  STATES  AND  CHINA. 
Arbitration  convention.'^ — October  8,  1908. 

The  President  of  the  United  States  of  America  and  His  Majesty  the 
Emperor  of  China,  taking  into  consideration  the  fact  that  the  High  Contracting 
Parties  to  the  Convention  for  the  pacific  settlement  of  international  disputes, 
concluded  at  The  Hague  on  the  29th  July,  1899,  have  reserved  to  themselves, 
by  Article  XIX  of  that  Convention,  the  right  of  concluding  Agreements,  with 
a  view  to  referring  to  arbitration  all  questions  which  they  shall  consider  pos- 
sible to  submit  to  such  treatment,  have  resolved  to  conclude  an  Arbitration  Con- 
vention between  the  two  countries,  and  for  that  purpose  have  named  as  their 
Plenipotentiaries,  that  is  to  say : 

The  President  of  the  United  States  of  America,  Elihu  Root,  Secretary  of 
State  of  the  United  States  of  America;  and 

His  Majesty  the  Emperor  of  China,  Wu  Ting-fang,  Envoy  Extraordinary 
and  Minister  Plenipotentiary  to  the  United  States  of  America,  Mexico,  Peru, 
and  Cuba; 

Who,  after  having  communicated  to  each  other  their  Full  Powers,  found 
to  be  in  good  and  due  form,  have  agreed  upon  and  concluded  the  following 
Articles : — 

Article  I. — Differences  which  may  arise  of  a  legal  nature  or  relating  to 
the  interpretation  of  treaties  existing  between  the  two  Contracting  Parties,  and 
which  it  may  not  have  been  possible  to  settle  by  diplomacy,  shall  be  referred  to 
the  Permanent  Court  of  Arbitration  established  at  The  Hague  by  the  Conven- 
tion of  the  29th  July,  1899,  provided,  nevertheless,  that  they  do  not  affect  the 
vital  interests,  the  independence,  or  the  honor  of  the  two  Contracting  States, 
and  do  not  concern  the  interests  of  third  Parties. 

Article  II. — In  each  indi'vidual  case  the  High  Contracting  Parties  before 

*Text  as  printed  in  U.  S.  Treaty  Series,  No.  522.  Printed  also  in  Malloy,  p.  290; 
Am.  Int.  Law  Journal,  Supplement,  1909,  p.  221  ;  Customs,  vol.  I,  p.  764. 

In  connection  with  this  convention  see  also  the  Treaty  for  the  advancement  of  the 
general  cause  of  peace,  September  15,  1914  (No.  1914/10,  post). 


760  CHINA  TREATIES  AND  AGREEMENTS 

appealing  to  the  Permanent  Court  of  Arbitration  shall  conclude  a  special  Agree- 
ment defining  clearly  the  matter  in  dispute,  the  scope  of  the  powers  of  the 
Arbitrators,  and  the  periods  to  be  fixed  for  the  formation  of  the  Arbitral  Tri- 
bunal and  the  several  stages  of  the  procedure.  It  is  understood  that  such  special 
agreements  will  be  made  on  the  part  of  the  United  States  by  the  President  of  the 
United  States  by  and  with  the  advice  and  consent  of  the  Senate  thereof. 

Article  III. — The  present  Convention  shall  remain  in  force  for  the  period 
of  five  years  from  the  date  of  the  exchange  of  the  ratifications. 

Article  IV. — The  present  Convention  shall  be  ratified  by  the  High  Con- 
tracting Parties,  and  the  ratifications  thereof  shall  be  exchanged  at  Washington 
as  soon  as  possible. f 

In  witness  whereof,  the  respective  Plenipotentiaries  have  signed  the  present 
Convention,  and  have  thereunto  affixed  their  seals. 

Done  at  the  City  of  Washington,  in  duplicate,  this  8th  day  of  October,  one 
thousand  nine  hundred  and  eight,  corresponding  to  the  14th  day  of  the  9th 
month  of  the  34th  year  of  Kuang  Hsii. 

Elihu  Root  •     [seal] 

Wu  Ting  Fang  [seal] 


NUMBER  1908/15. 

JAPAN  AND  CHINA. 

Convention  concerning  the  telegraph  cable  hetzveen  Kivantung  and  Chefoo,  and 
the  Japanese  telegraph  lines  in  Manchuria.* — October  12,  1908. 

The  undersigned,  respectively  duly  authorised  by  the  Governments  of 
Japan  and  China  to  adjust  in  a  friendly  manner  and  spirit  of  mutual  accom- 
modation the  questions  of  the  submarine  telegraph  cable,  between  the  Province 
of  Kwantung  and  Chefoo,  and  the  Japanese  telegraph  lines  in  Manchuria,  have 
agreed  as  follows: 

Article  1. — A  submarine  cable  will  be  laid  by  the  Governments  of  Japan 
and  China  between  a  point  in  the  Kwantung  Province  and  Chefoo.  Japan  will 
lay  and  maintain  the  section  of  the  submarine  cable  from  Kwantung  to  within 
7^  miles  of  Chefoo  and  China  will  lay  and  maintain  the  section  of  said 
cable  from  Chefoo  to  a  point  7^^  miles  from  Chefoo.  At  said  point  the  two 
sections  of  the  cable  shall  be  connected.  The  Kwantung  end  shall  be  worked 
entirely  by  Japan  and  the  Chefoo  end  by  China,  but,  in  order  to  meet  the 
special  requirements  of  Japan,  the  cable  shall  be  connected  up  direct  to  the 

*  In  connection  with  this  convention  see  also  the  agreement  concerning  the  working  of 
the  Kwantung-Chefoo  cable  (No.  1908/16,  post),  and  the  agreement  concerning  the  work- 
ing of  the  Japanese  and  Chinese  telegraph  lines  in  Manchuria  (No.  1908/17,  post),  both 
of  November  7,  1908. 

t  Ratifications  exchanged  April  6,  1909. 


NUMBER  1908/15 :  OCTOBER  12,  1908  761 

Japanese  Post  Office  at  Chefoo  during  such  sufficient  time  each  working  day 
as  may  be  agreed  upon  and  such  Post  Office  shall  have  the  right  to  transmit 
over  the  said  cable  from  and  to  places  under  the  direct  control  of  the  Japanese 
telegraph  system  terminal  Chefoo  Japanese  Government  messages  as  well  as 
private  terminal  Chefoo  telegrams,  provided  these  latter  be  written  in  Kana. 
Japan  shall  pay  to  China  on  such  traffic  a  certain  terminal  fee  to  be  agreed 
upon.  The  connecting  line  between  the  Chinese  Chefoo  Telegraph  Office  and 
the  Japanese  Post  Office  at  Chefoo  will  be  constructed  and  maintained  by 
China.  Japan  engages  to  do  all  in  her  power  to  prevent  the  retransmission  at 
Chefoo  of  traffic  from  or  to  any  other  part  of  China  and  she  also  undertakes, 
under  the  reserve  of  most  favored  nation  treatment  for  the  future,  not  to  land 
submarine  cables  or  to  construct  telegraph  or  telephone  land-lines  or  to  estabhsh 
any  kind  of  wireless  communication  in  China,  outside  her  leased  or  railway 
territories,  without  in  every  case  first  having  obtained  the  consent  of  the 
Chinese  Government.  All  details  as  to  terminal  and  transit  rates  over  the 
Chefoo-Kwantung  cable  shall  be  settled  by  a  special  agreement. 

Article  2. — Japan  undertakes  immediately  to  hand  over  to  China,  against 
the  payment  of  50,000  Yen,  all  Japanese  telegraph  lines  in  Manchuria  outside 
the  railway  territory.  Japan  is  prepared  to  enter  into  negotiation  with  China 
with  a  view  to  coming  to  a  certain  arrangement  concerning  the  Japanese  tele- 
phone service  in  Manchuria  outside  the  railway  territory.  Pending  the  con- 
clusion of  such  an  arrangement,  Japan  undertakes  neither  to  extend  her  present 
telephone  system  in  Manchuria  without  having  first  obtained  the  consent  of 
the  Chinese  Government,  nor  to  use  her  telephone  lines  for  the  transmission 
of  telegrams  in  competition  with  the  Chinese  telegraph  lines. 

Article  3. — At  open  marts  or  treaty  ports  in  Manchuria,  which  are  in 
close  proximity  to  the  Japanese  railway  territory,  namely  at:  Antung,  New- 
chwang,  Liaoyang,  Moukden,  Teh-ling  and  Chang-chun,  the  Chinese  Government 
agrees,  for  a  period  of  fifteen  years,  to  place  one  or  two  special  telegraph  wires 
from  the  said  open  marts  or  treaty  ports  to  such  railway  territory  at  the  exclu- 
sive disposal  of  the  Japanese  Government  telegraph  service.  Such  wire  or 
wires  shall  be  maintained  in  good  order  and  condition  by  the  Chinese  Govern- 
ment up  to  the  railway  territory. 

Article  4. — The  special  wire  or  wires  mentioned  in  Article  3  shall  be 
worked  from  the  Chinese  telegraph  buildings  by  Japanese  clerks  in  the  employ 
of  the  Japanese  Government,  and  the  Chinese  Government  undertakes  to  pro- 
vide, at  a  total  yearly  rent  of  700  Mexican  Dollars,  suitable  special  offices  and 
accommodations  for  this  purpose,  it  being,  however,  understood  that  the  said 
accommodations  do  not  include  dwelling  quarters  for  the  clerks. 

Article  5. — The  special  wire  or  wires  mentioned  in  Article  3  can  only  be 
used  for  the  exchange  of  telegrams  emanating  from  or  destined  to  places  under 
the  direct  control  of  the  Japanese  telegraph  system. 

Article  6. — At  the  open  marts  or  treaty  ports  mentioned  in  Article  3  the 
Japenese  telegraph  Department  will  have  its  receiving  office  in  the  Chinese  tele- 
graph buildings  and  delivery  of  Japanese  traffic  shall  be  made  by  messengers 
wearing  no  special  uniform. 


762  CHINA  TREATIES  AND  AGREEMENTS 

Article  7. — The  Japanese  Government  undertakes  to  pay  to  the  Chinese 
Government  an  annual  sum  of  three  thousand  Yen  as  a  royalty  on  all  messages 
forwarded  over  the  Japanese  Manchurian  telegraph  lines. 

Article  8. — The  present  convention  shall  be  confirmed  by  the  two  Govern- 
ments concerned  and  shall  be  put  into  force  when  detailed  agreements  shall 
have  been  concluded  with  regard  to  the  Chefoo-Kwantung  cable  and  the 
Japanese  Manchurian  telegraph  lines. 

In  witness  whereof  the  undersigned  have  signed  this  agreement. 

Done  at  Tokio  in  English  in  duplicate  this  12th  day  of  the  month  of 
October,  1908. 


NUMBER  1908/16. 

JAPAN  AND  CHINA 

Agreement  concerning  the  zvorking  of  the  Chefoo-Kwantung  cahle.'^ — Novem^ 

her  7,  1908. 

In  conformity  with  the  provisions  of  the  Telegraph  Convention  of  the 
12th  October,  1908,  between  Japan  and  China,  the  two  Governments  have,  for 
the  purpose  of  facilitating  the  due  and  proper  w'orking  of  the  Chefoo-Kwantung 
submarine  cable,  concluded  the  following  Supplementary  Agreement : 

Article  I. — Japan  and  China  undertake,  as  quickly  as  circumstances  per- 
mit after  the  present  Agreement  takes  efifect,  to  provide  a  submarine  cable 
between  Chefoo  (Shantung)  and  a  point  in  the  Kwantung  Province  within  the 
leased  territory  of  the  Liaotung  Peninsula,  either  by  restoring  the  old  cable  or 
by  laying  a  new  one,  in  accordance  with  the  stipulations  contained  in  Article  1 
of  the  Convention  above  mentioned. 

Article  II. — The  two  contracting  parties  engage  to  maintain  the  said 
cable,  at  all  times,  in  good  working  order  and  condition  and,  in  case  of  interrup- 
tion, to  effect  repairs  as  quickly  as  possible. 

Should  the  cable  be  damaged  at  the  connecting  point,  i.e.,  at  7%  miles 
from  Chefoo,  the  cost  of  the  repairs  shall  be  borne  one  half  by  Japan  and  the 
other  half  by  China. 

Article  III. — Each  of  the  contracting  parties  agrees  to  provide  and  main- 
tain at  its  own  cost  the  cable  house,  landing  connection  and  the  necessary  equip- 
ment of  the  ofifice  at  its  own  shore  end  of  the  said  cable. 

Article  IV. — The  telegraph  instruments  to  be  employed  for  working  the 
said  cable  shall,  unless  otherwise  agreed,  be  Morse  or  Wheatstone. 

Article  V. — The  cost  of  the  equipment  and  maintenance  of  the  Japanese 
telegraph  office  at  Chefoo  shall  be  borne  by  Japan. 

*  Text  as  printed  in  Customs,  vol.  II,  p.  744. 

In  connection  with  this  agreement  see  also  the  Sino-Japanese  telegraph  convention  of 
October  12,  1908  (No.  1908/15,  ante). 


NUMBER  1908/16:  NOVEMBER  7,  1908  763 

Article  VI. — The  Chinese  telegraph  office  at  Chefoo  shall  daily  switch  the 
Japanese  telegraph  office  at  that  place  into  direct  communication  with  the  said 
cable  for  one  hour  in  every  three  hours  between  six  o'clock  in  the  morning  and 
eleven  o'clock  at  night,  and  thereafter  the  said  Japanese  office  shall  be  similarly 
switched  into  direct  communication  with  the  cable  during  the  remaining  seven 
hours  in  each  day  of  twenty-four  hours  that  the  cable  is  not  actually  required 
by  the  said  Chinese  office. 

It  is  further  agreed  that  for  the  due  and  proper  working  of  the  said  cable, 
every  convenience  and  facility  shall  be  given  reciprocally  by  the  two  offices 
which  shall  do  their  utmost  to  work  in  a  friendly  and  harmonious  way  so  as 
to  cause  as  little  delay  as  possible  to  the  legitimate  traffic  of  both  parties. 

Article  VII. — Japan  and  China  shall,  as  quickly  as  circumstances  permit, 
arrange  to  connect  the  nearest  Chinese  telegraph  office  outside  the  leased  ter- 
ritory of  Liaotung  Peninsula  with  the  most  convenient  Japanese  telegraph  office 
having  direct  connection  with  the  Japanese  cable  office.  This  connecting  line 
shall  be  constructed,  maintained  and  worked  by  each  contracting  party  within 
its  own  territory  and  used  for  tHe  exchange  of  traffic  to  and  from  places  within 
the  Chinese  system  North  of  the  said  leased  territory. 

Article  VIII — A.  The  special  cable  rates  per  word  for  correspondence 
exchanged  over  the  said  cable  between  the  Japanese  and  Chinese  offices  are 
fixed  as  follows : 

1.  Japan. 

a.  For  terminal  Kwantung  traffic Mex.  $0.15 

b.  For  traffic  transiting  Kwantung  "        0.10 

2.  China. 

For  terminal  Chefoo  traffic   "       0.04 

B.  The  charges  per  word  on  the  Japanese  landlines  beyond  Kwantung  shall 
be  5  Mexican  Dollar  cents. 

For  Chinese  telegrams  the  text  of  which  is  composed  entirely  of  4-figured 
groups,  Japan's  proportion  of  rate  shall  be  8  Mexican  Dollar  cents  per  word. 

For  telegrams  emanating  from  or  destined  to  countries  beyond  China, 
Japan's  proportion  of  rate  shall  be  10  Mexican  Dollar  cents  per  word. 

For  telegrams  transmitted  over  the  said  cable,  Japan  shall  collect  the  rates 
fixed  for  the  time  being  by  China,  and  on  such  traffic  Japan  shall  credit  China 
with  full  transmission  rate  less  Japan's  proportion  as  fixed  above.  It  is,  how- 
ever, understood  that  the  total  charges  for  such  telegrams  shall  not,  in  any  case, 
be  higher  than  for  telegrams  to  the  same  destination  via  other  Chinese  routes. 
The  necessary  tarilT  schedule  shall  be  supplied  to  Japan  by  China. 

Article  IX. — Until  otherwise  agreed  upon  it  is  understood  that  the  Chef  oo- 
Kwantung  cable  can  not  be  used  for  Japanese  traffic  emanating  from  or  destined 
to  places  beyond  China  with  the  exception  of  Chefoo  terminal  Japanese  Gov- 
ernment traffic  and  Chefoo  terminal  traffic  written  in  Kana. 

Article  X. — On  telegrams  handled  by  the  Japanese  OfHce  at  Chefoo, 
according  to  Article  I  of  the  Convention  above  mentioned,  Japan  shall  credit 


754  CHINA  TREATIES  AND  AGREEMENTS 

China  with  10%  of  the  total  rates  charged.     The  amount  of  such  credit  shall 
be  accounted  for  in  the  monthly  balance  sheet. 

Article  XI. — The  checking  of  the  amount  of  correspondence  exchanged 
over  the  said  cable  shall  take  place  daily  by  wire  between  the  offices  of  exchange. 

The  settlement  of  accounts  shall  take  place  at  the  end  of  each  month,  and 
the  resulting  balance  shall  be  paid  one  month  thereafter  either  to  Japan  in 
Tokio  or  to  China  in  Shanghai,  as  the  case  may  be. 

For  the  purposes  of  this  Arrangement  the  year  and  month  shall  be  reck- 
oned according  to  the  Gregorian  calendar  and  the  English  language  shall  be 
used  in  all  communications  between  the  telegraph  offices  of  the  two  contracting 
parties. 

Article  XII. — The  liquidation  of  accounts  shall  be  made  in  Mexican  Dol- 
lars. As  regards  outpayments  to  other  telegraph  Administrations  the  collecting 
rate  shall  be  quarterly  agreed  upon  between  the  two  contracting  parties  during 
the  month  preceding  the  quarter  for  which  the  rate  is  to  rule,  on  the  basis  of 
the  average  bank  rate  of  exchange  at  Shanghai  for  the  three  months  preceding 
that  in  which  the  rate  is  fixed. 

In  case  it  is  necessary  at  any  time  to  fix  the  collecting  rate  for  the  fraction 
of  a  quarter,  the  average  bank  rate  of  exchange  ruling  at  Shanghai  for  the 
quarter  immediately  preceding  such  fraction  of  a  quarter  shall  be  taken  as  the 
basis. 

Article  XIII. — The  charges  for  press  telegrams  via  the  said  cable  shall 
be  fixed  by  a  later  agreement  between  Japan  and  China. 

Article  XIV. — Unless  otherwise  provided  in  the  present  Agreement,  the 
rules  laid  down  in  the  existing  International  Telegraph  Convention  and  the 
Regulations  attached  thereto  shall  be  observed  with  regard  to  telegrams  trans- 
mitted over  the  said  cable. 

Article  XV. — The  present  Agreement  shall  be  submitted  to  the  Govern- 
ments of  Japan  and  China  respectively  for  approval  and  shall  come  into  opera- 
tion from  the  day  on  which  announcements  of  such  approval  are  exchanged. 
It  shall  remain  in  force  until  modified  or  abrogated  by  mutual  consent. 

In  witness  whereof  the  undersigned,  duly  authorised  by  their  respective  Gov- 
ernments, have  signed  the  present  Agreement. 

Done  in  Tokio,  in  English,  in  duplicate,  this  seventh  day  of  the  month 
of  November,  1908. 

(Signed)  Chow  Wan  Pang. 

(Signed)  K.  Ishii, 

(Signed)  T.   Kurachi. 

(Signed)  J.  Tanaka. 


NUMBER  1908/17:  NOVEMBER  7,  1908  765 


NUMBER  1908/17. 

JAPAN  AND  CHINA. 

Agreement  concerning  the  zvorking  of  the  Japanese  and  Chinese  telegraph  lines 
in  Manchuria.'^ — November  7,  1908. 

In  conformity  with  the  provisions  of  the  Telegraph  Convention  of  the 
12th  October,  1908,  between  Japan  and  China,  the  two  Governments  have,  for 
the  purpose  of  facihtating  the  due  and  proper  working  of  their  respective  tele- 
graph lines  in  South  Manchuria,  concluded  the  following  Supplementary 
Agreement : 

Article  I — a.  In  order  to  facilitate  the  exchange  of  telegraphic  traffic 
between  the  Japanese  and  Chinese  systems,  China  shall  connect  her  telegraph 
offices  at  Antung,  Newchwang,  Liaoyang,  ]\Iukden,  Tehling  and  Changchun 
with  the  respective  Japanese  telegraph  offices  within  the  railway  zone  at  these 
places. 

b.  On  the  telegraphic  traffic  handled  by  the  Japanese  offices  in  Manchuria, 
a  royalty  will  be  paid  by  Japan  to  China. 

c.  All  messages  destined  for  places  in  China,  outside  the  Japanese  system, 
and  beyond,  directed  by  the  senders  "  via  the  Chinese  lines,"  duly  tendered  for 
transmission  to  the  Japanese  offices  within  the  railway  zone,  as  well  as  diverted 
Japanese  traffic,  shall  be  accepted  by  such  offices  and  handed  over  to  the  nearest 
connecting  Chinese  offices,  full  transmission  rate  being  credited  by  Japan  to 
China  on  such  traffic  less  5  Mexican  Dollar  cents  per  word. 

d.  All  messages  destined  for  places  in  China  and  beyond,  directed  by  the 
senders  "  via  the  Chef  oo-Kwantung  cable,"  duly  tendered  to  a  Chinese  office 
for  transmission  shall  be  accepted  by  it  and  handed  over  to  the  nearest  con- 
necting Japanese  office.  On  such  traffic  China  shall  credit  Japan  with  the 
rates  specified  in  Article  VIII  of  the  Agreement  regarding  the  working  of  the 
Chefoo-Kwantung  cables. 

e.  All  traffic  destined  for  places  on  the  Japanese  system  in  Manchuria, 
duly  handed  in  at  or  transmitted  to  a  Chinese  office  in  Manchuria  for  trans- 
mission, shall  be  handed  over  to  the  nearest  connecting  Japanese  office.  On 
such  traffic  China  shall  credit  Japan  with  5  Mexican  Dollar  cents  per 
word. 

Article  II. — Japan  undertakes  not  to  establish  competition,  by  lower  rates 
or  other  means,  against  China.  This  engagement  does  not,  however,  apply  to 
traffic  forwarded  exclusively  over  the  Japanese  lines. 

Article  III. — For  telegrams  handed  over  to  the  connecting  Chinese  offices 
in  Manchuria,  Japan  shall  collect  the  rates  fixed  for  the  time  being  by  China, 

*  Text  as  printed  in  Customs,  vol.  II,  p.  749,  with  addition  of  preamble. 
In  connection  with  this  agreement  see  also  the  Sino-Japanese  telegraph  convention  of 
October   12,   1908    (No.   1908/15,  ante). 


766  CHINA  TREATIES  AND  AGREEMENTS 

and  on  such  traffic  Japan  shall  credit  China  with  full  transmission  rates  less 
5  Mexican  Dollar  cents  per  word.  The  necessary  tariff  schedule  shall  be 
supplied  to  Japan  by  China. 

Article  IV. — Unless  otherwise  provided  in  the  present  Agreement  the 
rules  laid  down  in  the  existing  International  Telegraph  Convention  and  the 
regulations  attached  thereto  shall  be  observed  with  regard  to  telegrams  trans- 
mitted over  the  connecting  lines. 

Article  V. — The  charges  for  press  telegrams  exchanged  between  the 
Japanese  and  Chinese  offices  in  Manchuria  shall  be  fixed  by  a  later  agreement 
between  Japan  and  China. 

Article  VI. — Special  accounts  of  all  telegraphic  traffic  exchanged  shall  be 
kept  at  the  offices  where  such  exchange  takes  place,  and  shall  be  compared  and 
checked  daily.  The  settlement  of  accounts  shall  take  place  at  the  end  of  each 
month  and  the  resulting  balance  shall  be  paid,  one  month  thereafter,  to  Japan 
in  Tokio  or  to  China  in  Shanghai,  as  the  case  may  be.  For  the  purposes  of 
this  arrangement  the  year  and  month  shall  be  reckoned  according  to  the 
Gregorian  calendar  and  the  English  language  shall  be  used  in  all  communica- 
tions between  the  telegraph  offices  of  the  two  contracting  parties. 

Article  VII. — The  liquidation  of  accounts  shall  be  made  in  Mexican  Dol- 
lars. As  regards  outpayments  to  other  telegraph  Administrations  the  collecting 
rate  shall  be  quarterly  agreed  upon  between  the  two  contracting  parties  during 
the  month  preceding  the  quarter  for  which  the  rate  is  to  rule,  on  the  basis  of 
the  average  bank  rate  of  exchange  at  Shanghai  for  the  three  months  preceding 
that  in  which  the  rate  is  fixed.  In  case  it  is  necessary  at  any  time  to  fix  the 
collecting  rate  for  the  fraction  of  a  quarter,  the  average  bank  rate  of  exchange 
ruling  at  Shanghai  for  the  quarter  immediately  preceding  such  fraction  of  a  quar- 
ter shall  be  taken  as  the  basis. 

Article  VIII. — Neither  of  the  contracting  parties  shall  take  into  its  tele- 
graph service  in  Manchuria  or  Chefoo  any  person  who  is  engaged  or  has  been 
engaged  within  the  three  previous  months  in  the  same  service  of  the  other 
party  without  in  each  case  obtaining  the  special  consent  of  the  latter. 

Article  IX. — All  telegraph  lines  constructed  by  Japan  in  South  Man- 
churia outside  the  railway  territory  shall,  at  the  time  the  present  Agreement 
takes  effect,  be  delivered  to  China  and  the  sum  of  Yen  50,000  shall  be  paid 
by  China  to  Japan  in  Tokio  as  soon  as  such  delivery  shall  have  been  com- 
pleted. 

The  delivery  of  the  telegraph  lines  mentioned  above  shall  be  effected  by 
special  commissioners  appointed  by  the  two  contracting  parties  for  that 
purpose. 

Article  X. — The  present  Agreement  shall  be  immediately  submitted  to 
the  Governments  of  Japan  and  China  respectively  for  approval  and  shall  come 
into  operation  from  the  day  on  which  announcements  of  such  approval  are 
exchanged.  It  shall  remain  in  force  until  modified  or  abrogated  by  mutual 
consent. 

In  witness  whereof  the  undersigned,  duly  authorised  by  their  respective 
Governments,   have    signed   the    present   Agreement. 


NUMBER  1908/18 :  NOVEMBER  12,  1908  767 

Done  at  Tokio,  in  English,  in  duplicate,  this  seventh  day  of  the  month  of 
November,  1908. 

(Signed)  Chow  Wan  Pang. 

(Signed)  K.  Ishii. 

(Signed)  T.  Kurachi. 

(Signed)  J,   Tanaka. 


NUMBER  1908/18. 

JAPAN  AND  CHINA. 

Supplementary  agreement  for  a  loan  for  the  Hsinmint'un-Mukden  and  Kirin- 
CJi'angch'un  raikvays* — November  12,  1908. 

According  to  Article  4  of  the  Hsin-Feng  {i.e.,  Hsinmin-Mukden)  and  Chi- 
Ch'ang  (i.e.,  Kirin-Changchun)  Railway  agreement  between  the  two  Governments 
of  Japan  and  China,  dated  Meiji,  40th  year,  4th  month,  15th  day/KuangshiA 
33rd  year,  3rd  month,  3rd  day  (April  15,  1907),  it  was  agreed  that,  before  settling 
the  loan  contract  for  the  said  railways,  the  two  Governments  should  draw  up  a 
supplementary  agreement  regarding  matters  not  settled  in  the  original  agree- 
ment. 

Now  the  two  officials  designated  below  have  concluded  the  following 
agreement : 

Article  I. — It  is  agreed  by  Articles  1  and  2  of  the  Hsin-Feng  and  Chi- 
Ch'ang  Railway  agreement  between  the  Governments  of  Japan  and  China  (here- 
after to  be  called  the  "Agreement")  that  half  of  the  capital  needed  for  that 
portion  of  the  Ching-Feng  (f.  e.,  Peking-Mukden)  Railway  lying  east  of  the 
Liao  River  amounting  to  Yen  320,000,  and  half  of  the  capital  needed  for  the 
Chi-Ch'ang  Railway  amounting  to  Yen  2,150,000  should  be  borrowed  from  the 
South  Manchuria  Railway  Company. 

Article  II. — The  interest  on  this  loan  shall  be  at  the  rate  of  five  per  cent 

per  annum. 

Article  III. — The  actual  rate  at  which  the  loan  shall  be  realized  shall  be 
93  for  every  100  as  agreed  upon  in  Article  6  of  the  "  Agreement." 

*  Translation  from  the  Chinese  text,  as  printed  in  For.  Rel,  1908,  p.  207.  Printed  also 
(in  Chinese  and  Japanese  texts)  in  Wans,,  p.  149,  and  (in  translation)  in  F.  E.  Review, 
vol.  11,  p.  391. 

In  connection  with  this  supplementary  agreement  see  also  the  convention  regarding 
the  Hsinmin-Mukden  and  Kirin-Ch'angch'un  railways,  April  15,  1907  (No.  1907/3,  ante)  : 
agreement  for  the  handing  over  of  the  Hsinmin-Mukden  Railway,  May  27,  1907  (Na 
1907/5,  ante)  :  detailed  agreements  concerning  the  Hsinmin-Mukden  and  Kirin-Ch'angch'un 
railway  loans,  August  18,  1909  (Nos.  1909/6  and  1909/7,  post)  ;  also,  with  particular  ref- 
erence to  the  Kirm-Ch'angch'un  Railway,  see  Article  6  of  the  agreement  relating  to 
Chientao,  September  4,  1909  (No.  1909/10,  post),  and  Article  7  of  the  Sino-Japanese  treaty 
respecting  South  Manchuria  and  Eastern  Inner  Mongolia,  May  25,  1915   (No.  1915/8,  post). 


768  CHINA  TREATIES  AND  AGREEMENTS 

Article  IV. — It  is  stipulated  in  Article  3  of  the  "  Agreement  "  that  dur- 
ing the  term  of  the  loan,  the  Chinese  Government  shall  employ  a  Japanese 
engineer-in-chief  for  that  portion  of  the  Ching-Feng  Railway  which  lies  east 
of  the  Liao  River.  For  the  present  the  Japanese  engineers  now  in  the  employ 
of  the  Ching-Feng  Railway  may  continue  to  act  and  as  at  present  will  con- 
tinue to  be  under  the  control  of  the  director  and  engineer-in-chief  of  the  Ching- 
Feng  Railway.  If,  in  future,  changes  are  made  in  the  engineering  staff,  as  pro- 
vided in  the  "  Agreement,"  application  shall  be  made  to  the  South  Manchuria 
Railway  which  will  make  appointments  after  full  consultation.  The  status  of 
these  engineers  shall  be  as  stated  above. 

Article  V. — Since  it  is  difficult  for  the  Chinese  Government  to  keep 
separate  accounts  for  that  portion  of  the  Ching-Feng  Railway  which  lies  east 
of  the  Liao  River,  the  Japanese  Government  consents  that  no  Japanese  account- 
ants shall  be  specially  appointed,  and  the  Japanese  Government  consents  that 
the  Chinese  Government  shall  set  aside  monthly  a  sum  calculated  to  be  suf- 
ficient for  the  monthly  payment  of  capital  and  interest  on  the  amount  of  the 
loan  for  the  said  section  of  railway.  This  sum  shall  be  deposited  on  the  first 
day  of  every  month  in  some  Japanese  Bank  in  China,  designated  by  the  South 
Manchuria  Railway  Company.  This  deposit  shall  be  regarded  as  a  sinking 
fund  for  the  redemption  of  the  capital  and  interest  of  the  loan  when  due.  The 
manner  of  making  the  payments  of  the  capital  and  interest  of  the  loan  when 
due,  and  the  interest  which  shall  be  allowed  by  the  bank  on  the  sums  deposited 
shall  be  decided  when  the  detailed  loan  contract  is  drawn  up.  The  Chinese 
Government  also  consents  that  the  monthly  balance  sheets  for  the  whole  Ching- 
Feng  Railway  Line  and  the  annual  exact  statement  of  accounts  in  English  shall 
be  sent  monthly  and  annually  to  the  South  Manchuria  Railway  Company  for 
inspection. 

Article  VI. — The  engineer-in-chief  and  the  accountants  of  the  Chi-Ch'ang 
Railway  should  all  be  Japanese  as  provided  in  Article  3  of  the  "  Agreement." 
The  method  of  appointment  shall  be  as  follows :  The  Chinese  Government  will 
select  a  well  trained  and  capable  engineer-in-chief  and  appoint  him,  after  full 
consultation  with  the  South  Manchuria  Railway  Company,  The  accountants 
shall  be  selected  by  the  South  Manchuria  Railway  Company,  and  after  consulta- 
tion with  the  Chinese  Government  the  Chinese  Government  shall  appoint  them. 
If  in  future  it  shall  be  necessary  to  change  the  engineer-in-chief  or  accountants, 
there  must  be  consultation  with  the  South  Manchuria  Railway  Company  accord- 
ing to  the  "  Agreement,"  and  the  appointments  must  be  made  as  arranged 
above. 

Article  VII. — The  special  loan  contract  must  conform  to  the  stipulations 
of  the  "  Agreement "  and  of  this  "  Supplementary  Agreement."  It  will  be 
drawn  up  between  the  South  Manchuria  Railway  Company  and  an  official 
appointed  by  the  Board  of  Posts  and  Communications. 

This  supplementary  agreement  will  be  in  force  w^hen  ratified  by  the  two 
Governments. 


NUMBER  1908/19 :  NOVEMBER  30,  1908  769 

Signed  at  Peking,  Meiji,  41st  year,  11th  month,  12th  day/Kuang-hsii,  34th 
year,  10th  month,  19th  day  (November  12,  1908),  by 

(Signed)         Moritaro   Abe, 
First  Secretary  of  Legation. 
Liang  Shih-i, 
Director  of  the  Head  Railway 
Office  of  the  Board  of  Posts 
and  Communications. 


NUMBER  1908/19. 

JAPAN  AND  THE  UNITED  STATES. 
Exchange  of  notes  declaring  their  policy  in  the  Far  East* — November  30,  1908. 

I. 

IMPERIAL    JAPANESE    EMBASSY 
WASHINGTON. 

November  30,  1908. 
Sir: 

The  exchange  of  views  between  us,  which  has  taken  place  at  the  several 
interviews  which  I  have  recently  had  the  honor  of  holding  with  you,  has  shown 
that  Japan  and  the  United  States  holding  important  outlying  insular  posses- 
sions in  the  region  of  the  Pacific  Ocean,  the  Governments  of  the  two  countries 
are  animated  by  a  common  aim,  policy,  and  intention  in  that  region. 

Believing  that  a  frank  avowal  of  that  aim,  policy,  and  intention  would  not 
only  tend  to  strengthen  the  relations  of  friendship  and  good  neighborhood, 
which  have  immemorially  existed  between  Japan  and  the  United  States,  but 
would  materially  contribute  to  the  preservation  of  the  general  peace,  the  Impe- 
rial Government  have  authorized  me  to  present  to  you  an  outline  of  their 
understanding  of  that  common  aim,  policy,  and  intention : 

1.  It  is  the  wish  of  the  two  Governments  to  encourage  the  free  and  peace- 
ful development  of  their  commerce  on  the  Pacific  Ocean. 

2.  The  policy  of  both  Governments,  uninfluenced  by  any  aggressive  tend- 
encies, is  directed  to  the  maintenance  of  the  existing  status  quo  in  the  region 
above  mentioned  and  to  the  defense  of  the  principle  of  equal  opportunity  for 
commerce  and  industry  in  China. 

3.  They  are  accordingly  firmly  resolved  reciprocally  to  respect  the  ter- 
ritorial possessions  belonging  to  each  other  in  said  region. 

*Text  as  printed  in  U.  S.  Treaty  Seri-es  (No  Number).    Printed  also  in  Malloy,  p.  1045. 
In  connection  with  this  exchange  of  notes  see  also  that  of   November  2,  1917    (No. 
1917/12,  post). 


770  CHINA  TREATIES  AND  AGREEMENTS 

4.  They  are  also  determined  to  preserve  the  common  interest  of  all  powers 
in  China  by  supporting  by  all  pacific  means  at  their  disposal  the  independence 
and  integrity  of  China  and  the  principle  of  equal  opportunity  for  commerce  and 
industry  of  all  nations  in  that  Empire. 

5.  Should  any  event  occur  threatening  che  status  quo  as  above  described 
or  the  principle  of  equal  opportunity  as  above  defined,  it  remains  for  the  two 
Governments  to  communicate  with  each  other  in  order  to  arrive  at  an  under- 
standing as  to  what  measures  they  may  consider  it  useful  to  take. 

If  the  foregoing  outline  accords  with  the  view  of  the  Government  of  the 

United  States,  I  shall  be  gratified  to  receive  your  confirmation. 

I  take  this  opportunity  to  renew  to  Your  Excellency  the  assurance  of  my 

highest  consideration.  -rr    t- 

*=  K.  Takahira. 

Honorable  Elihu  Root, 

Secretary  of  State. 


II. 

Department   of   State, 

Washington,  November  30,  1908. 
Excellency  : 

I  have  the  honor  to  acknowledge  the  receipt  of  your  note  of  to-day  setting 
forth  the  result  of  the  exchange  of  views  between  us  in  our  recent  interviews 
defining  the  understanding  of  the  two  Governments  in  regard  to  their  policy  in 
the  region  of  the  Pacific  Ocean. 

It  is  a  pleasure  to  inform  you  that  this  expression  of  mutual  understand- 
ing is  welcome  to  the  Government  of  the  United  States  as  appropriate  to  the 
happy  relations  of  the  two  countries  and  as  the  occasion  for  a  concise  mutual 
affirmation  of  that  accordant  policy  respecting  the  Far  East  which  the  two 
Governments  have  so  frequently  declared  in  the  past. 

I  am  happy  to  be  able  to  confirm  to  Your  Excellency,  on  behalf  of  the 
United  States,  the  declaration  of  the  two  Governments  embodied  in  the  fol- 
lowing words : 

1.  It  is  the  wish  of  the  two  Governments  to  encourage  the  free  and  peace- 
ful development  of  their  commerce  on  the  Pacific  Ocean. 

2.  The  policy  of  both  Governments,  uninfluenced  by  any  aggressive  tend- 
encies, is  directed  to  the  maintenance  of  the  existing  status  quo  in  the  region 
above  mentioned,  and  to  the  defense  of  the  principle  of  equal  opportunity  for 
commerce  and  industry  in  China. 

3.  They  are  accordingly  firmly  resolved  reciprocally  to  respect  the  ter- 
ritorial possessions  belonging  to  each  other  in  said  region. 

4.  They  are  also  determined  to  preserve  the  common  interests  of  all  powers 
in  China  by  supporting  by  all  pacific  means  at  their  disposal  the  independence 
and  integrity  of  China  and  the  principle  of  equal  opportunity  for  commerce 
and  industry  of  all  nations  in  that  Empire. 

5.  Should  any  event  occur  threatening  the  status  quo  as  above  described 


NUMBER  1909/1 :  FEBRUARY  9,  1909  771 

or  the  principle  of  equal  opportunity  as  above  defined,  it  remains  for  the  two 
Governments  to  communicate  with  each  other  in  order  to  arrive  at  an  under- 
standing as  to  what  measures  they  may  consider  it  useful  to  take. 

Accept,  Excellency,  the  renewed  assurance  of  my  highest  consideration. 

Elihu  Root. 
His  Excellency 

Baron  Kogoro  Takahira, 

Japanese  Ambassador. 


NUMBER  1909/1. 

GREAT  BRITAIN   (India)  AND  CHINA. 

Arrangement  for  the  exchange  of  correspondence  between  the  postal  administra- 
tion of  India  and  the  postal  administration  of  China. — February  9 ,  1909. 

In  order  to  establish  an  exchange  of  correspondence  between  India  and 
China,  the  undersigned,  duly  authorised  for  that  purpose,  have  agreed  upon  the 
following  articles : — 

Article  1. — There  shall  be  between  the  Postal  Administration  of  India  and 
the  Postal  Administration  of  China  regular  exchanges  (1)  via  Bhamo  and  Teng- 
yueh,  of  correspondence  of  all  kinds,  namely  letters,  postcards  (both  single 
and  with  reply  paid),  printed  papers,  business  papers  and  samples  of  merchandise, 
both  ordinary  and  registered,  by  means  of  any  services,  ordinary  or  special,  now 
established  and  hereafter  established,  which  each  Administration  may  have  at  its 
disposal.  [Samples  of  merchandise  cannot,  at  present,  be  carried  by  the  ordinary 
letter  mail,  but  will  be  forwarded  twice  a  month  by  special  couriers.] 

Article  2.— Each  Administration  shall  be  entitled  to  send  through  the  inter- 
mediate agency  of  the  other  either  closed  mails  or  correspondence  a  decouvert  to 
any  other  country  with  which  the  latter  Administration  has  postal  relations.  The 
charges  payable  by  the  despatching  Administration  in  respect  of  such  transit 
correspondence  shall  be  at  the  rates  prescribed  by  the  Principal  Convention  of 
the  Postal  Union  in  force  for  the  time  being,  and  the  amount  of  the  total  yearly 
payment  shall  be  assessed  on  the  basis  of  statistics  which  shall  be  taken  as  may 
be  agreed  upon  hereafter  between  the  two  Administrations. 

Article  3. — The  offices  of  exchange  shall  be  on  the  side  of  India,  Bhamo, 
and  on  the  side  of  China,  Tengyueh.  [The  Tengyueh  couriers  will  carry  the  mails 
only  to  and  from  Nampaung,  on  the  frontier.] 

Article  4. — The  postage  on  articles  exchanged  between  the  two  Administra- 
tions shall  be  paid  by  means  of  postage  stamps,  and  this  postage,  if  fully  prepaid 
at  the  equivalents  in  India  and  China,  respectively,  of  the  rates  laid  down  by 
Article  5,  paragraph  1,  of  the  Principal  Convention  of  Rome,  shall  entitle  the 
articles  to  be  delivered   free  of  all  charges  irrespective  of  their  destinations. 


772  CHINA  TREATIES  AND  AGREEMENTS 

provided  only  that  correspondence  addressed  to  places  in  China  where  no  Chinese 
post  offices  exist  shall  be  forwarded  by  the  Chinese  Administration  to  destination 
through  private  agencies  at  the  risk  and  expense  of  the  addressees.  Articles  other 
than  letters  and  postcards  shall  be  prepaid  at  least  partly.  In  case  of  insufficient 
prepayment,  correspondence  of  every  kind  shall  be  liable  to  a  charge,  to  be  paid 
by  the  addressee,  equal  to  double  the  amount  of  the  deficiency;  but  this  charge 
shall  not  exceed  that  which  is  levied  in  the  country  of  destination  on  unpaid 
correspondence  of  the  same  nature,  weight  and  origin.  The  two  Administrations 
shall  communicate  to  each  other  their  tariffs  of  postal  charges. 

Article  5. — Each  Administration  shall  keep  the  whole  of  the  sums  which  it 
collects. 

Article  6. — No  supplementary  postage  shall  be  chargeable  for  the  redirection 
of  articles  of  correspondence.  Undelivered  correspondence  shall  not,  when  re- 
turned, give  rise  to  the  repayment  of  the  transit  charges  due  to  the  Administra- 
tions concerned  for  the  previous  conveyance  of  such  correspondence.  Unpaid 
letters  and  postcards  and  insufficiently  paid  articles  of  every  description,  which 
are  returned  to  the  country  of  origin  as  redirected  or  as  undeliverable,  are  liable, 
at  the  expense  of  the  adressees  or  senders,  to  the  same  charges  as  similar  articles 
addressed  directly  from  the  country  of  the  first  destination  to  the  country  of 
origin.  The  treatment  of  redirected  and  undelivered  correspondence  shall  be 
governed  by  Articles  XXVII  and  XXVIII  of  the  Detailed  Regulations  for  the 
execution  of  the  Principal  Convention  of  Rome. 

Article  7. — The  preparation,  transmission  and  verification  of  mails  ex- 
changed between  the  two  countries  shall  be  governed  by  the  rules  contained  in 
Articles  IX,  X,  XI,  XXI,  XXIV  and  XXV  of  the  Detailed  Regulations  referred 
to  above. 

Article  8. — Business  papers,  samples  and  printed  papers  which  do  not 
fulfil  the  conditions  laid  down  in  Article  5  of  the  Principal  Convention  of  Rome 
and  Articles  XVII,  XVIII,  XIX  and  XX  of  the  Detailed  Regulations  for  the 
execution  of  that  Convention,  shall  not  be  forwarded.  Should  occasion  arise, 
these  articles  shall  be  sent  back  to  the  post  office  of  origin  and  returned,  if  possible 
to  the  senders.  Articles  of  correspondence  falling  under  any  of  the  prohibitions 
of  paragraph  3  of  Article  16  of  the  Principal  Convention  of  Rome,  which  have 
been  erroneously  given  transmission,  shall  be  returned  to  the  country  of  origin, 
except  in  cases  where  the  Administration  of  the  country  of  destination  is 
authorised  by  its  laws  or  by  its  internal  regulations  to  dispose  of  them  otherwise- 
Explosive,  inflammable,  or  dangerous  substances,  however,  shall  not  be  returned 
to  the  country  of  origin;  when  their  presence  is  detected  by  the  Administration  of 
the  country  of  destination,  they  shall  be  destroyed  on  the  spot  under  the  direction 
of  that  Administration. 

Article  9. — The  exchange  of  registered  correspondence  between  the  two 
countries  shall  be  effected  according  to  the  conditions  and  procedure  prescribed 
by  Articles  XII  and  XXII  of  the  Detailed  Regulations  referred  to  above. 

Article  10. — The  two  Administrations  shall  accept  responsibility  for  the 
loss  of  registered  articles  (except  in  the  case  of  vis  major)  up  to  a  limit  of  50 
francs  in  respect  of  each  such  article  and  according  to  the  conditions  laid  down 


NUMBER  1909/2:  FEBRUARY  6/19,  1909  TJZ 

in  Article  8  of  the   Principal   Convention  of   Rome  and  Article   XIII   of  the 
Detailed  Regulations  for  the  execution  of  that  Convention. 

Article  11. — Acknowledgments  of  receipt  in  respect  of  registered  articles 
and  enquiries  as  to  the  disposal  of  such  articles  shall  be  exchanged  between  the 
two  Administrations  in  accordance  with  the  procedure  described  in  Article  XIV 
of  the  Detailed  Regulations  already  referred  to. 

Article  12. — Applications  for  ordinary  and  registered  articles  which  have 
failed  to  reach  their  destination  shall  be  dealt  with  according  to  Articles  XXIX 
and  XXX,  respectively,  of  the  said  Detailed  Regulations,  such  applications  being 
transmitted,  when  they  concern  the  Indian  Administration,  to  the  Director-General 
of  the  Post  Office  of  India,  Calcutta,  and  when  they  concern  the  Chinese  Adminis- 
tration, to  the  Inspector-General  of  the  Chinese  Imperial  Posts,  Peking. 

Article  13. — The  present  arrangement  shall  take  effect  on  the  first  of  May 
1909.  It  shall  then  continue  in  force  until  it  shall  be  modified  or  determined  by 
mutual  consent  of  the  contracting  parties  or  until  six  months  after  the  date  on 
which  one  of  contracting  parties  shall  have  notified  the  other  of  its  intention  to 
terminate  it. 

Executed  in  duplicate  and  signed : — 

At At  Peking 

The 190. .,  The  9th  February  1909. 

Officiating  Director-General  Acting  Inspector-General  of 

of  the  Post  Office  of  the  Chinese  Imperial 

India,  Posts, 

(Signed)     Robt.  E.  Bredon. 


NUMBER  1909/2. 

RUSSIA   (Chinese  Eastern  Railway  Company)  AND  CHINA. 

Arrangement  for  the  transportation  of  mails  of  the  Chinese  Imperial  Posts* — 

February  6/19,  1909. 

1. — A  compartment  measuring  from  one  and  one-half  to  two  metres  in 
length  of  a  Russian  car,  in  each  mail  car,  is  put  at  the  disposal  of  the  Chinese 
Postal  Administration  for  the  conveyance  of  Chinese  official  mails. 

2. — All  official  Chinese  mails  will  be  transported  in  these  compartments 
without  charge;  a  Chinese  official  and  a  messenger  will  be  admitted  there  to 
accompany  the  mails. 

3. — For  the  transportation  of  public  mails  in  these  compartments,  the  Chinese 

*  Translation  from  the  French  text  as  printed  in  Soglashenia,  p.  74. 

In  this  connection,  see  also  the  agreement  of  the  same  date  concerning  postal  relations 
between  Russia  and  China,  under  the  heading  of  the  Rome  Postal  Conventions  May  26 
1906  (No.  1906/3,  ante),  at  p.  597,  ante. 


774 


CHINA  TREATIES  AND  AGREEMENTS 


administration  is  to  pay  the  Chinese  Eastern  Railway  a  sum  of  ten  thousand 
eight  hundred  roubles  (Rs.  10,800)  for  the  first  year.  Payments  will  be  made 
quarterly. 

4. — All  such  public  mails  as  can  not  be  put  into  these  compartments,  for  lack 
of  space,  will  be  carried  in  the  baggage  cars  or  goods  cars  of  the  mail  trains  and 
mixed  trains  (i.e.,  for  the  conveyance  of  mails  and  passengers),  and  will  pay 
twice  the  tariff  for  baggage  in  force  on  the  lines  of  the  Chinese  Eastern  Railway. 

Note. — Exception  is  to  be  made  in  the  case  of  printed  matter,  newspapers, 
etc.,  the  price  of  transporting  which  will  be  the  subject  of  a  special  agreement. 

5.— The  expenses  incident  to  the  alteration  and  putting  into  order  of  the 
compartments  in  the  mail  cars  for  the  transportation  of  Chinese  official  mails  will 
be  chargeable  to  the  Chinese  Postal  Administration,  which  will  furthermore  pay 
a  sum  of  three  hundred  roubles  (Rs.  300)  per  year  per  car  for  the  upkeep  and 
ordinary  repairs  of  these  compartments. 

6. — It  is  strictly  forbidden  to  carry  anything  but  postal  matter  in  the  com- 
partments reserved  for  the  Chinese  posts  in  the  mail  cars. 

7. — The  Chinese  Eastern  Railway  assumes  no  responsibility  in  regard  to 
the  safety  of  the  Chinese  mails  transported  in  its  cars. 

Done  in  double  original  at  Peking,  February  6/19,  1909,  and  signed: 

For  the  Chinese  Eastern  For  the  Chinese  Postal 

Railway  Administration,  Administration, 

(Sgd.)         R.  Barrier,  T.  Piry, 

Chief  of  the  Peking  Section.  Secretary-General  of  Imperial  Posts. 


and  approved : 

J.  KOROSTOVETZ, 

Envoy  Extraordinary  and  Minister 

Plenipotentiary  of  Russia. 

(Seal) 


Robert  E.  Bredon, 
Acting  Inspector-General  of 
Imperial  Customs  and  Posts. 
(Seal) 


NUMBER  1909/3. 


GREAT  BRITAIN  (Pauling  &  Company,  Limited)  AND  CHINA. 

Agreement  for  a  preliminary  survey  for  a  railway  line  from  Kueilin  to  Ch'uan- 

chou.—May  19,  1909. 

CHANG,  Governor  of  Kwangsi,  Vice  President  of  the  Army  Board,  being 
about  to  engage  engineers  to  make  a  preliminary  survey  of  a  railway  line 
from  Kueilin  to  Ch'uan-chou,  such  survey  to  be  used  for  the  eventual  construction 
of  the  line,  hereby  enters  into  the  following  agreement  with  Messrs.  Pauling  & 
Company  Limited  to  undertake  a  preliminary  survey  and  engage  two  engineers 
to  proceed  to  Kueilin  and  Ch'uan-chou  and  conduct  such  survey. 


NUMBER  1909/3:  MAY  19,  1909  775 

1. — ^Messrs.  Pauling  &  Company  Limited  undertake  to  make  a  survey  from 
Kueilin  to  the  boundary  of  Kwangsi  and  Hunan  provinces  at  the  Huang  Sha 
River  in  Ch'uan-chou  with  a  view  to  its  being  used  for  the  eventual  construction 
of  a  section  of  railway  by  the  provincial  authorities,  between  these  two  places. 

Such  survey  is  to  be  carried  out  in  accordance  with  the  terms  of  the  Memo- 
randum drawn  up  by  the  Engineer-in-Chief  of  the  Canton-Kowloon  Railway 
which  forms  a  separate  document. 

Messrs.  Pauling  and  Company  Limited  undertake  to  engage  two  first  class 
engineers  whose  salaries  and  expenses  from  England  to  Kueilin,  during  the  survey 
operations  between  Kueilin  and  Ch'uan-chou  and  on  their  return  to  England,  are 
all  included  in  the  lump  sum  of  three  thousand  four  hundred  pounds  sterling 
which  the  provincial  authorities  of  Kwangsi  undertake  to  pay  for  the  survey. 

2. — Messrs.  Pauling  and  Company  Limited  having  undertaken  to  engage,  on 
behalf  of  the  authorities  of  Kwangsi  two  engineeers  to  undertake  the  survey  in 
accordance  with  the  terms  of  the  Memorandum  forming  the  separate  document, 
it  is  hereby  stipulated  that  there  will  be  no  careless  or  inadequate  work  per- 
formed in  connection  with  the  survey. 

If  it  should  prove  that  there  has  been  any  careless  or  inadequate  work, 
Messrs.  Pauling  and  Company  Limited  will  send  another  engineer  to  make  a 
fresh  survey. 

3. — ]\Iessrs.  Pauling  and  Company  Limited  shall  only  be  concerned  with  the 
survey.  If  eventually,  the  province  of  Kuangsi  wishes  to  build  the  railway  no 
matter  whether  it  is  built  by  the  province  itself  or  whether  the  contract  for  its 
construction  is  given  to  foreigners,  the  provincial  authorities  reserve  the  right 
to  form  an  independent  decision  in  which  Messrs.  Pauling  and  Company  shall 
have  no  concern. 

4. — The  distance  between  Kueilin  and  Ch'uan-chou  via  the  Huang  Sha  River 
is  roughly  100  English  miles,  or  330  Chinese  li.  If,  when  the  survey  comes  to  be 
made,  it  is  found  that  the  exact  distance  is  less  or  more  than  the  estimate,  the 
contract  price  of  £3,400  shall  nevertheless  be  adhered  to  and  no  extra  charge  shall 
be  made  over  and  above  this  amount  on  the  score  of  the  estimated  length  of  100 
miles  having  been  exceeded. 

5. — Messrs.  Pauling  and  Company  Limited  shall  supply  all  necessary  survey- 
ing instruments. 

6. — All  living  expenses  of  the  engineers  conducting  the  survey  together  with 
all  expenses  for  servants,  bearers,  transport  of  baggage,  and  surveying  instru- 
ments, boats,  and  coolies,  will  be  borne  by  Messrs.  Pauling  and  Company 
Limited. 

7. — It  will  be  necessary  to  provide  an  escort  to  protect  the  engineers  in  making 
their  survey.  The  salaries  of  the  officers  and  the  pay  of  the  men  will  be 
defrayed  by  the  Kwangsi  authorities. 

8. — Two  Chinese  interpreters  conversant  with  the  English  language  will  be 
required  for  the  survey.  Their  salaries  will  be  paid  by  the  provincial  authorities. 
These  interpreters  shall  be  graduates  of  the  Naval  College  who  have  qualified  in 
surveying.  These  interpreters  will  accompany  the  engineers  over  the  whole  route. 
The  engineers  will  utilise  all  occasions  to  teach  them  surveying  methods  in  order 


776  CHINA  TREATIES  AND  AGREEMENTS 

that,  on  completion  of  the  survey  and  plans  they  will  not  be  liable  to  fall  into 
any  errors. 

9. — The  contract  price  of  i3,400  will  be  paid  in  five  instalments.  The  first 
instalment  of  i500  will  be  paid  on  the  date  of  signature  of  this  agreement. 
£500  will  be  paid  on  arrival  of  the  engineers  at  Kueilin.  £1,000  will  be  paid  when 
more  than  half  the  survey  is  completed.  £1,000  will  be  paid  when,  on  completion 
of  the  survey,  the  estimate  and  plans  are  handed  in.  As  soon  as  the  estimates  and 
plans  have  been  passed  by  an  engineer  of  standing,  and  it  is  established  that  they 
do  not  deviate  in  any  way  from  the  lines  laid  down  in  the  memorandum  forming 
the  separate  document,  the  remaining  £400  will  be  paid. 

10. — The  engineers  sent  by  Messrs.  Pauling  &  Company  Limited  must  obey 
the  regulations  of  the  Board  of  Communications. 

In  the  event  of  misconduct  on  the  part  of  the  engineers  or  infringement  of 
the  Board's  regulations,  Messrs.  Pauling  &  Company  Limited  shall  immediately 
dismiss  the  offending  party  and  substitute  another  engineer  at  their  own  expense, 
the  Provincial  Authorities  not  being  answerable  in  any  way. 

Messrs.  Pauling  &  Company  will  be  careful  to  select  highly  qualified  engi- 
neers of  good  conduct  for  these  appointments. 

IL — The  engineeers  engaged  by  Messrs.  Pauling  &  Company  Limited  must 
reach  Kueilin  within  three  months  from  the  date  of  signature  of  the  agreement. 
If  they  fail  to  arrive  within  the  time  limit,  this  agreement  will  become  null  and 
void  and  the  first  instalment  of  £500  will  be  repayable  to  the  Provincial 
Authorities. 

12. — This  agreement  will  be  signed  in  duplicate,  one  copy  being  kept  by  each 
party. 

Taotai  Wei  Han,  Director  of  the  Canton-Kowloon  Railway  will  sign  on 
behalf  of  the  Governor  of  Kwangsi  and  Oswald  Christian  Ormsby  on  behalf  of 
the  firm  of  Messrs.  Pauling  &  Company  Limited. 

(Signed) 

H.  Wei,  on  behalf  of  the  Governor  of  Kwangsi. 
O.  C.  Ormsby,  on  behalf  of  Pauling  &  Co.,  Ltd. 

Signatures  certified  to  by  H.  H,  Fox,  H.  B,  M.  Consul  General.  19-5-'09. 


NUMBER  1909/4. 

GREAT  BRITAIN  (Hongkong)  AND  CHINA. 

Arrangement  regulating  the  exchange  of  postal  parcels.* — June  5  and  22,  1909. 

The  exchange  of  postal  parcels  between  the  Administration  of   Posts  of 

Hongkong  and  the  Administration  of  Customs  and  Posts  of  China,  provided  for 

*  The  terms  of  this  arrangement  would  appear  to  have  been  modified  by  the  fact  or 
the  Chinese  Government's  adherence,  from  September  1,  1914,  to  the  parcels  post  conven- 
tion concluded  at  Rome,  May  26,  1906  (No.  1906/3,  ante). 


NUMBER  1909/4:  JUNE  5  AND  22,  1909  771 

in  Article  VIII  of  the  Postal  xA^rrangement  concluded  on  the  12th  December  1904 
between  the  two  above-mentioned  Administrations,!  shall  be  regulated  according 
to  the  conditions  hereunder  stated. 

Article  I. — Weight  of  Parcels. — The  maximum  weight  of  a  parcel, 
whether  of  declared  value  or  not,  shall  not  exceed  five  kilogrammes  (eleven 
pounds). 

However,  there  shall  be  an  exception  made  for  parcels  destined  for  Offices 
of  the  Administration  of  Customs  and  Posts  of  China  that  are  not  connected  by 
railway  or  by  steamer,  in  which  case  the  limit  shall  be  three  kilogrammes  (six 
pounds)  ;  but  this  limit  may  at  any  time  hereafter  be  raised  by  mutual  agreement 
between  the  two  Administrations. 

Article  II.— Dimensions  of  Parcels. — The  postal  parcels  to  which  this 
Convention  is  for  the  present  to  apply  shall  be  those  of  which  no  dimension  shall 
exceed  sixty  centimetres  (two  feet)  in  any  one  direction  and  of  which  the  volume 
shall  not  exceed  twenty-five  cubic  decimetres  (one  cubic  foot). 

Parcels,  however,  containing  umbrellas,  walking-sticks,  charts,  plans,  and 
such-like  articles  shall  be  accepted  if  they  do  not  exceed  one  metre  (three  feet 
three  inches)  long  and  twenty  centimetres  broad  or  thick. 

The  limits  of  weight,  dimensions,  and  volume  herein  determined  may  be 
increased  by  mutual  agreement. 

Article  III. — Exchange  of  Parcels. — The  exchange  of  postal  parcels  shall 
take  place  through  the  intermediary  of  the  British  Offices  established  in  China 
and  the  Chinese  Offices  established  in  the  same  localities  as  these  British  Offices ; 
and  where  there  are  no  British  Offices  between  the  British  and  Chinese  Post 
Offices  at  Shanghai  for  postal  parcels  to  or  from  river  and  coast  ports  north  of 
Shanghai ;  but  for  postal  parcels  to  or  from  southern  ports,  direct  between  the 
Offices  of  China  and  Hongkong. 

Article  IV. — Transmission  of  Parcels. — 1. — The  Hongkong  Administra- 
tion shall  be  intermediary  (by  means  of  the  services  it  may  maintain)  for  the 
exchange  of  parcels  between  China  on  the  one  part  and  the  United  Kingdom, 
British  possessions,  and  foreign  countries  on  the  other. 

2. — The  Administration  of  Customs  and  Posts  of  China  engages  on  its  part 
to  assure  the  transmission  by  its  services  of  all  parcels  that  shall  be  handed  to  it 
by  the  Hongkong  Administration. 

Article  V. — Tariffs  and  Postage. — Each  Administration  shall  itself  deter- 
mine the  taxes  and  duties  to  be  collected  on  postal  parcels  forwarded  by  its  own 
Offices. 

The  prepayment  of  postage  on  postal  parcels  shall  be  obligatory  before 
departure.    However,  the  fee  for  delivery  shall  be  payable  by  the  addressee. 

Moreover,  parcels  destined  for  places  in  China  not  connected  by  railway  or 
by  steamer  may  be  further  charged  for  transmission  beyond  railway  or  steamer 
services,  at  the  expense  of  the  addressee,  supplementary  taxes  the  amount  of 
which  shall  be  determined  by  the  Administration  of  Customs  and  Posts  of 
China. 

t  For  the  text  of  this  arrangement,  see  note  concerning  the  Rome  conventions  of  May 
26,  1906  (No.  1906/3,  ante). 


778  CHINA  TREATIES  AND  AGREEMENTS 

It  is  understood  that  the  Hongkong  Administration  shall  not  tax  parcels 
exchanged  between  its  Offices  in  China  at  rates  lower  than  those  charged  by  the 
Chinese  Administration  of  Posts. 

Article  VI. — Transit  Charges. — 1. — The  Administration  of  Customs  and 
Posts  of  China  shall  pay  to  the  Administration  of  Posts  of  Hongkong  the  follow- 
ing charges : — 

For  each  parcel  destined  for  Hongkong  or  any  of  its  x\gencies  in  China, 

an  inland  postage  of  fr.  0.25. 
For  parcels  destined  for  the  United  Kingdom,  British  possessions,  and 
foreign  countries,  the  charges  indicated  in  Table  A  drawn  up  by  the 
Administration  of  Posts  of  Hongkong. 
For  each  closed  box  containing  parcels  exchanged  between  two  Chinese 
Post  Offices  through  the  intermediary  of  Hongkong,  a  transship- 
ment charge  of  $1  Mex. 
2. — The  Administration  of  Posts  of  Hongkong  shall  pay  to  the  Administra- 
tion of  Customs  and  Posts  of  China  the  following  charges : — 

(a.)   For  each  parcel  handed  to  the  Chinese  Administration,  fr.  0.25. 
(b.)   For  each  parcel  necessitating  maritime  or  territorial  transit  within 
the  limits  of  steam  communications,   an  additional   charge   of 
fr.  0.50. 
(c.)  For  parcels  destined  for  places  outside  of   China,  the  additional 
charges  indicated  in  Table  A  drawn  up  by  the  Administration 
of  Customs  and  Posts  of  China. 
N.B. — Each  parcel  destined  for  a  place  beyond  the  limits  of  steam 
communication   (i.e.,  not  over  three  kilogrammes  weight)   will  pay  at 
destination  the  Chinese  domestic  tariff. 
Article  VII. — Parcels  of  Declared  Value. — Besides  the  transit  charges, 
the  Administration  of  origin  shall  pay,  in  respect  of  insurance  fees  on  parcels  of 
declared  value,  to  the  other  Administration,  and,  if  need  be,  to  each  Administra- 
tion participating  in  the  transmission  when  such  Administration  is  under  guaran- 
tee of  responsibility,  a  proportional  part  of  the  determined  insurance  fees,  viz. : 
for  300  francs  or  fraction  of  300  francs,  fr.  0.05  for  territorial  transit,  and  fr. 
0.10  for  maritime  transit. 

Article  VIII. — Acknowledgement  of  Receipt. — The  sender  of  a  postal 
parcel  may  obtain  an  acknowledgement  of  receipt  of  his  parcel  by  paying  a  fee 
that  shall  not  exceed  fr.  0.25. 

The  same  fee  may  be  charged  when,  subsequent  to  posting,  inquiries  are 
made  about  a  parcel,  provided  the  special  fee  for  an  acknowledgment  of  receipt 
has  not  been  paid  already. 

This  charge  shall  accrue  entirely  to  the  Administration  of  origin. 
Article  IX. — Delivery  and  Customs  Formalities. — It  shall  be  allowable 
for  the  country  of  destination  to  collect  from  the  addressee  a  fee  that  shall  not 
exceed  fr.  0.25  per  parcel  for  delivery  and  Customs  formalities. 

Article  X. — Annulment  of  Customs  Duties. — In  the  caSe  of  the  retrans- 
mission or  of  the  return  of  a  parcel  to  the  Office  of  origin,  the  Customs  duties 
that  have  been  paid  on  the  parcel  in  the  country  of  first  destination  shall  be 
annulled. 


NUMBER  1909/4:  JUNE  5  AND  22,  1909  779 

Article  XL — Responsibility. — 1. — Except  in  cases  of  force  majeure,  if  a 
postal  parcel  be  lost,  despoiled,  or  damaged,  the  sender  or,  in  his  default  or  by 
his  request,  the  addressee  shall  be  entitled  to  an  indemnity  corresponding  to  the 
actual  amount  of  the  loss,  the  spoliation,  or  the  damage,  unless  this  damage  be 
caused  by  the  fault  or  by  the  negligence  of  the  sender,  or  be  due  to  the  nature 
of  the  parcel  itself;  but  this  indemnity  shall  not  exceed  25  francs  for  ordinary 
parcels  and  the  declared  value  for  parcels  of  declared  value. 

Besides,  the  sender  of  a  lost  parcel  shall  be  entitled  to  refund  of  the  postage 
on  the  parcel  and  also  to  the  postage  expenses  connected  with  making  the  inquiries 
when  the  cause  of  the  claim  is  due  to  the  fault  of  the  Post  Office.  However,  the 
insurance  fee  shall  be  retained  by  the  Postal  Administrations. 

2. — The  obligation  to  pay  the  indemnity  shall  be  incumbent  upon  the 
Administration  of  the  Office  of  origin ;  it  shall  then  rest  with  this  Administration 
to  prefer  a  claim  against  the  responsible  Administration,  that  is  to  say,  against 
the  Administration  upon  whose  territory  or  in  whose  services  the  loss,  spoliation, 
or  damage  shall  have  taken  place. 

3. — Until  proved  to  the  contrary,  the  responsibility  shall  remain  with  the 
Administration  which,  having  received  the  parcel  without  making  any  remark, 
can  establish  neither  its  delivery  at  its  destination  nor,  as  may  happen,  its  regular 
transmission  to  the  next  Administration. 

4. — The  payment  of  the  indemnity  by  the  Office  of  origin  shall  be  made  as 
soon  as  possible,  and  not  later  than  one  year  after  the  date  of  the  claim.  The 
responsible  Office  shall  refund  without  delay  to  the  Office  of  origin  the  amount 
of  the  indemnity  paid  by  the  latter. 

The  Office  of  origin  shall  be  authorised  to  indemnify  the  sender  on  behalf 
of  the  intermediary  Office  or  of  the  Office  of  destination  which,  having  been 
regularly  notified,  shall  have  allowed  one  year  to  elapse  without  having  settled  the 
claim.  Moreover,  in  the  case  of  an  Office,  whose  responsibility  shall  be  duly  estab- 
lished, which  shall  decline  altogether  to  pay  the  indemnity,  it  shall  undertake  to 
pay,  besides  the  indemnity,  the  necessary  expenses  resulting  from  undue  delay 
in  making  the  payment. 

5. — It  is  understood  that  a  claim  shall  be  admitted  only  if  made  within  one 
year  from  the  date  of  posting  the  parcel ;  after  this  limit  the  claimant  shall  not 
be  entitled  to  any  indemnity. 

6. — If  the  loss  or  damage  happen  during  transmission  between  the  Offices 
of  exchange  of  the  two  Administrations,  thus  rendering  it  impossible  to  decide 
upon  which  of  the  two  territories  the  act  took  place,  the  two  Administrations 
concerned  shall  share  the  loss  equally. 

7. — The  Administrations  shall  cease  to  be  responsible  for  postal  parcels 
delivery  of  which  shall  have  been  taken  by  the  persons  entitled  to  receive  them. 

8. — The  Administration  of  Posts  of  Hongkong  shall  not  be  liable  for  loss  or 
damage  to  contents  of  parcels  exchanged  in  closed  mails  between  two  Chinese 
Post  Offices  through  the  intermediary  of  the  Hongkong  Administration. 

Article  XII. — Offices  authorised  to  exchange  Parcels. — The  Postal 
Administrations  of  Hongkong  and  of  China  shall  designate  the  Offices  or  the 
localities  at  which  the  exchange  of  postal  parcels  is  to  be  allowed. 

They  shall  supply  each  other  with  a  list  of  the  places  open  to  this  service. 


780  CHINA  TREATIES  AND  AGREEMENTS 

Article  XIII. — Articles  prohibited. — Parcels  shall  not  contain  any  letter 
or  note,  either  sealed  or  open,  that  might  establish  a  correspondence  between  the 
sender  and  the  addressee.  Exception  may  be  made  only  in  the  case  of  invoices, 
price  lists,  and  other  open  documents  that  relate  exclusively  to  the  contents  of  the 
parcel. 

The  sender  shall  also  be  forbidden  to  enclose  in  a  parcel  any  explosive  or 
inflammable  material  and  generally  all  articles  the  transmission  of  w^hich  presents 
any  danger  whatsoever,  or  the  importation  of  which  shall  be  contrary  to  the 
laws  or  to  Customs  regulations  or  otherwise  not  authorised. 

Parcels  containing  money,  articles  made  of  gold  or  of  silver,  and  other  precious 
articles  must  have  their  value  declared. 

In  case  of  infraction  of  these  above  rules  the  parcel  shall  simply  be  returned 
to  the  place  of  origin. 

The  two  Administrations  shall  communicate  to  each  other  a  list  of  things 
and  products  forbidden  importation  into  their  territories. 

Article  XIV. — Suspension  of  the  Service. — In  extraordinary  circumstan- 
ces, of  a  nature  to  justify  the  measure,  each  Administration  may  temporarily 
suspend  the  parcel  post  service,  either  entirely  or  partially,  on  condition  that 
immediate  notice  be  given,  if  need  be  by  telegraph,  to  the  other  Administration 
concerned. 

Article  XV. — Fulfilment  of  the  Convention. — The  Postal  Administra- 
tions of  Hongkong  and  of  China  shall  settle  all  matters  of  detail  and  of  disposition, 
in  order  to  ensure  the  fulfilment  of  the  present  Convention. 

They  shall  supply  to  each  other  a  list  of  the  countries  with  which  they  may 
respectively  serve  as  intermediaries. 

Article  XVI. — General  Provision. — The  internal  legislation  of  each  of 
the  contracting  countries,  as  well  as  the  dispositions  of  the  International  Conven- 
tion of  Washington  and  of  the  "  Reglement  de  detail "  thereto  annexed,  shall 
remain  applicable  to  all  points  not  herein  provided  for  or  not  contrary  to  the 
present  Convention. 

Article  XVII. — Duration  of  the  present  Convention, — The  present 
Arrangement  shall  be  put  into  operation  from  a  day  mutually  to  be  agreed  upon 
by  both  Administrations,  and  it  shall  remain  in  force  for  an  indefinite  period. 
However,  the  contracting  parties  reserve  to  themselves  the  right  to  make  at  any 
time  such  modifications  therein  as  they  may  by  mutual  agreement  judge  neces- 
sary, or  to  terminate  the  Arrangement  by  giving  at  least  six  months  notice  in 
advance. 

Done  in  duplicate  and  signed  at : 

Hongkong,  22nd  June  1909:  Peking,  5th  June  1909: 

In  the  name  of  the  In  the  name  of  the 

Postal  Administration  of  Hongkong :  Postal  Administration  of  China : 

C.  McI.  Messer,  T.  Piry, 

Postmaster  General,  Postal  Secretary, 

Chinese  Imperial  Post  Office. 


NUMBER  1909/5 :  AUGUST  3,  1909  781 

NUMBER  1909/5. 

BRAZIL  AND  CHINA. 
Arbitration  Convention* — August  3,  1909. 

The  President  of  the  United  States  of  Brazil  and  his  Majesty  the  Emperor 
of  China,  desiring  to  conclude  an  Arbitration  Convention  in  application  of  the 
principles  enounced  in  Articles  15  to  19  and  21  of  the  Convention  for  the  Pacific 
Settlement  of  International  Disputes,  signed  at  the  Hague  on  the  29th  July,  1899, 
and  in  Articles  Z7  to  40  and  42  of  the  Convention  signed  in  the  same  city  of  the 
Hague  on  the  18th  October,  1907,  have  named  as  their  plenipotentiaries,  that  is 
to  say : 

The  President  of  the  United  States  of  Brazil,  Mr.  M.  C.  Goncalves  Pereira, 
Envoy  Extraordinary  and  Minister  Plenipotentiary  to  China  and  to  Japan; 

His  ^Majesty,  the  Emperor  of  China,  Mr.  Lien  Fang,  Vice-President  of  the 
Board  of  Foreign  Affairs; 

Who,  being  duly  authorized,  have  agreed  upon  the  following  articles : 

Art.  I. — Differences  which  may  arise  of  a  legal  nature  or  relating  to  the 
interpretation  of  treaties  existing  between  the  two  Contracting  Parties,  and  which 
it  may  not  have  been  possible  to  settle  by  diplomacy,  shall  be  referred  to  the 
Permanent  Court  of  Arbitration  established  at  the  Hague  by  the  Convention 
of  the  29th  July,  1899,  provided,  nevertheless,  that  they  do  not  affect  the  vital 
interests,  the  independence,  or  the  honor  of  the  two  Contracting  States,  and  do" 
not  concern  the  interests  of  Third  Parties ;  it  being  further  understood  that,  if 
one  of  the  two  Contracting  Parties  prefer  it,  all  arbitration  resulting  from  the 
present  Convention  shall  be  submitted  to  a  Head  of  a  State,  to  a  friendly 
Government,  or  one  or  more  arbitrators  chosen  outside  the  list  of  the  Tribunal  of 
the  Hague. 

Art.  II. — In  each  individual  case  the  High  Contracting  Parties  before  appeal- 
ing to  the  Permanent  Court  of  Arbitration  at  the  Hague,  to  other  arbitrators 
or  to  a  sole  arbitrator,  shall  conclude  a  special  agreement  defining  clearly  the 
matter  in  dispute,  the  scope  of  the  powers  of  the  arbitrator  or  arbitrators,  and  the 
periods  to  be  fixed  for  the  formation  of  the  arbitral  tribunal  or  the  choice  of  an 
arbitrator  or  of  arbitrators,  as  well  as  the  rules  of  the  procedure. 

It  is  understood  that  with  respect  to  the  United  States  of  Brazil,  such  special 
agreement  will  be  made  by  the  President  of  the  Republic  with  the  consent  of 
the  National  Congress,  and  with  respect  to  the  Chinese  Empire,  by  the  Emperor 
in  such  form  and  under  such  conditions  as  he  shall  deem  necessary  or  con- 
venient. 

Art.   hi. — The  present  Convention  shall  remain  in   force   for  the  period 

*  Translation,  as  printed  in  Am.  Int.  Law  Journal,  Supplement,  1910,  p.  255. 
Portuguese,  French  and  Chinese  texts  printed  in  Customs,  vol.  II,  p.  824;  French  text 
in  Hsiian  Tung  Tiao  Yiieh,  vol.  I,  p.  6. 


782  CHINA  TREATIES  AND  AGREEMENTS 

of  five  years  from  the  date  of  the  exchange  of  ratifications.  If  it  is  not 
denounced  six  months  before  the  expiration  of  this  period  it  will  continue  to 
remain  in  force  for  a  new  period  of  five  years  and  so  successively. 

Art.  IV. — The  present  Convention  will  be  ratified  after  the  legal  formalities 
in  the  two  countries  have  been  observed,  and  the  ratifications  will  be  exchanged 
at  Rio  de  Janeiro  as  soon  as  possible. 

The  present  Convention  is  drawn  up  in  the  Portuguese,  Chinese  and  French 
languages.  Four  copies  have  been  prepared.  In  case  of  disagreement,  the 
French  text  alone  shall  be  authoritative. 

In  testimony  whereof  we,  the  above-named  plenipotentiaries,  have  signed 
the  present  Convention  and  affixed  our  seals  thereto. 

Done  at  Peking  the  third  of  August,  one  thousand  nine  hundred  and  nine, 
corresponding  to  the  eighteenth  day  of  the  sixth  moon  of  the  first  year  of  Hsiian 
Tung. 

(Signed)         M.  C.  Goncalves  Pereira. 
Lien  Fang. 


NUMBER  1909/6. 

JAPAN  (South  Manchuria  Railway  Company)  AND  CHINA. 

Detailed  Agreement  for  the  Hsinniint'im-Mukden  Railway  loan* — 

August  18,  1909. 

The  deputy,  named  below,  of  the  Chinese  Board  of  Posts  and  Communica- 
tions (hereinafter  called  the  Board  of  Posts  and  Communications)  and  the 
deputy,  named  below,  of  the  South  Manchuria  Railway  Joint  Stock  Company 
(hereinafter  called  the  Company),  acting  in  accordance  with  the  Hsinmintun- 
Mukden  and  Kirin-Changchun  Railway  agreements  between  the  Chinese  and 
Japanese  Governments  of  the  33rd  year  of  Kuanghsii,  3rd  moon,  3rd  day,  or  the 
40th  year  of  Meiji,  4th  month,  15th  day  (April  15,  1907),  and  also  in  accord- 
ance with  the  supplementary  agreement  of  the  34th  year  of  Kuanghsii,  10th  moon, 
19th  day,  or  the  41st  year  of  Meiji,  11th  month,  12th  day  (November  12, 
1908)  (hereinafter  called  the  Supplementary  Agreement),  have  drawn  up  the 
following  agreement  providing  for  a  loan  for  that  part  of  the  Hsinmint'un- 
Mukden  Railway  lying  east  of  the  Liao  River. 

Article  1. — In  accordance  with  Article  1  of  the  Supplementary  Agreement, 

*  Translation  from  the  Chinese  text  as  printed  in  Wang,  p.  137. 

In  connection  with  this  agreement  see  also  the  Convention  regarding  the  Hsinmin- 
Mukden  and  Kirin-Changchun  railways,  April  15,  1907  (No.  1907/3,  ante)  :  the  Agreement 
for  the  handing  over  by  Japan  of  the  Hsinmin-Mukden  Railway,  May  27,  1907  (No.  1907/5, 
ante)  :  the  Supplementary  Agreement  for  a  loan  for  the  Hsinmin-Mukden  and  Kirin- 
Ch'angch'un  railways,  November  12,  1908   (No.  1908/18,  ante). 


NUMBER  1909/6:  AUGUST  18,  1909  783 

the  Company  agrees  to  make  a  loan  of  half  the  amount  required  for  the  con- 
struction of  that  part  of  the  Hsinmint'un-AIukden  Railway  lying  east  of  the 
Liao  River,  namely  yen  320,000,  Japanese  currency,  at  a  discount  of  93,  to  be 
handed  over  at  Tokyo  to  the  Chinese  Minister  to  Japan,  the  Chinese  Minister 
there  to  hand  over  to  the  Company  a  certificate  as  per  Form  A  attached  to  this 
agreement. 

Article  2. — After  this  agreement  has  been  drawn  up,  within  one  month 
after  a  note  is  addressed  thereon  to  the  Japanese  Minister  at  Peking,  the  loan 
fixed  as  above  will  be  paid  in  full  in  one  instalment  on  the  date,  fixed  by  the 
Chinese  Government.  The  date  for  the  receiving  of  the  loan  by  the  Chinese 
Government  will  be  notified  to  the  Company  ten  days  before  the  loan  is  paid. 

Article  3. — The  loan  will  be  for  a  term  of  eighteen  years,  and  will  be 
repaid  in  thirty-six  equal  instalments,  beginning  from  the  date  when  the  loan  is 
paid  to  China,  every  half  year  (Gregorian  Calendar),  in  accordance  with  the 
attached  amortization  table.  Interest  on  that  part  of  the  capital  which  is  repaid 
will  cease  on  the  date  of  payment. 

Article  4. — Interest  will  be  reckoned  from  the  date  of  the  payment  of  the 
loan  to  China,  and  will  be  payable  once  every  half  year  (Gregorian  Calendar) 
in  accordance  with  the  attached  table. 

Article  5. — The  Director  General  of  the  Peking-Mukden  Line  will  turn 
over  the  capital  and  interest,  as  payment  thereof  falls  due,  to  the  Company  at 
Dairen  or  Tokyo,  as  convenient  to  the  Chinese  Government.  The  Company  will 
then  deliver  to  the  Director  General  of  the  Peking-Mukden  Line  certificates  as 
per  Forms  B  and  C  attached  to  this  agreement,  in  accordance  with  the  amount 
of  capital  and  interest  paid,  as  per  the  attached  amortization  and  interest  tables. 

Article  6. — In  accordance  with  Article  5  of  the  Supplementary  Agreement, 
the  capital  and  interest  due  annually  will  be  reduced  to  Hang  P'ing  Hua  Pao 
Taels  due  each  month,  and  deposited  at  the  Tientsin  branch  of  the  Yokohama 
Specie  Bank. 

Interest  on  the  deposits  referred  to  in  the  preceding  paragraph  will  be  paid 
to  the  Peking-Mukden  Line  by  the  Tientsin  branch  of  the  said  bank  in  accord- 
ance with  the  current  advertised  rate  of  interest. 

The  matters  referred  to  in  the  preceding  two  paragraphs  will  be  carried 
on  during  the  life  of  the  said  bank. 

If  the  life  of  the  said  bank  should  expire  and  should  be  extended,  the 
same  procedure  will  continue  to  be  followed. 

If  the  life  of  the  said  bank  should  not  be  extended,  the  Company  will 
then  indicate  another  bank,  and  the  same  procedure  will  be  continued. 

Article  7. — All  matters  in  this  agreement  pertaining  to  the  payment  of 
capital  and  interest,  which  may  not  have  been  clearly  stated,  may  be  discussed 
and  settled  by  the  Chinese  Railway  Administration  (hereinafter  called  the  Ad- 
ministration) and  the  Company,  as  occasion  therefor  arises. 

Article  8. — This  agreement  must  be  approved  by  the  Governments  of  the 
two  nations,  after  which  it  will  be  put  into  efifect  . 

Article  9. — After  the  agreement  has  been  signed  and  sealed,  the  Director 
General  of  the  Administration  will  refer  it  by  memorial  to  the  Throne,  and  the 


784  CHINA  TREATIES  AND  AGREEMENTS 

edict  of  the  Throne  will  be  communicated  by  a  note  from  the  Chinese  Board  of 
Foreign  Affairs  to  the  Japanese  Minister  at  Peking. 

Article  10. — This  agreement  will  become  invalid  after  the  principal  and 
interest  have  been  paid  in  full. 

Article  11. — The  original  copies  of  this  agreement  will  be  drawn  up  in 
quadruplicate,  in  Chinese  and  Japanese,  and  one  copy  be  given  to  each  of  the 
following:  the  Chinese  Board  of  Foreign  Affairs,  the  Administration,  the 
Japanese  Minister  at  Peking,  and  the  Company. 

Article  12. — Should  there  be  a  disagreement  in  regard  to  the  interpretation 
of  the  terms  of  this  agreement,  the  Administration  and  the  Company  will  each 
choose  a  person  from  outside  as  arbitrator.  If  the  arbitrators  can  not  come 
to  a  decision,  they  will  then  both  choose  a  person  from  outside  to  be  chief 
arbitrator.  If  the  two  arbitrators  can  not  agree  in  their  choice,  then  each  will 
choose  one  person,  one  of  whom  will  be  confirmed  by  lot.  Among  these  men  the 
decision  of  the  majority  will  rule,  and  each  side  must  abide  thereby  without 
further  question. 

The  1st  year  of  Hsiian  T'ung,  7th  moon,  3rd  day: 
The  42nd  year  of  Meiji,  8th  month,  18th  day : 
(August  18,  1909). 

(Signed  and  sealed)  Lu  Tsu-Hua. 

Expectant  Prefect,  Wearer  of  the  Peacock  Feather, 
Deputy  of  the  Board  of  Posts  and  Communications. 

(Signed  and  sealed) 

The  Director-General  of  the  South  Manchuria 
Railway  Joint  Stock  Company. 
Attached  herewith :  f 

Certificate  Forms  A,  B,  and  C; 
Interest  and  Amortization  Tables. 

t  Not  printed. 


NUxMBER  1909/7:  AUGUST  18,  1909  785 


NUMBER  1909/7. 

JAPAN  (South  Manchuria  Railway  Company)  AND  CHINA. 
Detailed  Agreement  for  the  Kirin-Changchiin  Railway  loan* — August  18,  1909. 

The  deputy,  named  below,  of  the  Chinese  Board  of  Posts  and  Communica- 
tions (hereinafter  called  the  Board  of  Posts  and  Communications)  and  the 
deputy,  named  below,  of  the  South  IManchuria  Railway  Joint  Stock  Company 
(hereinafter  called  the  Company),  acting  in  accordance  with  the  Hsinmintun- 
Mukden  and  Kirin-Changchun  Railway  agreements  between  the  Chinese  and 
Japanese  Governments  of  the  33rd  year  of  Kuanghsii,  3rd  moon,  3rd  day,  or  the 
40th  year  of  Meiji,  4th  month,  15th  day  (April  15,  1907),  and  also  in  accord- 
ance with  the  Supplementary  Agreement  of  the  34th  year  of  Kuanghsii,  10th 
moon,  19th  day,  or  the  41st  year  of  Meiji,  11th  month,  12th  day  (November 
12,  1908)  (hereinafter  called  the  Supplementary  Agreement),  have  drawn  up  the 
following  agreement  providing  for  a  loan  for  the  Kirin-Changchun  Railway. 

Article  1. — In  Accordance  wnth  Article  1  of  the  Supplementary  Agreement, 
the  Company  agrees  to  make  a  loan  of  half  the  amount  required  for  the  con- 
struction of  the  Kirin-Changchun  Railway,  namely  yen  2,150,000,  Japanese 
currency,  at  a  discount  of  93,  to  be  handed  over  at  Tokyo  to  the  Chinese 
Minister  to  Japan,  the  Chinese  Minister  there  to  hand  over  to  the  Company  a 
certificate  as  per  Form  A  attached  to  this  agreement. 

Article  2. — After  this  agreement  has  been  drawn  up,  within  one  month 
after  a  note  is  addressed  thereon  to  the  Japanese  Minister  at  Peking,  the  loan 
fixed  as  above  will  be  paid  in  full  in  one  instalment  on  the  date  fixed  by  the 
Chinese  Government.  The  date  for  the  receiving  of  the  loan  by  the  Chinese 
Government  will  be  notified  to  the  Company  ten  days  before  the  loan  is  paid. 

Article  3. — The  loan  will  be  for  a  term  of  twenty-five  years,  reckoning 
from  the  date  when  payment  is  made  to  China.  Beginning  from  the  sixth  year  it 
will  be  repaid  in  forty  equal  instalments  once  every  half  year  (Gregorian  Cal- 
endar), in  accordance  with  the  attached  amortization  table.  Interest  on  that 
part  of  the  capital  which  is  repaid  will  cease  on  the  date  of  repayment. 

Article  4. — Interest  will  be  reckoned  from  the  date  of  the  payment  of  the 
loan  to  China,  and  will  be  payable  once  every  half  year  (Gregorian  Calendar)  in 
accordance  with  the  attached  table. 

Article  5. — The  Director  General  of  the  Railway  Administration  of  the 
Chinese  Board  of  Posts  and  Communications  (hereinafter  called  the  Administra- 

*  Translation  from  the  Chinese  text  as  printed  in  Wang,  p.  155. 

In  connection  with  this  agreement  see  also  the  Convention  regarding  the  Hsinmin- 
Mukden  and  Kirin-Changchun  railways,  April  15,  1907  (No.  1907/3,  ante)  ;  Supplementary 
Agreement  for  a  loan  for  the  Hsinmin-Mukden  and  Kirin-Changchun  railways,  November 
12,  1908  (No.  1908/18,  ante)  ;  Article  6  of  the  agreement  relating  to  Chientao,  September 
4,' 1909  (No.  1909/10,  post):  Article  7  of  the  Sino-Japanese  treaty  respecting  South  Man- 
churia and  Eastern  Inner  Mongolia,  May  25,  1915  (No.  1915/8,  post);  and  the  Kirin- 
Ch'angch'un   Railway  loan   agreement  of   October   12,   191/'    (No.   1917/11,  post). 


786  CHINA  TREATIES  AND  AGREEMENTS 

tion)  or  the  Director  General  of  the  Kirin-Changchun  Railway  will  turn  over 
the  capital  and  interest,  as  payment  thereof  falls  due,  to  the  Company  at  Dairen 
or  Tokyo,  as  convenient  to  the  Chinese  Government.  The  Company  will  then 
deliver  to  the  Director  General  of  the  Kirin-Changchun  Railway  certificates  as 
per  Forms  B  and  C  attached  to  this  Agreement,  in  accordance  with  the  amount 
of  capital  and  interest  paid,  as  per  the  attached  amortization  and  interest  tables. 

Article  6. — The  traffic  receipts  of  the  Kirin-Changchun  Railway  will  be 
deposited  at  the  branches  or  suboffices  of  the  Yokohama  Specie  Bank,  either  at 
Changchun  or  at  Kirin.  If,  however,  such  receipts  should  be  in  a  currency 
ordinarily  not  accepted  by  the  branches  or  suboffices  of  the  said  bank,  they  will 
not  be  deposited  therein.  It  follows  from  this  that  the  Company  and  the  said 
bank  can  not,  in  accordance  with  paragraph  (/)  of  Article  3  of  the  Convention,! 
require  the  Kirin-Changchun  Railway  Administration  to  make  up  the  equivalent 
of  such  currency  which,  as  stated  above,  is  not  ordinarily  accepted  by  the 
branches  or  suboffices  of  the  said  bank,  to  be  converted  at  the  current  rate  and 
deposited  at  the  said  bank. 

Of  the  funds  deposited,  to  which  reference  is  made  in  the  preceding  para- 
graph, if  a  surplus  remains  after  the  Kirin-Changchun  Railway  has  made  dis- 
bursements therefrom,  then  it  will  be  kept  on  deposit  up  to  the  amount  of  six 
months'  interest  on  the  loan.  Any  surplus  thereafter  will  be  subject  to  the  dis- 
position of  the  Director  General  of  the  Administration,  who  may  instruct  the 
Director  General  of  the  Kirin-Changchun  Railway  to  apply  it  to  the  use  of  the 
Chinese  Government. 

Interest  will  be  paid  by  the  bank  on  the  deposits  referred  to  above  in  the 
first  paragraph,  in  accordance  with  the  current  rate  of  interest  advertised  by 
the  branch  banks  or  suboffices. 

The  matters  referred  to  in  the  three  preceding  paragraphs  will  be  carried 
on  during  the  life  of  the  said  bank. 

If  the  life  of  the  said  bank  should  expire  and  should  be  extended,  the  same 
procedure  will  continue  to  be  followed. 

If  the  life  of  the  said  bank  should  not  be  extended,  the  Company  will  then 
indicate  another  bank,  and  the  same  procedure  will  be  continued. 

Article  7. — All  matters  in  this  agreement  pertaining  to  the  payment  of 
capital  and  interest,  which  may  not  have  been  clearly  stated,  may  be  discussed 
and  settled  by  the  Chinese  Railway  Administration  and  the  Company,  as  occasion 
therefor  arises. 

Article  8. — This  Agreement  must  be  approved  by  the  Governments  of  the 
two  nations,  after  which  it  will  be  put  into  effect. 

Article  9. — After  this  agreement  has  been  signed  and  sealed,  the  Director 
General  of  the  Administration  will  refer  it  by  memorial  to  the  Throne,  and  the 
edict  of  the  Throne  will  be  communicated  by  a  note  from  the  Chinese  Board  of 
Foreign  Affairs  to  the  Japanese  Minister  at  Peking. 

Article  10. — This  agreement  will  become  invalid  after  the  principal  and 
interest  have  been  paid  in  full. 

Article  11. — The  original  copies  of  this  agreement    will  be  drawn  up  in 

"fl.e.,  the  convention  of  April  15,  1907,  referred  to  above. 


NUMBER  1909/8:  AUGUST  19,  1909  787 

quadruplicate,  in  Chinese  and  Japanese,  and  one  copy  be  given  to  each  of  the 
following :  the  Chinese  Board  of  Foreign  Affairs,  the  Administration,  the 
Japanese  Minister  at  Peking,  and  the  Company. 

Article  12. — Should  there  be  a  disagreement  in  regard  to  the  interpretation 
of  the  terms  of  this  agreement,  the  Administration  and  the  Company  will  each 
choose  a  person  from  outside  as  arbitrator.    If  the  arbitrators  can  not  come  to  a 
decision,  they  will  then  both  choose  a  person  from  outside  to  be  chief  arbitrator. 
If  the  two  arbitrators  can  not  agree  in  their  choice,  then  each  will  choose  one 
person,  one  of  whom  will  be  confirmed  by  lot.    Among  these  men  the  decision  of 
the  majority  will  rule,  and  each  side  must  abide  thereby  without  further  question. 
The  1st  year  of  Hsiian  T'ung,  7th  moon,  3rd  day: 
The  42nd  year  of  Meiji,  8th  month,  18th  day: 
(August  18th,  1909). 
(Signed  and  sealed)  Lu  Tsu-Hua 

Expectant  Prefect,  Wearer  of  the  Peacock  Feather, 
Deputy  of  the  Board  of  Posts  and  Communications. 

(Signed  and  Sealed) 

The  Director-General  of  the  South  Manchuria 
Railway  Joint  Stock  Company. 
Attached  herewith  :$ 

Certificate  Forms  A,  B,  and  C; 
Interest  and  Amortization  Tables. 


NUMBER  1909/8. 

JAPAN  AND  CHINA. 

Memorandum  concerning  the  reconstruction  of  the  Antitng-Mukden  Railway* — 

August  19,  1909. 

The  Imperial  Japanese  Consul  General  at  Mukden,  Mr.  Koike,  and  the 
Viceroy  of  the  Three  Eastern  Provinces,  Hsi  Liang,  and  the  Chinese  Governor 
of  Mukden,  Cheng,  in  accordance  with  the  orders  of  their  respective  Govern- 
ments, have  agreed  upon  the  following  in  reference  to  the  Antung-Mukden  Rail- 
way: 

1. — The  same  gauge  as  that  of  the  Peking-Mukden  Railway  shall  be  adopted. 

*  Translation  from  the  Japanese  text  as  printed  in  Shina  Kankei  Tokushu  Joyaku  Isan, 
p.  41.  A  translation  of  the  five  articles  is  printed  also  in  F.  E.  Review,  vol.  VI J  I,  p.  16, 
and  vol.  XI,  p.  389. 

In  connection  with  this  memorandum  see  also  the  additional  agreement  attached  to  the 
Treaty  between  Japan  and  China  concerning  Manchuria,  December  22,  1905  (No  1905/18, 
ante),  particularly  Article  6:  Agreement  concerning  mines  and  railways  in  Manchuria,  Sep- 
tember 4,  1909  (No.  1909/9,  post)  ;  Convention  relating  to  railway  connections  at  Antung, 
November  2,  1911   (No.  1911/11,  post). 

t  Not  printed. 


788  CHINA  TREATIES  AND  AGREEMENTS 

2. Both  Japan  and  China  shall  recognize  and  approve,  on  the  whole,  the 

line  as  already  surveyed  and  agreed  to  by  the  commissioners  of  the  two  Govern- 
ments, but  the  location  of  that  portion  of  the  line  from  Chen-hsiang-tun  to 
Mukden  shall   remain  to  be  decided   by  mutual   conference  between  the   two 

countries. 

3. — On  and  from  the  date  when  the  memorandum  is  signed,  negotiations  for 
the  purchase  of  land  and  for  the  adjustment  of  all  other  details  shall  be  instituted-! 

4. From  the  day  following  the  signing  of  the  memorandum,  that  is  from 

the  day  after  the  negotiations  above  mentioned  are  instituted,  the  work  of  recon- 
struction shall  be  accelerated. 

5. — China  shall  instruct  the  local  officials  along  the  line  to  give  every  facility 
regarding  the  execution  of  the  work. 

Accordingly,  two  copies  of  this  having  been  drawn  up  in  Japanese  and  in 
Chinese,  and  sealed,  one  copy  in  each  language  will  be  retained  by  each  party  as 
evidence  of  the  agreement. 

(l.  s.)  (Sgd.)  Koike  Chozo 

(l.  s.)  (Sgd.)  Hsi  Liang 

(l.  s.)  (Sgd.)  Cheng 


Note. 

In  Chung  Hua  Fa  Kuei  Ta  Ch'uan  is  given,  without  indication  of  date,  the  Chinese 
text  of  Regulations  for  the  purchase  of  land  for  the  Antung-Mukden  Railway,  of  which 
the  translation  is  as  follows: 

Regulations  for  Purchase  of  Land  for  Antung-Mukden  Railway. 

"  The  question  of  the  alteration  of  the  Antung-Mukden  Railway  having  been  settled, 
the  Comissioner  of  Foreign  Affairs  for  Fengtien,  Teng  Hsiao-hsien,  appointed  Yiian 
Liang,  senior  clerk  of  his  office,  to  negotiate  the  purchase  of  land  with  the  head  of  the 
Fengtien  office  of  the  South  Manchuria  Railway,  Tso-T'eng-An-Chih-Chu.  The  regulations 
have  now  been  agreed  to.  The  commissioner  petitioned  the  viceroy  and  the  governor  to 
issue  circular  instructions  to  the  local  officials  along  the  line  to  issue  orders  within  their 
districts  to  act  in  accordance  therewith.  Surveying  will  be  commenced  after  the  harvests. 
The  regulations  governing  the  purchase  of  the  land  are  as  follows: 

"Article  1. — A  Land  Purchase  Bureau  (Kou  Ti  Chii)  will  be  established  for  arrang- 
ing the  purchase  of  land  required  for  the  Antung-lNIukden  Railway.  The  officers  of  the 
bureau  will  be  appointed  by  the  Chinese  authorities  and  the  South  Manchuria  Railway 
Company  (hereinafter  referred  to  as  'the  Company'). 

"Article  2. — The  Land  Purchase  Bureau  will  be  composed  of  a  general  bureau  (Tsung 
Chii)  and  two  subbureaus  (Fen  Chii).  Each  subbureau  will  control  six_  surveying  parties 
(Chang  Liang  Pan).  The  personnel  and  organization  will  be  set  forth  in  a  supplemenary 
table. 

"  Article  3. — The  General  Land  Purchase  Bureau  will  be  established  at  Mukden  and 
will  be  composed  of  two  chiefs  of  bureau,  two  assistant  chiefs,  and  an  executive  staff. 
The  positions  of  chiefs  of  bureau  will  be  occupied  by  the  senior  clerk  of  the  office  of  the 
Commissioner  of  Foreign  Affairs  and  the  head  of  the  office  of  the  South  Manchuria  Railway 
Company.  They  will  exercise  general  supervision  over  all  matters  connected  with  the 
purchase  of  land. 

"  The  assistant  chiefs  will  be  appointed  by  the  Chinese  authorities  and  the  Company. 
They  will  have  special  supervision  over  the  purchase  of  land  by  the  general  bureau  and 
will  also  act  as  chiefs  of  the  subbureaus. 

"  Positions  on  the  executive  staff  will  be  filled  by  deputies  of  the  Commissioner  of 
Foreign  Affairs  and  appointees  of  the  Company. 

t  See  Note,  infra. 


NUMBER  1909/8:  AUGUST  19,  1909:  NOTE  789 

"  Article  4. — A  deputy  familiar  with  the  purchase  of  land  will  be  appointed  to  the 
subbureaus  from  each  of  the  districts  of  Cheng  Te,  Pen  Hsi,  Feng  Huang,  and  Antung,  to 
facilitate  the  purchase  of  land  within  these  jurisdictions. 

"  Article  5. — Should  it  be  necessary  a  subbureau  can  move  its  location  out  of  one  district 
into  another. 

"  Article  6. — The  subbureaus  will  supervise  the  surveying  parties  and  give  them  all 
the  assistance  in  their  power,  with  a  view  to  the  early  completion  of  the  survey.  They 
will  settle  disagreements  which  may  arise  between  the  surveying  parties  and  the  owners 
of  the  land. 

"  Article  7. — Should  the  subbureaus  be  unable  to  solve  difficulties  relating  to  land  and 
matters  thereto  appertaining,   they  will  refer  them   to  the  general   bureau    for   settlement. 

"  Article  8. — The  Land  Purchase  .Bureau  will  have  printed  the  forms  described  below 
and  stationery   for  distribution  to  the  surveying  parties. 

"  Article  9. — The  deeds  of  sale  will  be  drawn  up  on  attached  duplicate  forms.  They 
will  be  signed  and  sealed  by  the  seller,  middlemen,  and  also  by  the  village  headman.  The 
originals  will  be  deposited  at  the  general  bureau  to  be  handed  over  to  the  company  as 
evidence  of  the  property  of  the  company.  The  duplicates  will  be  transmitted  to  the  dis- 
burser  of  funds. 

"Article  10. — A  disburser  of  funds  will  be  attached  to  each  subbureau  to  have  special 
charge  of  paying  out  the  purchase  price  of  the  land. 

"Article  11. — The  activities  of  the  surveying  parties  will  in  general  be  as  follows: 

"  (1)  One  of  the  executive  staff  will  first  investigate  the  conditions  and  ownership 
of  the  land,  after  which,  in  company  with  the  village  headmen  and  the  owners  of  adjoining 
property,  a  survey  will  be  made  and  an  examination  conducted  of  the  deeds  and  other 
evidence  held  by  the  owner  of  the  land. 

"  (2)  After  the  surveyors  have  completed  the  survey  of  the  land  required  they  will 
reckon  the  area  thereof  and  draw  up  a  map. 

"  (3)  One  of  the  executive  stafT  will  have  special  charge  of  the  accounts  and  the 
drawing  up  of  deeds. 

"  Article  12. — The  affixing  of  the  seal  to  the  deeds  and  the  handing  over  of  the  price 
of  the  land  will  take  place  at  such  localities  and  times,  chosen  by  the  subbureaus,  as  best 
suit  the  convenience  of  the  owners  of  the  land. 

"  Article  13. — The  head  of  the  surveying  party  in  each  section  will  from  time  to  time 
render  reports  to  the  subbureaus,  which  will  as  soon  as  possible  collect  and  submit  them 
to  the  general  bureau. 

"Article  14. — The  tariff  of  prices  of  land  and  other  property  and  the  procedure  as  to 
indemnification  for  losses  will  be  fixed  by  another  set  of  regulations. 

"  Article  15. — After  the  land  in  each  section  has  been  purchased  a  map  will  be  drawn 
up  and  an  account  form  filled  out  of  the  land  required,  which  will  be  signed  and  sealed 
by  the  two  Chinese  and  Japanese  chiefs  of  bureau  and  one  copy  kept  by  each  as  evi- 
dence. 

"Article  16. — The  company  will  be  responsible  for  all  expenses  incurred  by  the  Land 
Purchase  Bureau. 

"  Article  17. — The  salaries  and  traveling  expenses  of  the  Chinese  officials  in  the  Land 
Purchase  Bureau  will  be  settled  separately. 

"  Article  18. — The  salaries  and  traveling  expenses  of  the  Japanese  officials  in  the  Land 
Purchase  Bureau  will  be  settled  in  accordance  with  the  rules  of  the  company. 

"Supplementary  Tabic  of  the  Organization  of  the  Antung-Mukden  Land  Purchase  Bureau. 

"  Personnel  of  the  general  bureau : 

2  Chiefs  of  bureau. 

2  Assistant  chiefs  of  bureau. 

An  executive  staff. 
"  Personnel  of  each  of  the  two  subbureaus ; 

1  Chief  of  the  subbureau. 

4  Members  of  the  executive  staff. 

1  Accountant. 

1  Clerk. 

"  Personnel  of  each  of  the  twelve  surveying  parties : 

2  Members  of  the  executive  staff. 
1  Surveyor. 

1  Mechanic  . 

1  Clerk. 

2  Laborers. 

"Note: — Of  the  four  members  of  the  executive  staff  of  the  subbureaus,  two  will  be 
deputies  for  purchasing  land  appointed  from  the  offices  of  the  local  officials.  The  offices 
of  the  local  official  will  also  appoint  a  mechanic  to  assist  the  surveying  parties  in  matters 
connected  with  land  measurement. 


790  CHINA  TREATIES  AND  AGREEMENTS 

"  The  first  branch  bureau  will  be  located  at  Ch'iao  T'ou  and  will  extend  from  Mukden 
to  Ts'ao  Ho  K'ou,  comprising  the  first  to  the  sixth  surveying  parties. 

"  The  second  branch  bureau  will  be  located  at  Chi  Kuan  Shan  and  will  extend  from 
Ts'ao  Ho  K'ou  to  Sha  Ho  Chen,  comprising  the  seventh  to  the  twelfth  surveying  parties." 


NUMBER  1909/9. 

JAPAN  AND  CHINA. 
Agreement  concerning  mines  and  railways  in  Manchuria* — September  4,  1909. 

The  Imperial  Government  of  Japan  and  the  Imperial  Government  of  China, 
actuated  by  the  desire  to  consolidate  the  relations  of  amity  and  good  neighborhood 
between  the  two  countries,  by  settling  definitively  the  matters  of  common  concern 
in  Manchuria,  and  by  removing  for  the  future  all  cause  of  misunderstanding,  have 
agreed  upon  the  following  stipulations : 

Art.  1. — The  Government  of  China  engages  that  in  the  event  of  its  under- 
taking to  construct  a  railway  between  Hsinmintun  and  Fakumen,  it  shall  arrange 
previously  with  the  Government  of  Japan. 

Art.  2. — The  Government  of  China  recognizes  that  the  railway  between 
Tashichao  and  Yinkow  is  a  branch  line  of  the  South  Manchuria  Railway,  and  it 
is  agreed  that  the  said  branch  line  shall  be  delivered  up  to  China  simultaneously 
with  the  South  Manchuria  Railway  upon  the  expiration  of  the  term  of  con- 
cession for  that  main  line.  The  Chinese  Government  further  agrees  to  the 
extension  of  the  said  branch  line  to  the  port  of  Yinkow. 

Art.  3. — In  regard  to  the  coal  mines  at  Fushun  and  Yuentai,  the  Govern- 
ments of  Japan  and  China  are  agreed  as  follows : 

(a)  The  Chinese  Government  recognizes  the  right  of  the  Japanese  Govern- 
ment to  work  the  said  coal  mines. 

(&)  The  Japanese  Government,  respecting  the  full  sovereignty  of  China, 
engages  to  pay  to  the  Chinese  Government  tax  upon  coals  produced  in  those  mines. 
The  rate  of  such  tax  shall  be  separately  arranged  upon  the  basis  of  the  lowest 
tariff  for  coals  produced  in  any  other  places  of  China. 

(c)  The  Chinese  Government  agrees  that  in  the  matter  of  the  exportation 
of  coals  produced  in  the  said  mines,  the  lowest  tariff  of  export  duty  for  coals 
of  any  other  mines  shall  be  applied. 

{d)  The  extent  of  the  said  coal  mines,  as  well  as  all  detailed  regulations, 
shall  be  separately  arranged  by  commissioners  specially  appointed  for  that 
purpose. t 

*  Translation  from  the  Japanese  text,  as  printed  in  For.  Rel.,  1909,  p.  118.  Printed  also 
in  Am.  Int.  Law  Journal,  Supplement,  1910,  p.  130.  See  Note  1  to  this  document,  post, 
p.  791. 

t  See  Note  2  to  this  document,  post,  p.  792. 


NUMBER  1909/9:  SEPTEMBER  4,  1909:  NOTES  791 

Art.  4.— All  mines  along  the  Antung-Mukden  Railway  and  the  main  line 
of  the  South  Manchuria  Railway,  excepting  those  at  Fushun  and  Yuentai,  shall 
be  exploited  as  joint  enterprises  of  Japanese  and  Chinese  subjects,  upon  the 
general  principles  which  the  Viceroy  of  the  Eastern  Three  Provinces  and  the 
Governor  of  Mukden  agreed  upon  with  the  Japanese  Consul  General  in  the 
fortieth  year  of  Meiji,  corresponding  to  the  thirty-third  year  of  Kuangshu.J 
Detailed  regulations  in  respect  of  such  mines  shall,  in  due  course,  be  arranged 
by  the  Viceroy  and  the  Governor  with  the  Japanese  Consul  General. § 

Art.  5. — The  Government  of  Japan  declares  that  it  has  no  objection  to  the 
extension  of  the  Peking-Mukden  Railway  to  the  city  wall  of  Mukden.  Practical 
measures  for  such  extension  shall  be  adjusted  and  determined  by  the  local 
Japanese  and  Chinese  authorities  and  technical  experts. || 

In  witness  whereof,  the  undersigned,  etc.,  etc. 


Note  1. 

In  connection  with  this  agreement  see  also  the  Sino-Japanese  treaty  and  exchanges 
of  notes  respecting  South  Manchuria  and  Eastern  Inner  I\Iongolia,  I^Iay  25,  1915  (No. 
1915/8,  post). 

At  p.  117  of  For.  RcL,  1909,  is  printed  the  following  translation  (from  the  Chinese 
text)  of  a  memorandum  concerning  mines  along  the  line  of  the  Antung-IMukden  Railway, 
signed  in  1907  by  the  Viceroy  of  Manchuria  and  the  Japanese  Consul  General  at  Mukden: 

Memorandum  concerning  Mines  along  Antung-Mukden  Railway,  1907. 

"  1. — The  Japanese  Consul  General  hereby  declares  that  when  the  present  military 
railway  between  Antung  and  Mukden  is  changed  to  standard  gauge  the  present  route  may 
be  slightly  changed  but  will  not  follow  an  entirely  different  route. 

"  2. — The  Japanese  who  are  temporarily  residing  along  the  line  of  the  railway  will  be 
prohibited  by  the  Japanese  Consul  General  from  surveying  mining  properties.  Hereafter 
such  work  will  be  carried  on  under  the  provisions  of  Article  3. 

"3. — All  coal,  iron,  tin,  and  lead  mines  situated  near  the  railway  may  be  worked  con- 
jointly after  officials  of  both  countries  have  made  an  inspection.  The  operators  concerned 
should  specify  exactly  the  localities  to  be  worked  and  petition  the  Viceroy  of  Manchuria 
and  the  Governor  of  Fengtien,  w^ho,  after  giving  their  consent,  will  ask  for  an  edict  per- 
mitting the  work  to  be  carried  on.  The  conditions  of  working  the  mines  will  be  similar 
to  those  contained  in  the  Agreement  of  Lin-ch'eng  Hsien.  [See  the  agreement  of  March 
22,  1905  (No.  1905/1,  ante).] 

"4. — If  in  future  operators  of  other  nationalities  are  permitted  to  work  coal  mines 
and  are  given  better  terms  than  those  of  the  agreement  of  Lin-ch'eng  Hsien  in  Chihli 
Province,  thereafter  the  coal  mines  along  the  line  of  this  railway  which  are  permitted  to 
be  worked  jointly  shall  on  petition  be  granted  the  same  privileges.     The  iron,  tin,  and  lead 


%  Quoted  in  Note  1  to  this  document,  infra. 

For  correspondence  between  the  American  and  the  Chinese  and  Japanese  Governments 
concerning  the  effect  of  this  provision,  see  For.  RcL,  1909,  pp.  116-124.  In  the  course  of 
that  correspondence,  the  Chinese  Foreign  Office,  under  date  of  November  18.  1909,  stated 
to  the  American  Legation  that  "the  reference  in  the  said  agreement  to  joint  Chinese-Japanese 
exploitation  of  mines  along  the  two  railways  mentioned  does  not  involve  a  monopoly  of 
the  rights  and  privileges  of  opening  mines  in  the  designated  territory,  nor  confer  any 
exclusive  rights  to  mines  therein  upon  Japanese  subjects,  but  that  mines  in  the  territory 
mentioned  may  with  the  consent  of  the  Chinese  Government  be  exploited  by  third  parties 
also."  Under  date  of  November  25,  1909,  the  Japanese  Ministry  for  Foreign  Affairs  like- 
wise advised  the  American  Embassy  that  "  the  provisions  of  the  agreement  of  September  4 
last,  in  reference  to  joint  exploitation  of  mines  along  the  said  railways  do  not  and  were 
not  intended  in  any  way  or  to  any  extent  to  involve  a  monopoly  of  the  right  to  discover, 
open,  and  operate  mines  in  Manchuria,  to  the  exclusion  of  American  citizens,  or  any  other 
persons." 

§  See  Note  3  to  this  document,  post,  p.  793. 

II  See  Note  4  to  this  document,  post,  p.  795. 


792  CHINA  TREATIES  AND  AGREEMENTS 

mines  which  are  worked  jointly  shall  pay  taxes  and  dues  according  to  such  regulations  as 
may  hereafter  be  issued  by  the  Board  of  Agriculture,  Industries,  and  Commerce. 

"5. — If  hereafter  operators  of  other  nationalities  are  permitted  to  work  iron,  tin,  or 
lead  mines  in  the  province  of  Fengtien  and  if  after  paying  the  taxes  and  dues  fixed  by 
the  board  they  enjoy  any  special  privileges,  thereafter  such  companies  of  Chinese  and 
Japanese  as  may  be  permitted  to  work  these  three  sorts  of  mines  along  the  line  of  the 
railway  shall  on  petition  be  accorded  the  same  privileges." 


Note  2. 

The  following  is  a  translation,  from  the  Japanese  text  printed  at  p.  44  of  Shina 
Kankei  Tokushu  Joyaku  Isan,  of  the  detailed  regulations  for  the  Fushun  and  Yentai  Mines, 
signed  on  May  12,  1911  : 

Detailed  Regulations  for  Fushun  and  Yentai  Mines,  May  12,  191 1. 

"  The  delegates  of  Japan  and  China,  having  been  duly  clothed  with  authority  by  their 
respective  Governments,  do  establish  the  following  detailed  regulations  in  regard  to  the 
Fushun  and  Yentai  mines,  based  on  the  provisions  of  Article  3  of  the  agreement  in  regard 
to  Manchurian  affairs  which  was  concluded  by  the  Governments  of  Japan  and  China  at 
Peking  on  the  4th  day  of  the  9th  month  of  the  42nd  year  of  Meiji  (20th  day  of  the 
7th  moon  of  the  first  year  of  Hsiian  T'ung:   i.e.,  September  4,  1909). 

"  Art.  1. — The  South  Manchuria  Railway  Company  (hereinafter  referred  to  as  the 
Company)  agrees  to  pay  to  the  Chinese  Government  a  mining  tax  for  the  coal  of  the 
Fushun  and  Yentai  mines  (hereinafter  referred  to  as  the  two  mines),  which  shall  be  fixed 
at  five  per  cent,  of  its  value  at  the  mouth  of  the  mine,  provided  that  as  long  as  the 
output  of  coal  is  less  than  3000  tons  of  coal  per  day  the  amount  of  the  tax  shall  be  com- 
puted by  fixing  the  price  at  the  mouth  of  the  mine  at  one  Kuping  tael  per  ton,  and  when 
the  output  per  day  exceeds  3000  tons,  at  one  yen   (Japanese  currency)   per  ton. 

"  Art.  2. — The  Company  agrees  to  pay  to  the  Chinese  maritime  customs  for  the  coal 
of  the  two  mines  exported  from  a  point  of  maritime  navigation  an  export  tax  which  shall 
be  computed  at  one-tenth  of  a  Haikwan  tael  per  ton,  that  is  to  say,  at  the  rate  of  one 
mace   silver. 

"  The  export  tax  for  coal  of  the  two  mines  exported  overland  through  Chosen  or 
Russia  shall  be  separately  decided  afterwards. 

"  Art.  3. — The  tax  to  be  paid  mentioned  in  Article  2  shall  apply  to  coal  from  the 
date  of  the  agreement  in  regard  to  Manchurian  affairs,  which  was  entered  into  at  Peking, 
that  is  to  say  the  fourth  day  of  the  ninth  month  of  the  42nd  year  of  Meiji  (20th  day  of 
the  7th  moon  of  the  first  year  of  Hsiian  T'ung).  The  Company  shall  pay  to  the  Chinese 
Government  a  mining  tax  for  coal  mined  subsequent  to  that  date.  The  export  tax  which 
was  paid  in  excess  to  the  Chinese  maritime  customs  from  that  day  shall  be  refunded  by 
the  Chinese  Government  to  the  company  at  the  rate  of  2  mace  per  ton. 

"  With  reference  to  the  mining  tax  in  future,  the  company  shall  pay  to  commissioners 
designated  by  the  Chinese  Government  for  collecting  the  taxes  the  amount  for  the  preced- 
ing three  months  four  times  each  year,  that  is  to  say  in  January,  April,  July  and  October 
of  the  Japanese  calendar.  The  amount  of  the  export  tax  shall  be  paid  each  month  for 
the  preceding  month  as  soon  as  possible  to  the  Chinese  maritime  customs. 

"  Art.  4. — In  case  coal  from  the  two  mines  is  loaded  into  a  vessel  for  its  own  con- 
sumption, it  shall  be  treated  according  to  the  usual  rule  of  the  maritime  customs. 

"  Art.  5. — The  Company  need  not  pay  a  mining  tax  for  coal  for  its  own  use,  pro- 
vided however,  this  amount  shall  be  fixed  at  700  tons  per  day. 

"  Art.  6. — In  addition  to  taxes  in  accordance  with  Articles  1  and  2,  there  shall  be 
no  other  taxes  for  the  coal  of  the  two  mines  such  as  the  imposition  of  likin  and  other 
fees,  but  in  case  the  taxes  in  respect  to  other  coal  are  fixed  at  a  rate  lower  than  that 
for  the  two  mines,  the  Company  also  shall  have  the  right  to  have  the  taxes  made  equal. 

"In  lieu  of  the  likin  and  other  taxes  mentioned  in  the  foregoing  paragraph,  the 
Company  shall  pay  to  the  Chinese  Government  yen  50,000  per  annum  in  four  instalments 
in  the  same  manner  as  mentioned  in  paragraph  2  of  Article  3. 

"  The  Chinese  authorities  shall  take  steps  to  make  it  known  generally  in  the  various 
provinces  that  the  coal  has  been  freed  from  likin  and  other  charges. 

"  Art.  7. — The  boundaries  of  the  two  mines  shall  be  in  accordance  with  a  map  which 
shall  be  fixed  after  a  conference  of  the  commissioners  of  the  two  Governments. 

"  Art.  8. — The  Chinese  Government  will  agree  not  to  allow  anyone  outside  the  com- 
pany to  prospect  or  mine  within  the  boundaries  of  the  two  mines,  and  speedily  to  cancel 
permission  which  may  already  have  been  granted  to  anybody. 

"  Art.  9. — When  there  is  anybody  who  mines  coal  or  attempts  to  mine  coal  within  the 


NUMBER  1909/9:  SEPTEMBER  4,  1909:  NOTES  793 

borders  of  the  two  mines  without  the  permission  or  consent  of  the  Company,  it  shall 
report  it  to  the  Chinese  authorities.  In  such  an  event  the  Chinese  authorities  shall  strictly 
prohibit  it. 

"  Art.  10. — The  Chinese  authorities  will  agree  to  afford  sufficient  facilities  in  mining, 
transportation  of  coal  and  the  hiring  of  laborers. 

"Art.  11.— In  case  the  Company  requires  private  land  within  the  boundaries  of  the 
mines,  which  is  necessary  for  mining  purposes,  or  requires  the  extension  of  the  railway, 
it  shall  be  reported  to  the  Chinese  authorities,  and  a  decision  shall  be  reached  after  a 
mutual  consultation. 

"  When  the  Company  has  finished  mining  it  shall  restore  to  the  Chinese  Government 
the  land  that  was  used  for  mining. 

"  Art.  12. — When  the  Company  requires  the  removal  of  graves  or  houses  within  the 
land  that  it  uses  for  mining,  it  shall  confer  with  the  owner  and  shall  pay  him  a  suitable 
fee  for  removal.  In  case  any  damage  is  done  in  these  matters  on  account  of  mining,  it 
shall  agree  to  pay  a  suitable  indemnity. 

"  Art.  13. — The  Company  shall  agree  to  establish  appropriate  provisions  for  the  con- 
trol of  laborers  and  for  relief. 

"  Art.  14. — These  detailed  regulations  shall  be  effective  for  sixty  years  from  the  date 
of  their  enforcement.  If  when  this  period  is  reached  the  mines  are  not  exhausted,  the 
period  shall  be  extended. 

"  These  detailed  regulations  shall  be  drawn  up  in  Chinese  and  Japanese,  four  copies 
of  each.  After  they  have  been  signed  and  sealed  by  the  commissioners  of  each  country, 
the  two  Governments  shall  attest  them  by  furnishing  one  copy  in  Japanese  and  one  copy 
in  Chinese  apiece  to  the  South  Manchuria  Railway  Company  and  the  Governor  General 
of  the  Three  Eastern  Provinces. 

"  Meiji  44.  5th  month,  12th  day. 

"  Hsiian  T'ung  3,  4th  month,  14th  day. 

"  Chozo  Koike, 
Japanese  Consul  General         (Seal) 
"  Shimbo   Sakaguchi, 
Assistant  Chief  of  the  Fushun  Mine         (Seal) 
"  Han  Kuo-chun, 
Chinese  Commissioner  for  Foreign 

Affairs  at  Mukden  (Seal) 

"  Hou  Kuan  Taotai  Ch'i  Ku-yi  is  to  sign  in  a  few  days  upon  returning  to  Chir.a." 


Note  3. 

The  following  Agreement  between  the  Chinese  Government  and  ^Messrs.  Okura  & 
Companv,  the  Japanese  holders  of  the  Penhsihu  iMine,  dated  May  22,  1910,  is  given  in 
Collins,  p.  279 : 

Agreement  for  Penhsihu  Coal  Mining  Company,  Ltd.,  May  22,  1910. 

1. — After  this  Agreement  shall  have  been  sanctioned  by  the  Chinese  Government  the 
Penhsihu  Coal  Mining  Enterprise  will  be  registered  as  a  Sino-Japanese  Company.  The 
Company  will  be  called  the  Penhsihu  Coal  Mining  Company,  Limited,  hereinafter  referred 
to  as  "  the  Company."  The  Japanese  firm  is  hereinafter  referred  to  as  "  Messrs.  Okura 
&  Company." 

2. — The  Chinese  Government  has  agreed  on  a  valuation  of  the  properties  of  the  Penhsihu 
Mine  at  350,000  dollars.  After  the  signing  of  this  contract  the  Company  will  hand  over 
shares  to  the  value  of  350,000  dollars  to  the  Chinese  Government. 

3. — The  capital  of  the  Company  will  be  2,000,000  Peiyang  dollars.  One-half  will  be 
subscribed  by  Chinese  merchants,  but  in  view  of  the  fact  that  the  Chinese  Government  has 
already  350,000  dollars  invested  in  the  mining  properties  only  650,000  dollars  will  be  sub- 
scribed to  complete  the  Chinese  shares.  ^Messrs.  Okura  &  Company  will  be  responsible  for 
the  subscription  of  the  remaining  1,000,000  dollars.  Interest  on  mine-shares  and  the  cash- 
shares  will  begin  to  run  on  the  day  the  Company  starts  operations  in  the  former  case  and 
on  the  day  cash  is  paid  up  in  the  latter  case. 

4. — The  profits  of  the  Company  will  be  divided  as  follows : 

(c)  Profits  up  to  8  per  cent,  will  be  paid  on  the  2,000,000  dollars  as  interest.  In  case 
the  profit  is  insufficient  for  payment  of  8  per  cent,  a  lower  interest  will  be  paid. 
(b)  After  paying  the  8  per  cent,  interest,  any  profits  will  be  divided  into  ten  equal 
parts,  one  of  which  is  to  be  put  aside  as  a  reserve  fund,  2^  parts  will  be  paid 
to  the  Chinese  Government  as  a  contribution,  and  6^  parts  will  be  equally 
divided  among  the  Chinese  and  Japanese  shareholders.  When  the  shareholders 
consider  the  reserve  fund  to  be  sufficient  they  may,  by  mutual  agreement,  cease 


794  CHINA  TREATIES  AND  AGREEMENTS 

putting  aside  further  sums  to  reserve.  No  interest  is  to  be  paid  on  the  reserve 
fund. 

5_ There   will   be  two   Directors-in-chief,   one   Chinese   and   the   other   Japanese.     The 

rest  of  the  posts  on  the  staff  will  be  equally  divided  amongst  Chinese  and  Japanese  by  the 
mutual  consent  of  the  two  Directors-in-chief.  Any  enterprise  concerning  engineering  or 
financial  matters  must  receive  the  sanction  and  signatures  of  the  two  Directors-in-chief 
before  being  put  into  execution.  The  Directors-in-chief  must  make  reports  to  the  Director- 
General  on  each  occasion.  All  documents  and  accounts  will  be  managed  by  qualified  officials 
of  the  Company  in  the  most  up-to-date  manner  possible  and  kept  in  both  the  Chinese  and 
Japanese  languages  so  that  each  Director-in-chief  may  be  able  to  examine  the  contents. 
All  the  Company's  aff'airs  will  be  controlled  and  directed  by  the  two  Directors-in-chief  or 
their  representatives  under  the  Company's  seal,  and  under  the  signatures  of  the  two 
Directors-in-chief.  Chinese  dates  will  be  used  in  book-keeping  and  the  paying  out  of 
dividends.  . 

6.— The  Company  will  be  considered  formally  constituted  on  the  day  the  Chmese  Gov- 
ernment shall   register  it. 

7._,After  the  formation  of  the  Company,  when  it  is  considered  necessary  by  the  two 
Directors-in-chief  to  increase  the  capital  or  to  contract  loans,  the  shareholders  will  be  con- 
sulted. Then  the  shareholders  of  each  nationality  will  be  responsible  for  half  the  amount. 
Loans  may  not  be  contracted  from  persons  of  any  nationality  other  than  Chinese  and 
Japanese.  The  Company's  properties  will  not  be  mortgaged  unless  there  be  urgent  necessity 
for  loans.  The  shareholders  may  not  sell  their  shares  without  the  Company's  consent. 
Only  Chinese  workmen  will  be  employed  in  the  mines. 

8. — The  term  of  this  agreement  is  thirty  years,  beginning  on  the  day  the  Company  is 
registered  by  the  Chinese  Government.  At  expiration  of  this  Agreement  the  Company  will 
enter  into  voluntary  liquidation.  The  Chinese  Government  will  then  return  the  mine- 
share  certificates  to  the  Company  and  in  return  take  back  the  mining  area.  The  Company 
will  as  quickly  as  possible  sell  off  its  movable  property,  rails,  mine-timbers  and  buildings 
at  a  fair  price.  The  shareholders  of  each  nationality  will  take  one-half  of  the  proceeds  of 
sale  and  of  the  reserve  fund.  At  this  time  all  share  certificates  will  be  returned  and  can- 
celled unless  by  mutual  consent  this  agreement  is  renewed.  After  expiration  of  this  agree- 
ment, should  the  Chinese  Government  desire  to  carry  on  the  undertaking  by  itself  it  can 
do  so  by  taking  back  the  mining  area  and  paying  adequate  compensation  for  the  movable 
property,  rails,  mine  timbers  and  buildings. 

9. — For  every  long  ton  of  coal  produced  the  Company  will  pay  likin  of  .06  K'u  p'ing 
tael  of  sycee  silver  and  a  tax  of  .10  K'u  p'ing  tael  of  sycee  silver.  For  the  mining  area 
the  Company  will  pay  .2  K'u  p'ing  tael  of  sycee  silver  for  each  mow  occupied.  As  export 
tax  the  Company  shall  pay  .1  K'u  p'ing  tael  of  silver  as  customs  duty.  In  case,  however, 
the  Chinese  shall  concede  any  lower  rate  of  taxation  to  any  Sino-Foreign  company  in  the 
future,  this  Company  may  demand  the  same  rate.  When  the  new  mining  laws  are  promul- 
gated by  the  Board  of  Agriculture,  Industry  and  Commerce,  the  Government  may,  through 
the  Governor  of  Manchuria,  order  the  Company  to  alter  this  Agreement  in  order  to  comply 
with  the  new  laws. 

10.— All  the  materials  needed  and  purchased  by  the  Company  will  be  exempted  from 
likin.  but  must  pay  the  usual  taxes  to  the  maritime  customs. 

11. — In  consideration  of  the  capital  spent  on  the  mine  by  Messrs.  Okura  &  Company, 
in  1905  and  1909,  the  Company  will  take  over  all  the  property,  including  engines,  buildings, 
construction  and  warehouse  goods,  etc.,  at  a  valuation  of  1,000,000  dollars,  which  will  be 
the  Japanese  capital.  Messrs.  Okura  &  Company  will  make  a  clear  returii  of  all  the  pro- 
ceeds from  sale  of  coal  produced  within  that  period.  The  Company  will  repay  all  the 
money  spent  by  Messrs.  Okura  &  Company,  between  the  third  moon  and  the  formation  of 
the  Company,  on  new  machinery,  etc.,  and  this  machinery,  etc.,  will  be  handed  to  the  Com- 
pany. Messrs.  Okura  &  Company  will  hand  in  all  proceeds  from  the  sale  of  the  coal  pro- 
duced within  the  period,  and  the  coal  at  surface  or  in  store  will  be  handed  to  the  Company 
without  claim  for  any  payment  thereon. 

12. — After  the  formation  of  the  Company  official  surveyors  will  be  despatched  to  make 
a  surface  survey  of  the  concession,  so  as  to  fix  its  boundaries.  The_  map  will  be  sent  to 
the  Company  as  the  official  survey.  If  during  the  Company's  mining  operations  any 
ancient  objects  of  art  be  found  these  will  be  handed  to  the  Chinese  Government. 

13. — Should  the  Company  be  in  need  of  any  land  a  fixed  price  will  be  paid  as  its  rent. 
In  case  it  be  found  necessary  to  pull  down  any  buildings,  or  to  remove  any  tombs,  the 
case  will  be  laid  before  the  local  official,  who  will  notify  the  landowner  of  the  fact,  but  the 
Company  must  pay  fair  compensation. 

14. — After  signing  this  agreement,  the  Director-General  will,  within  three  months, 
instruct  a  representative  to  draft  a  set  of  the  Company's  Regulations  together  with  Messrs. 
Okura  &  Company,  preparatory  to  the  operation  of  the  Company.  This  set  of  articles  will 
be  handed  to  the  Director-General  for  perusal  and  for  forwarding  to  the  Governor. 

15. — This  Agreement  will  be  drawn  up  in  Chinese  and  Japanese.  In  case  of  dispute  the 
Chinese  version  will  be  held  to  rule.     There  will  be  five  copies   of  this  Agreement :   One 


NUMBER  1909/9 :  SEPTEMBER  4,  1909 :  NOTES  795 

copy  will  be  kept  at  the  Governor's  Yamen,  one  at  the  Bureau  of  Foreign  Affairs,  one  by 
Messrs.  Okura  &  Company,  one  at  the  Company's  Office,  and  one  at  the  Japanese  Consulate. 
Dated  May  22,  1910. 

Signatures: 

Han  Kuo  Chun, 

Comtnissioner  of  Foreign  Affairs. 
Hsiao  Chih  Chang  Tsao, 

Japanese  Consul. 
Okura  &  Company. 

Note  4. 

An  agreement  for  the  extension  of  the  Peking-Mukden  Line  was  signed  at  Mukden, 
September  2,   1911:   the   following  is  a  translation   from  the  Chinese  text: 

Agreement  for  Extension  of  Peking-Mukden  Railway  into  Mukden,  September  2,  191 1, 

"In  the  5th  clause  of  the  agreement  concluded  in  Peking  between  the  Chinese  and 
Japanese  Governments  on  the  20th  day  of  the  7th  moon,  1st  year  of  Hsuan  T'ung,  i.e.,  the 
4th  day  of_  September,  42nd  year  of  Meiji  (1909),  the  Mukden  station  of  the  Peking- 
Fengtien  {i.e.,  ]\Iukden)  Railway  Administration  is  to  be  removed  to  a  location  near  the 
city  wall.  Arrangements  have  now  been  made  between  the  representatives  of  the  two 
Powers  as  follows : 

"  1. — The  Japanese  Government  agrees  to  order  the  South  Manchuria  Railway  Com- 
pany to  raise  an  embankment  and  build  a  bridge  over  the  extension  of  the  Peking-Fengtien 
Line  at  the  point  of  intersection  of  these  two  lines. 

"The  extended  line  will  follow  the  red  dotted  lines  on  plan  (No.  1).  The  proposed 
station  must  be  built  within  one  mile  to  the  north  of  the  Small  West  Convenient  Gate. 

"2. — The  Chinese  Government  agrees  to  order  the  Peking-Fengtien  Railway  Admin- 
istration to  build  a  line  between  their  proposed  station  at  Fengtien  and  the  present  station 
of  the  South  INIanchuria  Railway  Company,  in  order  that  the  two  lines  may  make  good 
connections  and  for  the  convenience  of  extending  traffic. 

"  3. — The  extension  line  and  the  connecting  line  are  to  be  built  according  to  the  plan 
specified  in  the  estimate.  But  the  line  provided  for  in  Article  2,  which  is  within  the  South 
Manchuria  Railway  Company's  area,  will  be  built  and  supervised  by  the  South  Manchuria 
Railway  Company,  while  outside  of  the  said  area  the  connecting  line  will  be  built  and 
supervised  by  the  Peking-Fengtien  Railway  Administration. 

"  4. — The  Japanese  Government  agrees  to  order  the  South  Manchuria  Railway  Com- 
pany to  act  in  accordance  with  the  plan  (No.  2)  to  raise  an  embankment  and  build  a  bridge. 
This  will  necessitate  the  construction  of  a  temporary  track.  The  expenses  thus  incurred 
will  amount  to  yen  24,000  and  are  to  be  paid  by  the  Peking-Fengtien  Railway  Administra- 
tion to  the  South  Manchuria  Railway  Company  when  the  construction  is  completed. 

"  5. — The  construction  specified  in  clauses  three  and  four  must  be  completed  within 
three  months  from  the  date  of  the  signing  of  the  agreement. 

"6. — Any  of  the  trains  of  the  Peking-Fengtien  Railway  arriving  at  Mukden  (such  as 
through  and  express  trains),  which  make  connections  with  the  South  Manchuria  Railway 
Company's  line,  must  first  proceed  to  the  South  Manchuria  Railway  station  and  then  to 
the  City  Wall  station  by  the  connecting  line.  Any  trains  leaving  the  City  Wall  station 
which  connect  with  trains  of  the  South  Manchuria  Railway  Company  will  proceed  to  the 
South  ^Manchuria  Railway  Company's  station  over  the  connecting  line.  This  does  not 
apply  to  special  trains  and  freight  trains  which  do  not  need  to  make  connections  with  the 
trains  of  the  South  IManchuria  Railway. 

"  7. — With  regard  to  the  operation  of  the  connecting  trains,  together  with  signals,  etc. 
the  former  agreement  between  the  South  Manchuria  Railway  Company  and  the  Peking- 
Fengtien  Railway  Administration  concerning  the  connecting  service  is  to  be  adhered  to. 
Any  changes  made  in  the  future  must  be  made  by  mutual  agreement. 

"  8. — The  former  agreement  concerning  the  connecting  service  between  the  South  IMan- 
churia Railway  and  the  Peking-Fengtien  Railway  is  in  no  wise  affected  by  the  present 
agreement.  This  agreement  is  drawn  up  in  Japanese  and  Chinese  in  quadruplicate  and 
held  by  the  Ministry  of  Posts  and  Communications,  Foreign  Office  of  Mukden,  Japanese 
Consulate  General  at  Mukden,  and  the  South  Manchuria  Railway  Company. 

"  Signed  on  the  2nd  day  of  September  of  the  44th  year  of  Meiji  (1911)  by 

"  Hsij  T'ing  Ling, 
"Commissioner  for  Foreign  Affairs. 
"  Hsuan  To  Yu, 
"Engineer  of  the  Ministry  of  Posts  and  Communications. 

"  C.  Koike, 
"Japanese  Consul  General. 
"  Horizo  Korinoske." 


796  CHINA  TREATIES  AND  AGREEMENTS 

NUMBER  1909/10. 

JAPAN  AND  CHINA. 
Agreement  relating  to  the  Chientao  region."^ — September  4,  1909. 

The  Imperial  Government  of  Japan  and  the  Imperial  Government  of  China, 
desiring  to  secure  for  Chinese  and  Korean  inhabitants  in  the  frontier  regions  the 
blessings  of  permanent  peace  and  tranquility,  and  considering  it  essential  in 
the  attainment  of  such  desire  that  the  two  Governments  should,  in  view  of  their 
relations  of  cordial  friendship  and  good  neighborhood,  recognize  the  River 
Tumen  as  forming  the  boundary  between  China  and  Korea,  and  should  adjust 
all  matters  relating  thereto  in  a  spirit  of  mutual  accommodation,  have  agreed 
upon  the  following  stipulations: 

Art.  1. — The  Governments  of  Japan  and  China  declare  that  the  River 
Tumen  is  recognized  as  forming  the  boundary  between  China  and  Korea  and 
that  in  the  region  of  the  source  of  that  river  the  boundary  line  shall  start  from 
the  boundary  monument  and  thence  follow  the  course  of  the  stream  Shih- 
yishwei. 

Art.  2. — The  Government  of  China  shall,  as  soon  as  possible  after  the 
signing  of  the  present  agreement,  open  the  following  places  to  the  residence 
and  trade  of  foreigners,  and  the  Government  of  Japan  may  there  establish 
consulates  or  branch  offices  of  consulates.  The  date  of  the  opening  of  such 
places  shall  be  separately  determined:  Lungchingtsun ;  Chutszchie;  Toutaokou; 
Paitsaokou.f 

Art.  3.— The  Government  of  China  recognizes  the  residence  of  Korean 
subjects,  as  heretofore,  on  agricultural  lands  lying  north  of  the  River  Tumen. 
The  limits  of  the  district  for  such  residence  are  shown  in  the  annexed  map. 

Art.  4. — The  Korean  subjects  residing  on  agricultural  lands  within  the 
mixed  residence  district  to  the  north  of  the  River  Tumen  shall  submit  to  the 
laws  of  China,  and  shall  be  amenable  to  the  jurisdiction  of  the  Chinese  local 
officials.  Such  Korean  subjects  shall  be  accorded  by  the  Chinese  authorities 
equal  treatment  with  Chinese  subjects,  and  similarly,  in  the  matter  of  taxation 
and  all  other  administrative  measures,  they  shall  be  placed  on  equal  footing 
with  Chinese  subjects.  All  cases,  whether  civil  or  criminal,  relating  to  such 
Korean  subjects  shall  be  heard  and  decided  by  the  Chinese  authorities  in  accord- 
ance with  the  laws  of  China,  and  in  a  just  and  equitable  manner.  A  Japanese 
consular  officer  or  an  official  duly  authorized  by  him  shall  be  allowed  freely  to 
attend  the  court,  and  in  the  hearing  of  important  cases  concerning  the  lives  of 
persons,  previous  notice  is  to  be  given  to  the  Japanese  consular  officers.    When- 

*  Translation  from  the  Japanese  text,  as  printed  in  For.  Rel,  1909,  p.  119.  Printed 
also  in  Am.  Int.  Laxv  Journal,  Supplement,  1910,  p.  132.  Translation  from  Chinese  text 
printed  in  Customs,  vol.  IT,  p.  768. 

See  Note  to  this  document,  post,  p.  797. 

t  The  Chinese  Government  later  fixed  on  November  2,  1909,  as  the  date  for  the  open- 
ing of  all  these  ports. 


NUMBER  1909/10:  SEPTEMBER  4,  1909:  NOTE  797 

ever  the  Japanese  consular  officers  find  that  a  decision  has  been  given  in  disregard 
of  law,  they  shall  have  right  to  apply  to  the  Chinese  authorities  for  a  new  trial 
to  be  conducted  by  officials  specially  selected  in  order  to  assure  justice  of  the 
decision. 

Art  5. — The  Government  of  China  engages  that  land  and  buildings  owned 
by  Korean  subjects  in  the  mixed  residence  district  to  the  north  of  the  River 
Tumen  shall  be  fully  protected  equally  with  the  properties  of  Chinese  subjects. 
Ferries  shall  be  established  on  the  River  Tumen  at  places  properly  chosen,  and 
people  on  either  side  of  the  river  shall  be  entirely  at  liberty  to  cross  to  the  other 
side,  it  being,  however,  understood  that  persons  carrying  arms  shall  not  be 
permitted  to  cross  the  frontier  without  previous  official  notice  or  passports. 
In  respect  to  cereals  produced  in  the  mixed  residence  district,  Korean  subjects 
shall  be  permitted  to  export  them  out  of  the  said  district,  except  in  time  of 
scarcity,  in  which  case  such  exportation  may  be  prohibited.  Collection  of  fire- 
wood and  grass  shall  be  dealt  with  in  accordance  with  the  practice  hitherto 
followed. 

Art.  6. — The  Government  of  China  shall  undertake  to  extend  the  Kirin- 
Changchun  Railway  to  the  southern  boundary  of  Yenchi,  and  to  connect  it  at 
Hoiryong  (Hueining)  with  a  Korean  railway,  and  such  extension  shall  be  effected 
upon  the  same  terms  as  the  Kirin-Changchun  Railway.  The  date  of  commencing 
the  work  of  the  proposed  extension  shall  be  determined  by  the  Government  of 
China,  considering  the  actual  requirements  of  the  situation,  and  upon  consultation 
with  the  Government  of  Japan. 

Art.  7. — The  present  agreement  shall  come  into  operation  immediately  upon 
its  signature,  and  thereafter  the  Chientao  branch  office  of  the  Residency  General, 
as  well  as  all  civil  and  military  officers  attached  thereto  shall  be  withdrawn,  as 
soon  as  possible,  and  within  two  months.  The  Government  of  Japan  shall  within 
two  months  hereafter  establish  its  consulates  at  the  places  mentioned  in  Article  2. 

In  witness  whereof,  the  undersigned,  duly  authorized  by  their  respective 
Governments,  have  signed  and  sealed  the  present  agreement  in  duplicate,  in  the 
Japanese  and  Chinese  languages. 


Note. 

In  connection  with  this  agreement  see  also  the  detailed  agreement  for  the  Kirin- 
Ch'angch'un  Railway  Loan,  August  18,  1909  (No.  1909/7  ante)  :  Sino-Japanese  treaty  and 
Exchanges  of  notes  respecting  South  Manchuria  and  Eastern  Inner  Mongolia,  May  25, 
1915  (No.  1915/8,  post)  ;  and  Kirin-Hueining  Railway  Loan  Agreement  of  June  18,  1918 
(No.  1918/9,  post). 

As  an  annex  to  this  agreement,  see  the  following  Japanese  law  (No.  40)  relating  to 
adjudication  by  consular  officers  in  Kanto  (Chientao),  dated  April  5,  1910,  as  translated 
from  the  Japanese  Official  Gazette  of  April  6,  1910: 

Japanese  Law  relating  to  Adjudication  by  Consular  Officers  in  Chientao,  April  5,  1910. 

"  Article  1. — The  public  trial  of  offences  liable  to  capital  punishment,  or  penal  servi- 
tude for  life  or  for  a  limited  period  of  at  least  one  year,  or  imprisonment,  the  preliminary 
examination  of  which  has  been  conducted  by  consular  offi,cers  stationed  in  Kanto,  shall 
belong  to  the  jurisdiction  of  the  District  Courts  of  the  Residency  General  [i.e.,  of  Korea]. 

"  Article  2. — The  Minister  for  Foreign  Affairs  may,  if  he  deems  it  necessary  in  con- 
nection with  a  criminal  case  belonging  to  the  jurisdiction  of  consular  officers  stationed  in 
Kanto,  order  the  consular  officer  concerned  to  deliver  the  accused  to  a  prison  in  Korea. 


798  CHINA  TREATIES  AND  AGREEMENTS 

■■  Article  3. — In  cases  where,  in  accordance  with  the  provisions  of  the  preceding 
article,  the  accused  is  delivered  to  a  prison  in  Korea,  the  Resident  General  shall,  if  the 
case  belongs  to  the  jurisdiction  of  the  district  courts,  cause  a  public  procurator  of  the  Resi- 
dency General  Court  of  Appeal  having  jurisdiction  over  the  locality  where  the  prison  to 
which  the  accused  is  delivered  is  located  to  apply  to  such  court  of  appeal  for  the  designa- 
tion of  jurisdiction;  and,  if  the  case  belongs  to  the  jurisdiction  of  the  local  courts,  he 
shall  cause  a  public  procurator  of  the  Residency  General  District  Court  having  jurisdiction 
over  the  locality  where  the  prison  to  which  the  accused  is  delivered  is  located,  to  apply 
to  such  district  court  for  the  designation  of  jurisdiction. 

"  In  connection  with  the  application  and  adjudication  mentioned  in  the  preceding  para- 
graph, the  provisions  of  Article  33  of  the  Code  of  criminal  procedure  shall  be  appHed 
mutatis  mutandis. 

[Article  33  of  Japanese  Code  of  criminal  procedure:  "A  person  desirous  of  making 
a  motion  relative  to  the  designation  of  the  competent  Court  must  declare  his  intention  in 
writing  to  the  Court  competent  to  rule. 

'■  The  Court  must  decide  the  motion  according  to  the  documents."] 

"  Article  4. — Appeals  from  or  protests  against  decisions  rendered  by  consular  officers 
stationed  in  Kanto  in  cases  subject  to  the  jurisdiction  of  a  district  court  shall  belong  to  the 
jurisdiction  of  a  Court  of  Appeal  of  the  Residency  General. 

"  Article  5. — In  the  cases  mentioned  in  Articles  1  and  4,  the  Residency  General  Courts 
to  have  jurisdiction  shall  be  determined  by  the  Resident  General. 

"Supplementary  Clause. 

"  Lawsuits  and  non-contentious  matters  accepted  prior  to  the  enforcement  of  this  law 
shall  be  dealt  with  according  to  previous  practice." 


NUMBER  1909/11. 

FRANCE  AND  JAPAN. 

Convention  for  the  reciprocal  protection  of  trademarks,  patents,  designs  and 
copyrights  in   China.* — September  14,  1909. 

The  President  of  the  French  Republic  and  H.  M.  the  Emperor  of  Japan, 
desirous  to  secure  in  China  the  mutual  protection  of  inventions,  designs,  trade- 
marks and  copyrights  of  their  respective  citizens  or  subjects,  have  resolved  to 
conclude  a  convention  for  that  purpose  and  have  named  as  their  plenipotentiaries, 
that  is  to  say: 

The  President  of  the  French  Republic : 

M.  Auguste  Gerard,  Ambassador  of  the  French  Republic  to  His  Majesty  the 
Emperor  of  Japan,  and 

His  Majesty  the  Emperor  of  Japan: 

M.  le  Comte  Komura  Jutaro,  Minister  of  Foreign  Affairs. 

Who,  after  having  communicated  to  each  other  their  full  powers,  found  to 
be  in  good  and  due  form,  have  agreed  upon  the  following  articles : 

Article  I. — The  inventions,  designs  and  trademarks,  duly  patented  or 
registered  by  the  citizens  or  subjects  of  one  High  Contracting  Party  in  the 
appropriate  office  of  the  other  Contracting  Party,  shall  have,  in  all  parts  of  China, 
the  same  protection  against  every  infringement  by  the  citizens  or  subjects  of 

*  Translation  from  the  French  text. 


NUMBER  1909/11:  SEPTEMBER  14,  1909  799 

such  other  Contracting  Party  as  in  the  dominions  and  possessions  of  such  other 
Contracting  Party. 

Article  II. — The  citizens  or  subjects  of  each  of  the  two  High  Contracting 
Parties  shall  enjoy  in  China  the  protection  of  copyright  for  their  works  of  liter- 
ature and  art,  as  well  as  photographs,  to  the  same  extent  as  they  are  protected 
in  the  dominions  and  possessions  of  the  other  party. 

Article  III. — In  case  of  infringement  in  China,  by  a  citizen  or  subject  of 
one  of  the  two  High  Contracting  Parties  of  any  invention,  design,  or  trademark 
whatsoever,  or  of  the  violation  of  copyright,  entitled  to  protection  in  virtue 
of  this  convention,  the  aggrieved  party  shall  have  in  the  competent  territorial  or 
consular  courts  of  such  Contracting  Party  the  same  rights  and  remedies  as  citizens 
or  subjects  of  such  Contracting  Party. 

Article  IV. — Each  of  the  High  Contracting  Parties  engages  to  extend  to 
China  the  treatment  which  the  citizens  or  subjects  of  the  other  Contracting 
Party  enjoy,  in  the  matter  of  protection  of  their  commercial  names,  in  the 
dominions  and  possessions  of  such  Contracting  Party  under  the  Convention  for 
the  Protection  of  Industrial  Property,  signed  at  Paris,  March  20,  1883.  "  Hong  " 
marks  shall  be  considered  to  be  commercial  names,  as  regards  the  effect  of  the 
present  convention. 

Article  V. — Citizens  of  possessions  belonging  to  the  French  Republic  and 
subjects  of  Korea  shall  have,  in  China,  the  same  treatment,  under  the  present 
convention,  as  citizens  of  the  French  Republic  and  subjects  of  Japan  respectively. 

Article  VI. — It  is  mutually  agreed  between  the  High  Contracting  Parties 
that  the  effect  of  the  present  convention  shall  be  extended,  in  the  measure  in 
which  it  is  applicable,  to  every  other  country  where  each  of  them  shall  have 
rights  of  extraterritorial  jurisdiction.  All  the  rights  resulting  from  the  present 
convention  shall  be  recognized  in  the  insular  and  other  possessions  and  in  the 
leased  territories  of  the  High  Contracting  Parties,  and  all  the  legal  means  provided 
for  the  protection  of  the  said  rights  shall  be  duly  applied  by  the  competent 
tribunals. 

Article  VII. — Every  person  to  whom  the  provisions  of  this  convention  are 
applicable,  who,  at  the  moment  in  which  the  present  convention  shall  take  effect, 
possesses  merchandise  bearing  the  imitation  of  a  trademark  owned  by  another 
person  and  entitled  to  protection  by  virtue  of  said  convention,  shall  remove  or 
cancel  such  false  trademark  or  withdraw  such  merchandise  from  the  Chinese 
market  within  a  period  of  six  months  from  the  date  of  the  enforcement  of  this 
convention. 

Article  VIII. — The  unauthorized  reproductions,  made  by  the  citizens  or 
subjects  of  one  of  the  High  Contracting  Parties,  prior  to  the  operation  of  this 
convention,  of  works  of  literature  and  art,  as  well  as  photographs,  of  the  citizens 
or  subjects  of  the  other  Contracting  Party  entitled  to  protection  in  virtue  of 
this  convention,  shall  be  withdrawn  from  sale  or  circulation  in  China  within  one 
year  from  the  date  of  the  enforcement  of  this  convention. 

Article  IX. — The  present  convention  shall  be  ratified,  and  the  ratifications 
thereof  shall  be  exchanged  at  Tokio  as  soon  as  possible.  It  shall  come  into  force 
ten  days  after  the  exchange  of  ratifications. 


800  CHINA  TREATIES  AND  AGREEMENTS 

In  witness  whereof,  the  respective  plenipotentiaries  have  signed  the  present 
convention  in  dupHcate,  in  the  French  and  Japanese  languages,  and  have  thereunto 
affixed  their  seals. 

Done  at  Tokio,  the  14th  day  of  September  in  the  nineteen  hundred  and  ninth 
year  of  the  Christian  era,  corresponding  to  the  14th  day  of  the  ninth  month  of  the 
forty-second  year  of  Meiji. 

(l.  s.)    (Signed)     A.  Gerard. 

(l.  s.)    (Signed)     Jutaro  Komura, 

In  proceeding  to  the  signature  of  the  convention  of  to-day's  date  relative  to 
the  reciprocal  protection  in  China  of  inventions,  designs,  trademarks  and  copy- 
rights the  undersigned  plenipotentiaries,  duly  authorized  by  their  respective 
Governments,  declare  that  it  is  understood  that  the  first  paragraph  of  Article  VI 
of  the  said  convention  is  not  applicable  to  Korea. 
Done  at  Tokio,  the  14th  September,  1909. 

(Signed)     A.  Gerard. 
(Signed)     Jutaro  Komura 


NUMBER  1909/12. 

GREAT   BRITAIN    (Pauling  &   Company),   UNITED    STATES    (American 

Group)  AND  CHINA. 

Preliminary  agreement  providing  for  the  financing,  construction  and  operation 
of  the  railway  from  ChincJiou  to  Aigiin* — October  2,  1909. 

This  Preliminary  Agreement  to  provide  for  the  financing,  construction  and 
operation  of  the  Railway  from  Chinchou  to  Aigun  is  made  between  their  ex- 
cellencies the  viceroy  of  Manchuria  and  the  governor  of  Fengtien,  hereinafter 
called  the  administration,  of  the  one  part,  and  the  American  group  and  its  asso- 
ciates (such  associates  to  be  admitted  to  participation  with  the  full  consent  of,  and 
to  the  extent, — not  more  than  forty  per  cent  of  the  whole, — to  be  determined 
by  the  Chinese  Government),  hereinafter  called  the  banks,  and  Pauling  &  Co., 
hereinafter  called  the  Contractors,  of  the  other  part: 

Now  it  is  hereby  mutually  agreed  by  and  between  the  parties  hereto  as 
follows : 

I. — The  administration  engages  to  borrow  from  the  bank  the  sum  necessary 
to  construct  the  railway  from  Chinchou  to  Aigun.  The  rate  of  interest  for  this 
loan  shall  not  exceed  5  per  cent  per  annum,  and  the  terms  of  issue,  which  shall  be 
the  most  favorable  obtainable,  and  the  other  details  of  procedure  shall  be  arranged 
in  a  mutually  satisfactory  manner. 


*  Text  as  printed  in  For.  Rcl.,  1910,  p.  232.    See  Note  to  this  document,  post,  p. 


802. 


NUMBER  1909/12 :  OCTOBER  2,  1909  801 

The  payment  of  interest  and  amortization  of  this  loan  shall  be  guaranteed 
by  the  Imperial  Chinese  Government  and  the  security  therefor  shall  be  the  railway 
line. 

Interest  payments  and  amortization  shall  be  met  by  the  receipts  of  the  rail- 
way or  the  proceeds  of  the  loan,  and  if  these  be  insufficient,  by  Manchurian 
revenues  as  may  hereafter  be  selected  by  the  administration  and  the  bank  in  a 
manner  to  be  mutually  satisfactory. 

The  first  bond  issue  shall  be  for  the  amount  necessary  for  the  construction 
and  equipment  of  the  railway  between  Chinchou  and  Tsitsihar.  The  second  shall 
be  for  the  construction  and  equipment  of  the  railway  between  Tsitsihar  and 
Aigun. 

An  equitable  arrangement  shall  be  made  for  the  redemption  of  the  bond 
issue  by  the  board  of  communications  prior  to  the  expiration  of  their  term. 

II. — The  administration  agrees  to  contract  with  the  contractors  for  the  con- 
struction and  equipment  of  this  road.  The  contractors  engage  to  build  and 
equip  the  line  using  the  best  possible  materials  on  the  cheapest  possible  terms. 

The  detailed  terms  and  conditions,  etc.,  shall  be  arranged  hereafter  iri  a 
manner  that  shall  be  mutually  satisfactory. 

III. — On  equal  terms  Chinese  materials  shall  be  given  the  preference.  If 
however  Chinese  materials  are  not  available  recourse  shall  be  had  to  other  markets. 

The  administration  shall  be  liable  to  the  contractors  only  for  the  contract 
price  of  the  railway  and  it  is  clearly  understood  that  no  commission  shall  be 
paid  on  the  purchase  of  materials. 

IV. — During  the  construction  of  this  railway  the  appointment  of  the  chief 
engineer  shall  be  vested  in  Pauling  &  Co.  but  this  appointment  must  be  approved 
by  the  president  of  the  railway  company  to  be  designated  by  the  Imperial  Chinese 
Government.  The  chief  engineer  shall  be  under  the  control  of  the  Board  of 
Communications  and  the  Railway  Company. 

V. — As  the  work  of  construction  is  completed  section  by  section  the  railway 
shall  be  operated,  during  the  currency  of  the  loan,  by  a  company  which  shall  be 
under  the  control  of  the  board  of  communications.  If  after  the  payment  of 
interest  and  amortization  charges,  and  operating  expenses,  there  be  a  surplus 
the  railway  company  shall  receive  10  per  cent  thereof. 

VI. — The  company  shall  be  composed  of  Chinese,  Americans  and  British 
as  may  be  hereafter  arranged,  the  Chinese  to  have  a  majority  interest  in  the 
control,  but  under  no  circumstances  shall  persons  of  any  other  nationality  than 
those  herein  mentioned  have  any  voice  in  the  management  or  control  of  the 
company  without  the  full  permission  of  the  Imperial  Chinese  Government. 

The  company  shall  have  as  its  president  a  high  official  appointed  by  the 
Imperial  Chinese  Government.  The  other  details  of  organization  shall  be 
subsequently  arranged  in  a  mutually  satisfactory  manner. 

VII. — This  railway  company  is  to  be  organized  by  Chinese,  American  and 
British  interests.  It  is  recognized  however  that  this  line  is  constructed  in  Chinese 
territory  for  commercial  purposes  and  in  case  of  war  may  be  used  only  for  the 
transportation  of  Chinese  troops  and  munitions  of  war. 

VIII. — This  preliminary  agreement  is  signed  by  their  excellencies  the  viceroy 


802  CHINA  TREATIES  AND  AGREEMENTS 

of  Manchuria  and  the  governor  of  Fengtien  with  the  bank  and  the  contractors 
subject  to  approval  by  imperial  edict,  without  which  it  shall  be  null  and  void. 

IX. — In  case  certain  portions  of  this  agreement  are  characterized  as  unaccept- 
able by  the  imperial  edict  or  in  case  the  administration  finds  on  further  considera- 
tion that  there  are  certain  unsatisfactory  provisions  therein,  these  clauses,  to 
which  exception  has  been  taken,  shall  be  revised  in  the  detailed  agreements  in  a 
manner  which  shall  be  satisfactory  to  all  parties. 

X. — This  agreement  is  executed  in  triplicate  in  English  and  Chinese,  one 
set  to  be  retained  by  their  excellencies  the  viceroy  of  Manchuria  and  the  governor 
of  Fengtien,  one  set  by  the  American  group,  and  one  set  by  Pauling  &  Co.  In 
case  there  be  any  misunderstanding  arising  from  a  difference  between  the  English 
and  Chinese  texts  the  matter  shall  be  settled  by  a  mutually  satisfactory  arrange- 
ment. 

Signed  at  Mukden  by  the  contracting  parties  this  nineteenth  day   of  the 
eighth  moon  of  the  first  year  of  the  Emperor  Hsuan  Tung,  being  the  2d  day  of 
October  of  the  Year  1909  of  the  western  calendar. 
(Signed) 

The  Viceroy  of  Manchuria  and  the 
Governor  of  Fengtien. 
(Signed)  For  J.  P.  Morgan  and  Company, 
kuhn,  loeb  and  company, 
The  First  National  Bank, 
The  National  City  Bank  of  New  York, 
Constituting  the  American  Group, 
WiLLARD  D.  Straight, 

Agent. 
(Signed)   For  Pauling  and  Company, 

FRENCH,  per  W.  D.  S. 

Agent. 


Note. 

The  imperial  edict  of  approval,  contemplated  by  Article  VIII  of  the  agreement,  was 
issued  on  January  21,  1910,  but  no  detailed  agreement  in  pursuance  of  this  preliminary 
agreement  has  yet  been  concluded. 

For  the  protests  made  in  behalf  of  other  nationalities  against  this  agreement,  see 
The  Forum,  July,  1910,  pp.  74-83. 

In  connection  with  this  agreement,  see  the  memorandum  of  agreement  between  the 
American  group  and  Pauling  &  Co.,  as  follows : 

Memorandum  of  Agreement  between  the  American  Group  and  Pauling  &  Company, 

October  6,  1909. 

In  addition  to  the  provisions  of  the  Preliminary  Agreement  with  Their  Excellencies, 
the  Viceroy  of  Manchuria  and  the  Governor  of  Fengtien  for  the  financing,  construction, 
and  subsequent  operation  of  the  Railway  from  Chinchou  to  Aigun  to  which  the  American 
Group  as  well  as  Pauling  and  Company  are  parties. 

It  is  agreed  as  between  the  American  Group  and  Pauling  and  Company  that : 
I. — Since  it  may  be  necessary  for  the  American  Group  in  making  its  financial  arrange- 
ments with  the  Chinese  Government  to  furnish  funds  on  terms  ensuring  a  margin  of 
profit  _  not  commensurate  with  the  risks  involved,  Pauling  and  Company  will  give  the 
American  Group  not  less  than  2^/4  per  cent,  of  the  contract  price  for  both  sections  of  the 
railway  referred  to,  such  percentage  to  be  paid  on  the  completion  of  the  entire  road. 


NUMBER  1910/1 :  JULY  4,  1910  803 

II. — At  least  one-half  of  the  materials  and  equipment  purchased  in  Europe  and  America 
shall  be  American. 

III. — In  view  of  the  fact  that  upon  completion  the  railway  will  be  operated  by  a  Com- 
pany in  which  the  American  Group  as  well  as  Pauling  and  Company  will  be  equally  inter- 
ested (unless  otherwise  arranged  to  the  satisfaction  of  both  parties),  certain  American 
engineers  to  be  recommended  by  the  American  Group  shall  be  employed  by  Pauling  and 
Company  during  the  period  of  construction. 

IV. — All  other  details  necessary  to  secure  proper  cooperation  between  the  parties  to 
this  Agreement  shall  be  arranged  upon  a  mutually  satisfactory  basis. 

V. — Any  revision  of  the  above  stipulations,  if  such  be  found  necessary,  shall  be  made 
by  mutual  agreement. 

Signed  in  duplicate  at  Peking  this  sixth  day  of  October  One  Thousand  Nine  Hun- 
dred and  Nine. 

For  J.  P.  -Morgan  and  Company,  . 
Kuhn,  Loeb  and  Company, 
The  First  X'ational  Bank, 
The  National  City  Bank  of  New  York, 
constituting  the  American   Group, 

(Signed)  W.  Str.'^ight. 

Agent. 
Subject  to   ratification  by  my  principals. 

For  Pauling  and  Company, 

(Signed)  ffrench. 

Agent. 
Subject   to   ratification   by    my   principals. 


NUMBER  1910/1. 

JAPAN  AND  RUSSIA. 
Convention  in  regard  to  Manchuria.* — July  4,  1910. 

The  Imperial  Government  of  Russia  and  the  Imperial  Government  of  Japan, 
sincerely  attached  to  the  principles  established  by  the  convention  concluded  be- 
tween them  July  17/30,  1907,  and  desiring  to  develop  the  results  of  that  con- 
vention w^ith  a  view  to  the  consolidation  of  peace  in  the  Far  East,  have  agreed  to 
complete  the  said  arrangement  by  the  following  agreements : 

Art.  I. — For  the  purpose  of  facilitating  the  communications  and  developing 
the  commerce  of  the  nations,  the  two  High  Contracting  Parties  engage  mutually 
to  lend  each  other  their  friendly  cooperation  with  a  view  to  the  improvement  of 
their  respective  lines  of  railroad  in  Manchuria,  and  to  the  perfecting  of  the 
connecting  service  of  the  said  railways,  and  to  refrain  from  all  competition 
unfavorable  to  the  attainment  of  this  result. 

Art.  II. — Each  of  the  High  Contracting  Parties  engages  to  maintain  and  to 
respect  the  status  quo  in  Manchuria  as  it  results  from  all  the  treaties,  conven- 
tions or  other  arrangements  hitherto  concluded,  either  between  Russia  and  Japan 

*  Translation  from  the  official  French  text  as  printed  in  the  Russian  Government  Mes- 
senger of  July  1/14,  1910. 

Other  translations  printed  in  F.  E.  Review,  vol.  VII,  p.  89,  and  Am.  Int.  Law  Journal, 
Supplement,  1910,  p.  279. 

See  Note  to  this  document,  post,  p.  804. 


804  CHINA  TREATIES  AND  AGREEMENTS 

or  between  these  two  Powers  and  China.    Copies  of  the  aforesaid  arrangements 
have  been  exchanged  between  Russia  and  Japan. 

Art.  III. — In  case  any  event  of  such  a  nature  as  to  menace  the  above- 
mentioned  status  quo  should  be  brought  about,  the  two  High  Contracting  Parties 
will  in  each  instance  enter  into  communication  with  each  other,  for  the  purpose 
of  agreeing  upon  the  measures  that  they  may  judge  it  necessary  to  take  for  the 
maintenance  of  the  said  status  quo. 

In  faith  of  which  the  undersigned,  duly  authorized  by  their  respective 
Governments,  have  signed  this  convention  and  set  their  seals  thereto. 

Done  at  St.  Petersburg,  June  21  (July  4),  1910,  corresponding  to  the  4th 
day  of  the  7th  month  of  the  forty-third  year  of  Meiji. 

(Signed)  Iswolsky  (Signed)  Motong 

(l.s.)  (l.s.) 


Note. 

In  connection  with  this  convention,  see  the  Treaty  of  peace  between  Japan  and  Russia, 
September  5,  1905  (No.  1905/8,  ante),  and  the  treaty  between  Japan  and  China,  Decem- 
ber 22  1905  (No.  1905/18,  ante)  :  see  also  the  Russo-Japanese  political  conventions  of 
July  30,  1907  (No.  1907/11,  ante),  and  July  3,  1916  (No.  1916/9,  post). 

The  following  is  the  translation  (as  printed  in  Am.  Int.  Law  Journal,  Supplement, 
1910,  p.  279)  of  the  note  addressed  by  the  Chinese  Government  to  the  several  Powers  in 
reference  to  this  convention,  under  date  of  July  21,  1910: 

"  The  Imperial  Government  having  carefully  perused  the  new  Russo-Japanese  Conven- 
tion, concluded  on  July  4,  1910,  copies  of  which  were  handed  to  the  Wai-wu-pu  by  the 
Russian  and  Japanese  Ministers,  the  following  acknowledgment,  dated  July  21,  has  been 
sent  to  them : 

" '  Since  the  convention  expressly  states  that  each  of  the  high  contracting  parties  engage 
to  respect  and  maintain  the  treaties,  conventions,  and  other  arrangements  concluded  between 
China  and  Japan,  between  China  and  Russia,  and  between  Japan  and  Russia,  it  therefore 
accords  with  and  confirms  the  principles  of  the  engagements  made  between  Japan  and 
Russia  by  the  Treaty  of  Peace  in  1905,  and  those  of  the  Treaty  and  Agreement  made 
between  China  and  Japan  relating  to  matters  m  the  three  eastern  provinces.  For  by  Article  3 
of  the  Russo-Japanese  Treaty  of  Peace,  Russia  and  Japan  mutually  engage  to  restore  entirely 
and  completely  to  the  exclusive  administration  of  China  all  portions  of  Manchuria,  and 
declare  that  the  Imperial  Governments  have  not  in  Manchuria  any  territorial  advantages 
or  preferential  or  exclusive  concessions  in  impairment  of  Chinese  sovereignty,  or  incon- 
sistent with  the  principle  of  equal  opportunity ;  and  by  Article  4  Japan  and  Russia  recip- 
rocally engage  not  to  obstruct  any  general  measures  common  to  all  countries  which  China 
may  take  for  the  development  of  the  commerce  and  industry  of  Manchuria.  In  the  same 
year  Japan  and  China  named  their  plenipotentiaries,  and  agreed  upon  and  concluded  Articles 
at  Peking,  based  upon  the  Treaty  of  Peace  concluded  at  Portsmouth,  and  relating  to  mat- 
ters in  the  three  Manchurian  provinces,  whereby  the  opening  of  Manchuria  becomes  an 
accomplished  fact. 

" '  The  Imperial  Government  will  therefore  in  the  future  act  in  accordance  with  the  prin- 
ciples declared  in  the  Russo-Japanese  Treaty  of  Peace,  and  execute  the  provisions  of  the 
Treaty  and  Agreement  with  Japan,  maintaining  with  increased  efforts  such  matters  as 
measures  arising  from  the  exercise  of  China's  rights  of  sovereignty,  the  principle  of  equal 
opportunity,  and  the  development  of  the  commercial  and  industrial  prosperity  of  the  three 
Manchurian  provinces,  with  a  view  to  the  promotion  of  the  best  interests  of  all  parties.' 

"  A  copy  of  the  above  acknowledgment  has  been  presented  to  the  governments  of  all  the 
countries  with  which  China  enjoys  treaty  and  diplomatic  relations." 


NUMBER  1910/2:  AUGUST  4,  1910  805 


NUMBER  1910/2. 

BELGIUM  (Banque  Sino-Belge),  FRANCE  (Banque  de  I'lndo-Chine), 
GERMANY  (Deutsch-Asiatische  Bank),  GREAT  BRITAIN  (Chartered 
Bank  of  India,  Australia  and  China,  and  Hongkong  and  Shanghai  Banking 
Corporation),  JAPAN  (Yokohama  Specie  Bank),  RUSSIA  (Russo-Chinese 
Bank),  THE  NETHERLANDS  (Netherlands  Trading  Society),  THE 
UNITED  STATES   (International  Banking  Corporation)   ANd' CHINA. 

Agreement  for  a  loan  of  tads  3,500,000  to  the  Shanghai  Taofai. — August  4,  1910. 

This  agreement  made  between  His  Honour  Tsai  Nai-Hwang  Taotai  of 
Shanghai  for  himself  and  his  successors  hereinafter  called  the  Taotai  of  the  one 
part  and  the 

Hongkong  &  Shanghai  Banking  Corporation, 

Chartered  Bank  of  India,  Australia  &  China, 

Deutsch-Asiatische  Bank, 

Russo-Chinese  Bank, 

Yokohama  Specie  Bank, 

Banque  de  ITndo-Chine, 

International  Banking  Corporation, 

Netherlands  Trading  Society, 

Banque  Sino-Belge, 
hereinafter  called  the  Banks  of  the  other  part, 
WITNESSETH  AS  FOLLOWS : 

1. — The  Banks  agree  to  lend  to  the  Taotai  and  the  Taotai  contracts  to  borrow 
from  the  Banks  the  sum  of  Tls.  3,500,000  Shanghai  Sycee  (Taels  Three  million 
Five  Hundred  Thousand  Shanghai  Sycee)  payment  and  repayment  of  the  same 
to  be  made  in  Shanghai  in  Taels  of  Shanghai  Sycee.  The  proceeds  of  the  Loan 
will  be  applied  in  the  first  place  to  the  payment  of  Native  Bank  Orders  in  the 
hands  of  the  Banks  issued  by  the  Cheng  Yuan,  Chien  Yii  and  Chao  Kang  Banks 
totalling  Tls.  1,399,529.41  as  per  list  handed  to  the  Chinese  Chamber  of  Commerce 
and  later  checked  and  adjusted  by  Messrs.  Shao  Gin  Tow  and  J.  C.  Ferguson  on 
behalf  of  the  Taotai,  and  in  the  second  place  to  ensure  the  prompt  payment  by 
the  above  named  Native  Banks  and  other  Native  Banks  of  dishonoured  Native 
Orders  still  in  the  hands  of  the  Banks  or  foreign  firms,  and  further,  to  render 
assistance  to  the  Native  money  market  in  order  to  restore  confidence  generally. 

2. — His  Excellency  Chang  Ren-tsing,  Viceroy  of  the  Liang  Kiang  at  Nan- 
king, has  reported  in  a  Memorial  to  the  Throne  the  Taotai's  proposals  to  borrow 
the  above  sum  of  Tls.  3,500,000  from  the  Banks  and  the  purpose  for  which  the 
money  is  to  be  used.  An  Imperial  Edict  sanctioning  His  Honour  the  Taotai's 
proposals  has  been  communicated  by  the  Wai  Wu  Pu  to  the  Legations  concerned. 

3. — The  above  sum  of  Tls.  3,500,000  is  lent  by  the  Banks  in  the  following 
proportions :— 


806  CHINA  TREATIES  AND  AGREEMENTS 

Hongkong  &  Shanghai  Banking  Corporation   Tls.  8       lacs, 

Chartered  Bank  of  India,  AustraHa  &  China   Tls.  5       lacs, 

Deutsch-Asiatische  Bank Tls.  5       lacs, 

Russo-Chinese   Bank    Tls.  4       lacs, 

Yokohama    Specie    Bank    Tls.  3       lacs, 

Banque    de    ITndo-Chine    Tls.  3       lacs, 

International  Banking  Corporation Tls.  3       lacs, 

Netherlands  Trading  Society    Tls.  2^  lacs, 

Banque  Sino-Belge Tls.  1  >4  lacs. 

4. — The  Taotai  shall  hand  to  the  Banks  not  later  than  ten  days  after  date  of 
this  Agreement,  Bonds  in  Shanghai  Taels  of  the  total  amount  of  the  Loan,  viz : — 
Shanghai  Tls.  3,500,000. — sealed  with  the  Official  Seal  of  the  Taotai,  as  evidence 
that  he  and  his  successors  are  bound  thereby.  The  form  and  amount  of  the 
Bonds  shall  be  settled  by  the  Banks  in  consultation  with  the  Taotai. 

5. — In  view  of  this  money  being  lent  by  the  Banks  in  the  interests  of  the 
trade  of  Shanghai  the  Banks  have  fixed  the  rate  of  interest  at  4%  per  annum 
to  be  payable  half  yearly  from  the  date  of  this  agreement.  The  principal  shall 
be  repaid  in  four  weekly  instalments  in  1915  as  follows : — 

Tls.  875,000  on  or  before  the  14th  July,  1915 

Tls.  875,000  on  or  before  the  21st  July,  1915 

Tls.  875,000  on  or  before  the  28th  July,  1915 

Tls.  875,000  on  or  before  the  4th  August,  1915 
completing  full  repayment  on  the  4th  August,  1915. 

Bonds  for  the  amount  repaid  shall  be  returned  to  the  Taotai  for  cancellation. 

Interest  on  above  instalments  will  be  allowed  for  at  the  rate  of  4%  per 
annum. 

6. — The  Taotai  of  Shanghai  for  himself  and  his  successors  hereby  uncon- 
ditionally guarantees  and  declares  himself  responsible  for  the  due  repayment 
of  the  principal  and  payment  of  interest  on  this  Loan. 

7. — Twenty-one  copies  of  this  Agreement  are  executed  in  English  and 
Chinese,  one  copy  to  be  retained  by  the  Viceroy,  one  by  the  Governor  at  Soochow, 
one  by  the  Wai  Wu  Pu,  one  by  the  Taotai,  nine  by  the  Banks,  and  eight  by  the 
Legations  concerned. 

In  the  event  of  any  question  arising  as  to  the  meaning  of  this  contract  the 
English  text  shall  rule. 

Signed  at  Shanghai  by  the  contracting  parties  this  Twenty-ninth  Day  of 
the  Sixth  Month  of  the  Second  Year  of  the  Emperor  Hsuan  Tung  being  the 
Fourth  Day  of  August  Nineteen  Hundred  and  Ten  Western  Calendar. 

[Here  follow  signatures  in  behalf  of 
the  Banks] 

[Chinese  Seal] 


NUMBER  1910/3 :  AUGUST  8,  1910  807 

NUMBER  1910/3. 

RUSSIA  AND  CHINA. 

Memorandum  of  agreement  concerning  the  provisional  Siingari  River  trade 
Regulations,  the  provisional  regulations  of  the  Harbin  River  customs,  the 
Sansing   customs,   and   the   Lahasusu   customs   barrier* — August   8,   1910. 

According  to  the  terms  of  the  18th  Article  of  the  Russo-Chinese  treaty  of 
the  7th  year  of  Kuang  Hsii  (1881)t  the  Chinese  Board  of  Foreign  Affairs  and 
the  Russian  Legation  at  Peking  have  mutually  agreed  upon  the  following 
memorandum : 

Article  I. — The  provisional  regulations  %  relating  to  the  inspection  of  vessels 
navigating  the  Sungari  River  and  of  goods  imported  and  exported,  which  are 
attached  to  this  memorandum,  are  hereby  approved  and  copies  of  the  same  have 
been  drawn  up  in  Chinese,  Russian,  and  English,  and  signed  by  duly  authorized 
Chinese  and  Russian  officials  who  attest  their  accuracy.  If  any  doubt  should 
in  future  arise  as  to  their  accuracy  the  English  text  will  be  taken  as  authoritative. 
(Note:  Whenever  allusion  is  made  in  the  regulations  to  the  Chinese  boundary 
or  to  the  Russian  boundary  (zone  of)  one  hundred  li  or  fifty  versts,  this  shall  be 
understood  to  refer  to  the  boundary  between  the  Chinese  and  Russian  Empires.) 

Article  II. — Within  three  weeks  after  the  signing  of  this  memorandum 
the  regulations  referred  to  in  Article  I  shall  be  published  and  put  into  operation 
by  the  Harbin  commissioner  of  customs. 

Article  III. — During  the  time  when  the  said  regulations  are  in  force  if  any 
additions  or  alterations  are  to  be  made,  and  if  special  rules  have  to  be  published 

*  Translation  from  the  Chinese  text.  Another  translation  is  printed  in  Customs,  vol.  I, 
p.  280.  The  English  text  of  the  provisional  regulations,  annexed  to  the  agreement,  is 
that  of  the  Harbin  customs  notification  of  August  23,  1910  (reprinted  in  Customs,  vol.  I, 
p.  282),  which  also  gives  the  Chinese  and  Russian  texts.  A  Russian  text  is  also  printed  in 
Soglashenia,  p.  102. 

In  connection  with  this  agreement,  see  also  the  experimental  regulations  for  the  estab- 
lishment of  customs  houses  in  Manchuria,  July  8,  1907   (No.   1907/10,  ante). 

fFor  the  text  of  the  St.  Petersburg  treaty  of  1881,  see  Customs,  vol.  I,  p.  168,  or 
Hertslct,  p.  483. 

$The  regulations  thus  agreed  upon  were  published  in  a  Customs  notification  (No.  18) 
issued  by  the  commissioner  of  customs  at  Harbin  on  August  23,  1910,  and  became  effective 
August  29,  1910,  in  substitution  for  those  which  had  been  in  force  since  July  1,  1909,  in 
accordance  with  the  Customs  notification   (No.  5)  issued  on  June  26,  1909. 

By  a  notification  (No.  li)  of  May  19,  1914,  the  commissioner  at  Harbin  gave  notice, 
"  in  accordance  with  instructions  received  from  the  Inspector  General  of  customs,  that  the 
said  Provisional  Regulations  will  continue  in  force  until  the  question  of  their  revision  shall 
have  been  settled  by  the  Governments  of  China  and  Russia.  From  the  7th  August  next, 
however,  they  will  be  modified  to  the  extent  required  by  the  abolition  of  the  Russo-Chinese 
frontier  Free  Zone."  The  commissioner  had  under  date  of  May  6,  1914  (No.  72),  given 
notice  that  "  the  Chinese  Government  also  has  now  decided  on  the  abolition  of  the  Free 

Zone Accordingly,  all  goods  sent  from  China  to  places  in  the  former  Russian 

Free  Zone,  as  well  as  all  goods  imported  from  Russia  to  places  in  the  former  Chinese  Free 
Zone,  will  be  liable  to  Customs  Duty  and  treated  in  the  same  way  as  ordinary  Exports  and 
Imports.    ..." 

In  further  reference  to  the  abolition  of  the  free  zone,  see  Note  2  (on  page  650)  to 
the  Experimental  Regulations  for  the  establishment  of  customs  houses  in  Northern  Man- 
churia, July  8,  1907  (No.  1907/10,  ante). 


808  CHINA  TREATIES  AND  AGREEMENTS 

whether  new  or  extended  to  apply  to  the  Sungari  River,  China  and  Russia  will 
take  action  after  mutual  consultation. 

Article  IV. — As  the  Chinese  customs  station  will  be  established  at  the 
port  of  Harbin  within  the  territory  of  the  Chinese  Eastern  Railway  it  is  mutually 
agreed  that  if  in  future  there  shall  be  important  matters  requiring  mutual  con- 
sultation no  precedent  shall  be  established  (for  other  localities). 

Article  V. — All  materials  required  for  construction  and  maintenance  by  the 
Chinese  Eastern  Railway  shall  be  passed  free  of  duty  by  all  customs  offices  on 
the  Sungari  River.  The  articles  required  for  the  railway  guards  shall  be 
included  in  the  above. 

Article  VI. — If  foodstuffs  are  shipped  in  boats  by  the  Sungari  River  to 
Harbin  for  direct  export  to  foreign  countries  whether  in  bags  or  loose,  whether 
transferred  directly  from  the  boats  to  the  railway  cars  or  temporarily  stored 
at  the  Chinese  customs  house,  or  in  the  warehouses  under  the  control  of  the 
Chinese  Eastern  Railway,  or  in  warehouses  under  the  control  of  the  Chinese 
customs,  when  these  goods  pass  the  branch  customs  stations  of  ]\Ian-chou-li  or 
Sui-fen-ho,  they  shall  be  exempt  from  a  second  payment  of  export  duty.  The  exact 
method  of  procedure  shall  be  agreed  upon  between  the  commissioner  of  customs  at 
Harbin  and  the  Chinese  Eastern  Railway  Administration  within  the  present  year. 
All  foodstuffs  from  the  river  directly  exported  without  storing  in  warehouses 
will  pay  the  proper  export  duty  either  at  Man-chou-li  or  at  the  Sui-fen-ho 
branch  customs  station.  But  if  after  the  arrival  of  the  goods  at  Harbin,  they  are 
stored  at  the  customs  station,  or  in  the  warehouses  conrolled  by  the  Chinese 
customs,  or  in  the  warehouses  controlled  by  the  Chinese  Eastern  Railway,  they 
shall  pay  duties  on  being  landed  at  the  Port  of  Harbin.  On  all  goods  from 
the  Sungari  region  having  through  bills  of  lading  for  exportation  at  Man- 
chou-li  or  Sui-fen-ho  any  excess  export  duty  shall  be  returned  according  to 
the  regulations  in  force  at  Man-chou-li  and  Sui-fen-ho,  regardless  of  whether  the 
goods  have  or  have  not  been  detained  at  Harbin.  But  it  is  noted  that  up  to 
the  present  there  have  been  no  such  goods  and  therefore  it  is  proper  to  wait  for 
further  investigation  of  the  facts.  If  there  are  any  such  goods,  the  commissioner 
of  customs  and  the  Chinese  Eastern  Railway  administration  will  determine 
the  method  of  procedure. 

Article  VII. — All  the  goods  specified  in  Article  14  of  the  Regulations  for 
the  land  Traffic,  appended  to  the  St.  Petersburg  treaty  of  1881  shall  be  exempt 
from  the  payment  of  duty  at  the  customs  stations  of  the  Sungari  River  in 
accordance  with  the  provisional  regulations  in  force  at  Man-chou-li  and 
Sui-fen-ho. 

Article  VIII. — Up  to  the  end  of  the  present  term  for  navigation  tonnage 
dues  shall  be  collected  as  before.  From  the  time  when  the  monthly  tonnage 
statements  for  the  use  of  the  shipping  during  the  present  period  are  issued 
the  tax  shall  be  determined  by  the  customs  commissioner  of  Harbin  in  con- 
sultation with  the  chairman  of  the  Chinese  Eastern  Railway  Steamer  Company. 
The  total  amount  fixed  must  not  be  more  than  one-fourth  greater  than  the  actual 
tonnage  receipts  in  the  period  commencing  with  the  14th  day  of  the  5th  moon  of 
the  1st  year  of  Hsuan-t'ung,  which  is  June  18,  1909,  Russian  calendar   {i.  e., 


NUMBER  1910/3:  AUGUST  8,  1910:  AXXEX  809 

June  31),  and  extending  to  the  24th  day  of  the  fifth  moon  of  the  2nd  year  of 
Hsiian-t'ung,  Russian  calendar,  June  17  {i.e.,  June  30),  1910. 

xA.RTicLE  IX. — During  the  period  in  which  these  regulations  are  in  force  all 
foodstuffs  transported  on  the  Sungari  River  shall  be  exempt  from  the  provisions 
relating  to  security  and  guaranty. 

Article  X. — From  the  establishment  of  any  customs  station  on  the  Sungari 
River  to  Hsiian-t'ung  2nd  year  fourth  moon,  fourth  day  (Russian  calendar 
April  29,  1910,  i.  e.,  May  12)  all  accounts  for  duties  and  tonnage  collected  or  not 
collected  shall  be  closed,  but  from  that  time  until  these  regulations  are  published 
if  any  taxes  are  in  excess  or  under  those  prescribed  in  the  new  regulations  the 
owner  of  the  goods  may  report  to  the  Customs.  From  the  date  of  returning 
the  original  customs  receipts,  within  three  weeks  the  amounts  due  shall  be 
returned.  (The  Customs)  shall  be  asked  to  limit  the  time  for  receiving  the 
petitions  regarding  the  return  of  excess  taxes  to  the  27th  day  of  the  11th  moon 
(Russian  calendar  December  15,  i.e.,  Dec.  28).  The  receipts  mentioned  in  the 
petitions  must  be  dated  between  the  fourth  day  of  the  fourth  moon  of  this  year 
(April  29/May  12)  and  the  sixth  day  of  the  sixth  moon  (June  18/31).  All 
extra  funds  must  be  temporarily  deposited  in  the  Russo-Chinese  Bank  and  after 
the  new  regulations  come  into  force  these  funds  must  be  turned  over  to  the 
Maritime  Customs. 

Article  XI. — Russian  vessels  may  use  Russian  statements  of  tonnage  and 
goods  which  will  be  received  by  the  River  Customs,  but  such  statements  must 
be  in  the  form  prescribed  by  the  River  Customs. 

The  above  memorandum  has  been  drawn  up  at  Peking  in  Chinese  and 
Russian  in  duplicate  and  the  copies  compared  and  verified. 

Date:  Hsiian-t'ung,  2nd  year,  7th  moon,  4th  day. 

(July  26/August  8,  1910.) 


ANNEX. 


[Provisional  Customs  Regulations  for  Control  of  Vessels'  Movements,  Import 
and  Export  of  Goods  on  the  Sungari  River.] 

Part  I. 
General  Rules. 

1. — Vessels  which  have  the  right  of  navigation  and  trade  on  the  Sungari 
River  are  subject  to  the  following  Regulations. 

2. — Customs  Officers  will  board  vessels  entering,  and  inspect  them  after 
clearance  outwards ;  they  may  claim  access  to  any  part  of  the  vessel  at  any  time 
during  her  stay  in  port. 

3. — All  vessels  must  in  port  anchor  at  places  assigned  by  the  Customs  of 
the  port  concerned  upon  their  entry  within  its  limits  where  all  formalities  of 
entry  will  be  attended  to  with  despatch. 


810  CHINA  TREATIES  AND  AGREEMENTS 

4. — Neither  cargo  nor  passengers  may  be  landed  or  shipped  before  permission 
has  been  given  by  the  Customs.  Cargo  landed  or  shipped  without  such  per- 
mission is  liable  to  confiscation. 

5. — Manifests  as  well  as  Customs  covers  must  be  presented  to  the  Customs 
on  arrival.  A  special  Manifest  must  be  handed  in  to  the  Lahasusu  Customs 
Barrier  by  all  vessels  entering  from,  or  leaving  for,  the  Amoor.  It  must  specify 
all  cargo  on  board  and  give  place  of  shipment  and  intended  destination  of  all 
goods  inwards  and  outwards. 

6. — Manifests  must  contain  a  true  and  full  account  of  all  cargo  on  board, 
including  duty-free  goods,  giving  marks,  numbers  and  contents  and  must  be 
signed  by  the  Master  or  the  responsible  agent  of  the  vessel  concerned  who 
will  be  held  responsible  for  their  correctness. 

7. — Shut-out  goods  will  be  recognized  as  duty-paid  goods  only  on  the  con- 
dition that  they  be  presented  immediately  for  re-examination. 

8. — Vessels  must  produce  their  papers  for  inspection  when  called  upon  by 
any  Imperial  Chinese  Maritime  Customs  or  Inland  Barrier  Official  acting  on  be- 
half of  the  Imperial  Chinese  Maritime  Customs  boarding  them  at  the  ports  or 
en  route. 

9. — Customs  employees  may  be  put  on  board  of  vessels  to  search  them  or 
to  accompany  them  for  the  purpose  of  surveillance. 

10. — At  the  option  of  the  Captain  or  the  responsible  agent  of  the  vessel 
the  Customs  may  seal  the  hatches  of  the  vessels ;  such  seals  must  not  be  broken 
until  the  vessel  reaches  a  port  where  she  has  to  work  cargo  and  until  the  necessary 
permission  has  been  obtained.  The  breaking  of  seals  or  opening  of  sealed 
hatches  with  fradulent  intentions  will  entail  liability  to  a  fine  not  exceeding  Hk. 
Tls.  500. 

11.— For  working  cargo  or  passengers  on  Sundays  or  holidays  as  well  as 
on  week  days  out  of  the  regular  working  hours — 6  a.  m.  to  6  p.  m. — Special  Per- 
mit Fees  must  be  paid.  These  Fees  will  be  collected  according  to  the  Table 
appended  hereto. 

12. — Masters  of  vessels  are  expected  to  report  to  the  Customs  any  changes 
in  the  channel,  accidents  to  shipping,  loss  of  guiding  marks,  wrecks  and  other 
noteworthy  events. 

13. — Trade  in  the  following  articles,  viz. :  gunpowder  and  other  explosives, 
shot,  cannon,  fowling  pieces,  rifles,  muskets,  pistols,  saltpetre,  sulphur,  spelter 
and  all  other  munitions  and  implements  of  war  and  sport  and  salt  is  prohibited 
on  the  Sungari ;  arms  found  on  board,  not  covered  by  certificates  showing  them 
to  be  for  self-defence  or  ship's  use,  will  be  confiscated.  The  export  abroad  of 
rice,  husked  and  unhusked,  and  Chinese  copper  cash  and  coins  is  also  prohibited. 
The  importation  of  foreign  copper  coin  blanks,  copper  coins,  and  copper  cash  is 
likewise  forbidden. 

14. — Infraction  of  Customs  Rules  and  Regulations  will  render  the  vessel 
liable  to  the  infliction  of  fines  not  exceeding  Hk.  Tls.  500. 

The  Russian  vessel  subjected  to  a  fine  has  the  right  to  pay  the  fine  to  the 
Customs  under  protest  and  petition  against  it  to  the  Russian  Consul. 

In  case  of  the  non-payment  by  a  vessel  of  a  fine  imposed  on  her  by  the 


NUMBER  1910/3:  AUGUST  8,  1910:  ANNEX  811 

Customs,  as  well  as  in  cases  of  repetition  of  a  breach  of  Customs  Rules  and 
Regulations  by  the  same  vessel,  making  the  infliction  of  the  maximum  fine  of 
Hk.  Tls.  500  necessary,  or  in  the  event  of  it  being  necessary  to  inflict  a  heavier 
penalty,  the  Chinese  Customs  addresses,  whenever  Russian  subjects  are  concerned, 
the  Russian  Consul  for  further  treatment  of  the  case. 


The  present  Regulations  are  to  be  considered  as  provisional  and  will  be  in 
force  for  a  period  of  three  years. 

Part  II. 

DUES    AXD   DUTIES. 

1. — The  Imperial  Maritime  Customs  on  the  River  Sungari  collect  on  goods 
carried  by  vessels  exclusively  Customs  levies  and  do  not  levy  any  Inland  or 
other  duties  or  taxes.     They  also  collect  Transit  Dues  and  River  Dues. 

All  local  taxes,  when  such  are  due,  will  be  levied  on  cargoes  before  their 
loading  into,  or  after  their  discharge  from,  vessels  in  order  to  avoid  detention 
of  the  latter. 

2. — For  the  present,  and  until  further  notice,  the  existing  general  system 
of  Tonnage  Dues  will  not  be  enforced  and  a  system  of  River  Dues  will  be 
introduced  instead,  calculated  according  to  the  nature  and  quantity  of  cargo  and 
the  distance  over  which  it  is  carried,  vide  the  appended  Table. 

3. — Import  and  Export  duties  are  leviable  acoording  to  the  existing  Tariffs  of 
the  Chinese  Maritime  Customs.  (General  Tarifif  of  1858  and  the  Revised  Import 
Tariff  of  1902). 

Transit  Dues  on  foreign  goods  are  leviable  at  one  half  of  the  rates  enumer- 
ated in  the  above-mentioned  Revised  Import  Tariff  of  1902. 

Goods  unenumerated  in  the  Tariffs,  whether  Imports  or  Exports,  pay  5% 
ad  valorem. 

4. — Imports  from  Russian  Ports. — On  goods  coming  from  Russian  ports 
import  duties  are  leviable  in  accordance  with  Art.  3  of  Part  II  when  these  goods 
are  destined  for  places  beyond  the  limits  of  the  100-li  (50-versts)  Zone. 

Goods,  however,  imported  into  the  limits  of  this  Zone  are  not  subject  to  any 
duty. 

Transit  Dues  are  leviable  on  duty-free  goods  at  the  rate  of  2}^%  ad  valorem, 
and  on  dutiable  goods — at  one  half  of  the  rates  of  the  existing  tariffs. 

5. — Native  Goods. — All  Native  goods  will  pay  one  full  Treaty  Export  duty 
on  their  first  passing  an  Imperial  Chinese  Maritime  Custom  House  at  Harbin, 
Sansing,  Lahasusu  or  any  other  place  on  the  Sungari  River  where  revenue  con- 
siderations or  trade  conditions  may  warrant  the  establishment  of  an  Imperial 
Maritime  Customs  Office. 

The  present  stipulation  does  not  apply  to  the  following  grain  products,  viz. : 
Barley,  Buckwheat,  Buckwheat  grit,  Kaoliang,  Maize,  Millet  (hsiao  mitzu), 
Oats  and  Wheat,  as  well  as  to  Beans  and  Beancakes,  brought  by  water  to  Harbin, 
which  goods  will  provisionally  pay  the  general  Treaty  Export  duty  reduced  by 
one-third. 


812  CHINA  TREATIES  AND  AGREEMENTS 

Native  goods  loaded  on  vessels  on  the  Sungari  River  and  having  for  their 
destination  one  of  the  places  within  the  limits  of  the  Russian  100-li  (50-versts) 
frontier  Zone  are  exempted  from  payment  of  Export  Duty. 

Suitable  documents  will  be  issued  to  ensure  the  exemption  of  duty-paid 
goods  from  a  second  levy  of  duty  at  another  Imperial  Maritime  Customs  Office. 
'  Exemption  from  a  second  levy  of  Export  duty  will  also  be  granted  to  cargo 
exported  via  the  Stations  Manchuria  and  Suifenho    (Pogranitchnaya). 

The  Outward  Transit  Pass  system  remains  unaffected  by  the  above. 

The  above  commutation  general  Export  duty,  once  paid,  will  in  no  case 
be  refunded. 

6. — Documents  in  proof  of  payment  of  duties  and  dues  are  issued  on  the 
lines  of  the  general  rules  in  force  at  the  Treaty  ports  of  China;  cargo  from  one 
Trade  Mart  to  another  which  is  not  covered  by  these  documents  is  liable  to 
confiscation.  . 

7. — Dues  and  duties  are  payable  on  imports  before  goods  are  removed  from 
Customs  supervision,  on  Exports  before  shipment. 

8. — Re-export  and  goods  under  Transit  Certificates  are  entitled  to  same 
Customs  treatment  as  at  the  Treaty  Ports  of  China. 

9. — Before  goods  can  be  shipped,  application  must  be  made  to  the  Customs, 
who,  after  examination  of  them,  will  collect  duty  and  issue  Permit  to  ship. 

10. — For  presenting  a  false  Manifest  the  master  or  the  responsible  agent  of 
a  vessel  will  subject  himself  to  a  fine  not  exceeding  Hk.  Tls.  500. 

All  unmanifested  or  contraband  goods  found  on  searching  a  vessel  will  be 
dealt  with  according  to  Treaties  or,  in  certain  cases,  also  according  to  the  practice 
of  other  ports  in  China. 

For  all  manifested  inward  items  of  cargo  found  short  on  board,  their 
respective  duties  must  be  paid. 

Harbin  River  Customs  Provisional  Regulations. 

Inward  bound  vessels  for  Harbin  must,  on  entering  the  port,  present  a 
Manifest  of  all  cargo  on  board  together  with  all  documents  received  in  closed 
covers  from  the  Sansing  and/or  Lahasusu  Customs,  as  well  as  a  Memorandum 
stating  places  visited  en  route,  passengers  and/or  cargo  discharged  and/or 
shipped  at  these  places. 

Outward  bound  vessels,  when  wishing  to  clear,  must  present  a  Manifest 
giving  full  particulars  of  all  cargo  on  board,  Nos.  of  Shipping  Orders,  marks 
and  number  of  packages,  description  of  goods,  etc., — separate  statements  for 
each  place  of  destination.  This  Manifest  will  be  checked  with  Customs  docu- 
ments and,  if  all  in  order,  the  vessel  will  be  allowed  to  leave. 

Duty  paid  cargo  for  open  Trade  Marts  will  be  covered  by  Cargo  Certificates 
and  Certificates  proving  payment  of  duty  which  will  be  handed  to  the  Captain 
or  the  responsible  agent  of  the  vessel  in  sealed  cover  for  delivery  to  the  Customs 
at  the  place  of  destination. 

Vessels  passing  Customs  examination  stations  without  stopping,  or  stopping 
at  places  other  than  those  prescribed  by  the  Customs,  will  be  liable  to  the  penalties 
laid  down  in  Art.  14  of  Part  I  of  the  Regulations. 


NUMBER  1910/3:  AUGUST  8,  1910:  ANNEX  813 

Sansing   Customs  Provisional  Regulations. 

Inward  bound  vessels  coming  from  the  Amoor  must  on  entering  the  port 
present  to  the  Customs  the  Manifest  received  in  closed  cover  from  the  Lahasusu 
Customs  Barrier.    If  a  vessel  has  called  at  places  between  Lahasusu  and  Sansing, 
an  additional  Statement  as  to  passengers  and/or  cargo  discharged  and/or  shipped 
at  such  places  must  be  handed  in. 

When  the  vessel  is  ready  to  proceed  up  river  the  Manifest — of  original 
cargo,  and  of  cargo  newly  shipped  at  Sansing — for  Harbin  must  be  handed  to 
the  Captain  in  a  sealed  cover  for  delivery  to  the  River  Customs  at  Harbin. 

Outward  bound  vessels  from  Harbin  must  on  entering  the  port  hand  in 
Cargo  Certificates  covers,  and  a  Manifest  of  all  cargo  on  board,  separate  state- 
ments for  each  place  of  destination,  with  an  additional  Memorandum  giving 
Inland  places  called  at  en  route,  cargo  and/or  passengers  shipped  and/or  landed 
at  these  places. 

When  a  vessel  is  ready  to  proceed  down  river,  a  Manifest,  giving  so  and  so 
many  packages  original  cargo  on  board  and  additional  statement  of  cargo  taken  on 
board  at  Sansing,  must  be  handed  in.  If,  after  Customs  documents  have  been 
checked,  all  is  found  in  order,  the  vessel  is  at  liberty  to  leave. 

Vessels  passing  Customs  examination  stations  without  stopping,  or  stopping 
at  places  other  than  those  prescribed  by  the  Customs,  will  be  liable  to  the  penalties 
laid  down  in  Art.  14  of  Part  I  of  the  Regulations. 

Lahasusu   Customs    Barrier    Provisional   Regulations. 

Inward  bound  vessels  coming  from  the  Amoor  must  on  entering  the  port 
produce  Manifests  (in  duplicate)  giving  full  particulars,  marks  and  numbers  of 
packages,  etc.,  of  all  cargo  on  board, — separate  statements  for  each  place  of 
destination  and  shipment.  After  Manifest  has  been  checked  with  the  cargo, 
one  copy  is  retained  for  the  archives,  whilst  the  other,  with  any  remarks  that  may 
be  called  for,  will  be  signed  and  sealed  by  the  Lahasusu  Office  and  handed  in  a 
closed  cover  to  the  Captain  or  the  responsible  agent  of  the  vessel  for  delivery  at 
the  next  Customs  station. 

Outward  bound  vessels  proceeding  to  the  Amoor  must  stop  for  examina- 
tion. A  Manifest  must  be  handed  in  stating  particulars  of  all  cargo  on  board, 
showing  also  cargo  and/or  passengers  shipped  and/or  discharged  en  route. 
Failure  to  observe  this  rule  will  render  the  vessel  liable  to  a  fine. 

Vessels  passing  Customs  examination  stations  without  stopping,  or  stopping 
at  places  other  than  those  prescribed  by  the  Customs,  will  be  liable  to  the  penalties 
laid  down  in  Art.  14  of  Part  I  of  the  Regulations. 


814  CHINA  TREATIES  AND  AGREEMENTS 


NUMBER  1910/4. 

GERMANY  (Deutsch-Asiatische  Bank),  GREAT  BRITAIN  (Chinese  Central 
Railways,  Limited)  AND  CHINA. 

Supplementary  loan  agreement  for  the  Tientsin-Pnkow  Raihvaw^ — 

September  28,  1910. 

WHEREAS  by  an  agreement  made  at  Peking  on  the  10th  day  of 
the  12th  month  of  the  33rd  year  of  Kuang  Hsu  corresponding  to  the 
13th  day  of  January  1908, f  bctzveen 

HIS  EXCELLENCY  LIANG  TUN  YEN,  Acting  Junior  Vice- 
President  of  the  IVoirvupu,  duly  authorised  to  act  on  behalf  of  the 
Imperial  Government  of  China,  of  tJie  one  part,  and, 

A.  THE  DEUTSCH  ASIATISCHE  BANK,  SHANGHAI, 

B.  THE  CHINESE  CENTRAL  RAILWAYS  LIMITED,  LON- 
DON, thereinafter  termed  the  Syndicate,  of  the  other  part, 

the  Syndicate  were  authorised  to  issue,  and  did  issue,  a  5%  Gold  Loan  for 
i5,000,000  for  the  construction  and  equipment  of  a  line  of  railway  from 
Tientsin  to  Pukow  in  the  Empire  of  China:  and  WHEREAS,  in  order  to  permit 
of  the  uninterrupted  continuance  of  the  work  of  construction  provision  was 
made  in  Article  15  of  the  aforesaid  Loan  Agreement,  hereinafter  called  the 
Original  Loan  Agreement,  for  the  issue  by  the  Syndicate  of  a  Supplementary 
Loan  of  which  the  interest  and  other  conditions  as  well  as  the  price  payable  to  the 
Chinese  Government  should  be  governed  by  the  terms  of  the  original  loan 
agreement  which  still  remains  in  full  force  and  effect ; 

This  Agreement  is  now  made  at  Peking  this  twenty  fifth  day  of  the  eighth 
month  of  the  second  year  of  Hsuan  Tung,  corresponding  to  the  twenty  eighth  day 
of  September  1910,  between 

The  Director  General  and  Assistant  Director  General  of  the  Tientsin-Pukow 
Railway,  Their  Excellencies  The  Grand  Councillor  and  Assistant  Grand  Secre- 
tary Hsu  Shih  Chang,  and  the  Acting  President  and  Senior  Vice-President  of 
the  Board  of  Posts  and  Communications  Shen  Yiin  Pei,  duly  authorised  to  act 
on  behalf  of  the  Imperial  Government  of  China,  of  the  one  part,  and 

A.  THE  DEUTSCH  ASIATISCHE  BANK,  SHANGHAI, 

B.  THE  CHINESE  CENTRAL  RAILWAYS  LIMITED, 
LONDON,  hereinafter  called  the  Syndicate  of  the  other  part. 

Article  1. — The  Imperial  Government  of  China  authorises  the  Syndicate 
to  issue  a  5%  Gold  Loan  for  an  amount  of  four  million  eight  hundred  thousand 
pounds  sterling  (£4,800,000).    The  Loan  shall  be  of  the  date  on  which  the  first 

*  Text  as  printed  in  Wang,  p.  421. 

With  the  text  as  there  given  are  also  printed  the  letters  of  agreement  in  regard  to 
advances  given  in  the  Note  to  this  document,  post,  p.  824. 
t  No.  1908/1,  ante. 


NUMBER  1910/4:  SEPTEMBER  28,  1910  815 

series  of  bonds  is  issued  to  the  public  and  shall  be  called  *'  The  Imperial  Chinese 
Government  5%  Tientsin- Pukow  Railway  Supplementary  Loan." 

Article  2. — The  Loan  is  designed  to  provide  further  capital  for  the  con- 
struction of  a  Government  Railway  line  from  a  point  connecting  the  Lnperial 
Railways  of  North-China  at  or  near  Tientsin  through  Techow  and  Tsinanfu  to 
Ihsien  near  the  Southern  frontier  of  Shantung,  hereinafter  known  as  the  North- 
ern Section  of  the  Tientsin-Pukow  Railway  line,  and  from  Ihsien  to  a  point  at  or 
near  Pukow  (opposite  Nanking  on  the  Yangtsze  Kiang),  hereinafter  known 
as  the  Southern  Section  of  the  Tientsin-Pukow  Railway  line,  the  total  length 
of  these  two  sections  being  about  1,085  kilometers,  equal  to  about  2,170 
Chinese  li. 

Article  3. — The  capital  so  provided  shall  be  solely  devoted  to  the  construc- 
tion of  the  Railway  line  including  the  purchase  of  land,  rolling  stock  and  other 
equipment,  and  to  the  working  of  the  line  and  to  the  payment  of  interest  on 
the  loan  during  the  period  of  construction,  which  is  estimated  at  2  years  from 
the  signature  of  this  agreement. 

Article  4. — The  rate  of  interest  for  the  loan  shall  be  5%  per  annum  on 
the  nominal  principal  and  shall  be  paid  to  the  bondholders  half-yearly.  The 
said  interest  shall  be  calculated  from  the  date  on  which  the  loan  is  issued  to  the 
public,  and  shall  be  paid  by  the  Imperial  Chinese  Government  during  the  time  of 
construction  either  from  the  proceeds  of  the  loan  or  from  other  sources,  and 
afterwards,  in  the  first  place,  out  of  the  revenue  of  the  Railway,  and  then  from 
such  other  revenues  as  the  Chinese  Government  may  think  fit  to  use  for  the 
purpose  in  half-yearly  instalments  according  to  the  amounts  specified  in  the 
schedule  attached  to  this  agreement  and  fourteen  (14)  days  before  their  due 
dates,  Western  Calendar,  as  calculated  half-yearly  from  the  date  on  which  the 
loan  is  issued  to  the  public. 

Article  5. — The  term  of  the  loan  shall  be  thirty  (30)  years.  Repayment 
of  principal  shall  commence  after  the  expiry  of  ten  (10)  years  from  the  date  of 
the  loan,  and,  except  as  provided  in  Article  6  hereinafter,  shall  be  made  by 
yearly  amortisation  to  the  Deutsch  Asiatische  Bank  and  the  Hongkong  and 
Shanghai  Banking  Corporation  out  of  the  revenue  of  the  line  or  such  other  reve- 
nues as  the  Chinese  Government  may  think  fit  to  use  for  the  purpose,  according 
to  the  amounts  specified  in  the  schedule  attached  to  this  agreement,  but  fourteen 
(14)  days  before  their  due  dates.  Western  Calendar,  as  calculated  from  the  date 
on  which  the  loan  is  issued  to  the  public. 

Article  6. — If  at  any  time  after  the  lapse  of  the  ten  (10)  years  from  the 
date  of  the  loan  the  Imperial  Chinese  Government  should  desire  to  redeem  the 
whole  outstanding  amount  of  the  loan,  or  any  part  of  it,  not  yet  due  for  repayment 
in  accordance  wnth  the  schedule  of  repayments  hereto  attached,  it  may  do  so  until 
the  twentieth  (20th)  year,  by  payment  of  a  premium  of  two  and  one-half  (2^4%) 
per  cent  on  the  face  value  of  the  bonds  (that  is  to  say  by  payment  of  a  hundred 
and  two  pounds  and  ten  shillings  (£102.10)  for  each  £100  bond)  and  after  the 
twentieth  (20th)  year  without  premium ;  but  in  each  and  every  case  of  such  extra 
redemption,  the  Imperial  Chinese  Government  shall  give  six  (6)  months  notice 
in  writing  to  the  Syndicate,  and  such  redemption  shall  be  effected  by  additional 


816  CHINA  TREATIES  AND  AGREEMENTS 

drawings  of  bonds,  to  take  place  on  the  date  of  an  ordinary  drawing,  as  provided 
for  in  the  Prospectus  of  the  Loan. 

Article  7. — The  Deutsch  Asiatische  Bank  and  the  Hongkong  and  Shanghai 
Banking  Corporation  having  been  appointed,  by  the  German  and  British  parties 
of  the  Syndicate,  respectively.  Agents  for  the  service  of  the  loan  the  payments 
due  for  amortisation  and  interest  referred  to  in  Articles  4  and  5,  shall  be  made, 
in  accordance  with  the  amounts  of  the  Schedule  attached  to  this  agreement,  and 
fourteen  (14)  days  before  their  due  dates  as  fixed  by  Articles  4  and  5  to  these 
Banks  by  the  Director  General  of  the  Railway,  who  shall  hand  to  the  said  Banks 
in  Shanghai  or  in  Tientsin  fourteen  (14)  days  before  the  said  due  dates,  funds  in 
Shanghai  or  Tientsin  Sycee  sufficient  to  meet  such  payments  in  Gold  in  Europe, 
exchange  for  ivhich  shall  be  settled  zvith  the  said  Banks  on  the  same  day,  the 
Railway  Administration  having,  however,  the  option  of  settling  exchange  with  the 
two  Banks  at  any  date  or  dates  within  six  (6)  months  previous  to  any  due  date 
for  the  repayment  of  interest  and  principal.  These  payments  may,  however,  be 
made  in  Gold  if  the  Imperial  Chinese  Government  should  happen  to  have  Gold 
funds  "  bona  fide  "  at  their  disposal  in  Europe  not  remitted  from  China  for 
the  purpose  and  desire  so  to  use  them. 

In  reimbursement  of  expenses  connected  with  the  payment  of  interest  and 
the  repayment  of  principal  of  the  loan,  the  Hongkong  and  Shanghai  Banking 
Corporation  and  the  Deutsch  Asiatische  Bank  will  receive  a  commission  of  one- 
quarter  (54)  per  cent,  on  the  annual  loan  service. 

Article  8. — The  Imperial  Government  of  China  hereby  engages  that  the 
interest  and  principal  of  this  loan  shall  duly  be  paid  in  full,  and  should  the 
revenue  of  the  Railway  and/or  the  proceeds  of  the  loan  not  be  sufficient  to 
provide  for  the  due  and  full  payment  of  the  Interest  and  repayment  of  principal, 
the  Director  General  shall  memorialise  the  Throne  and  the  Imperial  Government 
of  China  will  thereupon  make  arrangements  to  ensure  that  the  amount  of  defi- 
ciency shall  be  met  from  other  sources  and  handed  over  to  the  Banks  on  the  date 
upon  which  funds  are  required,  to  complete  full  payment  of  interest  and  repay- 
ment of  principal. 

Article  9. — The  loan  is  hereby  secured : — 

1.  By  a  second  charge  on  the  likin  and  internal  revenues  of  the  three  prov- 
inces enumerated  in  Article  9  of  the  Original  Tientsin-Pukow  Railway  Loan 
Agreement  amounting  to  Haikuan  Taels  3,800,000  a  year,  after  satisfaction  of 
all  the  obligations  contained  in  the  said  Article. 

2.  By  a  first  charge  on  the  following  additional  revenues,  calculated  on  the 
basis  of  the  maximum  annual  payments  of  principal  and  interest  due : — 

A.  Likin  and  internal  revenues  of  the  Province  of  Chihli  to  the  amount 
of  Haikuan  Tls.  1,000,000  a  year; 

B.  Likin  and  internal  revenues  of  the  Province  of  Shantung  to  the 
amount  of  Haikuan  Tls.  1,200,000  a  year; 

C.  Revenue  of  the  Nanking  Likin  Collectorate  (to  the  amount  of 
Haikuan  Tls.  600,000  a  year)  and  of  the  Huai-an  Native  Customs  (to  the 
amount  of  Haikuan  Tls.  100,000  a  year)  in  the  Province  of  Kiangsu; 


NUMBER  1910/4:  SEPTEMBER  28,  1910  817 

D.    Likin  and  internal  revenues  of  the  Province  of  Anhui  to  the  amount 
of  Haikuan  Tls.  700,000  a  year. 

With  the  exception  of  the  first  charge  created  by  the  Original  Loan  Agree- 
ment the  Provincial  revenues  as  above  stated  are  hereby  declared  to  be  free  from 
all  other  loans,  charges  or  mortgages. 

So  long  as  principal  and  interest  of  the  loan  are  regularly  paid,  there  shall 
be  no  interference  with  these  provincial  revenues  but  if  principal  or  interest 
of  the  loan  be  in  default  at  due  date,  then,  after  a  reasonable  period  of  grace,  likin 
and  suitable  internal  revenues  of  the  four  provinces  sufficient  to  provide  the 
amount  above  stated  shall  forthwith  be  transferred  to,  and  be  administered  by, 
the  Imperial  Maritime  Customs,  in  the  interest  of  the  bondholders.  And  so  long 
as  this  loan  or  any  part  thereof  shall  remain  unredeemed,  it  shall  have  priority 
both  as  regards  principal  and  interest,  subject  to  the  obligations  created  by 
Article  9  of  the  original  loan  agreement  over  all  future  loans,  charges  and  mort- 
gages charged  on  the  above-mentioned  revenues  of  the  four  provinces. 

No  loan,  charge  or  mortgage  shall  be  raised  or  created  which  shall  take 
precedence  of,  or  be  on  equality  with  this  loan,  or  which  shall  in  any  manner  lessen 
or  impair  its  security  over  the  revenues  of  the  four  provinces  as  above  stated ;  and 
any  future  loan,  charge  or  mortgage  charged  on  the  said  revenues  of  the  four 
provinces  shall  be  made  subject  to  this  loan,  and  it  shall  be  so  expressed  in  every 
agreement  for  every  such  future  loan,  charge  or  mortgage.  It  is  understood 
and  agreed  that  so  long  as  this  loan  is  unredeemed  the  Railway  shall  under  no 
circumstances  be  mortgaged  nor  its  receipts  given  as  security  to  any  other  party. 

In  the  event  of  the  Chinese  Government,  during  the  currency  of  this  loan 
entering  upon  definite  arrangements  for  the  revision  of  Customs  Tarifif  accom- 
panied by  stipulations  for  decrease  or  abolition  of  likin,  it  is  hereby  agreed,  on 
the  one  hand,  that  such  revision  shall  not  be  barred  by  the  fact  that  this  loan  is 
secured  by  likin  and  provincial  revenues,  and,  on  the  other  hand,  that  whatever 
likin  is  required  to  provide  the  security  of  this  loan  shall  neither  be  decreased  nor 
abolished  except  by  previous  arrangement  with  the  Syndicate  and  then  only  in  so 
far  as  an  equivalent  is  substituted  for  it  in  the  shape  of  a  first  charge  upon  the 
increase  of  Customs  Revenue  consequent  upon  such  revision. 

Article  10. — The  Syndicate  is  hereby  authorised  to  issue  to  subscribers  to 
the  loan.  Bonds  for  the  total  amount  of  the  loan  for  such  amounts  as  may  appear 
advisable  to  the  Syndicate.  The  form  of  the  Bonds  shall  be  settled  by  the 
Syndicate  in  consultation  with  the  Director  General  or  the  Chinese  Ministers  in 
London  and  Berlin.  The  Bonds  shall  be  engraved  in  Chinese  and  English  or 
Chinese  and  German  as  may  be  required ;  they  shall  bear  the  facsimile  of  the 
signature  of  the  Director  General  and  of  his  seal  of  Office,  in  order  to  dispense 
with  the  necessity  of  signing  them  all  in  person ;  and  it  is  hereby  agreed  that  the 
Chinese  Minister  in  London  shall,  previous  to  the  issue  of  any  Bonds,  put  his 
seal  upon  each  Bond  with  a  facsimile  of  his  signature,  as  a  proof  that  the  issue 
and  sale  of  the  Bonds  are  duly  authorised  by,  and  binding  upon,  the  Imperial 
Chinese  Government,  and  the  representatives  of  the  Syndicate  in  London  shall 
countersign  the  bonds  as  Agents  for  the  issue  of  the  loan. 


818  CHINA  TREATIES  AND  AGREEMENTS 

In  the  event  of  bonds  issued  for  this  loan  being  lost,  stolen  or  destroyed,  the 
Syndicate  shall  immediately  notify  the  Director  General  and  the  Chinese  Minister 
in  London  and/or  Berlin,  as  the  case  requires,  who  shall  authorise  the  Syndicate 
to  insert  an  advertisement  in  the  public  newspapers  notifying  that  payment  of  the 
same  has  been  stopped  and  to  take  such  other  steps  as  may  appear  advisable  or 
necessary  according  to  the  laws  and  customs  of  the  country  concerned,  and 
should  such  bonds  not  be  recovered  after  a  lapse  of  time  to  be  fixed  by  the  Syndi- 
cate, the  Director  General  or  the  Chinese  Minister  in  London,  shall  seal  and 
execute  duplicate  bonds  for  a  like  amount  and  hand  them  to  the  Syndicate,  by 
whom  all  expenses  in  connection  therewith  shall  be  defrayed. 

Article  IL — All  bonds  and  coupons  and  payments  made  and  received  in 
connection  with  the  service  of  this  loan  shall  be  exempt  from  all  Chinese  taxes 
and  imposts  during  the  currency  of  this  loan. 

Article  12. — All  details  necessary  for  the  prospectus  and  connected  with 
the  payment  of  the  interest  and  repayment  of  the  principal  of  this  loan,  not 
herein  explicitly  provided  for,  shall  be  left  to  the  arrangement  of  the  Syndicate 
in  consultation  with  the  Chinese  Ministers  in  London  and  Berlin.  The  Syndicate 
is  hereby  authorised  to  issue  the  prospectus  of  the  loan  as  soon  as  possible  after 
the  signing  of  this  agreement ;  and  the  Imperial  Government  will  instruct  the 
Chinese  Ministers  in  London  and  Berlin  to  co-operate  with  the  Syndicate  in  any 
matters  requiring  conjoint  action  and  to  sign  the  prospectus  of  the  loan. 

Article  13. — The  loan  shall  be  issued  to  the  public  in  two  or  more  series 
of  bonds  the  first  issue  to  be  made  to  the  amount  of  three  million  pounds  sterling 
(£3,000,000)  as  soon  as  possible  after  the  signature  of  this  agreement,  and  not 
later  than  six  (6)  months  from  the  date  thereof.  The  price  to  the  Imperial 
Chinese  Government  of  the  bonds  shall  be  the  actual  rate  of  their  issue  to  the 
public,  less  flotation  charges  of  five  and  a  half  (S}^)  points  retainable  by  the 
Syndicate  (that  is  to  say,  a  charge  of  five  pounds  ten  shillings  (£5/10/-)  for 
every  £100  bond  issued).  Subscriptions  will  be  invited  by  the  Syndicate  in 
Europe  and  in  China  both  from  Chinese  and  Europeans  on  equal  conditions,  pref- 
erence being  given  to  the  application  of  the  Chinese  Government,  provided  such 
application  be  made  before  the  issue  of  the  prospectus  to  the  public. 

If  before  the  issue  of  this  loan  has  been  completed  and  during  the  period  of 
construction  it  is  found  that  the  capital  to  be  provided  under  Article  3  is  already 
sufficient  the  Director  General  shall  have  the  power  at  his  discretion,  to  dispense 
with  the  issue  of  further  bonds. 

Article  14. — The  proceeds  of  the  loan  shall  be  paid  to  the  credit  of  a 
Tientsin-Pukow  Government  Railway  Supplementary  Loan  Account  with  the 
Hongkong  and  Shanghai  Banking  Corporation  and  the  Deutsch  Asiatische  Bank 
in  China,  London  or  Berlin,  as  the  case  may  be.  Payments  of  loan  proceeds  into 
the  credit  of  this  account  shall  be  made  in  instalments  and  on  dates  conforming 
to  the  conditions  allowed  to  the  subscribers  to  the  loan.  Interest  at  the  rate  of 
four  (4)  per  cent  per  annum  shall  be  granted  on  the  credit  balance  of  the  portion 
of  this  account  kept  in  London  and  Berlin,  and  interest  on  the  credit  balance  of 
the  portion  kept  in  China  will  be  allowed  at  the  Banks'  rates  for  current  accounts, 
or  fixed  deposits,  as  the  case  may  be,  to  be  arranged.     After  deduction  of  the 


NUMBER  1910/4:  SEPTEMBER  28,  1910  819 

funds  required  for  the  service  of  interest  and  for  commission  on  this  service  dur- 
ing the  time  of  construction,  the  Banks  will  hold  the  net  proceeds  with  accrued 
interest  to  the  order  of  the  Director  General,  who,  in  ordering  payments  of  any 
sums  exceeding  twenty  thousand  pounds  (£20,000)  shall  give  notice  to  the  Banks 
ten  (10)  days  before  the  day  on  which  they  are  required.  Requisitions  on  the  loan 
funds  will  be  drawn  in  amounts  to  suit  the  progress  of  construction  of  the  Rail- 
way by  orders  on  the  Hongkong  and  Shanghai  Banking  Corporation  and  the 
Deutsch  Asiatische  Bank  respectively,  signed  by  the  Managing  Director  of  the 
Railway  or,  in  his  absence,  by  his  duly  authorised  representative,  and  accompanied 
by  his  certificates  stating  the  nature  and  cost  of  the  work  to  be  paid  for. 

Such  amounts  as  may  be  required  in  China  may  at  any  time  be  transferred 
by  the  Managing  Director,  at  his  discretion,  to  Shanghai,  the  transfers  being 
effected  through  the  Hongkong  and  Shanghai  Banking  Corporation  and  the 
Deutsch  Asiatische  Bank  respectively,  and  the  transferred  funds  shall  remain 
on  deposit  with  those  Banks  until  required  for  railway  purposes. 

The  accounts  of  the  Railway  will  be  kept  in  Chinese  and  English  in  accord- 
ance with  accepted  modern  methods,  and  will  be  supported  by  all  necessary 
vouchers.  During  the  period  of  construction  the  said  accounts  and  vouchers 
will  be  open  at  any  time  to  the  inspection  of  an  Auditor,  appointed  and  paid  by 
the  Syndicate,  whose  duties  will  be  confined  to  certifying  to  the  Syndicate  to  the 
due  expenditure  of  the  loan  funds  in  accordance  with  the  provisions  of  Article  3 
of  this  agreement,  and  to  certifying  to  a  monthly  statement  of  the  foreign  materials 
purchased  by  the  Railway  Administration  under  the  provisions  of  Article  18 
hereinafter.  He  will  arrange  with  the  Railway  Administration  that  his  inspec- 
tions shall  take  place  on  such  dates  and  at  such  intervals  as  will  enable  him 
efificiently  to  carry  out  his  duties  as  herein  provided.  The  Railway  Administra- 
tion will  publish  annually  upon  the  close  of  its  financial  year,  a  report  in  the 
Chinese  and  English  languages  showing  the  working  accounts  and  traffic  receipts 
of  the  Railway,  which  report  shall  be  procurable  by  the  public  on  application. 

Article  15. — If  during  the  time  of  construction  the  net  proceeds  of  the 
present  loan  w'ith  accrued  interest  should,  after  deduction  of  the  sums  necessary 
for  the  service  of  interest  on  the  loan,  not  be  sufificient  to  complete  the  construc- 
tion and  equipment  of  the  Railway  line,  the  amount  of  deficiency  shall  be 
provided,  in  the  first  place,  from  such  Chinese  funds  as  may  be  available  so  as  to 
permit  of  the  uninterrupted  continuance  of  the  work  of  construction,  any  balance 
then  uncovered  being  supplemented  by  a  further  foreign  loan  for  the  amount 
required  to  be  issued  by  the  Syndicate.  The  interest  and  other  conditions  of  such 
supplementary  loan  will  be  the  same  as  in  the  present  agreement,  and  the  price 
will  be  determined  as  in  the  case  of  the  present  loan.  If  after  the  completion  of 
the  line  there  should  be  a  balance  at  credit  of  the  Railway  Supplementary  Loan 
Account  such  unused  balance  will  be  transferred  to  the  credit  of  the  interest 
reserve  fund  hereinafter  mentioned  in  Article  20  as  a  provision  for  payments  for 
which  the  Imperial  Chinese  Government  is  responsible  under  this  Agreement. 

Article  16. — If,  before  the  publication  of  the  prospectus  for  the  issue  of  the 
loan,  any  political  or  financial  crisis  should  take  place  by  which  the  market  and 
the  prices  of  existing  Chinese  Government  stocks  are  so  affected  as  to  render,  in 


320  CHINA  TREATIES  AND  AGREEMENTS 

the  opinion  of  the  Syndicate,  the  successful  issue  of  the  loan  impossible  on  the 
terms  herein  named,  the  Syndicate  shall  be  granted  further  extension  of  time  but 
not  beyond  nine  (9)  months  from  the  date  of  this  agreement,  for  the  performance 
of  their  contract.  If  within  this  time  limit  the  first  series  of  the  loan  shall  not 
have  been  issued  then  this  contract  shall  become  null  and  void. 

Article  17. — The  construction  and  control  of  the  Railway  will  be  entirely 
vested  in  the  Imperial  Chinese  Government.  For  the  work  of  construction  of  the 
Northern  and  Southern  Sections  respectively  the  selection  and  appointment  by  the 
Imperial  Chinese  Government  of  fully  qualified  German  and  British  Chief 
Engineers,  acceptable  to  the  Syndicate,  which  have  already  been  made,  will  be 
continued  as  heretofore.  In  the  event  of  the  Syndicate  objecting  to  any  proposed 
appointment,  the  cause  of  such  objection  shall  be  definitely  stated.  These  two 
Chief  Engineers  shall  be  under  the  orders  of  the  Managing  Director,  or,  in 
his  absence,  his  duly  authorised  representative,  and  will  carry  out  all  the  wishes 
of  the  Railway  Administration  with  regard  to  the  plan  and  construction  of  the 
line.  In  their  general  conduct  they  shall  pay  all  due  respect  to  the  Director  Gen- 
eral and  the  Managing  Director.  The  terms  of  their  respective  agreements  will 
be  arranged  by  the  Director  General  on  his  sole  authority. 

Whenever  appointments  are  to  be  made  or  functions  are  to  be  defined  of  the 
technical  employes  on  the  railway  stafif,  as  well  as  in  the  case  of  their  dismissal, 
the  Managing  Director,  or,  in  his  absence,  his  duly  appointed  representative,  will 
act  in  consultation  with  the  Chief  Engineer  of  the  section  concerned,  and,  in  the 
case  of  disagreement,  the  matter  will  be  referred  to  the  Director  General  whose 
decision  shall  be  final. 

After  completion  of  construction  the  Imperial  Chinese  Government  will 
administer  both  sections  as  one  undivided  Government  Railway  and  will  appoint 
an  Engineer-in-Chief,  who  during  the  period  of  the  loan  shall  be  a  European, 
without  reference  to  the  Syndicate. 

Article  18. — For  the  Northern  and  Southern  Sections  of  the  Railway 
respectively  the  Deutsch  Asiatische  Bank  and  the  Chinese  Central  Railways 
Limited  will  act  as  Agents  of  the  Railway  Administration,  during  construction, 
for  the  purchase  of  all  materials,  plant  and  goods  required  to  be  imported  from 
abroad.  For  all  important  purchases  of  such  materials,  tenders  shall  be  called 
for  by  the  Managing  Director ;  in  the  case  of  all  tenders,  indents  and  orders  for 
the  importation  of  goods  and  materials  from  abroad,  the  said  Agents  shall  pur- 
chase the  materials  required  on  the  terms  most  advantageous  to  the  Railway,  and 
shall  charge  the  original  net  cost  of  the  same  plus  a  commission  of  five  (5)  per 
cent.  It  is  understood  that  no  orders  for  materials  shall  be  executed  or  any 
expenditure  incurred  without  due  authorisation  by  the  Managing  Director. 

In  return  for  payment  of  commission  as  above  stated,  the  Deutsch  Asiatische 
Bank  and  the  Chinese  Central  Railways  Limited  as  Agents  within  their  respective 
sections,  shall  be  prepared  to  superintend  the  purchase  of  all  foreign  materials 
required  for  the  construction  and  equipment  of  the  Railway,  which  shall  be 
purchased  in  the  open  market  at  the  lowest  rate  obtainable,  it  being  understood 
that  all  such  materials  shall  be  of  good  and  satisfactory  quality,  and  that  the  Rail- 
way Administration  shall  have  the  right  to  reject  on  arrival  in  China  materials 


NUMBER  1910/4:  SEPTEMBER  28,  1910  821 

which  do  not  come  up  to  specifications.  At  equal  rates  and  qualities  goods  of 
German  and  British  manufacture  shall  be  given  preference  over  other  goods  of 
foreign  origin  for  the  Northern  and  Southern  Sections  respectively.  The  Railway 
Administation  reserves  the  right,  while  paying  the  above  stipulated  commission  to 
the  said  Agents  in  respect  of  all  purchases  of  foreign  materials,  to  avail  itself 
of  the  services  of  other  Agents  in  China  or  abroad  should  it  see  fit  to  do  so. 
Original  invoices  and  Inspectors'  Certificates  are  to  be  submitted  to  the  Managing 
Director ;  all  return  commissions  and  rebates  of  every  description  shall  be  credited 
to  the  Railway;  and  all  purchases  made  by  the  Agents  on  behalf  of  the  Railway 
shall  be  supported  by  manufacturers'  original  invoices  and  inspectors'  certificates. 

No  commission  shall  be  paid  to  the  Agents  except  as  above  provided ;  but  it  is 
understood  that  the  Railway  Administration  shall  provide  out  of  Railway  funds 
for  the  remuneration  of  consulting  engineers  whenever  their  services  are  engaged. 

With  a  view  to  the  encouragement  of  Chinese  industries,  preference  will  be 
given  at  equal  prices  and  qualities,  over  British,  German  or  other  foreign  goods, 
to  Chinese  materials  and  goods  manufactured  in  China.  No  commission  will  be 
paid  on  purchases  of  such  materials  and  goods. 

It  is  understood  and  agreed  that  after  the  construction  of  the  line  is  completed 
the  Deutsch  Asiatische  Bank  and  the  Chinese  Central  Railways  Limited,  within 
their  respective  sections,  will  be  given  the  preference  for  such  Agency  business, 
during  the  currency  of  the  loan,  for  the  supply  of  foreign  materials  as  the  Railway 
Administration  may  require,  on  terms  to  be  hereafter  mutually  agreed  upon. 

Article  19.— Branch  lines  in  connection  with  the  Railway  line  mentioned  in 
this  agreement  that  may  appear  profitable  or  necessary  later  on  shall  be  built  by 
the  Imperial  Chinese  Government  with  funds  at  their  disposal  from  Chinese 
sources,  and  if  foreign  capital  is  required,  preference  will  be  given  to  the 
Syndicate. 

Article  20. — After  payment  of  interest  and  repayment  of  principal  of  the 
loan  for  any  current  year,  the  Railway  Administration  will  deposit  with  the 
Deutsch  Asiatiche  Bank  and  the  Hongkong  and  Shanghai  Banking  Corporation 
in  Shanghai  or  Tientsin  any  surplus  of  the  net  revenue  of  the  Railway  line  for 
that  year  up  to  the  amount  required  to  pay  the  following  year's  instalments  of 
interest  on  the  loan ;  the  rate  of  interest  on  the  deposit  being  arranged  with  the 
Banks  from  time  to  time  with  due  regard  to  the  conditions  of  the  market. 

Article  21. — The  Deutsch  Asiatische  Bank  and  the  Chinese  Central  Rail- 
ways Limited  may,  subject  to  all  their  obligations  under  this  Agreement,  transfer 
or  delegate  all  or  any  of  their  rights,  powers  and  discretions  thereunder  to  any 
German  or  British  Company,  Directors  or  Agents  with  powers  of  further  trans- 
fer, and  sub-delegation ;  such  transfer,  sub-transfer,  delegation  or  sub-delegation 
to  be  subject  to  the  approval  of  the  Director  General. 

Article  22. — This  agreement  is  signed  under  authority  of  an  Imperial  Edict 
dated  the  nineteenth  day  of  the  eighth  month  in  the  second  year  of  Hsuan  Tung, 
corresponding  to  the  twenty  second  day  of  September,  1910,  Western  Calendar, 
which  has  been  officially  communicated  to  the  Ministers  of  Great  Britain  and 
Germany  in  Peking  by  the  Waiwupu. 

Article  23. — Five   sets   of   this   Agreement  are  executed   in   English   and 


822 


CHINA  TREATIES  AND  AGREEMENTS 


Chinese,  three  sets  to  be  retained  by  the  Imperial  Chinese  Government  and  two 
by  the  Syndicate. 

In  the  event  of  any  doubt  arising  regarding  the  interpretation  of  the  contract, 
the  EngHsh  text  shall  rule. 

Signed  at  Peking  by  the  contracting  parties  this  twenty  fifth  day  of  the 
eighth  month  of  the  second  year  of  Hsuan  Tung,  corresponding  to  the  twenty 
eighth  day  of  September  one  thousand  nine  hundred  and  ten,  Western  Calendar. 

For  the  Deutsch  Asiatische  Bank, 

H.   CORDES. 

Director  General,  Tientsin-Pukozv  Railway, 
Hsu  Shih  Chang. 

For  the  Chinese  Central  Railways  Limited, 
S.  F.  Mayers. 

Assistant  Director  General,  Tientsin-Pnkow  Railway. 
Shen  Yun  Pei. 

[Seal  of  Director  General,  Tientsin-Pukow  Railway.] 


TIENTSIN-PUKOW  RAILWAY   SUPPLEMENTARY   LOAN. 
£4,800,000  AT  5% :  30  YEARS. 

Schedule  of  Payments  of  Interest  and  Repayments  of  Principal. 


Year 

Interest 

Principal 

Total  Principal 
Repaid 

Principal  still 
Outstanding 

£ 

£ 

£ 

£ 

1 

120,000 
120,000 

4,800,000 

2 

120,000 
120,000 

4,800,000 

3 

120,000 
120,000 

4,800,000 

4 

120,000 
120,000 

4,800,000 

S 

120,000 
120,000 

4,800,000 

6 

120,000 
120,000 

4,800,000 

7 

120,000  ■ 
120,000 

4,800,000 

8 

120,000 
120,000 

4,800,000 

9 

120,000 
120,000 

4,800,000 

10 

120,000 
120,000 

4,800,000 

11 

120,000 

120,000 

240,000 

240,000 

4,560,000 

12 

114,000 

114,000 

240,000 

480,000 

4,32.0,000 

13 

108,000 

108,000 

240,000 

720,000 

4,080,000 

14 

102,000 

102,000 

240,000 

960,000 

3,840,000 

15 

96,000 

96,000 

240,000 

1,200,000 

3,600,000 

NUMBER  1910/4:  SEPTEMBER  28,  1910 


823 


Year 

Interest 

Principal 

Total  Principal 
Repaid 

Principal  still 
Outstanding 

£ 

£ 

£ 

£ 

16 

90,000 

90,000 

240,000 

1,440,000 

3,360,000 

17 

84,000 

84,000 

240,000 

1,680,000 

3,120,000 

18 

78,000 

78,000 

240,000 

1,920,000 

2,880,000 

19 

72,000 

72,000 

240,000 

2,160,000 

2,640,000 

20 

66,000 

66,000 

240,000 

2,400,000 

2,400,000 

21 

60,000 

60,000 

240,000 

2,640,000 

2,160,000 

22 

54,000 

54,000 

240,000 

2,880,000 

1,920,000 

23 

48,000 

48,000 

240,000 

3,120,000 

1,680,000 

24 

42,000 

42,000 

240,000 

3,360,000 

1,440,000 

25 

36,000 

36,000 

240,000 

3,600,000 

1,200,000 

26 

30,000 

30,000 

240,000 

3,840,000 

960,000 

27 

24,000 

24,000 

240,000 

4,080,000 

720,000 

28 

18,000 

18,000 

240,000 

4,320,000 

480,000 

29 

12,000 

12,000 

240,000 

4,560,000 

240,000 

30 

6,000 

6,000 

240,000 

4,800,000 

Pending  the  issue  of  the  final  series  of  this  loan,  in  terms  of  Article  13  of 
the  agreement,  the  half-yearly  interest  on  the  series  actually  issued  shall  be  cal- 
culated pro  rata  in  respect  to  the  amounts  of  such  series  on  the  basis  of  the 
present  schedule  for  the  total  amount  of  £4,800,000,  but  it  shall  be  so  arranged 
that  the  dates  of  payment  of  the  second  and  any  subsequent  series  shall  coincide 
with  those  of  the  first  series,  in  such  way  that,  when  all  the  series  have  been 
issued,  the  service  of  principal  and  interest  of  the  loan  may  be  brought  into  line 
in  respect  to  dates  of  payment. 


824  CHINA  TREATIES  AND  AGREEMENTS 


Note. 

Letter  of  Agreement  for  Advances  by  Deutsch-Asiatische  Bank  for  Tientsin-Pukow 

Railway,  July  ii,  1912. 

DEUTSCH-ASIATISCHE  BANK. 

Peking,   11th  July,   1912. 

The  Honourable  Mr.  Chu  Chichien, 

Director  General  Tientsin-Pukow  Railway, 
Present. 
Sir, 

I  have  the  honour  to  inform  you  that,  as  the  final  series  of  bonds  of  the  Chinese  Gov- 
ernment Five  Percent  Tientsin-Pukow  Railway  Supplementary  Loan  has  not  yet  been  issued 
and  with  a  view  to  permit  of  the  uninterrupted  continuance  of  the  work  of  construction,  the 
Deutsch  Asiatische  Bank  in  Berlin  has,  in  compliance  with  your  request,  consented  to  an 
advance  to  the  amount  of  i40,000  (Forty  Thousand  Pounds  Sterling)  for  the  urgent  re- 
quirements in  July  of  the  Tientsin-Pukow  Railway,  Northern  Section,  under  the  following 
terms  and  conditions  : — 

1. — The  Deutsch  Asiatische  Bank  agrees  to  advance  the  said  amount  of  i40,000  to  the 
Tientsin-Pukow  Railway  Administration  in  instalments  as  required,  bearing  interest 
at  the  rate  of  seven  (7)  percent  per  annum  from  the  date  of  each  instalment,  and  to 
be  repaid  with  interest  by  deduction  by  the  Deutsch  Asiatische  Bank  from  the  final 
issue  of  the  Tientsin-Pukow  Railway  Supplementary  Loan  Bonds,  or,  in  any  case,  on 
the  31st  December,  1912. 

2. — The  unissued  part  of  the  Bonds  of  the  Tientsin-Pukow  Railway  Supplementary 
Loan  now  deposited  with  the  Deutsch  Asiatische  Bank  in  Berlin  are  hereby  hypothe- 
cated as  security  for  this  present  and  former  advances  made  by  the  Deutsch  Asiatische 
Bank  to  the  Tientsin-Pukow  Railway  Administration,  and  these  Bonds  will  in  like 
manner  be  given  as  security  for  any  future  advances  for  the  completion  of  Construc- 
tion which  the  Deutsch  Asiatische  Bank  may  agree  to  make  to  the  Railway  Administra- 
tion. 

3. — This  advance  will  only  be  employed  for  the  purposes  enumerated  in  the  statement 
annexed  hereto. 

4. — The  arrangements  made  between  the  Berlin  Purchasing  Agency  and  the  Tientsin- 
Pukow  Railway,  Northern  Section,  for  payments  of  materials  purchased  at  Berlin  will 
remain  unchanged. 

5. — This  advance  shall  be  kept  in  the  Deutsch  Asiatische  Bank  until  actually  required 
for  the  purposes  specified  in  the  statement  annexed  hereto  and  shall  be  drawn  upon  as 
hereinafter  provided. 

6. — Requisitions  on  this  advance  will  be  drawn  by  order  issued  and  signed  by  the  for- 
eign Chief  Accountant  of  the  Tientsin-Pukow  Railway,  Northern  Section,  and  approved 
and  countersigned  by  the  Managing  Director  or  his  Representative. 

7. — Until  complete  repayment  with  interest  of  this  advance  and  of  all  former  advances 
made  by  the  Deutsch  Asiatische  Bank  to  the  Tientsin-Pukow  Railway  Administration, 
the  latter  will  treat  all  their  traffic  Receipts  on  the  Northern  Section  as  funds  for 
construction  works  and/or  the  Loan  service,  and  will  deposit  with  the  Deutsch 
Asiatische  Bank  such  amounts  thereof  as  the  Engineer-in-Chief  will  not  require  imme- 
diately for  construction  purposes.  The  Foreign  Chief  Accountant  of  the  Northern 
Section  shall  every  ten  days  furnish  to  the  IManaging  Director  for  the  information 
of  the  Engineer-in-Chief  a  statement  of  earnings  from  all  sources.  The  conditions  for 
drawing  on  the  earnings  so  deposited  with  the  Deutsch  Asiatische  Bank  will  be  the 
same  as  those  provided  in  clause  6  above. 

8.— In  the  event  of  the  Chinese  Government  having  bona  fide  Chinese  funds  at  their 
disposal  for  carrying  on  the  work  of  construction,  they  may  at  any  time  utilise  such 
funds  for  repaying  with  interest  any  advances  as  may  then  have  been  made,  and  thereby 
render  the  arrangements  made  under  this  Letter  of  Agreement  null  and  void. 
9. — The  terms  and  conditions  of  this  Letter  of  Agreement  will  forthwith  be  communi- 
cated by  the  Director  General  of  the  Tientsin-Pukow  Railway  through  the  Board  of 
Communications  to  the  Waichiao  Pu  and  will  by  the  Waichiao  Pu  be  officially  com- 
municated to  the  Minister  for  Germany  in   Peking. 

10. — This  Letter  is  in  duplicate  in  English  and  Chinese  and  it  is  understood  that  in 
the  event  of  any  doubt  arising  regarding  the  interpretation  of  its  terms  the  English  text 
shall   rule. 

I  have  the  honour  to  request  that  you  will  be  good  enough  to  signify  your  acceptance 
and   confirmation   of   the   arrangements   and   conditions   herein    contained   by    affixing  your 


NUMBER  1910/4:  SEPTEMBER  28,  1910:  NOTE  825 

signature  to  the  statement  to  this  effect  below,  retaining  one  copy  of  the  Letter  so  executed 
for  your  files  and  returning  the  other  to  the  undersigned. 

I  have  the  honour  to  be,  Sir, 
Your  obedient  servant, 
For  the  Deutsch  Asiatische  Bank, 

H.    CORDES. 

I  hereby  accept  and  confirm  on  behalf  of  the  Tientsin-Pukow  Railway  Administration 
the   arrangements   and   conditions   herein   contained. 
Peking  11th  July,  1912. 

(Signed) 
(Seal) 

Lm    JuLI    1912    VORRAUSSICHTLICH    ZU    LeISTENDE 

Zahlungen  in  China. 

A-Ausgahen: — 

Shantung    Bahn    Frachten $  70,000 

Peking-Alukden    Bahn    Frachten    "  30,000 

Chee   Hsin   Co.,   Cementlieferungen    "100,000 

Chinese  Engineering  &  M.  Co.,  Kohlen   "  98,000 

China  Imp.  Exp.  &  Lumber  Co.,  Schwellen   "119,000 

$417,000 

Ein  Drittel    $139,000 

Peking-Mukden  Bahn,  Vorschuss    ■  ■ $  40,000 

Bau    &    Betriebsausgaben    "250.000 

Gehaelter  Europaer    "  25,000 

Chinesen     "  38,000 

Polizei     "    7,000 

Soldaten     "    8,000 

Laufende  Ausgaben "  20,000 

$527,000 
B.    Einnahmen: — ( V  oraussichtlich) 

Deutsch  Asiatische  Bank  Berlin  £30,000 $300,000 

Betriebseinnahmen    $120,000 

Peking-Hankow  Railway  •  • $  20,000 

$440,000 

Zu  wenig  $  87,000 

Wenn  von  der  Deutsch  Asiatischen  Bank  Berlin  statt  £30,000  deren  £40,000  ueber- 
wiesen  wuerden,  so  koennten  die  Ausgaben  wie  oben  gedeckt  warden. 

(Gezeichnet)   Brickner. 

22/6   1912. 

Letter  of  Agreement  for  Advances  by  Deutsch-Asiatische  Bank  for  Tientsin-Pukow 

Railway,  August  12,  1912. 

DEUTSCH-ASL'\TISCHE  BANK. 

Peking,  12th  August,  1912. 
The  Honourable  Mr.  Chii  Chi-chien, 

Director  General  of  the   Tientsin-Pukow  Railway,  Peking. 
Sir, 

I  have  the  honour  to  inform  you  that,  as  the  final  series  of  bonds  of  the  Chinese 
Government  Five  Percent  Tientsin-Pukow  Railway  Supplementary  Loan  has  not  yet  been 
issued  and  with  a  view  to  permit  of  the  uninterrupted  continuance  of  the  work  of  construc- 
tion, the  Deutsch  Asiatische  Bank  in  Berlin  has,  in  compliance  with  your  request,  consented 
to  an  advance  to  the  amount  of  £49,000. —  (Forty  Xine  Thousand  Pounds  Sterling)  for 
the  urgent  requirements  in  August  of  the  Tientsin-Pukow  Railway,  Northern  Section,  as 
specified  in  the  Statement  annexed  hereto,  under  the  terms  and  conditions  set  forth  in  my 
Letter  of  Agreement  for  the  advance  of  £40,000  for  the  month  of  July,  dated  the  11th  of 
July,  1912. 

It  is  understood  and  agreed  that  this  present  advance  of  £49,000  shall  be  treated  in 
conjunction  with  the  advance  for  July  of  £40,000  above  referred  to  and  with  all  previous 
advances  made  by  the  Deutsch  Asiatische  Bank  to  the  Tientsin-Pukow  Railway  Administra- 
tion. 

I  have  the  honour  to  request  that  you  will  be  good  enough  to  signify  your  acceptance 


826  CHINA  TREATIES  AND  AGREEMENTS 

and  confirmation  of  the  arrangements  and  conditions  herein  contained  by  affixing  your 
signature  to  the  statement  to  this  effect  below,  retaining  one  of  the  two  copies  of  this 
Letter  so  executed  for  your  files  and  returning  the  other  to  the  undersigned. 

I  have  the  honour  to  be,  Sir, 
Your  obedient  servant. 
For  the  Deutsch-Asiatische  Bank, 

(S  d)  H.  CORDES. 

I  hereby  accept  and  confirm  on  behalf  of  the  Tientsin-Pukow  Railway  Administration 
the  arrangements  and  conditions  herein  contained. 
Peking  12th  August,  1912. 

(S'd) 

(Seal) 

STATEMENT. 

(Extract  of  the   Estimate   for   the   month  of   August,   1912,   signed   by  the   Chief 
Accountant  Mr.  Brickner  on  July  27th,  1912.) 

(  Europeans   £1625.-.=  $16250.-. 

Salaries]          do                            $  8000.-.    $24,250.-. 

(  Chinese ,,77,255.60 

Wages   ,37,708.50 

Contractors    ,,85,650.27 

Construction  Materials    ,,56,766.06 

Store  Materials,  including  Coal  $12,300.- ,,76,886.-. 

Current  Expenses   ,,12,201.21 

$370,697.64 
Current  Account  Debts: — 

Shuntung  Railway  $  55,387.-. 

Cement  Works    $110,590.-. 

Lumber  Co „  80,250.-. 

Engineering  Co „  88,519.-. 

Peking  Mukden  R „  30,000.-. .' $364,746.-. 

$735,443.64 

Letter  of  Agreement  for  Advances  by  Chinese  Central  Railways  for  Tientsin-Pukow 

Railway,  August  28,  1912. 

CHINESE  CENTRAL  RAILWAYS  LIMITED. 

Peking,  August  28th,  1912. 
The  Honourable  Mr.  Chu  Chi-Chien, 

Minister  of  Communications,  Peking. 
Sir, 

I  have  the  honour  to  inform  you  that,  as  the  final  series  of  bonds  of  the  Chinese 
Government  5%Tientsin  Pukow  Railway  Supplementary  Loan  has  not  yet  been  issued, 
and  with  a  view  to  permit  of  the  uninterrupted  continuance  of  the  work  of  construction 
and  maintenance,  Chinese  Central  Railways  Limited,  London,  has,  in  compliance  with  your 
request,  consented  to  make  advances  not  exceeding  £300,000  sterling,  in  instalments  to  meet 
the  urgent  requirements  of  the  Tientsin  Pukow  Railway,  Southern  Section,  under  the  follow- 
ing terms    and   conditions  : — 

1.  Chinese  Central  Railways  Limited  agree  to  make  the  said  advances,  not  exceeding 
£300,000  (Three  Hundred  Thousand  pounds)  in  monthly  instalments  as  required,  up  to 
March  31st  1913,  bearing  interest  at  the  rate  of  7%  per  annum  from  the  date  of  each  instal- 
ment :  these  advances  together  with  previous  advances  already  made  by  Chinese  Central 
Railways  Limited  to  be  repaid  with  interest  by  deduction  by  Chinese  Central  Railways 
Limited  from  the  final  issue  of  the  Tientsin  Pukow  Railway  Supplementary  Loan  bonds,  or 
in  any  case  on  March  31st  1913. 

2.  The  unissued  part  of  the  bonds  of  the  Tientsin  Pukow  Railway  Supplementary  Loan 
(London  issue)  are  hereby  hypothecated  as  security  for  this  present  and  all  former 
advances  made  by  Chinese  Central  Railways  Limited  to  the  Tientsin  Pukow  Railway  Ad- 
ministration, and  these  bonds  will  in  like  manner  be  given  as  security  for  any  future  ad- 
vances for  the  completion  of  construction  which  Chinese  Central  Railways  Limited  may 
agree  to  make  to  the  Railway  Administration. 

3.  It  is  hereby  agreed  that  these  advances  will  be  applied  solely  to  the  following  pur- 
poses : — 

a.  Payment  of  the   Southern   Section's   outstanding  obligations,   and   the  provision 
of  the  necessary  rolling  stock  and  ferry  between  Pukow  and  Nanking. 

b.  Continuance  of  construction  work  on  the  Southern   section. 


NUMBER  1910/4:  SEPTEMBER  28,  1910:  NOTE  827 

4.  These  advances  shall  be  kept  in  the  Hongkong  and  Shanghai  Banking  Corporation 
until  actually  required  for  the  purposes  specified  in  Clause  3  and  shall  be  drawn  upon  as  here- 
inafter provided. 

5.  Requisitions  on  these  advances  will  be  drawn  by  orders  issued  and  signed  by  the 
foreign  Chief  Accountant  of  the  Tientsin  Pukow  Railway  Southern  Section  and  approved 
and  countersigned  by  the   Managing  Director,  or  his   representative. 

6.  Until  complete  repayment  with  interest  of  these  advances  and  of  all  other  advances 
made  by  Chinese  Central  Railways  Limited  to  the  Railway  Administration  the  latter  will 
treat  their  traffic  receipts  on  the  Southern  Section  as  funds  for  construction  works  and/or 
loan  service,  and  will  deposit  with  the  Hongkong  and  Shanghai  Bank  such  amounts  thereof 
as  the  Engineer-in-Chief  will  not  require  immediately  for  construction  purposes.  The 
foreign  Chief  Accountant  of  the  Southern  Section  shall  every  ten  days  furnish  to  the 
Managing  Director  for  the  information  of  the  Engineer-in-Chief  a  statement  of  earnings 
from  all  sources.  The  conditions  for  drawing  on  the  earnings  so  deposited  with  the  Hong- 
kong and  Shanghai  Bank  will  be  the  same  as  those  provided  in  Clause  5  above. 

7.  In  the  event  of  the  Chinese  Government  having  bona  fide  Chinese  funds  at  their 
disposal  for  carrying  on  the  work  of  construction,  they  may  at  any  time  utilise  such  funds 
for  repaying  with  interest  any  advances  as  may  then  have  been  made,  and  thereby  render 
the  arrangements  made  under  this  letter  of  agreement  null  and  void. 

8.  The  terms  and  conditions  of  this  Letter  of  Agreement  will  forthwith  be  communi- 
cated by  the  Ministry  of  Communications  to  the  Waichiaopu  and  will  by  the  Waichiaopu  be 
officially  communicated  to  the  Minister  for  Great  Britain  in  Peking. 

This  letter  is  in  duplicate  in  English  and  Chinese  and  it  is  understood  that  in  the 
event  of  any  doubt  arising  regarding  the  interpretation  of  its  terms  the  English  text  shall 
rule. 

I  have  the  honour  to  request  that  you  will  be  good  enough  to  signify  your  acceptance 
and   confirmation   of   the  arrangements   and   conditions   herein    contained   by   affixing  your 
signature  to  the  statement  to  this  effect  below,  retaining  one  copy  of  the  letter  so  executed 
for  your  files  and  returning  the  other  to  the  undersigned. 
I  have  the  honour  to  be,  Sir, 

Your    obedient    servant, 
(S'd)  S.  F.  Mayers, 

For  Chinese  Central  Railways  Limited. 

I  hereby  accept  and  confirm  on  behalf  of  the  Tientsin-Pukow  Railway  Administration 
the  arrangements  and  conditions  herein  contained. 

CHINESE  CENTRAL  RAILWAYS  LnilTED. 

Peking,  August  28th,   1912. 
The  Honourable  Mr.  Cliu  Chi-Ckien, 

Minister   of   Communications,   Peking. 
Sir, 

With  reference  to  the  Letter  of  Agreement  of  today's  date  for  advances  up  to  £300.000 
from  Chinese  Central  Railways  Limited  to  the  Tientsin  Pukow  Railway,  Southern  Section, 
to  be  repaid  on  or  before  March  31st  1913,  and  in  consideration  for  which  the  unissued 
bonds  of  the  Tientsin  Pukow  Railway  Supplementary  Loan  (London  issue)  are  hypothecated 
as  security  it  is  understood  that  if  it  is  possible  before  31st  March  1913  to  issue  the  balance 
of  the  loan,  the  Chinese  Central  Railways  Limited  will  be  duly  authorised  to  take  the 
necessary  steps  as  on  the  occasions  of  previous  issues:  should  no  issue  appear  possible, 
Chinese  Central  Railways  Limited  will  notify  the  Railway  Administration  one  month  prior 
to  the  date  upon  which  these  advances  are  due  for  repayment,  and  if  the  Railway  Adminis- 
tration is  unable  to  repay  all  advances  at  due  date  it  is  understood  that  Chinese  Central 
Railways  Limited  shall  have  the  option  to  purchase  at  88  sufficient  bonds  to  repay  these  and 
previous  advances.  This  price  of  £88  for  each  £100  bond  is  based  on  the  present  market 
price  less  interest  and  commission. 

I  ?hall  be  glad  if  you  will  favour  me  with  a  reply  granting  this  option  to  Chinese  Cen- 
tral Railways  Limited,  and  assuring  them  that  in  the  event  of  its  being  exercised  the  Chinese 
Alinister  in  London  will  be  called  upon  to  cooperate  in  taking  the  steps  which  would  be 
necessary  to  obtain  quotation  of  these  bonds  on  the  London  Stock  Exchange. 
I  have  the  honour  to  be. 
Sir, 

Your   obedient    servant, 
{S'd)  S.  F.  Mayers, 

For  Chinese  Central  Railways  Limited. 

In  connection  with  this  agreement  see  also  the  agreement  of  January  13,  1908  (No. 
1908/1,  ante). 


g28  CHINA  TREATIES  AND  AGREEMENTS 


NUMBER  1910/5. 

FRANCE  (Banque  de  I'Indo-Chine),  GERMANY  (Deutsch-Chinesische  Eisen- 
bahn  Gesellschaft),  GREAT  BRITAIN  (British  &  Chinese  Corporation, 
Limited,  and  Chinese  Central  Railways,  Limited)  AND  UNITED  STATES 
(American  Group). 

Agreement  concerning  loans  for  railway  purposes.*' — November  10,  1910. 

MEMORANDUM  OF  AGREEMENT  made  the  Tenth  Day  of  November  One 
thousand  nine  hundred  and  ten  Between  THE  BRITISH  AND  CHINESE 
CORPORATION  LIMITED  having  its  registered  office  at  3  Lombard 
Street  in  the  City  of  London  (hereinafter  called  "the  Corporation")  of 
the  first  part  CHINESE  CENTRAL  RAILWAYS  LIMITED  having  its 
registered  office  at  110  Cannon  Street  in  the  said  City  (hereinafter  called 
"the  Central  Company")  of  the  second  part  THE  BANQUE  DE  LTNDO 
CHINE  having  its  office  at  15bis  Rue  Laffitte  Paris  (hereinafter  called 
"the  French  Bank")  of  the  third  part  THE  DEUTSCH-CHINESISCHE 
EISENBAHN  GESELLSCHAFT  m.  b.  H.  having  its  office  at  31  Unter 
den  Linden  Berlin  (hereinafter  called  "the  German  Company")  of  the 
fourth  part  MESSRS.  J.  P.  MORGAN  &  CO.,  MESSRS.  KUHN,  LOEB 
&  CO.,  THE  FIRST  NATIONAL  BANK  and  THE  NATIONAL  CITY 
BANK  all  of  New  York  (hereinafter  called  "the  American  Group") 
acting  as  to  the  United  Kingdom  by  Messrs.  Morgan  Grenfell  &  Co.  of 
22  Old  Broad  Street  in  the  City  of  London  as  to  Germany  by  Messrs. 
M.  M.  Warburg  &  Co.  of  Hamburg  and  as  to  France  by  Messrs.  Morgan 
Harjes  &  Co.  of  Paris  and  Messrs.  M.  M.  Warburg  &  Co.  (all  hereinafter 
collectively  called  "  the  American  Agents  ")  of  the  fifth  part. 
WHEREAS  the  parties  hereto  have  expressed  their  willingness  to  enter 
into  a  general  understanding  for  the  purpose  of  governing  their  action  in 
connection  with  the  negotiations  for  and  making  to  the  Chinese  Empire 
loans  for  railway  purposes  NOW  IT  IS  HEREBY  AGREED  by  and 
between  the  parties  hereto  as   follows : — 

1. — IN  the  matter  of  this  Agreement  the  French  Bank  is  acting  on  behalf  of 
the  French  Syndicate  for  Chinese  business  consisting  of  the  parties  whose  names 
are  set  forth  in  the  First  Schedule  hereto,  the  German  Company  is  acting  on 
behalf  of  the  German  Syndicate  for  Chinese  business  consisting  of  the  parties 
whose  names  are  set  forth  in  the  Second  Schedule  hereto,  and  the  American 
Agents  are  acting  on  behalf  of  the  American  Group.  The  French  Bank  the 
Germany  Company  and  the  American  Group  reserve  to  themselves  the  right  of 
increasing  or  reducing  in  each  special  case  the  number  of  parties  interested  in 
the  French  and  German  Syndicates  and  the  American  Group  respectively  and 
a  similar  right  is  reserved  to  the  Corporation  but  so  that  in  any  such  case  any 
party  dropping  out  in  any  special  case  shall  still  remain  bound  by  the  restrictive 

*  In  connection  with  this  agreement  see  also  the  Anglo-German  bankers'  agreement  of 
September  2,  1898  (see  p.  266,  ante),  Anglo-French  bankers'  agreement  of  October  2, 
1905  (No.  1905/11,  ante),  and  Hukuang  Railway  loan  agreement  of  May  20,  1911  (No. 
1911/5,  post).    See  Note  to  this  document,  post,  p.  833. 


NUMBER  1910/5:  NOVEMBER  10,  1910  829 

provisions  hereof,  and  any  party  coming  in  in  any  special  case  shall  become  subject 
to  the  restrictive  provisions  hereof. 

2. — THIS  Agreement  relates  to  all  loans  and  advances  for  railway  purposes 
to  be  floated  out  of  the  Chinese  Empire  which  may  be  made  with  the  Chinese 
Imperial  Government  and/or  with  Government  Departments  and  Companies 
having  Chinese  Imperial  or  Provincial  Government  guarantees  but  does  not 
relate  to  loans  to  be  floated  within  the  Chinese  Empire  nor  to  any  loans  in  con- 
nection with  the  Hankow-Canton  and  Hankow-Chengtu  Railways. 

3. — ANY  business  of  the  kind  hereinbefore  defined  to  which  the  Agreement 
relates  which  may  be  offered  to  any  of  the  contracting  parties  of  the  first  third 
fourth  and  fifth  parts (  hereinafter  jointly  referred  to  as  "  the  lenders  ")  must  be 
dealt  with  jointly  by  them  in  accordance  with  the  stipulations  of  this  Agreement. 

4. — AS  regards  joint  action  in  respect  of  financial  operations  for  railway 
purposes  not  having  such  guarantees  special  Agreements  will  have  to  be  made 
in  each  separate  case. 

5. — THIS  Agreement  is  made  on  the  principle  of  equality  namely  equal  terms 
in  every  respect  between  the  lenders  and  each  of  the  lenders  enters  into  this 
Agreement  for  their  respective  groups  and  shall  take  an  equal  share  in  all  opera- 
tions and  jointly  sign  all  contracts  except  as  hereinafter  provided  and  shall  bear 
in  equal  shares  all  charges  in  connection  with  any  business  (except  stamp  duties 
and  any  charges  of  and  connected  with  the  realisation  by  each  of  the  lenders  in 
their  respective  markets  of  their  participation  in  the  operations)  and  conclude 
all  contracts  with  equal  rights  and  obligations  as  between  themselves  PROVIDED 
ALWAYS  that  in  cases  where  the  introduction  of  third  parties  is  calculated  to 
prejudice  the  success  of  the  negotiations  any  business  falling  within  the  scope  of 
this  Agreement  may  be  entertained  and  negotiations  entered  upon  by  any  one  of 
the  lenders  alone  but  with  notice  to  be  given  to  the  other  lenders  as  soon  as  possi- 
ble and  should  it  appear  in  the  course  of  such  negotiations  that  the  conditions 
imposed  upon  the  business  preclude  joint  negotiations  and/or  joint  signatures  by 
the  lenders  in  terms  of  this  Agreement  the  negotiating  party  may  if  mutually 
agreed  upon  by  the  lenders  conclude  the  negotiations  and  sign  the  Agreement  alone 
but  upon  the  terms  of  the  other  lenders  being  entitled  to  all  rights  or  participation 
under  this  Agreement  other  than  those  involving  or  arising  from  joint  negotiation 
and  joint  signature  but  it  is  understood  that  all  the  lenders  will  use  their  best 
endeavors  to  obtain  the  joint  signatures  to  any  contract  except  where  by  mutual 
consent  of  those  lenders  who  are  prepared  to  participate  this  is  found  to  be 
impracticable  when  the  party  signing  the  contract  shall  by  the  insertion  of  a 
special  clause  or  execution  of  a  separate  declaration  of  trust  or  otherwise  ensure 
to  the  other  lenders  the  same  rights  as  regards  the  taking  over  the  issue  and 
service  of  the  loan  which  it  has  obtained  under  the  contract  for  itself  and  also 
the  authority  required  for  obtaining  official  quotations  in  the  respective  markets 
of  the  said  other  parties. 

6. — ALL  contracts  shall  so  far  as  possible  be  made  so  as  not  to  impose  joint 
liability  on  the  lenders,  but  each  of  the  parties  to  the  said  contracts  shall  severally 
liquidate  its  own  engagements  and  liabilities  towards  the  party  of  the  other  side 
in  China.     The  parties  to  the  said  contracts  will  so  far  as  possible  come  to  an 


830  CHINA  TREATIES  AND  AGREEMENTS 

understanding  with  regard  to  the  reahzation  of  the  operations  but  so  that  such 
reaHzation  in  whatever  manner  this  may  take  place  shall  be  for  the  separate  bene- 
fit of  each  of  the  lenders  as  regards  their  respective  participations  therein. 

7. — IN  the  event  of  any  of  the  lenders  declining  a  participation  in  any  busi- 
ness proposed  either  at  the  outset  or  at  any  time  during  the  course  of  the  negotia- 
tions the  other  lenders  shall  have  the  option  of  taking  up  and  carrying  out  the 
business  either  jointly  or  if  only  one  takes  up  the  business  separately  on  their 
or  its  respective  accounts  and  in  their  or  its  respective  markets  without  prejudice 
to  the  provisions  of  this  Agreement. 

8. — THE  lenders  will  endeavor  to  secure  in  their  respective  markets  a  suc- 
cessful issue  of  any  loan  the  subject-matter  of  contracts  entered  into  with  them 
jointly  or  in  which  they  may  be  jointly  interested. 

9. — SUBJECT  to  the  provisions  of  the  Agreement  referred  to  in  paragraph 
14  hereof  any  participation  given  in  its  own  market  by  any  one  of  the  lenders 
shall  be  for  its  own  account  only  but  any  participations  given  by  and  in  the 
mutual  interest  of  all  the  lenders  who  may  be  parties  to  or  interested  in  any 
contract  to  any  banks  or  banking  firms  outside  of  England  France  Germany  and 
America  respectively  shall  be  borne  in  equal  shares  by  the  parties  interested. 

10. — ALL  offers  shall  be  made  to  the  Chinese  Authorities  and  loans  accepted 
on  terms  of  control  which  involve  as  a  minimum : 

(A)  The  appointment  of  Engineers  in  Chief  to  be  approved  by  the  lenders  or 
lender  taking  a  participation  in  the  business  and  the  Chinese  to  be  required  to 
make  appointments  approved  by  such  lenders  or  lender  alternately  according  to 
the  order  of  the  parties  to  this  Agreement  except  where  the  interest  of  any  other 
group  can  be  shown  to  predominate  and  in  that  case  the  Engineer  shall  be 
appointed  by  that  Group. 

(B)  Until  actually  required  for  construction  proceeds  of  Loans  to  remain 
under  the  control  of  such  lenders  on  terms  not  less  favorable  to  the  lenders  than 
are  contained  in  the  Hukuang  Loan  Agreement  initialled  Sixth  June  One  Thou- 
sand nine  hundred  and  nine  and  in  the  corresponding  official  despatch.f 

(C)  Provision  for  proper  account  keeping  and  financial  control  under  the 
direction  of  a  Chief  Accountant  to  be  approved  by  such  lenders  or  lender. 

11. — THE  orders  for  materials  required  for  any  railway  as  far  as  possible 
shall  be  equally  divided  between  the  lenders  or  lender  participating  and  the  com- 
mission receivable  from  the  Chinese  on  such  purchases  after  provision  for  the 
expenses  of  earning  such  commission  is  to  be  shared  between  the  lenders  or 
lender  participating  equally  or  as  may  be  arranged. 

12. — THE  Central  Company  consents  to  be  bound  by  the  terms  of  this 
Agreement  to  the  extent  of  giving  effect  thereto  by  granting  to  each  of  them  the 
German  Company  and  the  American  group  one  fourth  interest  in  all  loans  for  rail- 
way purposes  obtained  by  it  in  connection  with  any  part  of  the  Chinese  Empire 
north  of  the  Yangtse  River  and  the  German  Company  and  the  American  Group 
each  agrees  to  grant  to  the  other  of  them  one-fourth  interest  in  any  loans  for 
Railway  purposes  secured  by  it  in  the  said  area  and  also  agrees  to  grant  to  the 

t  Quoted    in    note    to    final    agreement    for    Hukuang    Railway    Loan,    May    20,    1911 
(No.  1911/5),  p.  880,  post. 


NUMBER  1910/5:  NOVEMBER  10,  1910  831 

Central  Company  one-half  interest  in  any  loans  for  railway  purposes  secured  by 
it  in  the  said  area  and  the  granting  of  such  interests  to  the  Central  Company  is 
hereby  accepted  by  the  Corporation  and  the  French  Bank  as  in  satisfaction  of  all 
rights  under  this  Agreement  to  participation  in  such  loans.  The  Central  Company 
not  being  comprised  in  the  lenders  as  per  Article  3  shall  in  their  negotiations  with 
the  Chinese  Authorities  nevertheless  be  bound  by  Clause  10  of  the  present 
Agreement. 

13. — IT  is  distinctly  understood  that  by  the  foregoing  Articles  3  and  12  the 
German  Company  and  the  American  Group  shall  each  participate  in  any  business 
of  the  kind  defined  in  Article  2  of  this  Agreement  to  the  extent  of  one-fourth 
share. 

14. — SAVE  as  herein  provided  and  as  provided  in  an  Agreement  between  the 
Hong  Kong  and  Shanghai  Banking  Corporation  the  Deutsch-Asiatische  Bank  the 
Banque  de  ITndo  Chine  and  the  American  Group  proposed  to  be  entered  into 
immediately  after  this  Agreement  no  business  of  the  kind  falling  within  the 
scope  of  this  Agreement  shall  be  concluded  or  entered  into  either  directly  or 
indirectly  by  any  of  the  parties  hereto  or  by  any  of  those  whom  they  respectively 
represent  without  the  consent  of  the  others. 

15. — WHERE  reference  is  made  in  this  Agreement  to  the  lenders  or  lender 
taking  a  participation  in  any  business  such  or  any  similar  expression  shall  be 
deemed  to  include  the  American  Group  unless  such  group  shall  have  declined  its 
participation  and  notwithstanding  that  its  participation  is  being  issued  on  its 
account  by  one  or  more  of  the  other  parties  to  the  Agreement  mentioned  in  the 
last  preceding  clause  hereof. 

16. — THE  present  Agreement  shall  remain  in  force  until  the  Thirty-first 
December  One  thousand  nine  hundred  and  twelve  and  unless  determined  on  that 
day  by  twelve  months'  previous  notice  given  by  any  one  of  the  parties  to  the 
others  then  until  six  months'  notice  shall  be  given  by  any  one  of  the  parties 
such  notice  to  expire  on  the  Thirtieth  June  or  Thirty-first  December  in  any 
year.  Provided  nevertheless  that  if  during  the  continuance  of  the  present  agree- 
ment the  Agreement  of  the  Thirtieth  June  One  thousand  eight  hundred  and 
ninety-eight  niade  between  the  Corporation  and  the  Hong  Kong  and  Shanghai 
Banking  Corporation  the  terms  of  which  have  been  communicated  to  the  other 
parties  hereto  shall  be  determined  by  that  Bank  in  pursuance  of  the  power  therein 
contained  then  the  present  Agreement  shall  forthwith  upon  such  determination 
also  cease  and  determine.  Notwithstanding  the  termination  of  the  present 
Agreement  all  contracts  made  hereunder  shall  continue  in  force  for  their  due 
fulfilment  until  completely  carried  out. 

IN  WITNESS  whereof  the  duly  authorized  representatives  of  the  respective 
parties  hereto  have  set  their  hands  the  day  and  year  first  above  written. 


832  CHINA  TREATIES  AND  AGREEMENTS 

FIRST  SCHEDULE 

Banque  de  I'lndo  Chine  Paris 

Banque  de  Paris  et  des  Pays-Bas " 

Comptoir  National  d'Escompte  de  Paris   " 

Credit  Lyonnais    " 

Societe  Generale  pour  favoriser  le  developpement  du  Commerce 

et  de  ITndustrie  en  France   " 

Societe  Generale  de  Credit  Industriel  &  Commercial  " 

Banque  de  I'Union  Parisienne " 

Banque  Frangaise  pour  le  Commerce  et  I'lndustrie " 

SECOND  SCHEDULE 

Direction  der  Disconto-Gesellschaft Berlin 

S.  Bleichroder   

Deutsche  Bank    " 

Berliner  Handels-Gesellschaft '' 

Bank  f iir  Handel  &  Industrie   " 

Mendelssohn  &  Co 

Dresdner  Bank   " 

A.  Schaaffhausen'scher  Bankverein " 

Nationalbank  f iir  Deutschland " 

Deutsch-Asiatische  Bank   Shanghai 

Jacob  S.  H.  Stern Frankfurt  a/M. 

Sal.  Oppenheim  jr.  &  Cie Koln 

Norddeutsche  Bank  in  Hamburg Hamburg 

L.  Behrens  &  Sohne " 

Bayerische  Hypotheken-und  Wechselbank Miinchen 

For  and   on   behalf   of 

THE  BRITISH  AND  CHINESE  CORPORATION  LIMITED 

W.  Keswick 

C.  S.  Addis. 
For  and  on  behalf  of  CHINESE  CENTRAL  RAILWAYS  LIMITED 

Carl  Meyer 

G.  Jamieson. 
For  and  on  behalf  of  THE  BANQUE  DE  LTNDO  CHINE 

S.  Simon 

E.  Ullmann. 
For  and  on  behalf  of  THE  DEUTSCH-CHINESISCHE  EISENBAHN 

GESELLSCHAFT  m.  b.  H. 

Fr.  Urbig 

E.  Rehders. 
For  and  on  behalf  of 

Messrs.  J.  P.  MORGAN  &  CO.,  Messrs.  KUHN,  LOEB  &  CO.,  THE 
FIRST  NATIONAL  BANK  and  THE  NATIONAL  CITY  BANK, 

Morgan,  Grenfell  &  Co. 

M.  M.  Warburg  &  Co. 

Morgan  Harjes  &  Co. 


NUMBER  1910/5:  NOVEMBER  10,  1910:  NOTE  833 

Note. 

Under  date  of  July  6,  1909,  the  British,  French  and  German  parties  to  this  agreement 
had  entered  into  a  memorandum  of  agreement  respecting  loans  to  the  Chinese  Govern- 
ment for  railway  purposes,  in  the  following  terms : 

Memorandum  of  agreement  among  British,  French  and  German  Groups  in  regard  to 

Railway  Loans,  July  6,  1909. 

MEMORANDUM  OF  AGREEMENT  made  the  Sixth  day  of  July,  One  thousand  nine 
hundred  and  nine  Between  THE  BRITISH  AND  CHINESE  CORPORATION,  LIM- 
ITED, having  its  registered  office  at  3  Lombard  Street  in  the  City  of  London  (hereinafter 
called  -the  Corporation")  of  the  first  part  CHINESE  CENTRAL  RAILWAYS,  LIM- 
ITED, having  its  registered  office  at  110  Cannon  Street  in  the  said  City  (hereinafter  called 
"the  Central  Company")  of  the  second  part  THE  BANQUE  DE  LTNDO  CHINE, 
having  its  off.ce  at  ISbis  Rue  Laffitte,  Paris  (hereinafter  called  "the  French  Bank")  of 
the  third  part  and  THE  DEUTSCH-CHINESISCHE  EISENBAHN  GESELLSCHAFT 
m.b.H.  having  its  office  at  31  Unter  den  Linden,  Berlin  (hereinafter  called  "  the  German 
Company")  of  the  fourth  part  WHEREAS  the  parties  hereto  have  expressed  their  will- 
ingness to  enter  into  a  general  Anglo-Franco-German  understanding  for  the  purpose  of 
governing  their  action  in  connection  with  the  negotiations  for  and  making  to  the  Chinese 
Empire  loans  for  railway  purposes  NOW  IT  IS  HEREBY  AGREED  by  and  between  the 
parties  hereto  as  follows : 

1. — IN  the  matter  of  this  Agreement  the  French  Bank  is  acting  on  behalf  of  the  French 
Syndicate  for  Chinese  business  consisting  of  the  parties  whose  names  are  set  forth  in  the 
First  Schedule  hereto  and  the  German  Company  is  acting  on  behalf  of  the  German  Syndi- 
cate for  Chinese  business  consisting  of  the  parties  whose  names  are  set  forth  in  the 
Second  Schedule  hereto.  The  French  Bank  and  the  German  Company  reserve  to  them- 
selves the  right  of  increasing  or  reducing  in  each  special  case  the  number  of  parties  inter- 
ested in  the  French  and  German  Syndicates  respectively  and  a  similar  right  is  reserved 
to  the  Corporation,  but  so  that  in  any  such  case  any  party  dropping  out  in  any  special  case 
shall  still  remain  bound  by  the  restrictive  provisions  hereof  and  any  party  coming  in  in 
any  special  case  shall  become  subject  to  the  restrictive  provisions  hereof. 

2. — THIS  Agreement  relates  to  all  loans  and  advances  for  railway  purposes  to  be 
floated  out  of  the  Chinese  Empire  which  may  be  made  with  the  Chinese  Imperial  Gov- 
ernment and/or  with  Government  Departments  and  Companies  having  Chinese  Imperial  or 
Provincial  Government  guarantees  but  does  not  relate  to  loans  to  be  floated  within  the 
Chinese  Empire  nor  to  any  loans  in  connection  with  the  Hankow  Canton  and  Hankow 
Chengtu  Railways. 

3. — ANY  business  of  the  kind  hereinbefore  defined  to  which  this  Agreement  relates 
which  may  be  offered  to  either  of  the  contracting  parties  of  the  first,  third  ■  and  fourth 
parts  (hereinafter  jointly  referred  as  "the  lenders")  must  be  dealt  with  jointly  by  them 
in  accordance  with  the  stipulations  of  this  Agreement. 

4. — AS  regards  joint  action  in  respect  of  financial  operations  for  railway  purposes 
not  having  such  guarantees,  special  Agreements  will  have  to  be  made  in  each  separate  case. 

5. — THIS  Agreement  is  made  on  the  principle  of  equality  namely  equal  terms  in  every 
respect  between  the  lenders  and  each  of  the  lenders  enters  into  this  Agreement  for  their 
respective  groups  and  shall  take  an  equal  share  in  all  operations  and  jointly  sign  all  con- 
tracts except  as  hereinafter  provided  and  shall  bear  in  equal  shares  all  charges  in  connec- 
tion with  any  business  (except  stamp  duties  and  any  charges  of  and  connected  with  the 
realisation  by  each  of  the  lenders  in  their  respective  markets  of  their  participation  in  the 
operations)  and  conclude  all  contracts  with  equal  rights  and  obligations  as  between  them- 
selves PROVIDED  ALWAYS  that  in  cases  where  the  introduction  of  third  parties  is 
calculated  to  prejudice  the  success  of  the  negotiations  any  business  falling  within  the  scope 
of  this  Agreement  may  be  entertained  and  negotiations  entered  upon  by  either  of  the 
lenders  alone  with  or  without  notice  to  the  other  lenders  and  should  it  appear  in  the  course 
of  such  negotiations  that  the  conditions  imposed  upon  the  business  preclude  joint  negotia- 
tions and/or  joint  signatures  by  the  lenders  in  terms  of  this  agreement  the  negotiating 
party  may  conclude  the  negotiations  and  sign  the  agreement  alone  but  upon  the  terms  of 
the  other  lenders  being  entitled  to  all  rights  or  participation  under  this  Agreement  other 
than  those  involving  or  arising  from  joint  negotiation  and  joint  signature  but  it  is  under- 
stood that  all  the  lenders  will  use  their  best  endeavours  to  obtain  the  joint  signatures  to 
any  contract  wherever  possible  except  where  for  any  reasons  this  is  found  to  be  imprac- 
ticable when  the  party  signing  the  contract  shall  by  the  insertion  of  a  special  clause  or 
execution  of  a  separate  declaration  of  trust  or  otherwise  ensure  to  the  other  lenders  the 
same  rights  as  regards  the  taking  over  the  issue  and  service  of  the  loan  which  it  has 
obtained  under  the  contract  for  itself  and  also  the  authority  required  for  obtaining  official 
quotations  in  the  respective  .markets  of  the  said  other  parties. 

6. — ALL  contracts  shall  so  far  as  possible  be  made  so  as  not  to  impose  joint  liability 


834  CHINA  TREATIES  AND  AGREEMENTS 

on  the  lenders  but  each  of  the  parties  to  the  said  contracts  shall  severally  liquidate  its  own 
engagements  and  liabilities  towards  the  party  of  the  other  side  in  China.  The  parties  to 
the  said  contracts  will  so  far  as  possible  come  to  an  understanding  with  regard  to  the 
realisation  of  the  operations,  but  so  that  such  realisation  in  whatever  manner  this  may  take 
place  shall  be  for  the  separate  benefit  of  each  of  the  lenders  as  regards  their  respective 
participations  therein. 

7. — IN  the  event  of  either  of  the  lenders  declining  a  participation  in  any  business  pro- 
posed either  at  the  outset  or  at  any  time  during  the  course  of  the  negotiations  the  other 
lenders  shall  have  the  option  of  taking  up  and  carrying  out  the  business  either  jointly  or 
if  only  one  takes  up  the  business  separately  on  their  or  its  respective  accounts  without 
prejudice  to  the  provisions  of  this  Agreement. 

8. — THE  lenders  will  endeavour  to  secure  in  their  respective  markets  a  successful 
issue  of  any  loan  the  subject-matter  of  contracts  entered  into  with  them  jointly  or  in  which 
they  may  be  jointly  interested. 

9. — ANY  participation  given  in  its  own  market  by  any  one  of  the  lenders  shall  be  for 
its  own  account  only  but  any  participations  given  by  and  in  the  mutual  interest  of  all  the 
lenders  who  may  be  parties  to  or  interested  in  any  contract  to  any  banks  or  banking  firms 
outside  of  England,  France  and  Germany,  respectively,  shall  be  borne  in  equal  shares  by 
the  parties  interested. 

10. — ALL  offers  shall  be  made  to  the  Chinese  Authorities  and  loans  accepted  on  terms 
of  control  which  involve  as  a  minimum : 

(a)  The  appointment  of  Engineers  in  Chief  to  be  approved  by  the  lenders  or  lender 

taking  a  participation  in  the  business  and  the  Chinese  to  be  required  to  make 
appointments  approved  by  such  lenders  or  lender  alternately  according  to  the 
order  of  the  parties  to  this  Agreement  except  where  the  interest  of  any  other 
group  can  be  shown  to  predominate  and  in  that  case  the  Engineer  shall  be 
appointed  by  that  group. 

(b)  Until  actually  required  for  construction  proceeds  of  Loans  to  remain  under  the 

control  of  such  lenders  on  terms  not  less  favourable  to  the  lenders  than  are 
contained  in  the  Hukuang  Loan  Agreement  initialled  Sixth  June,  One  thou- 
sand nine  hundred  and  nine,  and  in  the  corresponding  official   despatch. 

(c)  Provision  for  proper  account  keeping  and  financial  control  under  the  direction  of 

a  Chief  Accountant  to  be  approved  by  such  lenders  or  lender. 

n. — THE  orders  for  materials  required  for  any  railway  as  far  as  possible  shall  be 
equally  divided  between  the  lenders  or  lender  participating  and  the  commission  receivable 
from  the  Chinese  on  such  purchases  after  provision  for  the  expenses  of  earning  such  com- 
mission is  to  be  shared  between  the  lenders  or  lender  participating  equally  or  as  may  be 
arranged. 

12. — THE  Central  Company  consents  to  be  bound  by  the  terms  of  this  Agreement  to 
the  extent  of  giving  effect  thereto  by  granting  to  the  German  Company  one-third  interest 
in  all  loans  for  railway  purposes  obtained  by  it  in  connection  with  any  part  of  the  Chinese 
Empire  north  of  the  Yangtse  River  and  the  German  Company  agrees  to  grant  to  the  Centra! 
Company  two-thirds  interest  in  any  loans  for  railway  purposes  secured  by  the  German 
Company  in  the  said  area,  and  the  granting  of  such  interest  to  the  Central  Company  is 
hereby  accepted  by  the  Corporation  and  the  French  Bank  as  in  satisfaction  of  all  rights 
under  this  Agreement  to  participation  in  such  loans.  The  Central  Company  not  being 
comprised  in  the  lenders  as  per  Article  3  shall  in  their  negotiations  with  the  Chinese 
Authorities  nevertheless  be  bound  by  Clause  10  of  the  present  Agreement. 

13. — It  is  distinctly  understood  that  by  the  foregoing  Articles  3  and  12  the  German 
Company  shall  participate  in  any  business  of  the  kind  defined  in  Article  2  of  this  Agree- 
ment to  the  extent  of  one-third  share. 

14. — Save  as  herein  provided  and  as  provided  in  an  Agreement  between  the  Hong 
Kong  and  Shanghai  Banking  Corporation  the  Deutsch-Asiatische  Bank  and  the  Banque 
de  rindo-Chine  proposed  to  be  entered  into  immediately  after  this  Agreement  no  business 
of  the  kind  falling  within  the  scope  of  this  Agreement  shall  be  concluded  or  entered  into 
either  directly  or  indirectly  by  any  of  the  parties  hereto  or  by  any  of  those  whom  they 
respectively  represent  without  the  consent  of  the  others. 

IS. — THE  present  Agreement  shall  remain  in  force  until  the  Thirty-first  December, 
One  thousand  nine  hundred  and  twelve,  and  unless  determined  on  that  day  by  twelve 
months'  previous  notice  given  by  any  one  of  the  parties  to  the  others  then  until  six 
months'  notice  shall  be  given  by  any  one  of  the  parties  such  notice  to  expire  on 
the  Thirtieth  June  or  Thirty-first  December  in  any  year.  Provided  nevertheless  that  if 
during  the  continuance  of  the  present  Agreement  the  Agreement  of  the  Thirtieth  June, 
One  thousand  eight  hundred  and  ninety-eight,  made  between  the  Corporation  and  the  Hong 
Kong  and  Shanghai  Banking  Corporation  the  terms  of  which  have  been  communicated  to 
the  other  parties  hereto  shall  be  determined  by  that  Bank  in  pursuance  of  the  power  therein 
contained  then  the  present  Agreement  shall  forthwith  upon  such  determination  also  cease 
and  determine.     Notwithstanding  the  termination  of  the  present  Agreement  all   contracts 


NUMBER  1911/1:  MARCH  24,  1911  835 

made  hereunder  shall  continue  in  force  for  their  due  fulfilment  until  completely  carried  out. 
IN   WITNESS   whereof   the  duly  authorised   representatives   of  the   respective  parties 
hereto  have  set  their  hands  the  day  and  year  first  above  written. 

FIRST  SCHEDULE. 

Banque  de  I'lndo-Chine,  Paris. 

Banque  de  Paris  et  des  Pays-Bas, 

Comptoir  National  d'Escompte  de  Paris, 

Credit  Lyonnais, 

Societe  Generale  pour  favoriser  Ic  developpement  du  Commerce  et  de  ITn- 

dustrie  en  France,  Paris. 

Societe  Generale  de  Credit  Industriel  &  Commercial,     " 
Banque  de  I'Union  Parisienne. 
Banque  Franqaise  pour  le  Commerce  et  ITndustrie 

SECOND  SCHEDULE. 

Direction  der  Disconto-Gesellschaft,  Berlin. 

S.  Bleichroder, 

Deutsche  Bank, 

Berliner  Handels-Gesellschaft, 

Bank  fur  Handel  &  Industrie,  " 

Mendelssohn  &  Co., 

Dresdner  Bank, 

A.  Schaaffhausen'scher  Bankverein, 

Nationalbank  fiir  Deutschland,  " 

Deutsch-Asiatische  Bank,  Shanghai. 

Jacob  S.  H.  Stern,  Frankfurt  a/M. 

Sal.  Oppenheim,  jr.  &  Cie,  Koln. 

Norddeutsche  Bank  in  Hamburg,        Hamburg. 

L.  Behrens  &  Sohne, 

Bayerische  Hypotheken-und  Wechselbank,  Miinchen. 
For  and  on  behalf  of  The  British  and  Chinese  Corporation,  Limited, 

W.  KESWICK.  C.  S.  ADDIS. 

For  and  on  behalf  of  Chinese  Central  Railways,  Limited, 

CARL  MEYER.  G.  JAMIESON. 

For  and  on  behalf  of  The  Banque  de  lTndo-Chine, 

ULLMANN.  St.  SIMON. 

For  and  on  behalf  of  The  Deutsch-Chinesische  Eisenbahn   Gesellschaft  m.b.H., 
Fr.  URBIG.  REHDERS. 


NUMBER  1911/1. 

JAPAN   (Yokohama   Specie  Bank)   AND  CHINA 

Agreement  for  the  Imperial  Chinese  Government  five  per  cent  raikuay  loan  of 
the  3rd  year  of  Hsilan  Tung  (1911)*— March  24,  1911. 

WHEREAS  the  Board  of  Posts  and  Communications  of  the  Imperial  Gov- 
ernment of  China  has,  for  the  purpose  of  redeeming  a  loan  item  which  has  been 
contracted  for  and  in  connection  with  the  Government  Railway  and  is  due  to 

*  Text  as  printed  in  Wang,  p.  515. 

In  connection  with  this  agreement  see  also  the  Board  of  Posts  and  Communications 
Loan,  and  the  seven  per  cent  Peking-Hankow  Railway  redemption  Loan,  of  October  8,  1908 
(Nos.  1908/12,  and  1908/13,  ante). 


836  CHINA  TREATIES  AND  AGREEMENTS 

another  department  of  the  Government,  decided  to  raise  a  Gold  Loan  for  an 
amount  of  ten  million  yen  (Y  10,000,000),  this  Agreement  is  now  made  at  Peking 
on  this  twenty-fourth  day  of  the  second  month  of  the  third  year  of  Hsuan  Tung, 
corresponding  to  the  twenty-fourth  day  of  the  third  month  of  the  forty  fourth 
year  of  Meiji  (March  24,  1911),  between 

THE  BOARD  OF  POSTS  AND  COMMUNICATIONS,  hereinafter  called 
the  BOARD,  representing  the  Imperial  Government  of  China,  of  the  one  part  and 

THE  YOKOHAMA  SPECIE  BANK,  LIMITED,  hereinafter  called  the 
BANK,  of  the  other  part. 

ARTICLE  1. — The  Imperial  Government  of  China  hereby  authorises  the 
Bank  to  issue  a  Five  Per  Cent.  (5%)  Gold  Loan  for  an  amount  of  Ten  MilHon 
Yen  (Y10,000,000). 

The  Loan  shall  be  of  the  date  on  which  the  same  is  issued  to  the  public 
and  shall  be  called  "The  Imperial  Chinese  Government  Five  Per  Cent.  (5%) 
Railway  Loan  of  the  Third  Year  of  Hsuan  Tung  ". 

ARTICLE  2.— The  price  of  the  bonds  agreed  upon  is  ninety  five  per  cent 
(95%)  of  the  nominal  face  value,  that  is  to  say,  the  Imperial  Government  of 
China  shall  receive  ninety  five  Yen  (Y95)  for  each  one  hundred  Yen  (YlOO) 
bond,  and  at  the  time  of  the  repayment  of  the  Loan,  which  will  be  made  according 
to  the  schedule  attached  to  this  Agreement,  the  bondholders  shall  receive  the 
face  value  of  the  bonds  in  full,  that  is  to  say,  one  hundred  yen  for  each  bond. 

ARTICLE  3. — The  rate  of  interest  for  the  Loan  shall  be  five  per  cent  (5%) 
per  annum  on  the  nominal  principal,  that  is  to  say,  five  yen  (Y5)  per  every  one 
hundred  yen  (YlOO)  face  value,  and  the  interest  shall  be  paid  to  the  bondholders 
half  yearly  through  the  Bank.  The  interest  shall  run  from  the  date  on  which 
amounts  of  the  proceeds  of  the  Loan  shall  have  been  placed  to  the  credit  account 
of  the  Board  with  and  in  the  Bank  and  the  same  notified  to  the  Board,  and 
shall  be  paid  by  the  Imperial  Government  of  China,  in  the  first  place, 
out  of  the  revenue  of  the  Peking-Hankow  Railway  (after  deducting  the  amounts 
required  for  payment  of  the  principal  and  interest  of  the  Chinese  Imperial 
Five  Per  Cent.  Gold  Loan  of  1908  and  of  the  Peking-Hankow  Railway  Redemp- 
tion Loan  of  the  same  year),t  but  should  it  be  found  that  the  above  revenue  is 
not  sufficient  to  meet  the  amount  required,  then  out  of  such  revenue  as  the 
Imperial  Government  of  China  may  deem  fit  to  use  for  the  purpose.  The  said 
payment  shall  be  made  to  the  Bank  in  half  yearly  instalments  according  to  the 
amounts  specified  in  the  Schedule  attached  to  this  Agreement,  and  ten  days 
before  their  due  dates. 

The  terms  mentioned  herein  and  elsewhere  in  this  Agreement  shall  be 
calculated  according  to  the  Solar  Calendar. 

ARTICLE  4. — The  term  of  the  Loan  shall  be  twenty  five  (25)  years.  Re- 
payment of  the  principal  shall  commence,  by  annual  drawings,  after  the  expiry 
of  ten  years  from  the  date  of  the  Loan  and  shall  be  made  by  yearly  amortisation 
to  the  Bank,  by  the  Imperial  Government  of  China,  in  the  first  place,  out  of 
the  revenue  of  the  Peking-Hankow  Railway  (after  deducting  the  amounts 
required  for  payment  of  the  principal  and  interest  of  the  Chinese  Imperial  Five 

t  Nos.  1908/12  and  1908/13,  ante. 


■NUMBER  1911/1:  MARCH  24,  1911  837 

Per  Cent.  Gold  Loan  of  1908  and  of  the  Peking-Hankow  Railway  Redemption 
Loan  of  the  same  year),  but  should  it  be  found  that  the  above  revenue  is  not 
sufficient  to  meet  the  amount  required,  then  out  of  such  revenue  as  the  Imperial 
Government  of  China  may  deem  fit  to  use  for  the  purpose,  according  to  the 
amounts  specified  in  the  Schedule  attached  to  this  Agreement,  and  ten  days  before 
their  due  dates. 

ARTICLE  5. — If,  at  any  time  after  the  lapse  of  ten  (10)  years  from  the 
date  of  the  issue  of  this  Loan,  the  Imperial  Government  of  China  should  desire 
to  redeem  the  whole  outstanding  amount  of  the  Loan,  or  any  part  thereof, 
not  yet  due  for  repayment  according  to  the  schedule  of  repayment  hereto  attached, 
they  may  do  so  until  the  end  of  the  twentieth  year  by  payment  of  a  premium 
of  two  and  one  half  per  cent  (2^%)  on  the  face  value  of  the  bonds,  that  is  to 
say,  by  payment  of  one  hundred  and  two  and  a  half  yen  (Y102^)  for  each 
one  hundred  yen  (YlOO)  bond,  and  after  the  twentieth  year  at  par,  but  in  each 
and  every  case  of  such  extra  redemption,  the  Imperial  Government  of  China 
through  the  Board  shall  give  six  (6)  months  prior  notice  to  the  Bank,  and  each 
redemption  shall  be  effected  by  additional  drawings  of  bonds  to  take  place  on 
the  date  of  an  ordinary  drawing. 

ARTICLE  6. — The  Bank  having  [been?]  appointed  Agent  for  the  service 
of  the  Loan,  the  payments  due  for  amortisation  and  interest,  referred  to  in  Articles 
3  and  4,  shall  be  made  in  accordance  with  the  amounts  of  the  Schedule  attached 
to  this  Agreement  as  fixed  by  Articles  3  and  4  to  the  Bank,  by  the  Board,  who 
shall  hand  to  the  said  Bank  in  Shanghai  or  in  Tientsin  funds  in  Shanghai  or  in 
Tientsin  Sycee  or  in  new  national  currency  after  its  circulation,  sufficient  to 
meet  such  payments  in  Gold  in  Japan,  exchange  for  which  shall  be  settled  with 
the  said  Bank  on  the  basis  of  exchange  rate  of  the  same  day,  the  Board  having, 
however,  the  option  of  settling  exchange  with  the  Bank  at  any  date  or  dates 
within  six  (6)  months  previous  to  any  due  date  for  the  payment  of  interest  and 
the  repayment  of  principal.  1  hese  payments  may,  however,  be  made  in  gold,  if 
the  Imperial  Government  of  China  should  happen  to  have  gold  funds  "  bona 
fide  "  at  their  disposal  in  Japan,  Europe  or/and  America,  not  remitted  from 
China  for  the  purpose,  and  desire  so  to  use  them. 

In  reimbursement  of  the  expenses  connected  with  the  payment  of  interest 
and  the  repayment  of  principal  of  the  Loan,  the  Bank  will  receive  a  commission 
of  two  and  a  half  yen  (Y2^)  per  every  one  thousand  yen  (Y1,000),  or  two  and 
one  half  per  mill  (21/2O/OO),  on  the  annual  Loan  service. 

ARTICLE  7. — The  Imperial  Government  of  China  hereby  engages  that  the 
interest  and  principal  of  this  Loan  shall  duly  be  paid  in  full,  and  should  the 
revenue  of  the  Peking-Hankow  Railway  not  be  sufficient  to  provide  for  the  due 
and  full  payment  of  interest  and  repayment  of  principal,  the  Board  shall  memo- 
rialise the  Throne  and  the  Imperial  Government  of  China  will  thereupon  make 
arrangement  to  ensure  that  the  amount  of  deficiency  shall  be  met  from  other 
sources  and  handed  over  to  the  Bank  on  the  date  upon  which  funds  are  required, 
to  complete  full  payment  of  interest  and  repayment  of  principal. 

ARTICLE  8. — This  Loan  is  secured  by  the  first  charge,  free  from  all 
encumbrances,  upon  the  revenue  of  the  Board  of  Finance   (Tuchi  Pu)   under 


838  CHINA  TREATIES  AND  AGREEMENTS 

the  item  of  the  "  Tribute-Grain  Conversion  Tax  "  of  the  Province  of  Kiangsu 
in  the  Empire  of  China,  to  the  amount  of  one  milHon  Kuping  Taels  (K.  P. 
Tls.  1,000,000). 

In  the  event  of  default  of  payment  of  instahnent  of  the  principal  and/or 
interest  of  this  Loan  on  due  date,  the  Imperial  Government  of  China  will  instruct 
the  proper  authorities  in  control  of  the  said  revenue  to  hand  it  over  to  the  Bank 
in  the  interests  of  bondholders. 

It  is  agreed  that  so  long  as  this  Loan  or  any  part  thereof  shall  remain 
unredeemed,  the  same  shall  have  priority,  both  as  regards  principal  and  interest, 
over  all  future  loans,  charges  and/or  mortgages  charged  on  the  above  mentioned 
revenue,  and  it  is  further  agreed  that  any  and  all  future  loans,  charges  and/or 
mortgages  on  the  said  revenue  shall  be  made  subject  to  this  Loan,  and  it  shall  be 
so  expressed  in  every  agreement  for  such  future  loan,  charge  and/or  mortgage, 
and  that  previous  to  conclusion  of  any  such  agreement  express  notice  thereof  shall 
be  given  to  the  Bank. 

ARTICLE  9. — The  Bank  is  hereby  authorised  to  issue  to  the  subscribers  to 
the  Loan  bonds  for  the  total  amount  of  the  Loan.  The  form  of  the  bonds  shall 
be  settled  by  the  Bank  in  consultation  with  the  Chinese  Minister  in  Tokyo.  The 
Bonds  shall  be  engraved  in  Japanese  and  Chinese  or  in  Chinese,  Japanese  and 
English  according  as  found  convenient;  they  shall,  besides  bearing  facsimile  of 
the  signature  of  the  President  of  the  Board  and  of  his  seal  of  Office,  also  bear 
facsimile  of  the  signature  of  the  Chinese  Minister  in  Tokyo  and  of  his  seal 
of  Office,  latter  particularly  as  a  proof  that  the  issue  and  sale  of  the  Bonds  are 
duly  authorised  by  and  binding  upon,  the  Imperial  Government  of  China,  and 
the  representatives  of  the  Bank  in  Japan  shall  countersign  the  Bonds  as  agents 
for  the  issue  of  the  loan. 

In  the  event  of  bonds  issued  for  this  Loan  being  lost,  stolen  or  destroyed, 
the  Bank  shall  thereupon  immediately  notify  the  Board  and  the  Chinese  Minister 
in  Tokyo,  who  shall  authorise  the  Bank  to  insert  advertisement  in  the  public 
news-papers  notifying  that  payment  of  the  same  has  been  stopped  and  to  take 
such  other  steps  as  may  appear  advisable  or  necessary  according  to  the  laws  and 
customs  of  the  country  concerned. 

All  expenses  to  be  incurred  under  this  article  shall  be  borne  by  the  Bank. 

ARTICLE  10. — All  bonds  and  coupons  and  payments  made  and  received  in 
connection  with  the  service  of  this  loan  shall  be  exempt  from  all  Chinese  taxes 
and  imposts  during  the  currency  of  this  loan. 

ARTICLE  11. — All  details  necessary  for  the  Prospectus  or  connected  with 
payment  of  the  interest  and  repayment  of  the  principal  of  this  loan,  not  herein 
explicitly  provided  for,  shall  be  left  to  the  arrangement  of  the  Bank  in  consultation 
with  the  Chinese  Minister  in  Tokyo. 

The  Bank  is  hereby  authorised  to  issue  the  Prospectus  of  the  loan  as  soon 
as  possible  after  the  signature  of  this  Agreement,  and  the  Imperial  Government 
of  China  will  instruct  the  Chinese  IMinister  in  Tokyo  to  sign  the  Prospectus  of 
the  Loan,  if  deemed  necessary,  and  to  co-operate  with  the  Bank  in  any  matters 
requiring  conjoint  action. 

ARTICLE  12. — The    Loan   shall    be    issued    by   the    Bank    to   the    Public 


NUMBER  1911/1:  MARCH  24,  1911  839 

in  one  series  as  soon  as  possible  after  the  signature  of  this  Agreement,  and  after 
issue  of  the  Loan,  amounts  of  the  proceeds  of  the  Loan  received  shall  be  notified 
to  the  Board,  and  shall  be  placed  to  the  credit  account  of  the  Board  with  and  in 
the  Bank  to  the  disposal  of  the  Board. 

The  above  funds  may  be  transferred,  at  the  request  of  the  Board  from  time 
to  time,  either  to  China  or  any  other  country  or  countries,  or  may  be  deposited 
temporarily  in  Japan  to  earn  interest,  such  transactions  being  always  effected 
through  the  Bank. 

ARTICLE  13. — The  Bank  agrees  to  advance  to  the  Board  within  one 
month  after  and  from  the  date  of  signing  this  Agreement  a  sum  not  exceeding  two 
million  yen  (Y2,000,000),  for  the  service  of  which  interest  at  the  rate  of  six 
per  cent  (6%)  per  annum  shall  be  paid  commencing  from  the  date  of  such 
advance,  and  it  is  further  agreed  and  understood  that  repayment  of  the  sum  so 
advanced  with  the  interest  accrued  thereon  shall  be  made  in  full  and  at  once  out 
of  the  proceeds  of  the  first  instalment  of  subscriptions  to  this  Loan. 

All  transactions  connected  with  transferring,  depositing,  or  disposal  of  this 
fund  shall  be  done  according  to  the  second  clause  of  Article  12  of  this  Agreement. 

ARTICLE  14. — This  Agreement  is  signed  by  the  President  of  the  Board 
of  Posts  and  Communications  under  the  authority  of  an  Imperial  Edict,  dated 
the  twenty-third  day  of  the  second  month  of  the  third  year  of  Hsuan  Tung, 
corresponding  to  the  twenty-third  day  of  the  third  month  of  the  forty  fourth 
year  of  Meiji  (March  23,  1911),  which  will  be  officially  communicated  by 
the  Waiwupu  to  the  Minister  for  Japan  in  Peking. 

ARTICLE  15. — Five  sets  of  this  Agreement  are  executed  in  English, 
Chinese  and  Japanese,  three  sets  to  be  retained  by  the  Imperial  Government  of 
China  and  two  by  the  Bank.  In  the  event  of  any  doubt  arising  as  to  the  interpre- 
tation of  the  contract  the  English  text  shall  rule. 

SIGNED  AT  PEKING  by  the  contracting  parties  this  twenty-fourth  day  of 
the  second  month  of  the  third  year  of  Hsuan  Tung  corresponding  to  the  twenty- 
fourth  day  of  the  third  month  of  the  Forty-fourth  Year  of  Meiji  (March  24th, 
1911). 

[Chinese  Signature  &  Seal] 
[Japanese  Signature  &  Seal] 


840 


CHINA  TREATIES  AND  AGREEMENTS 


SCHEDULE  OF  PAYMENTS  OF  INTEREST  AND  REPAYMENTS  OF  PRINCIPAL. 


Years 

Principal  still 
Outstanding 

Interest 

Principal 
Repaid 

Total    Principal 
and  Outstanding 

Y 

Y 

Y 

Y 

1 

10,000,000.00 

500,000.00 

500,000.00 

2 

10,000,000.00 

500,000.00 

500,000.00 

3 

10,000,000.00 

500,000.00 

500,000.00 

4 

10,000,000.00 

500,000.00 

500,000.00 

5 

10,000,000.00 

500,000.00 

500,000.00 

6 

10,000,000.00 

500,000.00 

500,000.00 

7 

10,000,000.00 

500,000.00 

500,000.00 

8 

10,000,000.00 

500,000.00 

500,000.00 

9 

10,000,000.00 

500,000.00 

500,000.00 

10 

10,000,000.00 

500,000.00 

500.000.00 

11 

9,340,000.00 

500,000.00 

660,000.00 

1,160,000.00 

12 

8,680,000.00 

467,000.00 

660,000.00 

1,127,000.00 

13 

8,020,000.00 

434,000.00 

660,000.00 

1,094,000.00 

14 

7,360,000.00 

401,000.00 

660,000.00 

1.061,000.00 

IS 

6,700,000.00 

368,000.00 

660,000.00 

1,028,000.00 

16 

6,040,000.00 

335,000.00 

660,000.00 

995,000.00 

17 

5,380,000.00 

302,000.00 

660,000.00 

962,000.00 

18 

4,720,000.00 

269,000.00 

660,000.00 

929,000.00 

19 

4,060,000.00 

236,000.00 

660,000.00 

896,000.00 

20 

3,400,000.00 

203,000.00 

660,000.00 

863,000.00 

21 

2,740,000.00 

170,000.00 

660,000.00 

830,000.00 

22 

2,080,000.00 

137,000.00 

660,000.00 

797,000.00 

23 

1,420,000.00 

104,000.00 

660,000.00 

764,000.00 

24 

760,000.00 

71,000.00 

660,000.00 

731,000.00 

25 

38.000.00 

760,000.00 

798,000.00 

9,035,000.00 

10,000,000.00 

19,035,000.00 

NUMBER  1911/2:  APRIL  15.  1911  841 


NUMBER  1911/2. 

FRANCE  (Banque  de  I'Indo-Chine),  GERIMANY  (Deutsch-Asiatische  Bank), 
GREAT  BRITAIN  (Hongkong  &  Shanghai  Banking  Corporation), 
UNITED  STATES   (American  Group)  AND  CHINA. 

Chinese  currency  reform  and  industrial  development  loan  Agreement* — April 

15,  1911. 

Agreement  made  between  the  Board  of  Finance,  acting  under  imperial  edict 
on  behalf  of  the  Imperial  Chinese  Government,  of  the  one  part,  and  Messrs.  J. 
P.  Morgan  &  Co.,  Messrs.  Kuhn,  Loeb  &  Co.,  the  First  National  Bank,  and  the 
National  City  Bank,  all  of  New  York,  constituting  the  American  group,  the 
Hongkong  &  Shanghai  Banking  Corporation,  the  Deutsch-Asiatische  Bank,  the 
Banque  de  ITndo-Chine,  hereinafter  called  the  "  banks,"  of  the  other  part, 
witnesseth,  as  follows : 

Whereas  the  Imperial  Chinese  Government  desiring  to  reform,  and  to  render 
uniform  its  currency  system  in  accordance  with  a  program  which  has  been  pre- 
pared, and  to  undertake  certain  industrial  enterprises  in  Manchuria,  proposes  to 
negotiate  a  loan  for  these  purposes  and  to  evidence  the  same  by  the  issue  of  Imper- 
ial Chinese  Government  sinking  fund  gold  bonds,  hereinafter  called  the  **  bonds," 
in  an  aggregate  principal  amount  not  exceeding  ten  million  pounds  sterling 
(£10,000,000)  in  manner  and  form  as  hereinafter  set  forth;  and 

Whereas  the  preliminary  agreement  providing  for  the  negotiation  of  this 
final  agreement  for  the  loan  for  the  purposes  above  mentioned  was  duly  signed 
by  the  Board  of  Finance  with  the  American  group  at  Peking  on  the  twenty-fifth 
day  of  the  ninth  moon  of  the  second  year  of  Hsuan  T'ung,  being  the  27th  day  of 
October,  1910,  western  calendar,  and  was  subsequently  ratified  by  imperial 
edict;  and 

Whereas  the  American  group  being  now  associated  with  the  Hongkong  & 
Shanghai  Banking  Corporation,  the  Deutsch-Asiatische  Bank,  and  the  Banque 
de  ITndo-Chine,  the  Imperial  Chinese  Government  has  consented  that  these 
banks  shall,  with  the  American  group,  participate  in  the  issue  of  the  loan  here- 
under ;  therefore  it  is  agreed  as  follows : 

Article  I. — The  preliminary  agreement  hereinbefore  mentioned  shall  be 
considered  binding  only  as  interpreted  by  this  agreement. 

Article  II. — The  Imperial  Chinese  Government  authorizes  the  banks  to 
issue  a  5  per  cent  sinking  fund  gold  loan  for  an  aggregate  amount  of  ten  million 
pounds  sterling.  The  loan  shall  be  of  the  date  on  which  the  bonds  are  issued  to 
the  public,  and  shall  "be  called  the  Imperial  Chinese  Government  5  per  cent 
currency  reform  and  industrial  development  sinking  fund  gold  loan  of  1911. 

Article  III. — The  proceeds  of  the  loan  shall  be  used  and  applied  as  herein- 
after determined,  for  the  following  purposes : 

*  Text  as  printed  by  the  Department  of  State.  Printed  also  in  China  Year  Book,  1912, 
p.  288.    See  Note  to  this  document,  post,  p.  851. 


842  CHINA  TREATIES  AND  AGREEMENTS 

(a)  To  provide  funds  for  the  reform  of,  and  to  render  uniform,  the 
Imperial  Chinese  currency  system. 

(b)  To  provide  funds  for  the  promotion  and  extension  of  industrial  enter- 
prises in  the  three  Manchurian  Provinces. 

Article  IV. — This  loan  shall  constitute  a  direct  liability  and  obligation  of 
the  Imperial  Chinese  Government,  which  hereby  pledges  its  good  faith  and 
credit  for  the  punctual  payment  of  the  principal  and  interest  of  the  loan  and 
for  the  performance  of  all  the  undertakings  on  its  part  herein  assumed. 

Article  V. — All  advances  made  under  the  terms  of  sections  4,  5,  and  6  of 
Article  VIII  hereunder  and  the  payments  of  interests  and  the  repayments  of 
principal  of  this  loan,  and  all  other  amounts  required  for,  or  incident  to,  the 
service  of  the  loan,  shall  be  and  hereby  are  made  a  first  charge  on  the  following 
revenues : 

(a)  Duties  on  tobacco  and  spirits  in  the  three  Manchurian  Provinces, 
amounting  to  one  million  Kuping  taels  (K.  P.  tls.  1,000,000)  per  annum. 

(b)  Production  tax  in  the  three  Manchurian  Provinces,  amounting  to 
seven  hundred  thousand  Kuping  taels  (K.  P.  tls.  700,000)  per  annum. 

(c)  Consumption  tax  in  the  three  Manchurian  Provinces,  amounting  to 
eight  hundred  thousand  Kuping  taels  (K.  P.  tls.  800,000)  per  annum. 

(d)  Newly  added  surtax  upon  salt  of  all  the  Provinces  of  China  (authorized 
by  imperial  edict  in  the  fifth  moon  of  the  thirty-fourth  year  of  His  Imperial 
Majesty  Kuang  Hsii),  amounting  to  two  million  five  hundred  thousand  Kuping 
taels  (K.  P.  tls.  2,500,000)  per  annum. 

The  revenues  above  pledged  amount  to  five  million  Kuping  taels  (K.  P. 
tls.  5,000,000)  per  annum. 

2.  The  above  provincial  revenues  are  hereby  declared  to  be  free  from  all 
other  loans,  liens,  charges  or  mortgages. 

3.  Should  the  above  mentioned  revenues  be  insufficient  to  meet  the  payments 
of  interest  and  repayments  of  principal  and  all  other  charges  on  due  dates,  the 
Imperial  Chinese  Government  will,  first  from  Manchurian  and  then,  if  necessary, 
from  other  sources,  supply  the  balance  required  to  meet  such  payments. 

4.  So  long  as  the  principal  and  interest  of  this  loan  and  all  other  charges 
are  regularly  paid  there  shall  be  no  interference  with  the  revenues  herein  pledged, 
but  if  principal  and/or  interest  be  in  default  at  due  date,  then,  after  a  reasonable 
period  of  grace,  the  revenues  above  pledged,  or  such  part  thereof  as  may  be 
sufficient  to  provide  and  pay  the  amounts  stated  shall  forthwith  be  transferred 
to,  and  shall  be  administered  by,  the  Imperial  IMaritime  Customs  for  the  account 
and  in  the  interest  of  the  bondholders. 

5.  So  long  as  this  loan  shall  remain  unredeemed  it  shall  have  priority, 
both  as  regards  principal  and  interest,  by  way  of  a  lien  or  charge  upon  the 
above  revenues  over  all  future  loans,  charges  or  mortgages  which  may  be 
charged  on  the  aforesaid  revenues.  No  loan,  mortgage  or  other  charge  shall 
be  raised  or  created  which  shall  take  precedence  of,  or  be  on  an  equality  with, 
this  loan,  or  which  shall  in  any  manner  lessen  or  impair  its  security  charged 
upon  the  aforesaid  revenues ;  and  any  future  loan,  charge  or  mortgage  charged 
on  the  said  provincial  revenues,  shall  be  made  subject  to  this  loan,  and  it  shall 


NUMBER  1911/2:  APRIL  15,  1911  843 

be  so  expressed  in  every  agreement  for  every  such  future  loan,  charge  or 
mortgage. 

6.  In  the  event  of  the  Imperial  Chinese  Government,  during  the  currency 
of  this  loan,  entering  upon  definite  arrangements  for  the  revision  of  the  customs 
tariff,  accompanied  by  stipulations  for  the  decrease  or  abolition  of  likin,  it 
is  hereby  agreed  on  the  one  hand  that  such  revision  shall  not  be  barred  by  the 
fact  that  this  loan  is  secured  by  the  above-named  revenues,  and  on  the  other 
hand  that  the  revenues  required  to  provide  the  security  of  this  loan  shall  neither 
be  abolished  nor  decreased,  except  by  previous  arrangement  with  the  banks 
and  then  only  in  so  far  as  an  equivalent  satisfactory  to  the  banks  is  substituted 
therefor  in  the  shape  of  a  first  lien  or  charge  upon  other  revenues  consequent 
upon  such  revision. 

Article  VI. — The  banks  are  authorized  to  issue  to  the  subscribers  to  the 
loan,  gold  bonds  for  the  total  amount  of  the  loan  for  such  amounts  as  shall  be 
determined  by  the  banks.  The  form  and  language  of  the  bonds  shall  be  settled 
by  the  banks  in  consultation  with  the  Board  of  Finance  or  the  Imperial  Chinese 
ministers  in  Washington,  London,  Berlin  or  Paris. 

2.  The  bonds  shall  be  printed  and/or  engraved  and  shall  bear  the  facsimile 
of  the  signature  of  the  president  of  the  Imperial  Chinese  Board  of  Finance, 
and  of  his  seal  of  office,  in  order  to  dispense  with  the  necessity  of  his  signing 
them  all  in  person,  and  the  Imperial  Chinese  minister  in  Washington  and/or 
London  and  /or  Berlin,  and/or  Paris  at  the  option  of  the  banks,  shall,  previous 
to  the  issue  of  the  bonds,  put  his  seal  upon  each  bond,  with  a  facsimile  of  his 
signature  as  a  proof  that  the  issue  and  sale  of  the  bonds  are  duly  authorized 
by,  and  binding  upon,  the  Imperial  Chinese  Government. 

3.  The  representatives  of  the  banks  in  New  York,  London,  Berlin  and 
Paris,  as  the  case  may  be,  shall  countersign  the  bonds  as  agents  for  the  issue  of 
the  loan. 

Article  VII. — All  details  necessary  for  the  prospectus  of  the  loan  and 
connected  with  the  payment  of  interest  and  repayment  of  principal  of  the  loan, 
and  with  the  withdrawing  of  bonds  for  redemption,  not  herein  explicitly 
provided  for,  shall  be  left  to  the  arrangement  of  the  banks  in  consultation 
with  the  Imperial  Chinese  ministers  in  Washington,  London,  Berlin  and 
Paris. 

2.  The  banks  are  hereby  authorized  to  issue  the  prospectus  of  the  loan  as 
soon  as  possible  after  the  fulfillment  of  the  conditions  in  Article  VIII  hereunder 
made  precedent  to  the  issue  of  the  loan,  and  the  Imperial  Chinese  Government 
will  instruct  the  Imperial  Chinese  ministers  in  Washington,  London,  Berlin  and 
Paris  to  cooperate  with  the  banks  in  any  matters  requiring  conjoint  action,  and 
to  sign  the  prospectus  of  the  loan. 

Article  VIII. — On  the  date  of  the  signature  of  this  agreement  the  Board 
of  Finance  shall  hand  to  the  banks : — 

(a)  '*  The  regulations  for  the  unification  of  the  currency  on  a  silver 
basis,"  authorized  by  imperial  edict,  hereinafter  called  the  program  of  currency 
reform. 

(&)    A  statement  showing  in  what  amounts  the  proceeds  of  the  loan  are  to 


844  CHINA  TREATIES  AND  AGREEMENTS 

be  applied  to  the  various  expenditures  incident  to  the  operation  of  the  said 
program. 

(c)  A  statement  specifying  the  nature  of  the  proposed  enterprises  in 
Manchuria  and  showing  in  what  amounts  the  allotted  portion  of  the  proceeds  of 
this  loan  is  to  be  applied  thereto. 

2.  The  program  and  the  two  statements  above  referred  to  shall  be  handed 
to  the  banks  on  the  date  of  the  signature  of  this  agreement.  The  banks  shall 
be  given  a  period  not  exceeding  six  months  from  the  said  date  for  the  con- 
sideration and  planning  of  all  matters  involved  and  they  shall  issue  this  loan  to 
the  public  as  soon  as  possible  after  they  shall  have  notified  the  Board  of  Finance 
that  they  will  make  the  said  program  and  statements  the  basis  for  the  issue  of 
bonds  hereunder. 

3.  The  price  of  the  bonds  to  the  Imperial  Chinese  Government  shall  be 
ninety-five  per  cent  (95%)  of  their  nominal  value.  Subscriptions  will  be  invited 
by  the  banks  in  China,  the  United  States  and  Europe  on  equal  conditions, 
preference  being  given  to  the  application  of  the  Imperial  Chinese  Government 
provided  such  application  be  made  to  the  banks  not  less  than  four  days  before 
the  issue  of  the  prospectus  to  the  public.  Seven  days'  notice  of  the  issue  of  the 
prospectus  will  be  given  by  the  banks  to  the  Board  of  Finance. 

4.  In.  the  event  of  the  Imperial  Chinese  Government  requiring  ■  funds 
immediately  for  the  commencement  of  any  of  the  undertakings  contemplated 
for  Manchuria  the  banks  agree  upon  the  execution  of  this  agreement  and  so 
soon  as  they  shall  have  been  furnished  with  a  statement  satisfactory  to  them- 
selves of  the  nature  of  such  undertaking  or  undertakings  and  the  amounts  to  be 
applied  thereto,  to  hold  in  America  and  Europe  at  the  disposal  of  the  Imperial 
Chinese  Government  the  sum  of  one  million  pounds  sterling  (£1,000,000), 
and  to  advance  the  same,  or  such  portion  thereof  as  may  be  required,  against 
the  order  of  the  Board  of  Finance. 

5.  The  banks  further  engage  that  so  soon  as  they  shall  have  handed  to 
the  Board  of  Finance  the  notification  referred  to  in  section  2  of  this  article,  and 
prior  to  the  issue  of  this  loan  to  the  public,  to  hold  in  America  and  Europe  at 
the  disposal  of  the  Imperial  Chinese  Government  a  further  sum  of  one  million 
pounds  sterling  (£1.000,000),  which  amount,  or  such  portion  thereof  as  may 
be  required,  may  be  withdrawn  for  preliminary  expenses  in  connection  with 
currency  reform  by  orders  of  the  Board  of  Finance  as  provided  by  section  5 
of  Article  IX  hereunder. 

6.  The  above  advances  to  the  aggregate  of  two  million  pounds  sterling 
(£2,000,000),  or  such  portion  or  portions  thereof  as  may,  from  time  to  time, 
have  been  availed  of  by  the  Imperial  Chinese  Government,  shall  bear  interest  at 
the  rate  of  six  per  cent  (6%)  per  annum  from  the  date  on  which  such  several 
sums  may  have  been  withdrawn  by  the  Board  of  Finance  from  the  banks,  and 
these  advances  shall  be  repaid  to  the  banks,  with  accrued  interest  from  the  first 
proceeds  of  this  loan  when  issued,  or  in  any  case  within  eighteen  months  from 
the  signature  of  this  agreement  unless  otherwise  mutually  arranged  between 
the  Board  of  Finance  and  the  banks. 

Article  IX. — The  net  proceeds  of  the  loan  shall  be  placed  to  the  credit  of 


NUMBER  1911/2:  APRIL  15,  1911  845 

accounts  to  be  designated  respectively  as  "  The  Chinese  Government  Currency 
Reform  Account "  and  "  The  Chinese  Government  Manchurian  Development 
Account  "  with  the  American  group  in  New  York  or  such  bank  or  banks  in 
China  as  from  time  to  time  shall  be  designated  by  the  American  group,  the  Inter- 
national Banking  Corporation  being  now  so  designated ;  and  with  the  Hongkong 
&  Shanghai  Banking  Corporation,  the  Deutsch-Asiatische  Bank  and  the  Banque 
de  ITndo-Chine,  in  China,  London,  Berlin  or  Paris,  as  the  case  may  be  Payments 
of  the  loan  proceeds  into  the  credit  of  these  accounts  shall  be  made  in  the  propor- 
tions fixed  respectively  by  the  statement  of  expenditures  for  currency  reform  and 
the  statement  of  Manchurian  expenditures  provided  for  in  Article  VIII,  section  1, 
above,  in  instalments  and  on  dates  conforming  to  the  conditions  allowed  to  the 
subscribers  to  the  loan,  and  the  sums  so  credited  shall  be  held  by  the  banks  above 
named  subject  to  the  order  of  the  Board  of  Finance. 

2.  Transfers  of  loan  funds  to  China  in  amounts  conforming  to  the  Imperial 
Chinese  Government's  requirements  as  specified  in  the  statements  of  currency 
reform  and  Manchurian  expenditures  respectively,  but  not  exceeding  a  maximum 
of  three  hundred  thousand  pounds  sterling  (£300,000)  transferred  in  any  one 
week,  will  be  made  through  the  Shanghai  branches  of  the  several  banks  named 
in  section  1  of  this  article  by  the  Board  of  Finance: — and  if  such  transfer  be 
made  through  more  than  one  of  the  several  banks  exchange  therefor  shall  be 
settled  with  the  transferring  banks  on  the  same  day.  Funds  so  transferred  shall 
be  held  by  the  transferring  banks  in  Shanghai  until  required  to  be  withdrawn 
for  the  purposes  specified  in  the  statements  of  currency  reform  and  Manchurian 
expenditures,  respectively. 

3.  The  banks  agree  to  pay  interest  upon  the  funds  held  by  them  in  America 
and  Europe  at  the  rate  of  3  per  cent  per  annum  and  upon  the  funds  tempo- 
rarily held  by  them  in  China  at  the  banks'  rates  in  Shanghai  for  current 
accounts. 

4.  The  Board  of  Finance  shall,  in  accordance  with  the  Imperial  Chinese 
Government's  requirements,  as  specified  in  the  statements  of  currency  reform 
and  Manchurian  expenditures,  respectively,  make  transfers  from  the  loan  funds 
held  by  the  banks  in  China,  to  the  credit  of  a  "  currency  reform  account  "  and/or 
a  "  Manchurian  development  account "  with  the  Shanghai  and/or  Peking 
branches  of  such  Chinese  bank  or  banks  as  the  Board  of  Finance  may,  from  time 
to  time,  designate  to  be  its  agent  or  agents  for  financing  the  operations  con- 
templated under  this  agreement. 

5.  Orders  on  the  banks  for  such  transfers  of  loan  funds  held  by  the  banks 
in  China  to  the  Shanghai  and/or  Peking  branches  of  the  designated  Chinese  bank 
or  banks,  shall  be  signed  by  the  Board  of  Finance  and  shall  be  handed  to  the 
banks  in  Shanghai  or  Peking  three  days  before  the  transfers  are  to  be  made.  Such 
orders  shall  be  of  a  form  to  be  stipulated  in  the  statement  of  expenditures  for 
currency  reform  and/or  the  statement  of  Manchurian  expenditures  referred  to 
in  Article  VIII,  section  1  above,  and  shall  specify  to  what  item  or  items  of  such 
expenditures  the  transferred  funds  are  to  be  applied.  Such  orders  being  found 
correct  the  banks  shall  not  be  entitled  to  delay  the  transfer  desired  and  the  sum 
requisitioned  shall  be  immediately  transferred  to  the  credit  of  the  "  Currency 


846  CHINA  TREATIES  AND  AGREEMENTS 

reform   account "   and/or   the    "  Manchurian   development    account "    with    the 
designated  Chinese  bank  or  banks. 

6.  In  case  the  Board  of  Finance  should  desire  to  withdraw  or  transfer  funds 
held  by  the  banks  in  America  or  Europe  to  make  gold  payments  abroad  for 
expenditures  contemplated  under  the  statement  of  expenditures  for  currency 
reform  and/or  the  statement  of  Manchurian  expenditures,  orders  of  the  form 
specified  in  section  5  above  shall  be  handed  to  the  bank  or  banks  concerned  in 
Shanghai  or  Peking  five  days  before  such  payments  or  transfers  are  to  be  made 
and  the  orders  being  found  correct  the  bank  or  banks  concerned  shall  at  the 
expense  of  the  Board  of  Finance,  by  telegraph  advise  the  bank  or  banks  concerned 
in  America  or  Europe,  as  the  case  may  be,  to  make  the  payments  or  transfers 
thus  requisitioned. 

7.  Transfers  of  loan  funds  from  the  banks  in  America  and  Europe  to  China, 
and  transfers  from  the  banks  in  China  to  the  designated  Chinese  bank  or  banks 
shall  be  made  as  nearly  as  possible  in  equal  amounts.  In  the  event  of  equal 
transfers  being  found  to  be  impracticable,  however,  a  mutually  satisfactory 
procedure  for  making  the  transfers  above  referred  to  shall  be  aranged  by  the 
Board  of  Finance  with  the  banks. 

Article  X. — The  Imperial  Chinese  Government  may  at  its  discretion,  instruct 
the  banks  to  make  on  its  behalf  payments  in  gold  abroad  from  the  proceeds  of  this 
loan  held  by  them  in  America  and  Europe,  up  to  an  amount  not  exceeding  two 
million  five  hundred  thousand  pounds  sterling  (£2,500,000)  to  meet  its  obligations 
due  under  the  terms  of  the  protocol  of  September  7,  1901. f  These  disbursements 
in  gold  abroad  shall  be  made  upon  the  payment  in  Shanghai  to  the  credit  of  the 
*'  Chinese  Government  currency  reform  account  "  and/or  the  "  Chinese  Govern- 
ment Manchurian  development  account "  with  the  bank  or  banks  concerned,  of 
funds  in  Shanghai  sycee  equivalent,  at  the  average  indemnity  rate  of  exchange  of 
the  preceding  month,  to  the  amounts  in  gold  so  released.  Funds  so  credited  shall 
be  held  by  the  bank  or  banks  concerned  in  Shanghai  until  withdrawn  for  the 
purposes  specified  in  the  statements  of  currency  reform  and  Manchurian  expendi- 
tures respectively,  as  provided  in  sections  4  and  5  of  Article  IX  above. 

Article  XI. — Desiring  to  assure  the  banks,  in  the  interests  of  the  bondhold- 
ers, that  the  loan  funds  are  being  expended  for  the  purposes  contemplated  under 
this  agreement,  the  Board  of  Finance  engages,  until  such  time  as  the  proceeds  of 
the  loan  shall  have  been  expended  in  accordance  with  the  statements  of  currency 
reform  and  Manchurian  expenditures,  to  hand  to  the  banks  not  later  than  thirty 
days  after  the  expiration  of  each  quarterly  period  Chinese  calendar: — 

(c)  A  quarterly  report  in  Chinese  and  English  showing  the  disbursements 
incident  to  the  inauguration  and  operation  of  the  Imperial  Chinese  Government's 
program  of  currency  reform. 

(&)  A  quarterly  report  in  Chinese  and  English  showing  the  disbursements 
for  the  promotion  and  extension  of  Manchurian  industry. 

Such  quarterly  reports  shall  be  of  a  form  to  be  specified  in  the  statements 
of  currency  reform  and  Manchurian  expenditures. 

In  addition  to  such  quarterly  reports  the  Board  of  Finance  will  also  hand  to 

tNo.  1901/3,  ante. 


NUMBER  1911/2:  APRIL  15,  1911  847 

the  banks  a  copy  of  the  annual  report  which  is  to  be  published  for  the  information 
of  the  Imperial  National  Assembly  or  the  Imperial  Chinese  Parliament. 

Article  XII. — The  rate  of  interest  for  the  loan  shall  be  five  per  cent  (5%) 
per  annum  on  the  nominal  principal  and  shall  be  paid  to  the  bondholders  half- 
yearly  as  calculated  from  the  date  on  which  the  loan  is  issued  to  the  public  and 
according  to  the  amounts  specified  in  the  schedule  attached  to  this  agreement. 

2.  The  term  of  this  loan  and  of  the  bonds  evidencing  the  same  shall  be  forty- 
five  years.  Repayment  of  principal  shall  commence  with  the  eleventh  year  after 
the  date  of  the  loan  and  shall  be  made  by  yearly  amortization  in  half-yearly  pay- 
ments according  to  the  amounts  specified  in  the  schedule  attached  to  this 
agreement. 

3.  The  Board  of  Finance  shall,  twelve  days  before  their  due  dates,  hand  to 
the  bank  or  banks  designated  from  time  to  time  by  the  American  group,  the 
International  Banking  Corporation  being  now  so  designated,  and  to  the  Hong- 
kong &  Shanghai  Banking  Corporation,  the  Deutsch-Asiatische  Bank  and  the 
Banque  de  ITndo-Chine  in  Shanghai,  in  equal  shares,  funds  in  Shanghai  sycee 
and/or  coin  of  the  national  currency  (so  soon  as  the  said  currency  shall  have 
been  effectively  established)  sufficient  to  meet  each  such  half-yearly  payment 
of  principal  and/or  interest  in  gold,  in  America  or  Europe. 

4.  The  rate  of  exchange  for  such  transactions  shall  be  settled  simultane- 
ously with  the  banks  aforementioned  by  the  Board  of  Finance  either  on  the  day 
on  which  such  payments  in  Shanghai  sycee  and/or  coin  of  the  national  currency 
are  to  be  made  or,  at  the  option  of  the  Board  of  Finance,  on  any  date  or  dates 
within  six  months  previous  to  any  due  date  for  the  payment  of  interest  or  the 
repayment  of  principal. 

5.  Payments  may  be  made  in  gold  twelve  days  before  their  due  dates  to 
the  banks  in  the  United  States  of  America  or  Europe  if  the  Imperial  Chinese 
Government  should  happen  to  have  gold  funds  bona  fide  at  its  disposal  in  the 
United  States  of  America  or  in  Europe,  not  remitted  from  China  for  the  purpose, 
and  desire  so  to  use  them. 

6.  In  reimbursement  of  expenses  connected  wath  the  payment  of  interest 
and  the  repayment  of  principal  of  this  loan  the  banks  shall  receive  a  commission 
of  one-fourth  of  one  per  cent  on  the  annual  loan  service. 

Article  XIII. — If  at  any  time  after  the  lapse  of  fifteen  years  from  the  date 
of  the  loan  the  Government  should  desire  to  redeem  the  whole  outstanding  amount 
of  the  loan  or  any  part  of  it  not  yet  due  for  repayment  in  accordance  with  the 
schedule  of  repayments  hereto  attached,  it  may  do  so  up  to  the  end  of  the  twenty- 
fifth  year  by  payment  of  a  premium  of  23^  per  cent  on  the  face  value  of  the  bonds 
(that  is  to  say,  by  the  payment  of  £102  10s  for  each  ilOO  bond)  and  after  the 
lapse  of  twenty-five  years  without  premium,  but  in  each  and  every  case  of  such 
extra  redemption  the  Government  will  give  six  months'  previous  notice  in  writing 
to  the  banks  and  such  redemption  shall  be  effected  by  additional  drawings  of 
bonds  to  take  place  on  the  date  of  an  ordinary  drawing  as  provided  in  the 
prospectus  of  the  loan. 

Article  XIV. — In  the  event  of  any  bond  or  bonds  issued  for  this  loan  being 
lost,  stolen  or  destroyed,  the  group  and/or  bank  or  banks  concerned  may  notify  the 


348  CHINA  TREATIES  AND  AGREEMENTS 

Board  of  Finance  and  the  Imperial  Chinese  ministers  in  Washington,  London, 
Berlin  or  Paris,  as  the  case  may  be,  who  shall  authorize  the  group  and/or  bank  or 
banks  concerned  to  insert  an  advertisement  in  the  public  newspapers  stating  that 
payment  of  such  bond  or  bonds  has  been  stopped ;  and  to  take  such  other  steps  as 
may  appear  advisable  or  necessary  according  to  the  laws  or  customs  of  the 
country  concerned.  Should  any  bond  or  bonds  be  destroyed,  or  should  such  lost 
or  stolen  bond  or  bonds  not  be  recovered  after  a  lapse  of  time  to  be  fixed  by  the 
banks  the  Imperial  Chinese  ministers  in  Washington,  London,  Berlin  or  Paris, 
as  the  case  may  be,  shall  seal  and  execute  a  duphcate  bond  or  duplicate  bonds  for 
a  like  amount  and  deliver  the  same  to  the  group  and/or  bank  or  banks  representing 
the  owner  or  owners  of  such  lost,  stolen  or  destroyed  bond  or  bonds,  which  group 
and/or  bank  or  banks  shall  pay  all  expenses  in  connection  with  such  delivery  and 
execution  of  such  duplicate  bond  or  bonds  for  the  account  of  the  owner  or  owners 
of  such  bond  or  bonds. 

Article  XV. — All  bonds  and  coupons  and  payments  made  and  received  in 
connection  with  the  service  of  this  loan  shall  be  exempt  from  all  Chinese  taxes 
and  imposts  of  any  and  every  description  during  the  currency  of  this  loan. 

Article  XVI. — If  the  Imperial  Chinese  Government  should  desire  to  obtain 
from  other  than  Chinese  sources,  funds  in  addition  to  the  proceeds  derived  from 
this  loan,  to  continue  or  complete  the  operations  contemplated  under  this  agree- 
ment, the  Imperial  Chinese  Government  shall  first  invite  the  banks  to  undertake 
a  loan  to  provide  the  funds  required,  but  should  the  Imperial  Chinese  Government 
fail  to  agree  with  the  banks  as  to  the  terms  of  such  supplementary  loan  then  other 
financial  groups  may  be  invited  to  undertake  the  same ;  and  should  the  Imperial 
Chinese  Government  decide  to  invite  foreign  capitalists  to  participate  with 
Chinese  interests  in  Manchurian  business  contemplated  under  this  loan,  or  to  be 
undertaken  in  connection  therewith,  the  banks  shall  first  be  invited  td  so 
participate. 

Article  XVII. — If,  before  the  publication  of  the  prospectus  for  the  issue 
of  this  loan  any  political  or  financial  crisis  should  occur  affecting  the  American, 
British,  German  and/or  French  markets  and  the  prices  of  Chinese  Government 
securities  in  such  manner  or  to  such  a  degree  as  in  the  opinion  of  the  banks 
will  render  impossible  the  successful  flotation  and  issue  of  this  loan  on  the  terms 
herein  named,  the  banks  shall  be  granted  a  period  of  six  months  from  the 
date  on  which  they  shall  have  handed  to  the  Board  of  Finance  the  notification 
referred  to  in  section  2,  Article  VIII  above,  within  which  to  issue  the  loan  to  the 
public.  If,  at  the  expiration  of  this  period  the  markets  are  still  unfavorable  then 
the  banks  shall  be  entitled  to  ask  the  Imperial  Chinese  Government  for  a  reason- 
able extension  of  time  within  which  to  carry  out  this  contract.  If  the  Imperial 
Chinese  Government  should  refuse  to  grant  the  extension  of  time  requested  this 
contract  shall  become  null  and  void,  subject  always  to  the  repayment  of  advances 
as  provided  in  section  6,  Article  VIII  above,  and  the  Imperial  Chinese  Govern- 
ment shall  be  liable  for  no  other  claims  whatsoever. 

Article  XVIII. — The  American  group,  the  Hongkong  &  Shanghai  Banking 
Corporation,  the  Deutsch-Asiatische  Bank  and  the  Banque  de  I'lndo-Chine  shall 
take  the  loan  in  equal  shares  and  without  responsibility  for  each  other. 


NUMBER  1911/2:  APRIL  15,  1911  849 

Article  XIX. — The  American  group,  the  Hongkong  &  Shanghai  Banking 
Corporation,  the  Deutsch-Asiatische  Bank  and  the  Banque  de  ITndo-Chine  may, 
subject  to  all  their  obligations  under  this  agreement,  transfer  or  delegate  all  or 
any  of  their  rights,  powers  and  discretions  thereunder  to  any  American,  British, 
German  or  French  company,  directors,  or  agents,  with  power  of  further  transfer 
and  subdelegation ;  such  transfer,  subtransfer,  delegation  or  subdelegation  to  be 
subject  to  the  approval  of  the  Imperial  Chinese  Government. 

Article  XX. — This  agreement  is  signed  by  the  Board  of  Finance  under  the 
authority  of  an  imperial  edict  dated  the  17th  day  of  the  third  moon  of  the  third 
year  of  His  Imperial  Majesty  Hsuan  T'ung,  corresponding  to  the  15th  day  of 
April,  1911,  western  calendar,  which  will  be  officially  communicated  to  the  minis- 
ters of  the  United  States  of  America,  Great  Britain,  Germany  and  France  in 
Peking  by  the  Wai-wu  Pu. 

Article  XXI. — Eight  sets  of  this  agreement  are  executed  in  English  and 
Chinese,  four  sets  to  be  retained  by  the  Imperial  Chinese  Government  and  one 
set  by  each  group  and/or  bank.  In  the  event  of  any  doubt  arising  regarding  the 
interpretation  of  this  contract  the  English  text  shall  rule. 

Signed  at  Peking  this  17th  day  of  the  chird  moon  of  the  third  year  of  His 
Imperial  Majesty  Hsuan  T'ung,  being  the  15th  day  of  April,  one  thousand  nine 
hundred  and  eleven,  western  calendar. 

[Signatures.] 


STATEMENT  OF  EXPENDITURES  FOR  CURRENCY  REFORM. 

[In  accordance  with  Article  VIII   (6).] 

[Translation.] 

Taels. 
The  coinage  of  standard  and  subsidiary  coins  in  the  seven  head  and  branch  mints 

will  require  at  least  the  daily  use  of  approximately  .  •  • 2,333,330 

The  coinage  of  standard  and  subsidiary  coins  will  require  at  least  the  monthly  use 

of  approximately  •  •  .   10,000,000 

The  coinage  of  standard  and  subsidiary  coins  will  require  at  least  the  half-yearly 

use  of  approximately  60,000,000 

Included   in  the   above   is  the  sum   of   taels  20,000,000  to  be   devoted  to  currency  in 
Manchuria. 


STATEMENT  OF  MANCHURIAN  EXPENDITURES. 

[In  accordance  with  Article  VIII  (c).] 

[Translation.] 

Taels. 
For  expenditures  in  connection  with  the  promotion  of  immigration,  reclamation, 

and  pastoral  enterprises,  approximately   •  •  •    14,000,000 

For  expenditures  in  connection  with   forestry  and  other  agricultural  enterprises 

in  Heilungkiang  Province,  approximately   _• 4,000,000 

For  expenditures  in  connection  with  gold  mining  at  Mo  Ho,  Kuang  Yin   Shan, 

and   San   Hsing,   and  other  mining   enterprises,   approximately 2,000,000 

For  expenditures  in  connection  with  branch  mints  the  sum  of 20,000,000 

approximately  will  be  appropriated  from  the  currency  bureau. 

Should  the  above  enterprises  or  the  amounts  decided  upon  be  found  inappropriate  the 
matter  of  changing  the  same  may  be  taken  into  consideration  at  the  time,  but  the  principle 
of  the  promotion  of  industries  shall  be  adhered  to. 


850  CHINA  TREATIES  AND  AGREEMENTS 

The  Chinese  Board  of  Finance  to  the  Bankers. 
[Translation.] 

Received  May  6,  1911. 
The  Representatives  of  the  American  Group,  the  Hongkong  &  Shanghai  Banking 

Corporation,    the    Deutsch-Asiatische   Bank,    the    Banque   de    I'Indo-Chine, 

Peking. 

Gentlemen  :  I  beg  to  inform  you  of  the  receipt  of  a  letter  from  His  Ex- 
cellency Chao,  the  Viceroy  of  Manchuria,  requesting  that  from  the  advance  of 
one  million  pounds  (£1,000,000)  provided  for  in  Article  VIII,  section  4,  of  the 
Imperial  Chinese  Government  Five  Per  Cent  Currency  Reform  and  Industrial 
Development  Sinking  Fund  Gold  Loan,  signed  on  the  17th  day  of  the  third  moon 
(April  15,  1911)  the  sum  of  £400,000  be  transferred  as  a  first  installment  to 
meet  Manchurian  requirements. 

A  statement  clearly  setting  forth  the  purposes  to  which  the  Viceroy  proposes 
to  apply  these  funds  is  herewith  presented  for  your  approval  with  the  request 
that  if  the  same  is  considered  satisfactory  the  banks  will,  as  soon  as  possible, 
deposit  with  the  Shanghai  branch  of  the  Ta  Ching  Bank  to  the  credit  of  the 
Manchurian  development  account  the  silver  equivalent  of  the  sum  of  £400,000, 
the  rate  of  exchange  for  the  same  to  be  settled  between  the  Ta  Ching  Bank  in 
Shanghai  and  the  transferring  banks  on  the  same  day. 

(Signed)  The  Board  of  Finance. 

[Enclosure.] 

STATEMENT   OF   ENTERPRISES   IN   MANCHURIA   FOR   WHICH   THE   FIRST 
INSTALLMENT  OF  LOAN  FUNDS  IS  REQUIRED. 

(a)  For  the  repayment  of   funds  borrowed   from  official  sources,   from  various 

banks,  and  from  merchants  for  plague  prevention £300,000 

(b)  For  initial  expenses  in  connection  with  agricultural  enterprises: 

1.  Establishment  of  administrative  bureaus,  deputies,  renting  premises,  etc. 

2.  For  making  surveys  of  agricultural  lands,  roads,  and  waterways,  and 

for  making  maps,  etc. 

3.  For  investigations  into  conditions  and  reporting  thereon. 

4.  For  compiling  reports  and  making  translations  of  foreign  books  relat- 

ing   to    agriculture,    industries,    and    colonization 30,000 

(c)  For  industrial  experimental  stations  with  a  view  to : 

1.  Sugar  making. 

2.  Paper  making. 

3.  Dyeing  and  weaving  fabrics  from  wild  silk. 

4.  Establishing  distilleries. 

5.  The  making  of  materials  used  in  house  building,  such  as  bricks,  timber 

sawing,  etc. 

6.  Analyzing  mining  products    35,000 

(d)  For  iron  designing  works  with  a  view  to  the  manufacture  of  agricultural 

and  other  implements,  machinery,  etc 30,000 

(e)  For    the    Chen-An    cattle    ranges 5,000 

Grand  total   _ £400,000 

Signed  and  sealed  by 

Chao  Erh  Hsuan, 

Viceroy  of  Manchuria. 
Hsuan  T'ung,  3d  year,  4th  moon,  5th  day. 


NUMBER  1911/2:  APRIL  15,  1911:  NOTE  851 

Note. 

The  negotiations  for  the  currency  loan  were  initiated  by  the  Chinese  Government  with 
the  American  group,  with  whose  representative  the  following  preliminary  agreement  was 
concluded  on  October  27,  1910 : 

Preliminary  Agreement  for  Currency  Reform  and  Industrial  Development  Loan, 

October  27,  1910. 

"  Preliminary  agreement  made  between  the  -Board  of  Finance  acting  on  behalf  of  the 
Imperial  Chinese  Government  hereinafter  called  the  Government,  of  the  first  part 

"and 

"  Alessrs.  J.  P.  Morgan  &  Company,  Messrs.  Kuhn,  Loeb  &  Company,  the  First  Na- 
tional Bank  and  the  National  City  Bank,  all  of  New  York  City,  constituting  the  American 
group,  hereinafter  called  the  Group,  of  the  second  part. 

"  Whereas  the  Government  desiring  to  facilitate  certain  changes  in  the  administration 
of  Imperial  and  IManchurian  Finance  and  to  undertake  certain  Industrial  Enterprises  in 
Manchuria,  proposes  to  create  and  issue  Imperial  Chinese  Government  Sinking  Fund  Gold 
Bonds,  hereinafter  known  as  the  Bonds  in  an  aggregate  principal  amount  not  exceeding 
fifty  million  dollars  United  States  gold  coin  ($50,000,000)  and  to  negotiate  a  loan  in  the 
manner  and  form  to  be  hereafter  determined. 

"  It  is  agreed  as  follows : 

"Article  I. — The  government  agree  to  issue  and  the  group  agree  to  offer  on  behalf 
of  the  government  a  gold  loan  hereinafter  referred  to  as  the  loan,  for  an  amount  not 
exceeding  fifty  million  dollars  United  States  gold  coin  ($50,000,000)  on  the  terms  and  sub- 
ject to  the  conditions  to  be  stated  in  a  final  agreement  to  be  negotiated  as  hereinafter 
provided. 

"  Article  II. — The  loan  shall  constitute  a  direct  liability  and  obligation  of  the  Imperial 
Government  of  China  which  hereby  pledges  its  good  faith  and  credit  for  the  punctual  pay- 
ment of  the  principal  and  interest  of  the  loan. 

"Article  III. — The  rate  of  interest  on  the  loan  shall  be  5%  per  annum;  the  group 
shall  take  the  bonds  at  95  flat.  The  net  proceeds  of  the  loan  shall  be  deposited  with  the 
group  or  its  duly  authorized  representatives  in  New  York  or  elsewhere  subject  to  with- 
drawal for  the  requirements  of  the  operations  contemplated  under  the  loan,  and  the  con- 
ditions governing  such  deposit  and  withdrawal,  the  term  of  the  loan,  the  manner  and 
form  of  payment  of  the  interest  and  amortization  charges,  also  the  date  from  when 
interest  upon  the  bonds  is  to  commence  and  to  cease,  the  creation  of  a  sinking  fund  and 
other  provisions  necessarily  incident  to  the  service  and  redemption  of  the  loan  shall  be 
settled  in  a  mutually  satisfactory  manner  and  stated  in  the  final  agreement.^ 

"  Article  IV. — Interest  and  amortization  payments  and  other  expenses  incident  to  the 
service  of  the  loan  shall  be  made  the  first  charge  upon  such  revenues  as  shall  be  suitable 
and  sufficient  for  the  purpose  to  be  hereafter  agreed  upon  and  stated  in  the  final  agreement. 

"Article  V. — This  preliminary  agreement  is  subject  to  ratification  by  imperial  edict, 
which  imperial  edict  when  issued  shall  be  officially  communicated  to  the  American  lega- 
tion at  Peking  by  the  Wai  Wu  Pu  with  the  request  that  the  group  enter  at  once  upon  nego- 
tiations of  the  final  agreement  with  the  board  or  the  high  official  to  be  designated  by  the 
Imperial  Government  of  China. 

"  Article  VI. — This  agreement  is  executed  in  duplicate  in  English  and  Chinese,  one 
set  to  be  retained  by  the  government  and  the  other  set  by  the  American  group.  In  case 
there  be  any  misunderstanding  arising  from  a  difference  between  the  English  and  Chinese 
texts  the  matter  shall  be  settled  by  a  mutually  satisfactory  arrangement.  In  the  event  of 
it  being  impossible  to  come  to  a  mutual  understanding  regarding  the  points  not  already 
settled  then  this  preliminary  agreement  will  be  cancelled. 

"  Signed  at  Peking  by  the  contracting  parties  this  twenty-fifth  day  of  the  ninth  moon 
of  the  second  year  of  Hsuan  T'ung,  corresponding  to  the  27th  day  of  October,  1910, 
western  calendar." 

Thereafter,  at  the  instance  of  the  American  group,  and  upon  the  solicitation  of  the 
American  Government,  the  Chinese  Government  consented  to  the  participation  of  the 
British,  French  and  German  Banks,  with  which  the  American  group  had  associated  itself 
for  the  purpose  of  China  business.  The  outbreak  of  the  revolution  against  the  Manchu 
Dynasty  intervened  before  satisfactory  arrangements  had  been  completed  for  the  flotation 
of  the  loan  under  the  terms  of  the  Agreement  of  April  15,  1911,  with  this  "Four-Power 
Consortium " ;  and  under  the  altered  conditions  resulting,  the  banks  postponed  further 
•action  on  this  project,  in  order  to  undertake  a  reorganization  loan  required  by  the  newly 
established  Republican  Government.  In  reference  to  the  subsequent  accession  of  the 
Japanese  and  Russian  banks  to  the  consortium,  the  withdrawal  of  the  American  gfouP' 
and  the  conclusion  of  the  reorganization  loan  agreement  of  April  26,  1913,  consult  No. 
1913/5,  post. 

Despite  the  withdrawal  of  the  American  Group  in  March,  1913,  the  American  Govern- 


g52  CHINA  TREATIES  AND  AGREEMENTS 

ment  has  for  its  part  maintained  its  interest  in  the  project  of  currency  reform;  and  on 
October  20,  1917,  it  communicated  through  its  Legation  at  Pekmg  to  the  Chmese  Govern- 
ment the  following  statement: 

"  Quite  apart  from  any  individual  contractual  interest  accruing  to  '  The  American 
Group'  under  the  Currency  Loan  Agreement  of  April  15,  1911,  the  Government  of  the 
United  States  considers  that  the  whole  history  of  the  currency  loan  project — notably  the 
appeal  made  to  it  by  the  Chinese  Government  in  January,  1904,  the  conferences  with  Dr. 
Jenks  in  1903  and  1904,  and  the  request  for  a  loan  for  the  purpose  of  monetary  reform 
which  in  1910  the  Chinese  Government  addressed  not  to  any  individuals  but  directly  to 
the  American  Government — constitutes  in  behalf  of  the  Government  of  the  United  States 
such  an  interest  in  the  project  as  entitles  it  to  be  considered  in  reference  to  any  action 
which  the  Chinese  Government  may  contemplate  with  a  view  to  carrying  that  project  into 
effect.    This  interest  has  never  been  abandoned  by  the  Government  of  the  United  States." 

It  is  understood  that  advances  totaling  £400,000  have  been  made  to  the  Government 
under  this  agreement.  The  F.  E.  Review,  vol.  VIII,  p.  376,  prints  the  following  as  the 
text  of  a  letter  from  President  Yuan  to  the  representatives  of  the  four  banks,  in  regard 
to  one  such  advance  of  Shanghai  taels  1,100,000: 

Letter  of  Agreement  for  Advance  upon  Currency  Loan,  March  g,  1912. 

"  REPUBLIC  OF  CHINA. 

"  Office  of   the   President. 

"  Peking,  March  9th,  1912. 
"To  E.  G.   Hillier,   Esq.,   C.   M.   G.,   Agent,   Hongkong  &   Shanghai    Banking  Corporation, 
Monsieur  Casenave,  Manager,  Banque  de  ITndo-Chine,  H.  Cordes,  Esq.,  Deutsch-Asiatische 
Bank,  and  Willard  D.  Straight,  Esq.,  Special  Representative  American  Group. 

"  Gentlemen : 

"  I  am  in  receipt  of  your  letter  of  today's  date  informing  me  that,  having  obtained  the 
sanction  of  your  Governments  to  advance  to  the  Chinese  Provisional  Government  funds 
for  their  urgent  requirements,  as  stated  in  the  letter  of  the  2nd  March  addressed  to  you 
by  the  Acting-Minister  of  Finance,  your  Banks  are  now  prepared  to  hold  at  the  disposal 
of  the  Chinese  Provisional  Government,  against  the  receipts  of  the  Ministry  of  Finance, 
the  sum  of  Shanghai  Taels  One  million  one  hundred  thousand  (Shanghai  Taels  1,100,000) 
and    T   note  the  arrangements   proposed    for  making  this   sum   available. 

"It  is  understood  and  agreed: 

"  1.— That  the  said  advance  of  Shanghai  Taels  One  Million  One  Hundred  Thousand 
will  be  treated  in  conjunction  with  the  advance  of  Shanghai  Taels  2,000,000  made  in 
Shanghai  to  the  Chinese  Provisional  Government  on  the  28th  day  of  February  last,  and 
that  sterling  exchange  for  the  same  will  be  settled  by  the  Banks  in  Shanghai  today. 

"2.— That  this  advance  of  Shanghai  Taels  1,100,000  as  in  the  case  of  the  previous 
advance  of  Shanghai  Taels  2,000,000  above  referred  to,  will  be  covered  by  delivery  to 
the  Banks,  so  soon  as  arrangements  permit,  of  sterling  Treasury  Bills  bearing  date  the 
9th  day  of  March,  1912,  and  for  such  amounts  as,  after  being  discounted  at  a  rate  to  be 
arranged,  shall  yield  the  sterling  equivalent  of  the  said  advance,  the  said  Treasury  Bills  to  be 
secured,  subject  to  the  existing  charges,  upon  the  revenue  of  the  Salt  Gabelle. 

"  3. — That  the  Banks  hold  a  firm  option  for  the  provision  of  the  further  monthly 
requirements  of  the  Chinese  Government  for  the  months  of  March,  April,  May,  June  and 
possibly  July  and  August  which  the  Four  Groups  have  already  been  requested  to  finance, 
against  the  delivery  of  additional  sterling  Treasury  Bills  on  terms  to  be  arranged. 

"  4. — That  in  consideration  of  the  assistance  rendered  by  the  Groups  to  China  in  the 
present  emergency  and  of  their  services  in  supporting  her  credit  on  the  foreign  markets, 
the  Chinese  Government  assures  to  the  Groups  (provided  their  terms  are  equally  advan- 
tageous with  those  otherwise  obtainable)  the  firm  option  of  undertaking  the  comprehen- 
sive loan  for  general  reorganization  purposes  already  proposed  to  them,  to  be  floated  as 
soon  as  possible,  and  to  be  applied  in  the  first  instance  to  the  redemption  of  the  sterling 
Treasury    Bills   aforesaid. 

"  I  hereby  confirm  the  arrangements  and  conditions  above  stated,  and  request  you  to 
proceed  immediately  in  accordance  therewith. 

"  I  am,  Gentlemen, 

"  Yours  faithfully, 

"  (Sgd.)  Yuan   Shih-kai. 

"  (SEAL)" 

In  January,  1914,  the  Chinese  Government  promulgated  a  national  currency  law,  and 
regulations  for  the  enforcement  thereof,  of  which  the  following  translations  were  printed 
in  the  Peking  Daily  News  of  January  21,  1914: 


NUMBER  1911/2:  APRIL  15,  1911:  NOTE  853 


The  Law  for  the  National  Currency.— January,  1914. 

Article  1.— The  right  of  minting  and  issuance  of  national  currency  shall  solely  belong  to 
the  Government. 

Article  2.— The  unit  of  the  national  coins  shall  be  called  yuan,  and  the  yuan  shall  con- 
tain six  mace,  four  candareens  and  eight  li  (kiiping  weight)  or  23.97795048  grammes  of  pure 
silver. 

Article  3.— The  different  kinds  of  national  coins  are  as  follows  :— 

A.  Four  kinds  of  silver  coins. 

(1)  1  yuan. 

(2)  %      " 

(3)  20  cent  piece. 

(4)  10    "        •• 

B.  One  kind  of  nickel  coin. 
(1)     5  cent  piece. 

C.  Five  kinds  of  copper  coins. 

(1)  2  cent  copper  piece. 

(2)  1     " 

(3)  5  li  piece. 

(4)  2  "      " 

(5)  1  "      "  _ 

Article  4.— The  value  of  the  national  coin  shall  be  in  decimal  progression.  One  tenth 
of  a  yuan  shall  make  a  chio  or  a  10  cent  piece.  One  hundredth  of  a  yttan  shall  make  1 
fen  or  cent,  and  one  thousandth  of  a  yuan  shall  make  one  li. 

Article  5. — The  weight  and  fineness  of  the  coins  shall  be  as  follows : — 

1. — 1  yuan,  gross  weight  72  candareens  with  90  per  cent,  silver  and  10  per  cent,  copper. 

2.— 50  cent  piece,  gross  weight  32.4  candareens,  with  70  per  cent  silver  and  30  per  cent, 
copper. 

3. — 20  cent  piece,  gross  weight  12  candareens,  with  70  per  cent  silver  and  30  per  cent 
copper. 

4. — 10  cent  piece,  gross  weight  6  candareens,  with  70  per  cent  silver  and  30  per  cent 
copper. 

5. — 5  cent  nickel  piece,  gross  weight  7  candareens,  with  25  per  cent  nickel  and  75  per 
cent  copper. 

6. — 2  cent  copper  piece,  gross  weight  28  candareens,  with  95  per  cent  copper,  4  per  cent 
pewter  and  1  per  cent  lead. 

7. — 1  cent  copper  piece,  gross  weight  18  candareens,  with  its  fineness  same  as  2 
cent  copper  piece. 

8. — 5  //  copper  piece,  gross  weight  9  candareens,  with  its  fineness  same  as  above. 

9. — 2  li  copper  piece,  gross  weight  4.5  candareens,  with  its  fineness  same  as  above. 
10. — 1  li  copper  piece,  gross  weight  2.5  candareens,  with  its  fineness  same  as  above. 

Article  6. — No  restrictions  shall  be  placed  upon  the  use  of  1  yuan  piece.  The  amount 
of  50  cent  pieces  involved  in  one  transaction  shall  not  exceed  twenty  dollars.  The  amount 
of  20  cent  and  10  cent  pieces  involved  in  one  transaction  shall  not  exceed  five  dollars.  The 
amount  of  nickel  or  copper  pieces  involved  in  one  transaction  shall  not  exceed  one  dollar. 
This  restriction  shall  not  be  applied  to  the  collection  of  taxes  and  the  exchanges  in  the 
national  banks. 

Article  7. — The  designs  of  the  national  coins  shall  be  promulgated  by  a  Provisional 
Order. 

Article  8. — The  ratio  of  the  difference  between  the  weight  of  each  silver  coin  and  that 
of  the  legal  tender  shall  not  exceed  3/1000. 

The  ratio  of  the  difference  between  the  total  weight  of  per  1000  pieces  of  the  silver  coin 
and  the  legal  weight  of  that  amount  of  coins  shall  not  exceed  3/10,000. 

Article  9. — The  ratio  of  the  difference  between  the  fineness  of  any  piece  of  silver  coin 
and  the  legal  fineness  shall  not  exced  3/1000. 

Article  10. — When  on  account  of  wear  and  tear,  the  1  yuan  silver  piece  loses  one  per 
cent  of  its  weight,  it  may  be  exchanged  at  the  government  banks  for  a  new  dollar.  When, 
on  account  of  wear  and  tear,  the  50  cent  silver  piece  and  other  kinds  of  coins  lose  five  per 
cent  of  the  legal  weight,  they  may  be  exchanged  at  the  government  banks  for  new  coins. 

Article  11. — When  a  coin  is  found  to  be  mutilated  purposely  no  one  shall  be  com- 
pelled to  accept  it. 

Article  12. — The  Government  consents^to  coin  1  yuan  silver  pieces  for  those  who  give 
to  it  silver  bullion,  and  6  li  per  yuan  shall  be  charged  as  minting  fee. 

Article  13. — This  law  shall  be  in  force  on  the  day  of  its  promulgation. 


854  CHINA  TREATIES  AND  AGREEMENTS 

Regulations  for  the  Enforcement  of  the  Currency  Law,  January,  1914. 

Article  1. — The  National  coins  must  be  used  as  medium  in  the  transaction  of  any 
financial  dealing  in  the  country.  Special  regulations  in  the  Currency  Regulations  must  also 
be  observed. 

Article  2. — The  Government  shall  exchange  the  silver  dollars  coined  by  the  old  mints 
with  the  national  coins  and  remint  the  dollars.  Within  a  certain  period,  the  old  dollar 
shall  possess  the  same  value  as  the  yuan,  but  as  to  the  length  of  that  period,  a  Provisional 
Order  shall  be  issued  to  fix  it. 

Article  3. — The  Government  shall  recall  all  the  old  silver  pieces  of  the  different  denomi- 
nations, old  copper  pieces  and  remint  them,  but  within  a  certain  fixed  period,  the  old 
coins  shall  be  allowed  to  be  circulated  at  the  market  prices. 

*  If  the  old  coins  are  used  to  pay  taxes,  every  month  all  the  public  offices  shall  issue 
notices  fixing  the  current  rate  of  the  coins  at  which  the  offices  shall  receive  old  coins.  The 
offices  shall  take  as  the  current  rate  an  average  of  the  exchange  rates  of  the  previous  month. 
The  period  for  the  circulation  of  the  old  coins  shall  be  fixed  by  a  Provisional  Order. 

Article  5. — If  taxes  are  remitted  with  silver  bullion  or  if  any  person  wants  the  Govern- 
ment to  mint  silver  coins  for  him,  in  the  calculation  one  dollar  shall  contain  65.4  candareens. 
The  bullion  of  other  fineness  and  weight  shall  be  converted  according  to  a  table  to  be 
attached. 

Article  6. — In  the  public  offices  where  the  receipts  and  expenditures  are  calculated  in 
taels,  the  amount  should  be  converted  into  the  term  of  yuan  in  accordance  with  Article  4. 
At  places  where  the  receipts  and  disbursements  consist  of  copper  coins  and  cash,  the  public 
office  shall  report  to  the  Ministry  of  Finance  the  actual  sum  of  receipts  and  disbursements 
with  the  request  for  permission  to  convert  the  coins  into  the  term  of  yuan. 

Article  7. — In  the  collection  of  various  revenues  and  taxes,  Articles  5,  6  and  7  shall 
be  observed.  In  the  calculation,  the  li  shall  be  the  smallest  of  denominations.  All  the 
decimal  fractions  of  the  /;  shall  be  treated  thus: — when  the  figure  is  4,  it  shall  be  discarded, 
and  when  it  is  5,  it  shall  be  considered  as  one  to  be  added  to  the  other  integers. 

Article  8. — When  the  debts  among  the  people  are  calculated  in  the  term  of  taels,  they 
should  be  converted  into  the  term  of  the  national  coin.  Where  the  old  subsidiary  coins  are 
involved.  Article  6  shall  be  observed  in  the  conversion  into  the  national  coins.  If  the  sums 
in  the  deeds,  contracts  and  promissory  notes  are  not  converted  into  the  term  of  yuan,  and 
if  any  lawsuit  arises,  the  exchange  rate  on  the  day  of  the  promulgation  of  these  regulations 
shall  be  considered  as  a  standard. 

Article  9. — Within  the  domain  of  China,  no  one  shall  object  to  the  use  of  the  national 
coins. 

Article  10. — If  anybody  disregards  Article  4  of  the  Law  for  the  National  Currency  and 
Article  9  of  the  regulations  for  the  enforcement  of  the  Law  for  the  National  Currency, 
the  party  concerned  may  bring  a  lawsuit  against  him,  and  when  convicted,  a  fine  from  10 
dollars  to  1,000  dollars  shall  be  imposed  on  the  off'ender.  Any  official  or  any  member  con- 
nected with  the  government  enterprises  who  commits  the  same  offence,  is  liable  to  pay  a 
fine  of  from  50  to  3,000  dollars  after  the  same  procedure  has  been  observed. 

Article  11. — The  area  and  the  date  for  the  enforcement  of  these  regulations  shall  be 
fixed  by  a  Provisional  Order. 

This  law  and  the  accompanying  regulations  are  understood  to  have  been  approved  by 
the  interested  banks  as  a  basis  for  the  monetary  reform  contemplated  by  the  currency  loan 
agreement.  On  August  10th,  1918,  however,  the  Government  promulgated,  and  the  Ministry 
of  Finance  simultaneously  communicated  to  the  representatives  of  the  British,  French,  Japa- 
nese and  Russian  banks,  the  following  regulations  governing  the  issue  of  gold  currency 
notes,  and  rules  governing  the  organization  of  the  Currency  Bureau  (as  printed  in  transla- 
tion  in   the   Peking   Leader  of   August    13th,    1918)  : 

Regulations  Governing  the  Issue  of  Gold  Currency  Notes. — August  10,  1918, 

Article  1. — With  a  view  to  facilitating  international  trade  and  preparing  for  the 
adoption  of  a  currency  system  with  a  gold  basis  the  bank  or  banks  appointed  by  the  Currency 
Bureau  shall  be  allowed  to  issue  gold  currency  notes. 

Article  2. — The  unit  of  the  gold  currency  shall  be  one  gold  dollar  which  shall  con- 
tain 0.752318  Kungfun  of  pure  gold,  that  is,  2.01688  candareen  of   Kuping  tael. 

One  tenth  part  of  a  gold  dollar  shall  be  called  a  "  Chao,"  one  hundredth  a  "fen,"  one 
thousandth  a  "  /;,"  etc. 

Article  3. — The  denominations  of  the  gold  currency  notes  shall  be :  one  dollar,  five 
dollars,  ten  dollars,  twenty  dollars,  fifty  dollars  and  one  hundred   dollars. 

The  Government  may  order  the  bank  or  banks  appointed  by  the  Bureau  to  issue  gold 

*  [  particle  4.] 


NUMBER  1911/2:  APRIL  15,  1911:  NOTE  855 

currency  notes  of  smaller  denominations,  such  as  five-c/tao  (half  a  dollar)  two-chao  (one 
fifth  of  a  dollar)  and  one-chao  (one  tenth  of  a  dollar)  and  the  Government  Mint  may  be 
ordered  to  mint  copper  coins  of  one  "fen"  denomination. 

Article  4. — Before  the  coinage  of  such  gold  dollars  the  holder  of  the  gold  currency 
notes  may  remit  the  money  to  other  cities  in  this  country  or  to  foreign  countries  through 
the  specified  banks  and  after  the  coinage  of  such  gold  dollars,  the  holder  of  such  gold 
currency  notes  may  exchange  them  for  gold  coins  as  well  as  remit  them  to  any  city  in  the 
country  or  to  any  foreign  country. 

The  gold  currency  notes  may  be  exchanged  at  the  specified  banks  for  foreign  gold  coins 
or  gold  bullion.  All  ornaments  made  of  pure  gold  shall  be  considered  equivalent  to  sterling 
gold  and  they  shall  be  valued  according  to  the  quantity  of  pure  gold  they  contain. 

Article_  5.— -The  proportionate  value  of  the  gold  currency  notes  and  the  national  cur- 
rency now  in  circulation  will  necessarily  not  always  be  the  same.  But  it  shall  be  made 
known  to  the  public  by  notifications  issued  by  the  specified  banks  from  time  to  time,  and 
gold  currency  notes  and  current  silver  coins  in  circulation  or  silver  bullion  may  be  ex- 
changed at  the  said  banks  at  the  notified  value. 

Article  6. — The  specified  banks  shall  have  an  adequate  gold  reserve  against  the  amount 
of  notes  issued.  This  gold  reserve  shall  either  be  in  our  national  gold  dollars,  or  gold 
bullion,  or  foreign  gold  coins  deposited  with  the  exchange  banks  in  both  Chinese  and 
foreign  commercial  ports.  The  public  shall  be  notified  by  the  specified  banks  once  every 
ten  days  about  the  amount  of  the  gold  reserve  and  the  places  where  this  reserve  is 
deposited. 

This  gold  reserve  shall  be  subject  to  the  inspection  of  the  special  delegates  of  the 
Currency  Bureau  at  any  time. 

Article  7. — The  gold  currency  notes  may  be  used  in  public  and  private  dealings  at  the 
proportionate  value  as  notified  from  time  to  time  by  the  specified  banks. 

The  use  of  the  gold  currency  notes  shall  not  be  restricted. 

Article  8. — The  specified  banks  may  deposit  and  carry  on  other  forms  of  business 
with  the  gold  currency  notes. 

Article  9. — These  Regulations  shall  be  enforced   from  the  date  of  promulgation. 

The  Rules  Governing  the  Organization  of  the  Currency  Bureau,  August  8,  1918. 

Article  1. — The  Currency  Bureau  shall  be  under  the  direct  control  of  the  Premier 
and  take  charge  of  the  following  affairs : 

(1)  Those  in  connection  with  currency. 

(2)  Those  in  connection  with  the  issue  of  notes. 

(3)  Other  matters  in  connection  with  ci^rrency. 

Article  2. — The   following  officers   shall  be  appointed  to   the   Currency   Bureau : 

One  Director-General :  this  post  shall  be  held  by  the  Minister  of   Finance 

concurrently. 
One  Governor :  to  be  specially  appointed. 
One  adviser :  to  be  engaged. 

An  unlimited  number  of  honorary  advisers :  to  be  engaged. 
Article  3. — In   the    Currency   Bureau,   departments   shall   be   established   and    members 
appointed  to  manage  the  affairs  of  their  respective  departments.     But  before  the  establish- 
ment of  such  departments,  an  Investigation  Committee  shall  be  appointed  with  a  certain  num- 
ber of  members,  which  shall  be  decided  upon  by  order  of  the  Bureau. 

Article  4. — For  copying  documents  and  the  management  of  miscellaneous  affairs, 
clerks  shall  be  employed  in  the  said  Bureau. 

Article  5. — All  the  Mints,  Printing  Offices,  Paper  Factories,  and  the  Superintendents 
of  the  Banks  under  the  control  of  the  Ministry  of  Finance  shall  be  under  the  supervision 
and   direction  of  the  Currency   Bureau. 

Article  6. — The  Currency  Bureau  may  issue  orders  independently  or,  in  important 
matters,  may  ask  for  the  issuance  of  Cabinet  orders,  or  it  may  issue  jointly  with  the 
Ministry  of   Finance. 

Article  7. — The  Currency  Bureau  shall  be  established  for  a  period  of  ten  years. 
Article  8. — The  Regulations  governing  management  of  affairs  in  the  Currency  Bureau 
shall  be  drafted   separately. 

Article  9. — These  Rules  shall  be  enforced  from  the  date  of  promulgation. 

The  banks  have  not  yet  exercised  their  option  under  the  currency  loan  agreement, 
although  the  time  limit  fixed  by  Article  XVII  has  from  time  to  time  been  extended  by  the 
Chinese   Government. 


856  CHINA  TREATIES  AND  AGREEMENTS 

NUMBER  1911/3. 

THE  NETHERLANDS  AND  CHINA. 

Consular  convention  relative  to  the  possessions  and  colonies  of  the 
Netherlands*— May  8,  1911. 

Her  Majesty  the  Queen  of  the  Netherlands  and  His  Majesty  the  Emperor 
of  China,  beheving  that,  independent  of  the  treaty  of  commerce  and  navigation 
between  the  Netherlands  and  China,  it  is  desirable  that  a  special  convention 
should  define  the  rights,  duties,  powers,  privileges,  exemptions  and  immunities 
of  Chinese  consular  officers  in  the  Dutch  possessions  or  colonies,  in  order  to 
conclude  said  convention,  have  named  as  their  plenipotentiaries,  to  wit: 

Her  Majesty  the  Queen  of  the  Netherlands  Francois  Beelaerts  van  Blokland, 
Esquire,  Knight  of  the  Orders  of  the  Dutch  Lion  and  of  Orange-Nassau,  invested 
with  the  third  class  of  the  first  grade  of  the  Order  of  the  Double  Dragon,  her 
envoy  extraordinary  and  minister  plenipotentiary  to  His  Majesty  the  Emperor 
of  China; 

His  Majesty  the  Emperor  of  China:  Lou  Tseng  Tsiang,  invested  with  the 
first  class  of  the  second  grade  of  the  Order  of  the  Double  Dragon,  Grand  Cross 
of  the  Order  of  Orange-Nassau,  of  the  Order  of  Saint  Stanislas,  his  envoy  extra- 
ordinary and  minister  plenipotentiary  to  Her  Majesty  the  Queen  of  the  Nether- 
lands, 

Who,  after  having  communicated  to  each  other  their  full  powers,  found  in 
good  and  due  form,  have  agreed  upon  the  following  articles : 

Article  L — The  consuls-general,  consuls,  vice-consuls  and  consular  agents 
of  China  shall  be  admitted  into  the  ports  of  the  Dutch  possessions  beyond  the 
sea  or  into  the  Dutch  colonies  where  reside  or  may  reside  officers  of  the  same  class 
of  any  other  foreign  nation. 

Article  2. — The  consuls-general,  consuls,  vice-consuls  and  consular  agents 
of  China  shall  be  considered  as  commercial  agents,  protectors  of  the  commerce  of 
their  nationals  within  their  consular  jurisdiction. 

They  shall  reside  in  the  ports  of  the  Dutch  possessions  beyond  the  sea  or  in 
the  Dutch  colonies  indicated  in  their  commissions,  and  will  be  subject  to  the 
laws  of  those  possessions  or  colonies,  both  civil  and  penal,  save  such  exceptions 
as  the  present  convention  establishes  in  their  favor. 

Article  3. — Before  being  admitted  to  the  exercise  of  their  functions  and 
enjoying  all  their  powers,  privileges,  exemptions  and  immunities  therewith  con- 
nected, the  consuls-general,  consuls,  vice-consuls  and  consular  agents  must  present 
to  the  Government  of  Her  Majesty  the  Queen  of  the  Netherlands,  a  commission, 
indicating  their  consular  jurisdiction  and  their  place  of  residence. 

*  Translation  from  the  French  text  as  printed  by  the  Netherlands  Government  in 
Staatsblad,  1912,  No.  280.  French  text  printed  also  in  Customs,  vol.  II,  p.  352;  Hsi'ian 
Tuncj  Tiao  Yuch,  vol.  I,  p.  44;  Izviestia,  1912,  vol.  V,  p.  67.  See  also  Note  to  this  docu- 
ment, post,  p.  860. 


NUMBER  1911/3:  MAY  8,  1911  857 

The  government  of  the  possession  or  colony  shall  deliver  to  them,  free  of 
cost,  the  exequatur  duly  countersigned,  necessary  for  the  exercise  of  their  func- 
tions ;  and  upon  having  produced  this  document,  the  said  consular  officers  of 
every  grade  shall  be  entitled  to  the  protection  of  the  government  and  to  the 
assistance  of  the  local  authorities  to  insure  to  them  the  free  exercise  of  their 
functions. 

The  Government  of  the  Queen  reserves  unto  itself  the  right  to  withdraw  the 
exequatur  or  to  have  it  withdrawn  by  the  government  of  the  possession  or  colony, 
stating  the  reasons  for  such  action. 

In  case  of  the  death,  incapacity  or  absence  of  the  consuls-general,  consuls, 
vice-consuls  and  consular  agents,  their  consular  students,  their  chancellors  or 
secretaries,  after  their  offi<:ial  character  shall  have  been  notified  to  and  approved 
by  the  competent  authority,  shall  by  full  right  be  admitted  to  administer  tempor- 
arily the  affairs  of  the  respective  posts ;  during  the  entire  period  of  this  temporary 
incumbency,  as  far  as  their  position  as  non-commercial  foreigners  may  warrant, 
in  conformity  with  Article  15,  they  shall  enjoy  all  the  rights,  powers,  privileges, 
exemptions  and  immunities  accorded  to  the  incumbents  themselves. 

Article  4. — The  consuls-general,  consuls,  vice-consuls  and  consular  agents 
are  authorized  to  display  above  the  outer  door  of  their  residence  an  escutcheon 
with  the  arms  of  their  government,  bearing  the  inscription :  Consulate-General,  or 
Consulate,  or  Vice-Consulate  or  Consular  Agency  of  China. 

It  is  well  understood  that  these  external  marks  may  never  be  interpreted  as 
conferring  any  right  of  asylum,  nor  as  an  indication  that  the  residence  and  the 
dwellers  therein  may  not  be  proceeded  against  by  the  territorial  courts  of  justice. 

Article  5. — It  is  understood  that  the  archives  and  documents  relating  to 
consular  affairs  shall  be  protected  against  searches,  and  no  authority  and  no 
magistrate  may  enter  the  archives  nor  seize  documents  nor  gain  possession  of 
them  in  any  manner  and  under  any  pretext  whatever. 

Article  6. — The  consuls-general,  consuls,  vice-consuls  and  consular  agents 
are  not  invested  with  any  diplomatic  powers. 

No  petition  may  be  addressed  to  the  Dutch  Government  except  through  the 
medium  of  the  diplomatic  agent  accredited  to  The  Hague. 

In  case  of  urgency,  the  consuls-general,  consuls,  vice-consuls  and  consular 
agents  may  have  direct  recourse  to  the  governor  of  the  colony  or  possession  by 
proving  the  urgency  and  stating  the  reasons  for  which  the  petition  might  not  be 
addressed  to  the  subordinate  authorities,  or  by  proving  that  previous  petitions 
addressed  to  these  authorities  had  not  been  acted  upon. 

Article  7. — The  consuls-general  and  consuls  may  appoint  consular  agents  in 
the  ports  mentioned  under  Article  1. 

These  consular  agents  may  be  Chinese  or  Dutch  subjects,  or  nationals  of  any 
other  country  residing,  or  entitled  by  the  terms  of  the  local  laws  to  reside,  in  the 
port  where  the  consular  officer  is  appointed.  These  consular  agents,  whose 
appointment  shall  be  submitted  to  the  approval  of  the  governor  of  the  possession 
or  colony,  shall  be  provided  with  a  commission  issued  by  the  consul  under  whose 
authority  they  are  to  exercise  their  functions. 

The  governor  of  the  possession  or  colony  may  at  any  time,  by  notifying  to  the 


858  CHINA  TREATIES  AND  AGREEMENTS 

consul-general  or  consul  the  reasons  for  such  action,  withdraw  from  the  consular 
agents  the  approval  above  referred  to. 

Article  8. — The  passport  issued  or  certified  by  the  consular  officers  in  no 
way  exempts  the  bearer  from  the  obligation  to  be  provided  with  all  documents 
required  by  the  local  laws  or  regulations  for  traveling  or  establishing  himself  in 
the  possessions  or  colonies,  and  in  no  way  diminishes  the  right  of  the  government 
of  the  possession  or  colony  to  order  the  removal  or  to  prohibit  therein  sojourn  of 
any  individual  provided  with  a  passport. 

Article  9. — All  operations  regarding  the  salvage  of  Chinese  vessels  wrecked 
on  the  coasts  of  the  Dutch  possessions  or  colonies  shall  be  directed  by  the  consuls- 
general,  consuls,  vice-consuls  or  consular  agents  of  China. 

The  intervention  of  the  local  authorities  shall  take  place  solely  to  maintain 
order,  to  protect  the  interests  of  the  salvors  if  they  are  not  part  of  the  wrecked 
crews,  and  to  insure  the  execution  of  the  regulations  made  for  the  entry  and 
exportation  of  property  recovered. 

In  the  absence  of  and  until  the  arrival  of  the  consuls-general,  consuls,  vice- 
consuls  or  consular  agents,  the  local  authorities  shall,  moreover,  take  all  necessary 
measures  for  the  protection  of  individuals  and  property  recovered. 

It  is  furthermore  agreed  that  the  property  recovered  shall  be  exempt  from 
customs  duties  unless  it  is  admitted  for  consumption  in  the  country. 

Article  10. — The  consuls-general,  consuls,  vice-consuls  or  consular  agents 
may  request  the  assistance  of  the  local  authorities  for  the  arrest,  detention  and 
imprisonment  of  deserters  of  Chinese  merchantmen  or  war  vessels.  To  this  end 
they  shall  address  to  the  competent  authorities  a  written  request  for  the  deserter, 
and  if  it  is  proven  by  the  registers  of  the  vessel,  the  enrollment  list  of  the  crew, 
or  by  any  other  authentic  document,  that  the  men  claimed  were  part  of  the  crew, 
the  surrender  of  the  deserters  may  not  be  refused  them,  unless  the  individual  in 
question  is  a  Dutch  subject. 

The  local  authorities  shall  be  obliged  to  exercise  all  their  power  to  cause  the 
arrest  of  the  deserters ;  and  after  the  arrest,  the  latter  shall  be  placed  at  the 
disposal  of  said  consular  officers,  and  they  may  be  detained  upon  the  request  and 
at  the  expense  of  those  claiming  them,  to  be  afterward  returned  on  board  the 
vessels  to  which  they  belong  or  sent  on  board  another  vessel  of  the  same  nation. 
But,  if  these  deserters  are  not  returned  within  four  months,  reckoned  from  the 
date  of  their  arrest,  they  shall  be  set  free  and  may  never  again  be  arrested  for 
the  same  cause. 

It  is  understood,  however,  that  the  surrender  of  the  deserter  who  has  com- 
mitted a  crime,  violation  or  infraction  against  the  law,  shall  be  withheld  until  the 
tribunal  of  the  possessions,  colonies  or  of  the  mother-country  before  which  the 
case  is  to  be  tried  shall  have  rendered  its  decision  and  the  latter  have  been  carried 
out. 

Article  11. — Whether  of  their  own  free  will  or  under  compulsion,  Chinese 
vessels  put  into  port,  such  damages  as  they  may  have  suffered  at  sea  shall  be 
settled  by  the  consuls-general,  consuls,  vice-consuls  or  consular  agents  of  China, 
unless  stipulations  to  the  contrary  were  entered  into  between  the  ship-owners, 
shippers  and  underwriters. 


NUMBER  1911/3:  MAY  8,  1911  859 

If,  however,  the  consular  officer  is  materially  interested  in  the  vessel  or  cargo, 
or  is  the  agent  thereof,  or  if  Dutch  subjects  or  subjects  or  citizens  of  a  third 
nation  are  affected  by  the  said  damages,  and  the  parties  should  be  unable  to  reach 
an  amicable  settlement,  then  recourse  may  by  right  be  had  to  the  competent 
local  authority. 

Article  12. — Upon  the  death,  in  the  Dutch  possessions  or  colonies,  of  a 
Chinese  subject  without  known  heirs  or  testamentary  executors,  the  Dutch  au- 
thorities charged  by  the  laws  or  decrees  of  the  possession  or  colony  with  the 
administration  of  inheritances  shall  immediately  notify  the  Chinese  consular 
officers  of  the  fact  in  order  that  the  necessary  information  may  be  trans- 
mited  to  those  interested ;  on  the  other  hand,  the  Chinese  consular  officers 
shall,  in  case  they  are  the  first  to  learn  of  the  fact,  give  notice  thereof  to  the  said 
authorities. 

The  competent  local  authority  shall  complete  said  notification  by  delivering, 
in  due  form  and  without  cost,  a  copy  of  the  death  certificate. 

Article  13. — The  consuls-general,  consuls,  vice-consuls  and  consular  agents 
shall  have  the  right,  in  their  offices,  in  their  private  residence,  in  the  residence  of 
the  interested  subjects  of  their  country  or  on  board  vessels  of  their  nation,  to 
receive  the  declarations  of  the  captains  and  crews  of  vessels  of  their  country,  of 
the  passengers  on  board,  and  of  any  other  subject  of  their  country. 

Article  14. — The  consuls-general,  consuls,  vice-consuls  or  consular  agents 
of  China  shall  have  exclusive  charge  of  the  internal  order  of  all  merchantmen  of 
their  nation. 

They  alone  shall  have  jurisdiction  over  all  controversies  which  may  have 
arisen  at  sea  or  may  arise  in  port  between  the  captain,  the  officers  and  men  of 
the  crew,  including  controversies  regarding  the  adjustment  of  wages  and  the 
execution  of  contracts. 

The  tribunals  or  other  authorities  of  the  possession  or  colony  may  not  for 
any  reason  whatever  interfere  in  these  controversies  unless  they  should  be  of 
such  a  nature  as  to  disturb  the  peace  and  public  order  on  shore  or  in  the  port, 
unless  persons  not  of  the  crew  take  part  therein,  or  unless  the  consuls-general, 
consuls,  vice-consuls  and  consular  agents  request  the  assistance  of  the  said  authori- 
ties to  carry  out  their  decisions  or  to  uphold  their  authority. 

Article  15. — Whereas,  in  China  the  same  favors  are  to  be  reciprocally 
accorded  to  the  consuls-general,  consuls,  vice-consuls  and  consular  agents  of  the 
Netherlands,  therefore  the  consuls-general,  consuls,  vice-consuls  and  consular 
agents  of  China,  not  engaged  in  trade  nor  any  function  or  profession  other  than 
their  consular  functions,  shall  be  exempt  from  all  military  service,  requisitions  or 
billeting,  from  pecuniary  taxes  in  the  place  of  military  service  and  from  any 
personal  tax,  as  well  as  from  general  or  municipal  taxes  of  a  personal  nature, 
unless  they  are  Dutch  subjects.  This  exemption  can  never  be  extended  so  as  to 
include  customs  or  other  indirect  or  direct  taxes. 

The  consuls-general,  consuls,  vice-consuls  and  consular  agents  who  are  not 
Dutch  subjects,  even  if  they  do  not  come  under  the  stipulations  of  the  first 
paragraph  of  this  article,  are  exempt  from  all  military  services,  military  requisi- 
tions and  all  pecuniary  taxes  in  the  place  of  military  service,  inasmuch  as  in 


850  CHINA  TREATIES  AND  AGREEMENTS 

China  the  same  privilege  is  granted  to  the  consuls-general,  consuls,  vice-consuls 
and  consular  agents  of  the  Netherlands. 

The  consuls-general,  consuls,  vice-consuls  and  consular  agents  who  are 
subjects  of  the  Netherlands,  but  who  may  have  been  permitted  to  exercise  con- 
sular functions  conferred  by  the  Chinese  Government,  are  obliged  to  pay  all 
taxes  or  contributions  of  whatever  nature  they  might  be. 

Article  16. — The  consuls-general,  consuls,  vice-consuls  and  consular  agents, 
as  well  as  consular  students,  chancellors  and  secretaries  of  China  shall  enjoy  all 
powers,  privileges,  exemptions  and  immunities  in  the  possessions  or  colonies  of  the 
Netherlands  which  are  or  may  be  granted  in  future  to  the  officers  of  similar  rank 
of  the  most  favored  nation. 

Article  17. — The  present  convention  is  entered  into  for  a  period  of  five 
years  and  shall  go  in  force  four  months  from  the  date  of  the  exchange  of  ratifica- 
tions, which  exchange  shall  take  place  at  The  Hague  within  four  months  after  the 
signing  of  the  convention,  or  sooner  if  possible. f 

Unless  one  of  the  two  high  contracting  parties  notifies  the  other  at  least  one 
year  before  the  expiration  of  this  period,  of  its  intention  to  abrogate  the  conven- 
tion, the  latter  shall  remain  in  force  for  one  year  from  the  date  of  its  denunciation 
by  one  of  the  high  contracting  parties. 

In  testimony  whereof  the  respective  plenipotentiaries  have  signed  the  present 
convention  and  affixed  their  seals  thereto. 

Done  at  Peking,  the  eighth  day  of  the  month  of  May,  one  thousand  nine 
hundred  and  eleven,  corresponding  to  the  tenth  day  of  the  fourth  moon  of  the 
third  year  of  Hsiian  Tung.    . 

(L.  S.)     Beelaerts  van   Blokland. 
(L.  S.)     Lou  Tseng  Tsiang, 


Note. 

Simultaneously  with  the  conclusion  of  this  convention,  the  following  notes  (as  trans- 
lated from  the  French  texts  in  Staatshlad,  1912,  No.  280)  were  exchanged  between  the 
plenipotentiaries : 

"  The  Netherlands  Minister  at  Peking  to  His  Excellency  Mr.  Loii  Tseng  Tsiang,  Envoy 
Extraordinary  and  Minister  Plenipotentiary  of  His  Majesty  the  Emperor  of  China  near 
the  Queen  of  the  Netherlands,  temporarily  at  Peking. 

"Peking,  May  8,  1911. 
"  Mr.  Minister, 

"  The  consular  convention  that  we  have  signed  to-day  speaks  in  several  places  of 
'  Chinese  subjects  '  and  of  '  Netherlands  subjects.' 

"  In  consequence  of  differing  legislation  of  our  two  countries  in  the  matter  of  nation- 
ality, these  expressions  might  give  rise  to  doubts  that  it  seems  preferable  to  dispose  of 
at  this  time.  For  this  purpose  I  have  the  honor  to  propose  to  your  Excellency  that  it 
should  be  agreed  on  either  side  that  in  the  application  of  the  present  convention,  which 
has  no  other  purpose  than  to  determine  the  rights,  duties,  etc.  of  the  Chinese  consular 
officials  in  the  possessions  or  colonies  of  the  Netherlands,  the  doubts  to  which  these  two 
expressions  might  give  rise  will  be  settled,  in  the  possessions  and  colonies  of  the  Nether- 
lands, in  conformity  with  the  legislation  in   force  in  those  possessions   or  colonies. 

"  I    avail   myself  of   this   occasion,   etc. 

(Sgd.)  "Beelaerts   van   Blokland." 

t  Ratifications  exchanged  July  28,  1911. 


NUMBER  1911/4:  MAY  8,  1911  861 

"His  Excellency  Lou  Tseng  Tsiging  to  the  Netherlands  Minister  at  Peking. 

"  Waizvupu,   Peking, 
"The  10th  day  of  the  4th  Aloon  of  the  3rd  year 
of   Hsuan   T'ung,   corresponding  to   May  8,    1911. 
*'  Mr.  Minister, 

"  In  reply  to  your  Excellency's  note  of  to-day's  date,  I  have  the  honor  to  make  known 
to  you  that  I  am  authorized  to  agree  with  you  that  in  so  far  as  concerns  the  application 
of  the  consular  convention  that  we  have  signed  to-day  and  which  has  no  other  purpose 
than  to  determine  the  rights,  duties,  etc.,  of  the  Chinese  consular  officials  in  the  posses- 
sions or  colonies  of  the  Netherlands,  the  doubts  to  which  the  expressions  '  Chinese  sub- 
jects '  and  '  Netherlands  subjects  '  might  give  rise  will  be  settled,  in  the  possessions  and 
colonies  of  the  Netherlands,  in  conformity  with  the  legislation  in  force  in  those  posses- 
sions or  colonies. 

"  I  avail  myself  of  this  occasion,  etc. 

(Sgd.)  "Lou  Tseng  Tsiang." 


NUMBER  1911/4. 

GREAT  BRITAIN  AND  CHINA. 
Agreement  relating  to  Opium* — May  8,  1911. 

Under  the  arrangement  concluded  between  His  Majesty's  Government  and 
the  Chinese  Government  three  years  ago  f  His  Majesty's  Government  undertook 
that,  if  during  the  period  of  three  years  from  the  1st  day  of  January,  1908,  the 
Chinese  Government  should  duly  carry  out  the  arrangement  on  their  part  for 
reducing  the  production  and  consumption  of  opium  in  China,  they  would  continue 
in  the  same  proportion  of  10  per  cent,  the  annual  diminution  of  the  export  of 
opium  from  India  until  the  completion  of  the  full  period  of  ten  years  in  1917. 

His  Majesty's  Government,  recognising  the  sincerity  of  the  Chinese  Govern- 
ment and  their  pronounced  success  in  diminishing  the  production  of  opium  in 
China  during  the  past  three  years,  are  prepared  to  continue  the  arrangement  of 
1907  for  the  unexpired  period  of  seven  years  on  the  following  conditions  : — 

Article  1. — From  the  1st  day  of  January,  1911,  China  shall  diminish  annu- 
ally for  seven  years  the  production  of  opium  in  China  in  the  same  proportion  as 
the  annual  export  from  India  is  diminished  in  accordance  with  the  terms  of.  this 
agreement  and  of  the  annex  appended  hereto  until  total  extinction  in  1917. 

Article  2. — The  Chinese  Government  have  adopted  a  most  rigorous  policy 

*  Text  as  printed  in  British  Treaty  Series,  1911,  No.  13.  Printed  also  in  Customs,  vol. 
I,  p.  669;  Hsiian  T'ung  Tiao  Viieh,  vol.  II,  p.  12;  Am.  Int.  Lazv  Journal,  Supplement,  1911, 
p.  238. 

In  connection  with  this  agreement,  see  the  international  opium  convention  of  January 
23,  1912  (Xo.  1912/2,  post)  ;  also  the  Shanghai  and  Hongkong  opium  combines'  agree- 
ment of  May  1,  1915  (No.  1915/5,  post),  and  the  Shanghai  opium  combine's  agreement  of 
January  28,  1917  (No.  1917/3,  post). 

t  The  arrangement  referred  to,  generally  known  as  the  Ten  Year  Agreement,  was  arrived 
at  in  the  course  of  correspondence  between  the  British  Legation  at  Peking  and  the  Wai 
Wu  Pu,  in  December,  1907,  and  January,  1908.  The  substance  of  that  agreement,  as 
printed  in  For.  Rel.,  1908,  p.  80,  and  in  China,  1908,  No.  2,  is  given  in  Note  2  to  this  docu- 
ment, post,  p.  865. 


862  CHINA  TREATIES  AND  AGREEMENTS 

for  prohibiting  the  production,  the  transport,  and  the  smoking  of  native  opium, 
and  His  Majesty's  Government  have  expressed  their  agreement  therewith  and 
wilhngness  to  give  every  assistance.  With  a  view  to  facilitating  the  continuance 
of  this  work,  His  jVIajesty's  Government  agree  that  the  export  of  opium  from 
India  to  China  shall  cease  in  less  than  seven  years  if  clear  proof  is  given  of  the 
complete  absence  of  production  of  native  opium  in  China. 

Article  3. — His  Majesty's  Government  further  agree  that  Indian  opium 
shall  not  be  conveyed  into  any  province  in  China  which  can  establish  by  clear 
evidence  that  it  has  effectively  suppressed  the  cultivation  and  import  of  native 
opium. 

It  is  understood,  however,  that  the  closing  of  the  ports  of  Canton  and  Shang- 
hai to  the  import  of  Indian  opium  shall  not  take  effect  except  as  the  final  step  on 
the  part  of  the  Chinese  Government  for  the  completion  of  the  above  measure. 

Article  4. — During  the  period  of  this  agreement  it  shall  be  permissible  for 
His  Majesty's  Government  to  obtain  continuous  evidence  of  the  diminution  of 
cultivation  by  local  enquiries  and  investigation  conducted  by  one  or  more  British 
officials,  accompanied,  if  the  Chinese  Government  so  desire,  by  a  Chinese  official. 
Their  decision  as  to  the  extent  of  cultivation  shall  be  accepted  by  both  parties  to 
this  agreement. 

During  the  above  period  one  or  more  British  officials  shall  be  given  facilities 
for  reporting  on  the  taxation  and  trade  restrictions  on  opium  away  from  the 
treaty  ports. 

Article  5. — By  the  arrangement  of  1907  His  Majesty's  Government  agreed 
to  the  dispatch  by  China  of  an  official  to  India  to  watch  the  opium  sales  on  condi- 
tion that  such  official  would  have  no  power  of  interference.  His  Majesty's 
Government  further  agree  that  the  official  so  dispatched  may  be  present  at  the 
packing  of  the  opium  on  the  same  condition. 

Article  6. — The  Chinese  Government  undertake  to  levy  a  uniform  tax  on 
all  opium  grown  in  the  Chinese  Empire.  His  Majesty's  Government  consent  to 
increase  the  present  consolidated  import  duty  on  Indian  opium  to  350  taels  per 
chest  of  100  catties,  such  increase  to  take  effect  as  soon  as  the  Chinese  Govern- 
ment levy  an  equivalent  excise  tax  on  all  native  opium. 

Article  7. — On  confirmation  of  this  agreement,  and  beginning  with  the 
collection  of  the  new  rate  of  consolidated  import  duty,  China  will  at  once  cause 
to  be  withdrawn  all  restrictions  placed  by  the  provincial  authorities  on  the  whole- 
sale trade  in  Indian  opium  such  as  those  recently  imposed  at  Canton  and  else- 
where, and  also  all  taxation  on  the  wholesale  trade  other  than  the  consolidated 
import  duty,  and  no  such  restrictions  or  taxation  shall  be  again  imposed  so  long 
as  the  additional  article  to  the  Chefoo  Agreement  remains  as  at  present  in  force. 

It  is  also  understood  that  Indian  raw  opium,  having  paid  the  consolidated 
import  duty,  shall  be  exempt  from  any  further  taxation  whatsoever  in  the  port 
of  import. 

Should  the  conditions  contained  in  the  above  two  clauses  not  be  duly 
observed,  His  Majesty's  Government  shall  be  at  liberty  to  suspend  or  terminate 
this  agreement  at  any  time. 

The  foregoing  stipulations  shall  not  derogate  in  any  manner  from  the  force 


NUBMER  1911/4:  MAY  8,  1911:  ANNEX  863 

of  the  laws  already  published  or  hereafter  to  be  published  by  the  Chinese  Govern- 
ment to  suppress  the  smoking  of  opium  and  to  regulate  the  retail  trade  in  the 
drug  in  general. 

Article  8. — With  a  view  to  assisting  China  in  the  suppression  of  opium,  His 
Majesty's  Government  undertake  that  from  the  year  1911  the  Government  of 
India  will  issue  an  export  permit  with  a  consecutive  number  for  each  chest  of 
Indian  opium  declared  for  shipment  to  or  for  consumption  in  China. 

During  the  year  1911  the  number  of  permits  so  issued  shall  not  exceed 
30,600,  and  shall  be  progressively  reduced  annually  by  5,100  during  the  remaining 
six  years  ending  1917. 

A  copy  of  each  permit  so  issued  shall  before  shipment  of  opium  declared  for 
shipment  to  or  for  consumption  in  China  be  handed  to  the  Chinese  official  for 
transmission  to  his  Government  or  to  the  Customs  authorities  in  China. 

His  Majesty's  Government  undertake  that  each  chest  of  opium  for  which  such 
permit  has  been  granted  shall  be  sealed  by  an  official  deputed  by  the  Indian 
Government,  in  the  presence  of  the  Chinese  official  if  so  requested. 

The  Chinese  Government  undertake  that  chests  of  opium  so  sealed  and 
accompanied  by  such  permits  may  be  imported  into  any  treaty  port  of  China 
without  let  or  hindrance  if  such  seals  remain  unbroken. 

Article  9. — Should  it  appear  on  subsequent  experience  desirable  at  any  time 
during  the  unexpired  period  of  seven  years  to  modify  this  agreement  or  any  part 
thereof,  it  may  be  revised  by  mutual  consent  of  the  two  high  contracting  parties. 

Article  10. — This  agreement  shall  come  into  force  on  the  date  of  signature. 

In  witness  whereof  the  undersigned,  duly  authorised  thereto  by  their  respec- 
tive Governments,  have  signed  the  same  and  affixed  thereto  their  seals. 

Done  at  Peking  in  quadruplicate  (four  in  English  and  four  in  Chinese)  this 
8th  day  of  May,  in  the  year  1911,  being  the  10th  day  of  the  4th  month  of  the 
3rd  year  of  Hsiian  T'ung. 

(L.  S.)     J.N.Jordan. 
(Signed  in  Chinese  characters), 
(L.  S.)     Tsou  Chia-lai. 


Annex. 


On  the  date  of  the  signature  of  the  agreement  a  list  shall  be  taken  by  the 
Commissioners  of  Customs,  acting  in  concert  with  the  colonial  and  consular 
officials,  of  all  uncertified  Indian  opium  in  bond  at  the  treaty  ports,  and  of  all 
uncertificated  Indian  opium  in  stock  in  Hong  Kong  which  is  bond  fide  intended 
for  the  Chinese  market,  and  all  such  opium  shall  be  marked  with  labels,  and  on 
payment  of  110  taels  consolidated  import  duty  shall  be  entitled  to  the  same  treaty 
rights  and  privileges  in  China  as  certificated  opium. 

Opium  so  marked  and  in  stock  in  Hong  Kong  must  be  exported  to  a  Chinese 
port  within  seven  days  of  the  signature  of  the  agreement. 


364  CHINA  TREATIES  AND  AGREEMENTS 

All  Other  uncertificated  Indian  opium  shall,  for  a  period  of  two  months  from 
the  date  of  the  signature  of  the  agreement,  be  landed  at  the  ports  of  Shanghai 
and  Canton  only,  and  at  the  expiration  of  this  period  all  treaty  ports  shall  be 
closed  to  uncertificated  opium,  provided  the  Chinese  Government  have  obtained 
the  consent  of  the  other  treaty  Powers. 

The  Imperial  Maritime  Customs  shall  keep  a  return  of  all  uncertificated 
Indian  opium  landed  at  Shanghai  and  Canton  during  this  period  of  two  months, 
other  than  opium  marked  and  labelled  as  provided  above,  and  such  opium  shall 
pay  the  new  rate  of  consolidated  import  duty,  and  shall  not  be  re-exported  in  bond 
to  other  treaty  ports. 

In  addition  to  the  annual  reduction  of  5,100  chests  already  agreed  upon,  His 
Majesty's  Government  agree  further  to  reduce  the  import  of  Indian  opium 
during  each  of  the  years  1912,  1913,  and  1914  by  an  amount  equal  to  one-third 
of  the  total  ascertained  amount  of  the  uncertificated  Indian  opium  in  bond  in 
Chinese  treaty  ports  and  in  stock  in  Hong  Kong  on  the  date  of  signature  plus 
one-third  of  the  amount  of  uncertificated  Indian  opium  landed  during  the  ensuing 
two  months  at  Shanghai  and  Canton. 

Done  at  Peking  this  8th  day  of  May  in  the  year  1911,  being  the  10th  day  of 
the  4th  month  of  the  3rd  year  of  Hslian  T'ung. 

(l.  s.)         J.  N.  Jordan, 
(Signed  in  Chinese  characters), 

(l.  s.)         Tsou   Chia-lai. 

Sir  J.  Jordan  to  Prince  Ch'ing. 

Your  Highness,  Peking,  May  8,  1911. 

With  reference  to  the  Opium  Agreement  signed  this  day  and  the  enquiry 
which  your  Highness's  Board  addressed  to  me  regarding  the  taxation  to  be  im- 
posed on  certificated  opium,  I  have  the  honour  to  state  that  certificated  opium 
removed  from  bond  at  the  treaty  ports  or  imported  into  China  after  the  signa- 
ture of  the  agreement  will  be  liable  to  the  new  duty  of  350  taels  per  chest  of 
100  catties. 

I  avail,  &c. 

J.  N.  Jordan. 

Prince  Ch'ing  to  Sir  J.  Jordan. 
(Translation.) 
Sir,  Peking,  May  8,  1911. 

With  reference  to  the  statement  in  the  6th  article  of  the  Opium  Agreement 
which  has  been  signed  to-day  to  the  effect  that  the  Chinese  Government  will  levy 
a  uniform  excise  tax  on  all  native  opium,  I  have  the  honour  to  inform  your 
Excellency  that  the  Board  of  Finance  has  now  decided  to  levy  a  tax  of  230  taels 
on  every  100  catties  of  native  opium,  which  is  equivalent  to  the  increased  rate  of 
duty  on  Indian  opium,  such  tax  to  take  effect  at  the  same  time  as  the  new  duty 
on  Indian  opium. 

I  avail  &c. 

Prince  Ch'ing. 


NUMBER  1911/4:  MAY  8,  1911:  NOTES  865 

Note  1. 

An  imperial  edict,  of  which  the  translation  from  the  Chinese  original  is  as  follows, 
was  issued  on  May  9,  1911,  in  pursuance  of  this  agreement: 

Imperial  Edict  supplementing  Anglo-Chinese  Opium  Agreement,  May  9,  191 1. 

"  On  May  9,  1911,  the  grand  secretariat  received  an  imperial  edict  based  on  a  memorial 
submitted  by  the  Board  of  Foreign  Affairs  containing  supplementary  regulations  govern- 
ing the  prohibition  of  opium. 

"  A  period  of  ten  years  was  formerly  agreed  upon  for  the  purpose  of  gradually  putting 
a  stop  to  the  use  of  opium  because  the  evil  habit  had  become  deeply  ingrained  and  a 
somewhat  long  period  was  necessary  to  put  an  end  to  it.  But  to  ensure  the  absolute 
removal  of  the  evil  as  soon  as  possible  action  should  be  taken  at  once  to  the  end  that  the 
malady  may  be  forever  cured. 

"  The  memorial  received  to-day  from  the  Board  of  Foreign  Afifairs  states  that  three 
years  of  the  opium  prohibition  period  having  elapsed,  supplementary  regulations  had 
been  agreed  upon  with  the  British  Minister  whereby  within  the  seven  unexpired  years  of 
the  period  should  native  opium  be  entirely  prohibited  then  the  import  of  foreign  opium 
should  also  be  entirely  prohibited,  and  further  that  this  procedure  should  also  be  applicable 
in  any  one  of  the  provinces. 

"  The  prohibition  of  the  import  of  foreign  opium  should  be  carried  out  with  due 
regard  for  the  prohibition  of  the  cultivation  of  native  opium.  It  is  now  proposed  that 
the  matter  be  carried  out  by  provinces.  Should  native  opium  be  prohibited  one  day  earlier 
then  the  importation  of  foreign  opium  should  be  stopped  one  day  earlier.  The  plan  pro- 
posed  is   satisfactory. 

''  As  regards  increasing  the  duties  and  likin  taxes  on  foreign  opium  and  increasing  the 
duties  at  the  same  time  on  the  native  drug,  it  should  be  stated  that  this  is  done  with  a 
view  to  concealing  prohibition  under  the  guise  of  a  tax.  This  proposal  should  be  put 
into  effect  at  once. 

"  The  various  restrictions  imposed  on  wholesale  trade  in  opium  in  the  provinces  and 
the  farming  of  the  tax  on  opium  should  be  stopped  at  once  in  order  that  confusion  may 
be  avoided. 

"  Additional  taxes  should  be  newly  imposed  but  only  sufficient  to  cover  the  deficiency. 
Although  the  finances  are  limited,  the  Throne,  having  the  welfare  of  the  people  at  heart, 
does  not  desire  to  retain  a  source  of  revenue   from  opium. 

"  After  the  prohibition  of  the  importation  of  opium  has  been  put  into  effect  in  the 
provinces,  measures  should  be  taken  to  supply  the  loss  in  revenue  thereby  resulting.  At 
this  time  we  can  only- issue  a  stern  prohibition  in  the  hope  of  getting  at  the  root  of  the 
matter.  The  Boards  of  the  Interior  and  of  Finance  and  the  Viceroys  and  Governors  of 
the  provinces  are  mstructed  to  carry  out  strictly  the  measures  relating  to  the  prohibition 
of  the  cultivation,  the  smoking,  and  the  importation  of  opium,  and  to  issue  orders  at 
once  with  a  view  to  arriving  at  entire  prohibition.  It  is  hoped  that  thereby  harmony  may 
be  maintained  between   government   and   people  and   international    friendship    fostered. 

"  Respect  this ! 

(Signed)         "I  K'uang  (Prince  Ch'ing). 


"  [Seal  of  the  Prince  Regent.]  " 


"  Na  T'ung. 

"  Hsu  Shih-ch'ang. 

"  Tsou  Chia-lai. 


Note  2. 

Ten  Year  Agreement  for  Suppression  of  Exports  of  Opium  from  India, 
January  24(?),  1908. 

"  1.  The  entire  export  of  opium  from  India  to  any  country  whatsoever  is  limited  to 
51,000  chests  annually  and,  beginning  with  1908,  this  amount  shall  be  reduced  annually  by 
5,100  chests,  so  that  at  the  end  of  10  years  the  entire  export  shall  be  terminated. 

"  2.  China  shall  dispatch  officials  to  Calcutta  to  keep  watch  over  the  packing  and 
export  of  opium,  but  who  shall  meddle  with  no  other  matters. 

"  3.  The  duty  on  foreign  opium  shall  be  doubled ;  but  further  consideration  shall  be 
given  to  the  subject  before  the  tax  on  native  opium  is  increased. 

"  4.  Opium  prepared  in  Hongkong  shall  not  be  exported  to  China.  Each  nation  shall 
take  measures  to  prevent  the  smuggling  of  opium  into  its  own  territory,  and  the  importa- 
tion of  prepared  opium  into  China  from  Hongkong  and  vice  versa  shall  be  publicly 
prohibited. 

"  5.    The  sale  and  smoking  of  opium  in  the   foreign  concessions  of   China  are  to  be 


856  CHINA  TREATIES  AND  AGREEMENTS 

stopped.  If  the  Chinese  authorities  begin  to  put  these  rules  into  operation  without  the 
concessions,  then  the  municipal  councils  shall  without  further  notification  put  them  into 
effect  within  the  concessions. 

"  6.    The  restriction  of  the  importation  of  morphia  and  hypodermic  needles  must  wait 
until  all  the  treaty  powers  consent  thereto." 


NUMBER  1911/5. 

FRANCE  (Banque  de  I'lndo-Chine),  GREAT  BRITAIN  (Hongkong  &  Shang- 
hai Banking  Corporation),  GERMANY  (Deutsch-Asiatische  Bank), 
UNITED  STATES  (American  Group)  AND  CHINA. 

Final  agreement  for  the  Hnkuang  Imperial  Government  Railways* — 

May  20,  1911. 

THIS  AGREEMENT  is  made  at  Peking  on  the  twenty  second  day  of  the 
fourth  month  of  the  Third  year  of  the  Emperor  Hsuan  T'ung,  corresponding  to 
the  twentieth  day  of  May,  One  thousand  nine  hundred  and  eleven,  Western 
Calendar,  and  the  Contracting  Parties  are : 

His  Excellency  the  KUNG-PAO   SHENG  HSUAN-HUAI.   Minister  of 
POSTS  AND  COMMUNICATIONS,  duly  authorized  by  IMPERIAL   DE- 
CREE to  act  on  behalf  of  the  IMPERIAL  GOVERNMENT  OF  CHINA,  of 
the  one  part, 
AND 

THE  DEUTSCH-ASIATISCHE  BANK, 

THE  HONGKONG  &  SHANGHAI  BANKING  CORPORATION, 
THE  BANQUE  DE  LTNDO-CHINE,  AND 

Messrs.  J.  P.  Morgan  &  Company,  Messrs.  Kuhn,  Loeb  &  Company,  The 
First  National  Bank,  and  The  National  City  Bank,  all  of  New  York,  consti- 
tuting THE  AMERICAN  GROUP,  hereinafter  called  the  *'  BANKS  "  of 
the  other  part,  WITNESSETH  as  follows : 

Article  I. — The  Imperial  Government  of  China  authorizes  the  Banks  to 
issue  a  Five  per  cent  Gold  Loan  for  an  amount  of  Six  Million  Pounds  Sterling 
(£6,000,000).  The  Loan  shall  be  of  the  date  on  which  the  bonds  are  issued  to  the 
public,  and  shall  be  called  "  THE  IMPERIAL  CHINESE  GOVERNMENT 
FIVE  PER  CENT  HUKUANG  RAILWAYS  SINKING  FUND  GOLD 
LOAN  OF  19n." 

Article  II. — This  Loan  is  designed  to  provide  capital,  first — 
For  the  redemption  at  a  premium  of  Two  and  one-half  per  cent,  with 
accrued  interest,  of  certain  unredeemed  Gold  Bonds  of  the  total  par  value  of 
Dollars  Two  million  two  hundred  and  twenty-two  thousand  United  States 
Currency,  (G.  $2,222,000)  issued  by  The  American  China  Development  Com- 
pany on  behalf  of  the  Imperial  Chinese  Government,  and  secondly — 

For  the  construction  of  a  Government  railway  main  line  from  Wuchang, 
the  capital  of  the  Hupei  Province,  through  Yo-chou  and  Chang-sha,  the  capital 

*  Text  as  printed  by  the  banking  groups.    Printed  also  in  Wang,  p.  547. 
See  Note  1  to  this  document,  post,  p.  880. 


NUMBER  1911/5:  MAY  20,  1911  867 

of  the  Hunan  Province,  to  a  point  in  the  District  of  Yi-chang-hsien  in  the 
Prefecture  of  Ch'en-chou  on  the  southern  boundary  of  Hunan,  connecting  with 
the  Kuang-tung  section  of  the  Canton-Hankow  Railway  hne,  the  total  length  of 
this  line,  hereinafter  known  as  "  The  Hupei-Hunan  Section  of  the  Canton- 
Hankow  Railway  line,"  being  an  estimated  distance  of  1,800  Chinese  li,  or  900 
kilometres,  and  of 

A  Government  railway  main  line  from  a  point  at  or  near  Kuangshui  in  the 
Province  of  Hupei,  connecting  with  the  Peking-Hankow  Railway  line  and  passing 
through  Hsiangyang,  and  Chingmenchou  to  Ichang,  an  estimated  distance  of 
1,200  Chinese  li,  or  600  kilometres,  and  from  Ichang  to  Kueichoufu  in  the 
Province  of  Szechuan,  an  estimated  distance  of  600  Chinese  li,  or  300  kilometres, 
— this  latter  section  of  the  main  line  having  been  added  in  substitution  for  the 
branch  line  from  Chingmenchou  to  Hanyang  originally  agreed  upon, — the  total 
length  of  this  main  line,  hereinafter  known  as  "  The  Hupei  Section  of  the 
Szechuan-Hankow  Railway  line  "  being  about  1,800  Chinese  li,  or  900  kilometres. 

The  survey  lines  shall  be  open  to  revision  by  the  Ministry  of  Posts  and 
Communications. 

The  Chinese  Imperial  Government  undertakes  to  call  in,  after  having  received 
from  the  Banks  application  in  writing  to  do  so,  the  aforesaid  Gold  Bonds,  and 
the  Banks  will  apply  the  amount  necessary  for  the  said  redemption  out  of  the 
proceeds  of  the  Loan,  and  will  deliver  the  redeemed  Bonds  to  the  Chinese  Gov- 
ernment after  having  made  the  Bonds  valueless.  The  Chinese  Imperial  Govern- 
ment will,  after  receipt  of  the  redeemed  Bonds,  cancel  the  inscription  of  the 
pledge  of  the  Canton-Hankow  Railway  Line  in  their  archives,  and  will  advise  the 
Banks  in  writing  after  having  done  this. 

It  is  understood  that  any  surplus  of  the  nominal  amount  of  Five  hundred 
thousand  pounds  Sterling  (i500,000)  hereby  allotted  for  the  redemption  of  the 
Gold  Bonds  issued  by  the  American  China  Development  Company,  aforesaid, 
which  may  remain  after  complete  redemption  of  those  bonds,  shall  be  allotted  to 
the  above  named  Railway  Lines. 

Article  Ill.f — After  deduction  of  the  amount  required  for  the  redemption 
of  the  Gold  Bonds  referred  to  in  Article  II  of  this  Agreement,  the  balance  of  the 
Loan  proceeds  shall  be  solely  devoted  to  the  construction  of  the  aforesaid 
railway  lines,  including  the  purchase  of  land,  rolling  stock  and  other  equip- 
ment, and  to  the  working  of  the  lines,  and  to  payment  of  interest  on  the  Loan 
during  the  period  of  construction,  which  is  estimated  at  three  years  from  the 
actual  beginning  of  the  works,  a  longer  period,  however,  being  allowed  for  the 
completion  of  the  section  from  Ichang  to  Kuei-choufu  in  consideration  of  the 
engineering  difficulties  to  be  encountered.  Work  shall  be  commenced  simul- 
taneously at  Wu-chang,  Chang-sha,  Kuang-shui  and  Ichang  within  six  months 
after  this  Agreement  has  been  signed,  within  which  period  the  Banks  shall  notify 
the  Ministry  of  Posts  and  Communications  that  the  sum  of  Six  Hundred 
Thousand  Pounds  Sterling  (£600,000)  has  been  placed  at  its  disposal,  in  case 
funds  should  be  required  for  survey  or  construction  purposes,  or  for  ordering 
of  materials,  and  for  the  resumption  by  the  Imperial  Chinese  Government  of  the 

t  See  Note  2  to  this  document,  post,  p.  895. 


868  CHINA  TREATIES  AND  AGREEMENTS 

portion  of  these  lines  already  constructed  by  the  Provinces  concerned,  the  said 
sum  to  be  held  in  Europe  and/or  in  the  United  States  of  America  or  remitted  to 
China  as  the  Ministry  may  direct  as  a  first  instalment  on  account  of  the  proceeds 
of  the  Loan.  This  amount  of  £600,000,  or  whatever  portion  thereof  is  actually 
advanced,  together  with  interest  thereon  at  the  rate  of  Six  per  cent  per  annum, 
shall  be  deducted  from  the  first  proceeds  of  the  sale  of  the  Bonds. 

It  is  understood  that  the  lines  of  railway  already  constructed  by  the  two 
Provinces  of  Hupei  and  Hunan  prior  to  the  signature  of  this  Agreement  with 
capital  provided  by  those  Provinces  themselves,  together  with  the  property  of 
those  two  Provincial  Railways  shall  henceforward  be  taken  over  by  and  incor- 
porated in  the  Canton-Hankow  and  the  Szechuan-Hankow  Government  Railways 
Administration,  and  further  that  any  supplementary  funds  which  may  be  fur- 
nished in  the  future  by  the  Ministry  of  Posts  and  Communications  on  account  of 
a  deficiency  in  the  amount  required  for  the  construction  of  the  Canton-Hankow 
and  Szechuan-Hankow  main  lines  within  the  boundaries  of  the  two  Provinces  of 
Hupei  and  Hunan,  as  provided  for  in  Article  XV  of  the  present  Agreement,  shall 
also  rank  as  capital  of  the  Canton-Hankow  and  Szechuan-Hankow  Railway  main 
lines  within  the  boundaries  of  the  two  Provinces  aforesaid.  But  the  returns  due 
upon  such  capital  shall  not  in  any  manner  impair  the  arrangements  for  payment  of 
interest  and  repayment  of  principal  of  the  present  Loan. 

Article  IV. — The  rate  of  interest  for  the  Loan  shall  be  Five  per  cent  per 
annum  on  the  nominal  principal,  and  shall  be  paid  to  the  bondholders  half-yearly. 
The  said  interest  shall  be  calculated  from  the  date  on  which  the  Loan  is  issued 
to  the  public,  and  shall  be  paid  by  the  Imperial  Chinese  Government  during  the 
time  of  construction  either  from  the  proceeds  of  the  Loan  or  from  other  sources, 
and  afterwards,  in  the  first  place,  out  of  the  revenues  of  the  railways,  and  then 
from  such  other  revenues  as  the  Chinese  Government  may  think  fit  to  use  for  the 
purpose,  in  half  yearly  instalments  according  to  the  amounts  specified  in  the 
schedule  attached  to  this  Agreement,  and  twelve  days  before  their  due  dates, 
Western  Calendar,  as  calculated  half-yearly  from  the  date  on  which  the  Loan  is 
issued  to  the  public. 

Article  V. — The  term  of  the  Loan  shall  be  Forty  Years.  Repayment  of 
Principal  shall  commence  after  the  expiry  of  Ten  years  from  the  date  of  the  Loan 
and  except  as  provided  in  Article  VI  hereinafter,  shall  be  made  by  yearly  amorti- 
zation to  the  Banks  in  half-yearly  instalments  out  of  the  revenues  of  the  lines,  or 
such  other  revenues  as  the  Chinese  Government  may  think  fit  to  use  for  the 
purpose,  according  to  the  amounts  specified  in  the  Schedule  attached  to  this 
Agreement,  but  twelve  days  before  their  due  dates.  Western  Calendar,  as  calcu- 
lated half-yearly  from  the  date  on  which  the  loan  is  issued  to  the  public. 

Article  VI. — If  at  any  time  after  the  lapse  of  Ten  years  from  the  date  of 
the  Loan  the  Imperial  Chinese  Government  should  desire  to  redeem  the  whole  out- 
standing amount  of  the  Loan  or  any  part  of  it  not  yet  due  for  repayment  in  accord- 
ance with  the  Schedule  of  repayments  hereto  attached,  it  may  do  so  up  to  the  end 
of  the  seventeenth  year  by  payment  of  a  premium  of  Two  and  one-half  per  cent 
on  the  face  value  of  the  bonds,  that  is  to  say,  by  the  payment  of  £102  10/-  for 
each  £100  bond,  and  after  the  lapse  of  seventeen  years  without  premium:  but  in 
each  and  every  case  of  such  extra  redemption  the  Imperial  Chinese  Government 


NUMBER  1911/5:  MAY  20,  1911  869 

will  give  six  months  previous  notice  in  writing  to  the  Banks  and  such  redemption 
shall  be  effected  by  additional  drawings  of  bonds  to  take  place  on  the  date  of 
an  ordinary  drawing  as  provided  for  in  the  Prospectus  of  the  Loan. 

When  the  Loan  has  been  fully  repaid  this  Agreement  will  immediately  become 
null  and  void.  Bonds  and  interest  coupons  which  have  matured  will  be  collected 
in  due  order  and  cancelled  by  the  Banks  as  they  are  presented  for  payment  and 
v,-ill  be  delivered  by  them  to  the  Chinese  Ministers  in  Great  Britain,  Germany, 
France  and  the  United  States  of  America.  The  Banks  will  refund  in  full  to  the 
Imperial  Chinese  Government  the  amounts  of  any  drawn  bonds  and/or  interest 
coupons  which  have  not  been  presented  for  payment  within  thirty  years  from  the 
respective  due  dates  for  redemption  or  payment  of  interest. 

Article  VIL — The  half-yearly  payments  due  for  amortization  and  interest 
referred  to  in  Articles  IV  and  V,  shall  be  made  in  accordance  with  the  amounts 
of  the  Schedule  attached  to  this  Agreement,  and  twelve  days  before  their  due 
dates  as  fixed  by  Articles  IV  and  V,  in  equal  shares  to  the  Banks  by  the  Ministry 
of  Posts  and  Communications  which  shall  hand  to  the  Banks  in  Shanghai  or 
in  Hankow,  twelve  days  before  the  said  due  dates,  funds  in  Shanghai  "  Kuei- 
yuan  "  sycee  or  Hankow  "  Yang-li "  sycee  and/or  coin  of  the  National  Cur- 
rency (so  soon  as  the  said  Currency  shall  have  been  effectively  established) 
sufficient  to  meet  such  payments  in  Gold  in  Europe  and  the  United  States  of 
America,  exchange  for  which  shall  be  settled  with  the  Banks  on  the  same  day, 
the  Ministry  of  Posts  and  Communications  having,  however,  the  option  of 
settling  exchange  with  the  Banks  simultaneously  at  any  date  or  dates  within  six 
months  previous  to  any  due  date  for  the  payment  of  interest  and/or  principal. 
These  payments  may,  however,  be  made  in  gold  in  Europe  and/or  in  the  United 
States  of  America  twelve  days  before  their  due  dates  if  the  Imperial  Chinese 
Government  should  happen  to  have  gold  funds  bona  fide  at  their  disposal  in 
Europe  and/or  in  the  United  States  of  America  not  remitted  from  China  for 
the  purpose,  and  desire  so  to  use  them. 

In  reimbursement  of  expenses  connected  with  the  payment  of  interest  and 
repayment  of  principal  of  the  Loan  the  Banks  will  receive  from  the  Chinese 
Government  a  commission  of  one  quarter  per  cent  on  the  Annual  Loan  service. 

Article  VIII. — The  Imperial  Government  of  China  hereby  engages  that 
the  interest  and  principal  of  this  Loan  shall  duly  be  paid  in  full  and  should 
the  revenues  of  the  railways  and/or  the  proceeds  of  the  Loan  not  be  sufficient 
to  provide  for  the  due  and  full  payment  of  interest  and  repayment  of  principal, 
the  Ministry  of  Posts  and  Communications  shall  memoralize  the  Throne  and 
the  Imperial  Government  of  China  will  thereupon  make  arrangements  to  ensure 
that  the  amount  of  deficiency  shall  be  met  from  other  sources  and  handed  over 
to  the  Banks  on  the  date  upon  which  funds  are  required  to  complete  full  pay- 
ment of  interest  and  repayment  of  principal. 

Article  IX. t— The  present  Loan  of  Six  Million  Pounds  (£6,000,000) 
Sterling  together  with  the  second  series  thereof,  provision  for  the  issue  of  which 
is  made  under  the  terms  of  Article  XV  hereinafter  is  hereby  secured,  in  respect 
to  both  principal  and  interest,  as  a  first  charge  upon : — 

t  See   exchange   of   communications,   March   1    and   3,   1913,   between   the   Minister   of 
Communications  and  the  representatives  of  the  banks,  printed  in  Note  1,  post,  p.  888. 


870  CHINA  TREATIES  AND  AGREEMENTS 

1.  Hupel  General  Lekin  amounting  to  Two  million  (2,000,000)  Haikwan 
Taels  a  year. 

2.  Hupei  Additional  Salt  Tax  for  River  Defence  amounting  to  Four 
Hundred  Thousand   (400,000)  Haikwan  Taels  a  year. 

3.  Hupei  New  Additional  Two  Cash  Salt  Tax  of  September,  1908, 
amounting  to  three  hundred  thousand  (300,000)  Haikwan  Taels  a  year. 

4.  Hupei  collection  of  Hukuang  inter-provincial  Tax  on  imported  Rice,  to 
the  amount  of  Two  hundred  and  fifty  thousand  (250,000)  Haikwan  Taels  a  year. 

5.  Hunan  General  Lekin  amounting  to  Two  million  (2,000,000)  Haikwan 
Taels  a  year. 

6.  Hunan  Salt  Commissioner's  Treasury  Regular  Salt  Lekin  to  the  amount 
of  Two  hundred  and  fifty  thousand  (250,000)  Haikwan  Taels  a  year. 

The  above  Provincial  Revenues  amounting  to  a  total  of  Five  Million  two 
hundred  thousand  (5,200,000)  Haikwan  Taels  a  year,  are  hereby  declared  to  be 
free  from  all  other  Loans,  Charges  or  Mortgages. 

So  long  as  principal  and  interest  of  this  Loan  are  regularly  paid,  there  shall 
be  no  interference  with  these  Provincial  revenues ;  but  if  principal  or  interest 
of  the  Loan  be  in  default  at  due  date,  theii,  after  a  reasonable  period  of  grace, 
lekin  and  other  suitable  internal  revenues  of  the  Provinces  of  Hupei  and  Hunan 
sufficient  to  provide  the  amounts  above  stated  shall  forthwith  be  transferred  to, 
and  administered  by  the  Imperial  Maritime  Customs  in  the  interests  of  the 
bondholders.  And  so  long  as  this  Loan  or  any  part  thereof  shall  remain  unre- 
deemed, it  shall  have  priority,  both  as  regards  principal  and  interest,  over  all 
future  loans,  charges  and  mortgages  charged  on  the  aforesaid  Provincial 
Revenues.  No  loan,  charge  or  mortgage  shall  be  raised  or  created  which  shall 
take  precedence  of,  or  be  on  an  equality  with  this  Loan,  or  shall  in  any  manner 
lessen  or  impair  its  security  over  the  aforesaid  Provincial  Revenues,  and  any 
future  loan,  charge  or  mortgage  charged  on  the  said  Provincial  Revenues  other 
than  the  second  series  of  the  present  loan  provided  for  in  Article  XV  aforemen- 
tioned shall  be  made  subject  to  this  Loan,  and  it  shall  be  so  expressed  in  every 
agreement  for  every  such  future  loan,  charge  or  mortgage. 

After  redemption  of  the  existing  gold  Bonds  referred  to  in  Article  H  of 
this  Agreement  it  is  understood  and  agreed  that,  so  long  as  this  Loan  is  unre- 
deemed, the  railways  shall,  under  no  circumstances,  be  mortgaged  nor  their 
receipts  given  as  security  to  any  other  party. 

In  the  event  of  the  Chinese  Government,  during  the  currency  of  this  Loan 
entering  upon  definite  arrangements  for  the  revision  of  the  Customs  tariff, 
accompanied  by  stipulations  for  the  decrease  or  abolition  of  lekin,  it  is  hereby 
agreed  on  the  one  hand,  that  such  revision  shall  not  be  barred  by  the  fact  that 
this  Loan  is  secured  by  lekin  and  provincial  revenues  and,  on  the  other  hand, 
that  whatever  lekin  is  required  to  provide  the  security  of  this  loan  shall  neither 
be  decreased  nor  abolished  except  by  previous  arrangement  with  the  Banks  and 
then  only  in  so  far  as  an  equivalent  is  substituted  for  it  in  the  shape  of  a  first 
charge  upon  the  increase  of  Customs  revenue  consequent  upon  such  revision. 

Article  X. — The  Banks  are  hereby  authorized  to  issue  to  the  subscribers  to 
the  Loan,  bonds  for  the  total  amount  of  the  Loan  in  Gold,  for  such  amounts  as 
may  appear  advisable  to  the  Banks.     The  form  and  language  of  the  bonds  shall 


NUMBER  1911/5:  MAY  20,  1911  871 

be  settled  by  the  Banks  in  consultation  with  the  Ministry  of  Posts  and  Com- 
munications or  the  Chinese  Minister  in  Berlin,  London,  Paris  or  Washington: 
they  shall  bear  the  facsimile  of  the  signature  of  the  Minister  of  Posts  and 
Communications  and  of  his  seal  of  office,  in  order  to  dispense  with  the  necessity 
of  signing  them  all  in  person,  and  the  Chinese  Minster  in  Berlin  and/or  London 
and/or  Paris  and/or  Washington  at  the  option  of  the  Banks  shall,  previous  to 
the  issue  of  the  bonds,  put  his  seal  upon  each  bond,  with  a  facsimile  of  his 
signature,  as  a  proof  that  the  issue  and  sale  of  the  bonds  are  duly  authorized  by 
and  binding  upon  the  Imperial  Chinese  Government.  The  representatives  of  the 
Banks  in  Berlin,  London,  Paris  or  New  York,  as  the  case  may  be,  shall  counter- 
sign the  bonds  as  Agents  for  the  issue  of  the  Loan. 

In  the  event  of  any  bond  or  bonds  issued  for  this  loan  being  lost,  stolen  or 
destroyed,  the  Group  and/or  Bank  or  Banks  concerned  shall  immediately  notify 
the  Ministry  of  Posts  and  Communications  and  the  Chinese  Minister  in  Berlin, 
London,  Paris  or  Washington,  as  the  case  may  be,  who  shall  authorize  the 
Group  and/or  Bank  or  Banks  concerned  to  insert  an  advertisement  in  the  public 
newspapers  notifying  that  payment  of  such  bond  or  bonds  has  been  stopped,  and  to 
take  such  other  steps  as  may  appear  advisable  or  necessary  according  to  the  laws 
and  customs  of  the  country  concerned,  and  should  any  bond  or  bonds  be  destroyed 
or  should  such  lost  or  stolen  bond  or  bonds  not  be  recovered  after  a  lapse  of 
time  to  be  fixed  by  the  Group  and/or  Bank  or  Banks  concerned  the  Chinese 
Minister  in  Berlin,  London,  Paris  or  Washington  as  the  case  may  be,  shall  seal 
and  execute  a  duplicate  bond  or  duplicate  bonds  for  a  like  amount  and  hand  the 
same  to  the  Group  and/or  Bank  or  Banks  representing  the  owner  or  owners  of 
such  lost,  stolen  or  destroyed  bond  or  bonds,  which  Group  and/or  Bank  or  Banks 
shall  pay  all  expenses  in  connection  with  such  delivery  and  execution  of  such  bond 
or  bonds  for  the  account  of  the  owner  or  owners  of  such  bond  or  bonds. 

Article  XL — All  bonds  and  coupons  and  payments  made  and  received  in 
connection  with  the  service  of  this  Loan  shall  be  exempt  from  all  Chinese  taxes 
and  imposts  during  the  currency  of  this  Loan. 

Article  XII. — All  details  necessary  for  the  Prospectus  and  connected  with 
the  payment  of  the  interest  and  repayment  of  the  principal  of  this  Loan,  not 
herein  explicitly  provided  for,  shall  be  left  to  the  arrangement  of  the  Banks 
in  consultation  with  the  Chinese  Ministers  in  Berlin,  London,  Paris  and  Wash- 
ington. The  Banks  are  hereby  authorized  to  issue  the  Prospectus  of  the  Loan 
as  soon  as  possible  after  the  signing  of  this  Agreement ;  and  the  Imperial  Gov- 
ernment will  instruct  the  Chinese  Ministers  in  Berlin,  London,  Paris  and  Wash- 
ington to  co-operate  with  the  Banks  in  any  matters  requiring  conjoint  action, 
and  to  sign  the  Prospectus  of  the  Loan. 

Article  XIIL— This  Loan  of  £6,000,000  Sterling  shall  be  issued  to  the 
public  in  one  amount  as  soon  as  possible  after  the  signature  of  this  Agreement, 
and  not  later  than  twelve  months  from  the  date  thereof.  The  price  of  the  bonds 
to  the  Imperial  Chinese  Government  shall  be  Ninety  five  per  cent  of  their  nominal 
value.  Subscriptions  will  be  invited  by  the  Banks  in  Europe,  in  the  United 
States  of  America  and  in  China  from  Chinese,  Europeans  and  Americans  on 
equal  conditions,  preference  being  given  to  the  application  of  the  Chinese  Gov- 
ernment provided  such  application  be  made  not  less  than  four  days  before  the 


872  CHINA  TREATIES  AND  AGREEMENTS 

issue  of  the  Prospectus  to  the  public.  Seven  days'  notice  of  the  issue  of  the 
Prospectus  will  be  given  by  the  Banks  to  the  Imperial  Chinese  Government. 

Article  XIV. § — The  proceeds  of  the  Loan  shall  be  placed  to  the  credit  of 
a  "  Hukuang  Government  Railways  Account  "  with  the  Deutsch-Asiatische 
Bank,  the  Hongkong  &  Shanghai  Banking  Corporation,  and  the  Banque  de  I'lndo- 
Chine  in  China,  Berlin,  London  or  Paris  as  the  case  may  be,  and  with  the  Amer- 
ican Group  in  New  York  or  such  Banks  in  China  as  from  time  to  time  shall 
be  designated  by  the  American  Group,  the  International  Banking  Corporation 
being  now  so  designated.  Payments  of  the  loan  proceeds  into  the  credit  of 
this  account  shall  be  made  in  instalments  and  on  dates  conforming  to  the  condi- 
tions allowed  to  the  subscribers  to  the  loan. 

Interest  at  the  rate  of  3%  per  annum  shall  be  granted  on  the  credit  balance 
of  the  portion  of  this  account  kept  in  Berlin,  London,  Paris  or  New  York,  and 
interest  on  the  credit  portion  kept  in  China  by  the  above  Banks,  will  be  allowed 
at  the  Banks'  rate  for  current  accounts  to  be  arranged. 

Subject  to  the  payments  and  deductions  to  be  made  from  the  loan  proceeds 
in  terms  of  Articles  II  and  III  of  this  Agreement  the  Banks  will  hold  the  net 
balance  with  accrued  interest  to  the  order  of  the  Ministry  of  Posts  and  Communi- 
cations. 

Transfers  of  the  loan  funds  to  China  in  amounts  not  exceeding  Two  hundred 
thousand  Pounds  Sterling  (£200,000)  transferred  in  any  one  week,  will  be  made 
by  the  Ministry  of  Posts  and  Communications  at  its  discretion,  the  tranfers  being 
effected  through  the  Deutsch-Asiatische  Bank,  the  Hongkong  &  Shanghai  Bank- 
ing Corporation,  the  Banque  de  I'lndo-Chine,  and/or  the  Bank  or  Banks  to  be 
designated  by  the  American  Group,  the  International  Banking  Corporation  being 
now  so  designated. 

Transfers  of  the  loan  funds  to  China  from  the  Banks  in  Europe  and 
America,  and  transfers  from  the  Banks  in  China  to  the  Chinese  Banks  which 
are  hereinafter  designated  shall  be  made  as  nearly  as  possible  in  equal  amounts 
from  each  of  the  Banks,  the  rate  of  exchange  for  each  transfer  from  Europe  and 
America  being  settled  simultaneously  with  the  transferring  Banks,  either  on 
the  day  on  which  such  transfer  is  to  be  made,  or  at  the  option  of  the  Ministry 
of  Posts  and  Communications,  on  any  date  or  dates  within  six  months  previous 
to  the  day  on  which  the  transfer  is  to  be  made.  In  the  event  of  equal  transfers 
being  found  to  be  impracticable  a  mutually  satisfactory  procedure  for  making 
the  transfers  above  referred  to  shall  be  arranged  between  the  Ministry  of  Posts 
and  Communications  and  the  Banks. 

The  transferred  funds,  to  the  extent  of  one  half  of  the  net  balance  of  the 

Loan  proceeds  above  referred  to  may,  at  the  discretion  of  the  Ministry  of  Posts 

and  Communications,  be  deposited  in  a  Hukuang  Government  Railways  Account 

with  the  Bank  of  Communications    (Chiao-Tung  Bank)    and/or  with  the  Ta- 

Ching  Government  Bank,  which  Banks  have  been  designated  by  the  Ministry  of 

Posts  and   Communications  as  its  Agents   for  this  purpose,  and  the   Imperial 

Chinese  Government  hereby  declares  itself  responsible  for  all  the  funds  of  this 

Loan  deposited  with  the  said  Chinese  Banks. 

§  See  exchange  of  communications,  March  1  and  3,  1913,  between  Minister  of  Com- 
munications and  representatives  of  banks;  also,  memorandum  of  September  12,  1913, 
printed  in  Note  1,  post,  pp.  888,  889. 


NUMBER  1911/5:  MAY  20,  1911  873 

The  Ministry  of  Posts  and  Communications  shall  from  time  to  time  make 
transfers  from  the  loan  funds  held  in  China  by  the  Banks  and  by  the  designated 
Chinese  Banks  to  the  credit  of  a  construction  account  for  the  Hupei  section 
of  the  Szechuan-Hankovv  Railway  Line  with  the  Deutsch-Asiatische  Bank  and 
of  a  construction  account  for  the  Hupei-Hunan  section  of  the  Canton-Hankow 
Railway  Line  with  the  Hongkong  and  Shanghai  Banking  Corporation,  in  amounts 
sufficient  to  cover  one  month's  construction  estimates  in  advance,  so  as  to  insure 
the  uninterrupted  continuance  of  construction.  The  Ministry  of  Posts  and 
Communications  shall  hand  to  the  Banks,  for  the  information  of  the  Auditors 
(hereinafter  referred  to),  quarterly  statements  of  the  loan  funds  held  on 
deposit  by  the  aforesaid  designated  Chinese  Banks,  and  these  funds  shall  not 
be  withdrawn  from  the  said  Banks  except  for  the  purpose  of  transfer  to  the  con- 
struction accounts  above  named.  Funds  shall  be  drawn  from  these  construction 
accounts  in  sycee  by  the  Managing  Director  as  hereinafter  provided,  and  it  will 
rest  with  the  Managing  Director  under  the  instructions  of  the  Ministry  of 
Posts  and  Communications  to  make  all  necessary  arrangements  for  the  distribu- 
tion of  such  funds  through  Chinese  Banks  or  otherwise  to  the  points  where 
they  are  required. 

Requisitions  upon  these  Construction  Accounts  will  be  drawn  in  amounts  to 
suit  the  progress  of  construction  of  the  railway  lines  by  orders  upon  the  Deutsch- 
Asiatische  Bank  or  the  Hongkong  &  Shanghai  Banking  Corporation  signed  by 
the  Managing  Director  of  the  line  concerned  or,  in  his  absence,  by  his  duly 
authorized  representative,  who  shall  moreover,  two  days  previous  to  the  pre- 
sentation of  such  order,  issue  in  duplicate  a  certificate  stating  clearly  the  object 
for  which  the  funds  are  to  be  drawn,  handing  one  copy  to  the  Auditor  concerned 
(hereinafter  referred  to)  and  one  copy  to  the  Bank  concerned.  If  the  Auditor 
should  find  that  there  are  irregularities  in  the  payments  to  be  made,  he  may  in 
the  first  place  ask  the  Managing  Director  for  specific  explanations,  and  if  the 
Managing  Director  is  unable  to  furnish  definite  explanations,  the  Auditor  may 
refer  the  matter  to  the  Ministry  of  Posts  and  Communications  for  its  instructions. 

The  Accounts  of  the  Railways  shall  be  kept  in  Chinese  and  English  in 
accordance  with  accepted  modern  methods,  and  will  be  supported  by  all  necessary 
vouchers.  During  the  period  of  construction  the  said  accounts  and  vouchers  will 
be  open  at  any  time  to  the  inspection  of  two  Auditors  for  the  Hupei-Hunan 
section  of  the  Canton-Hankow  Railway  Line,  and  the  Hupei  section  of  the 
Szechuan-Hankow  Railway  Line  respectively,  appointed  and  paid  by  the  Banks, 
whose  duty  it  will  be  to  satisfy  the  Banks  as  to  the  due  expenditure  of  the  loan 
funds  in  accordance  with  the  provisions  of  Article  HI  of  this  Agreement,  and 
to  certify  to  monthly  statements  of  the  foreign  materials  purchased  by  the 
Railway  Administration  under  the  provisions  of  Article  XVHI  hereinafter. 
The  Railway  Administration  will  publish  annually  upon  the  close  of  its  financial 
year  a  Report  in  the  Chinese  and  English  languages,  showing  the  working  ac- 
counts and  traffic  receipts  of  the  railways,  which  Reports  shall  be  procurable  by 
the  public  on  application. 

Article  XV. — H  after  the  deduction  of  the  amount  required  for  the  re- 
demption of  the  Gold  Bonds  referred  to  in  Article  H  of  this  Agreement,  and  of 
the  sums  necessary  for  the  service  of  interest  on  the  Loan  during  the  time  of 


874  CHINA  TREATIES  AND  AGREEMENTS 

construction,  the  balance  of  the  Loan  proceeds,  with  accrued  interest,  should 
not  be  sufficient  to  complete  the  construction  and  equipment  of  the  railway  lines 
named  in  Article  II  of  this  Agreement,  the  amount  of  deficiency  shall  be  pro- 
vided, in  the  first  place,  from  such  Chinese  funds  as  may  be  available  so  as  to 
permit  of  the  uninterrupted  continuance  of  the  work  of  construction,  and  any 
balance  then  uncovered  shall  be  supplemented  by  the  issue  by  the  Banks,  under 
the  terms  of  the  present  Agreement,  of  a  second  series  of  the  present  Loan,  for 
an  amount  not  exceeding  Four  Million  Pounds  (£4,000,000)  Sterling.  This 
second  series  shall  be  secured  pari  passu  as  an  equal  charge  in  every  respect 
on  the  internal  revenues  specified  in  Article  IX  of  this  Agreement,  and  the  time 
of  its  issue  shall  be  left  to  the  discretion  of  the  Banks.  Should  foreign  capital 
still  be  required  for  the  completion  of  the  Railway  Lines  aforesaid  it  shall  be 
provided  by  a  further  loan  to  be  issued  by  the  Banks  on  terms  to  be  arranged. 
If  after  the  completion  of  the  lines  there  should  be  a  balance  at  the  credit  of 
the  Railways  Account,  such  unused  balance  will  be  transferred  to  the  credit 
of  the  Interest  Reserve  Fund,  hereinafter  mentioned  in  Article  XX,  as  a  provision 
for  payments  for  which  the  Imperial  Chinese  Government  is  responsible  under 
this  Agreement,  or  will  be  devoted,  if  necessary,  to  the  improvement  of  these 
railways  or  otherwise  to  their  advantage. 

Article  XVI. — If  before  the  publication  of  the  Prospectus  for  the  issue  of 
the  Loan  any  political  or  financial  crisis  should  take  place  by  which  the  markets 
and  the  prices  of  existing  Chinese  Government  Stocks  are  so  afifected  as  to  render, 
in  the  opinion  of  the  Banks,  the  successful  issue  of  this  Loan  impossible  on  the 
terms  herein  named,  the  Banks  shall  be  granted  a  reasonable  extension  of  time 
for  the  performance  of  their  contract.  If  within  this  time  limit,  to  be  arranged, 
the  Loan  shall  not  have  been  issued,  then  this  contract  shall  become  null  and 
void,  and  any  advances  made  by  the  Banks  under  the  provisions  of  Article  III  of 
this  Agreement,  shall  be  repaid  by  the  Chinese  Government  with  accrued  interest, 
but  without  any  other  compensation  or  remuneration  whatsoever. 

Article  XVII. — The  construction  and  control  of  the  railway  lines  shall  be 
entirely  and  exclusively  vested  in  the  Imperial  Chinese  Government.  For  the 
work  of  construction  the  Imperial  Chinese  Government  will  select  for  appoint- 
ment a  fully  qualified  British  Engineer-in-chief  for  the  Hupei-Hunan  section 
of  the  Canton-Hankow  railway  line  from  Wuchang  to  Yichang-hsien,  and  a 
fully  qualified  German  Engineer-in-chief  for  the  Kuangshui-Ichang  section  of 
the  Szechuan-Hankow  railway  line,  with  a  fully  qualified  American  Engineer-in 
Chief  for  the  section  of  that  line  from  Ichang  to  Kueichoufu  at  the  same  time 
informing  the  Banks  of  the  selection  made.  If  the  Banks  have  objections  to  ofifer 
against  the  Engineers-in-chief  thus  selected  for  appointment,  they  shall,  in  stating 
their  objections,  give  definite  reasons  therefor.  The  said  Engineers-in-chief 
shall  be  under  the  orders  of  the  Director  General  and  the  Managing  Directors 
of  the  respective  lines  or,  in  their  absence,  of  their  duly  authorized  representatives, 
and  will  carry  out  all  the  wishes  of  the  Ministry  of  Posts  and  Communications 
with  regard  to  the  plan  and  construction  of  the  lines.  In  their  general  conduct 
they  shall  pay  all  due  respect  to  the  Ministry  of  Posts  and  Communications,  the 
Director  General  and  the  Managing  Directors.  The  terms  of  their  respective 
agreements  will  be  arranged  by  the  Ministry  of  Posts  and  Communications. 


NUMBER  1911/5:  MAY  20,  1911  875 

Whenever  appointments  are  to  be  made  or  functions  defined  of  the  technical 
members  of  the  railway  stafT,  as  well  as  in  the  case  of  their  dismissal,  the  Director 
General,  the  Managing  Director  or,  in  his  absence  his  duly  authorized  repre- 
sentative, will  act  in  consultation  with  the  Engineer-in-Chief  concerned,  and  in 
the  case  of  disagreement  the  matter  will  be  referred  to  the  Ministry  of  Posts 
and  Communications,  whose  decision  shall  be  final. 

After  completion  of  construction,  and  during  the  currency  of  this  Loan,  the 
Imperial  Chinese  Government  will  continue  to  employ  Europeans  and/or  Amer- 
icans as  Engineers-in-Chief  of  the  said  railway  lines,  these  appointments  being 
made  without   reference  to  the  Banks. 

Article  XVIII. — For  the  Hupei-Hunan  section  of  the  Canton-Hankow 
railway  line,  and  the  Hupei  section  of  the  Szechuan-Hankow  railway  line  respect- 
ively (a)  The  British  &  Chinese  Corporation,  Limited  and  (b)  the  Deutsch- 
Asiatische  Bank  will  act  as  Agents  of  the  Railway  Administration  during  con- 
struction for  the  purchase  of  all  materials,  plant  and  goods  required  to  be  im- 
ported from  abroad.  From  this  category  rails  and  their  accessories  are  excepted ; 
for  the  purchase  of  which  the  Ministry  of  Posts  and  Communications  has  mem- 
orialized the  Throne  recommending  that  they  should  be  manufactured  and  sup- 
plied by  the  Hanyang  Iron  Works.  Their  price  will  be  settled  by  the  Ministry 
of  Posts  and  Communications  with  the  Hanyang  Iron  Works,  after  comparison 
with  the  current  quotations  for  rails  purchased  by  other  lines  from  Europe  or 
America.  No  delay  will  be  allowed,  and  it  is  understood  that  if  the  Hanyang 
Iron  Works  are  unable  to  supply  the  requirements  of  the  lines  in  question  in 
such  manner  as  to  insure  uninterrupted  construction,  the  Purchasing  Agents  will 
be  instructed  to  procure  from  abroad  the  additional  supplies  required.  For  all 
important  purchases  of  materials  tenders  shall  be  called  for  by  the  Director 
General  or  the  Managing  Director  concerned :  in  the  case  of  all  tenders,  indents 
and  orders  for  the  importation  of  goods  and  materials  from  abroad,  the  said 
Agents  shall  purchase  the  materials  required  on  the  terms  most  advantageous 
to  the  railways,  and  shall  charge  the  original  net  cost  of  the  same,  plus  a  com- 
mission of  five  per  cent  (5%).  It  is  understood  that  no  orders  for  materials 
shall  be  executed  or  any  expenditure  incurred  without  due  authorization  by  the 
Managing  Director  concerned. 

In  return  for  payment  of  commission  as  above  stated  the  British  &  Chinese 
Corporation,  Limited,  and  the  Deutsch-Asiatische  Bank  as  Agents  for  the  re- 
spective railway  lines,  shall  be  prepared  to  superintend  the  purchase  of  all 
foreign  materials  required  for  their  construction  and  equipment,  which  shall  be 
purchased  in  the  open  market  at  the  lowest  rate  obtainable,  it  being  understood 
that  all  such  materials  shall  be  of  good  and  satisfactory  quality  and  that  the 
aforesaid  Agents  will  avail  themselves  of  the  services  of  engineering  experts  to  be 
selected  by  the  Ministry  of  Posts  and  Communications  for  the  inspection  of  such 
materials.  The  fees  of  these  Inspectors  shall  be  borne  in  equal  shares  by  the 
Ministry  of  Posts  and  Communications  and  the  Purchasing  Agents.  At  equal 
rates  and  qualities  goods  of  British,  French,  German  and  American  manufacture 
shall  be  given  impartial  preference  over  other  goods  of  foreign  origin. j|  The 
Railway  Administration  of  the  Ministry  of  Posts  and  Communications  reserves 

^  See  Note  3  to  this  document,  post,  p.  897. 


376  CHINA  TREATIES  AND  AGREEMENTS 

the  right,  while  paying  the  above  stipulated  commission  to  the  said  Agents  in 
respect  of  all  purchases  of  foreign  materials,  to  avail  itself  of  the  services  of  other 
Agents  in  China,  or  abroad,  should  it  see  fit  to  do  so. 

The  most  favorable  shipping  and  insurance  rates  are  to  be  secured  and  state- 
ments thereof  together  with  original  invoices  and  Inspectors'  certificates  are  to 
be  submitted  to  the  Director  General  and  the  Managing  Director  concerned: 
all  return  commissions  and  rebates  of  every  description  shall  be  credited  to  the 
railways,  and  all  purchases  made  by  the  Agents  on  behalf  of  the  railways  shall 
be  supported  by  manufacturers'  original  invoices  and  Inspectors'  certificates. 
No  commission  shall  be  paid  to  the  Agents  except  as  above  provided;  but  it 
is  understood  that  the  Railway  Administration  shall  provide  out  of  railway  funds 
for  the  remuneration  of  Consulting  Engineers  whenever  their  services  are  en- 
gaged. 

With  a  view  to  the  encouragement  of  Chinese  industries,  preference  will  be 
given,  at  equal  prices  and  qualities,  over  British,  French,  German,  American  or 
other  foreign  goods  to  Chinese  materials  and  goods  manufactured  in  China,  such 
cases  being  left  to  the  decision,  in  consultation  with  the  Engineers-in-Chief,  of 
an  Inspector  appointed  by  the  Ministry  of  Posts  and  Communications.  No  com- 
mission will  be  paid  on  purchases  of  such  Chinese  materials  and  goods. 

It  is  understood  and  agreed  that,  after  the  construction  of  the  lines  is  com- 
pleted, the  British  &  Chinese  Corporation,  Limited,  and  the  Deutsch-Asiatische 
Bank  will  be  given  the  preference  for  Agency  business  for  the  respective  lines, 
during  the  currency  of  the  Loan,  for  the  supply  of  foreign  materials  which  the 
Railway  Administration  may  require,  on  terms  to  be  hereafter  mutually  agreed 
upon. 

Article  XIX. — Should  the  Imperial  Chinese  Government  itself  hereafter 
consider  it  desirable  to  construct  extensions  in  connection  with  the  railway  lines 
named  in  Article  II  of  this  agreement  in  order  that  the  interests  of  the  country 
may  be  better  served,  such  extensions  shall  be  built  by  the  Imperial  Chinese  Gov- 
ernment with  funds  at  its  disposal  from  Chinese  sources,  but  if  foreign  capital 
is  required,  and  the  terms  offered  by  the  Banks  are  as  favorable  as  those  offered 
by  others  preference  will  be  given  to  the  Banks. 

Article  XX. — After  payment  of  interest  and  repayment  of  principal  of  this 
Loan  for  any  current  year,  the  Railway  Administration  will  deposit  with  the 
Banks  in  Shanghai  or  Hankow  any  surplus  of  the  net  revenue  of  the  railway  lines 
for  that  year  up  to  the  amount  required  to  pay  the  following  year's  instalments 
of  interest  on  the  Loan,  the  rate  of  interest  on  the  deposit  being  arranged  with 
the  Banks  from  time  to  time  with  due  regard  to  the  conditions  of  the  market. 

Article  XXI. — All  expenses  in  connection  with  the  flotation  and  issue  of 
this  Loan,  such  as  underwriting,  commission  and  brokerage,  telegraph  charges, 
advertising,  postage,  engraving  and  printing  of  Prospectus  and  bonds,  stamp  and 
legal  fees,  shall  be  borne  by  the  Banks. 

Article  XXII. — The  Deutsch-Asiatische  Bank,  The  Hongkong  &  Shanghai 
Banking  Corporation,  the  Banque  de  I'lndo-Chine  and  the  American  Group  shall 
take  the  Loan  in  equal  shares  and  without  responsibility  for  each  other. 

Article  XXIII. — The  Deutsch-Asiatische  Bank,  the  Hongkong  &  Shanghai 
Banking  Corporation,  the  Banque  de  I'lndo-Chine  and  the  American  Group  may, 


NUMBER  1911/5:  MAY  20,  1911  877 

subject  to  all  their  obligations  under  this  Agreement,  transfer  or  delegate  all  or 
any  of  their  rights,  powers,  and  discretions  hereunder  to  any  German,  British, 
French  or  American  Company,  Directors  or  Agents,  with  power  of  further  trans- 
fer and  sub-delegation;  such  transfer,  subtransfer,  delegation  or  sub-delegation 
to  be  subject  to  the  approval  of  the  Ministry  of  Posts  and  Communications. 

Article  XXIV. — This  Agreement  is  signed  under  the  authority  of  an  Im- 
perial Edict  dated  the  twenty-second  day  of  the  fourth  month  of  the  third  year 
of  the  Emperor  Hsuan  T'ung,  corresponding  to  the  twentieth  day  of  May,  1911, 
Western  Calendar,  which  will  be  officially  communicated  to  the  Ministers  of  Great 
Britain,  France,  Germany  and  the  United  States  of  America  in  Peking  by  the 
Wai  Wu  Pu. 

Article  XXV. — Eight  sets  of  this  Agreement  are  executed  in  English  and 
Chinese,  four  sets  to  be  retained  by  the  Imperial  Chinese  Government  and  four 
sets  by  the  Banks.  In  the  event  of  any  doubt  arising  regarding  the  interpretation 
of  the  contract  the  English  text  shall  rule. 

Signed  at  Peking  by  the  Contracting  Parties  this  twenty  second  day  of  the 
fourth  month  of  the  third  year  of  the  Emperor  Hsuan  T'ung,  corresponding  to  the 
twentieth  day  of  May,  One  thousand  nine  hundred  and  eleven,  Western 
Calendar. 

THE  MINISTER  OF  POSTS  AND  COMMUNICATIONS 

Sheng  Hsuan-Huai 


[Seal  of 
MINISTRY 

of 
POSTS  AND 
COMMUNICATIONS.] 


For  the  DEUTSCH-ASIATISCHE   BANK, 

H.    CORDES. 

For  the  HONGKONG  &  SHANGHAI  BANKING  CORPORATION 

E.     G.     HiLLIER, 

Agent. 
For  the  BANQUE  DE  LTNDO-CHINE, 
R.  Saint  Pierre. 
Casenave. 
For  J.  P.  Morgan  &  Company, 
Kuhn,  Loeb  &  Company, 
The  First  National  Bank, 
The  National  City  Bank, 
of   New  York 
constituting 
"  THE  AMERICAN  GROUP  " 

Willard   Straight, 

Representative. 


878 


CHINA  TREATIES  AND  AGREEMENTS 


SCHEDULE  OF  INTEREST  AND  AMORTIZATION  OF  THE  IMPERIAL  CHINESE 

GOVERNMENT  5%  HUKUANG  RAILWAYS  SINKING  FUND  GOLD 

LOAN  OF  1911  FOR  £6,000,000. 

COEFFICIENT  6,505,144  PER  CENT. 

TOTAL  ANNUAL  PAYMENT  OF  INTEREST  AND  AMORTIZATION  £390,308.12.10. 


Years 

Half-yearly 

Payments  of 

Interest. 

Total  yearly 

Payments  of 

Interest. 

Half-yearly 

Payments  of 

Capital. 

Total  yearly 

Payments  of 

Capital. 

Total  annual 
Payments. 

Principal 
Outstanding. 

£ 

£ 

£ 

£ 

£ 

£ 

1 

150,000.  -/- 
150,000.  -/- 

300,000.  -/- 

nil 

nil 

300,000.  -/- 

6,000,000.  -/- 

2 

150,000.  -/- 
150,000.  -/- 

300,000.  -/- 

« 

« 

300,000.  -/- 

6,000,000.  -/. 

3 

150,000.  -/- 
150,000.  -/- 

300,000.  -/- 

" 

" 

300,000.  -/- 

6,000,000.  -/- 

4 

150,000.  -/- 
150,000.  -/- 

300,000.  -/- 

" 

« 

300,000.  -/- 

6,000,000.  -/. 

5 

150,000.  -/- 
150,000.  -/- 

300,000.  -/- 

<( 

« 

300,000.  -/- 

6,000,000.  -/- 

6 

150,000.  -/- 
150,000.  -/- 

300,000.  -/- 

u 

« 

300,000.  -/- 

6,000,000.  -/- 

7 

150,000.  -/- 
150,000.  -/- 

300,000.  -/- 

« 

(( 

300,000.  -/- 

6,000,000.  -/- 

8 

150,000.  -/- 
150,000.  -/- 

300,000.  -/- 

« 

« 

300,000.  -/- 

6,000,000.  -/- 

9 

150,000.  -/- 
150,000.  -/- 

300,000.  -/- 

« 

u 

300,000.  -/- 

6,000,000.  -/- 

10 

150,000.  -/- 
150,000.  -/- 

300,000.  -/- 

« 

« 

300,000.  -/- 

6,000,000.  -/- 

11 

150,000.  -/- 
150,000.  -/- 

300,000.  -/- 

45,154.  6/  5 
45,154.  6/  5 

90,308.12/10 

390,308.12/10 

5,909,691.  7/  2 

12 

147,742.  5/  8 
147,742.  5/  8 

295,484.11/  4 

47,412.  -/  9 
47,412.  -/  9 

94,824.  1/  6 

390,308.12/10 

5,814,867.  5/  8 

13 

145.371.13/  8 
145,371.13/  8 

290,743.  7/  4 

49,782.12/  9 
49,782.12/  9 

99,565.  5/  6 

390,308.12/10 

5,715,302.  0/  2 

14 

142,882.11/- 
142,882.11/- 

285,765.  2/- 

52,271.15/  5 
52,271.15/  5 

104,543.10/10 

390,308.12/10 

5,610,758.  9/  4 

15 

140,268.19/  3 
140,268.19/  3 

280,537.18/  6 

54,885.  7/  2 
54,885.  7/  2 

109,770.14/  4 

390,308.12/10 

5,500,987.15/- 

16 

137,524.13/11 
137,524.13/11 

275,049.  7/10 

57,629.12/  6 
57,629.12/  6 

115,259.  5/  - 

39.0,308.12/10 

5,385,728.10/- 

17 

134,643.  4/  3 
134,643.  4/  3 

269,286.  8/  6 

60,511.  2/  2 
60,511.  2/  2 

121,022.  4/  4 

390,308.12/10 

5,264,706.  5/  8 

18 

131,617.13/  2 
131,617.13/  2 

263,235.  6/  4 

63,536.13/  3 
63,536.13/  3 

127,073.  6/  6 

390,308.12/10 

5,137,632.19/  2 

19 

128,440.16/  6 
128,440.16/  6 

256,881.13/- 

66.713.  9/11 
66,713.  9/11 

133,426.19/10 

390,308.12/10 

5.004,205.19/  4 

20 

125,105.  3/- 
125,105.  3/- 

250,210.  6/- 

70,049.  3/  5 
70,049.  3/  5 

140,098.  6/10 

390,308.12/10 

4,864,107.12/  6 

NUMBER  1911/5:  MAY  20,  1911 


879 


Years. 


Half-yearly 

Payments  of 

Interest. 


Total  yearly 

Payments  of 

Interest. 


121,602.13/10 
121,602.13/10 

117,925.  2/  2 
117,925.  2/  2 

114,063.13/- 
114,063.13/- 

110,009.  2/  4 
110,009.  2/  4 

105,751.17/  1 
105,751.17/  1 

101,281.14/  7 
101,281.14/  7 

96,588.  2/- 
96,588.  2/- 

91,659.15/10 
91,659.15/10 

86,485.  1/  3 
86,485.  1/  3 

81,051.12/- 
81.051.12/- 

75,346.  9/  4 
75,346.  9/  4 

69,356.  1/  5 
69,356.  1/  5 

63,066.  3/  2 
63,066.  3/  2 

56,461.15/  1 
56,461.15/  1 

49,527.  2/  6 
49,527.  2/  6 

42,245.15/  3 
42,245.15/  3 

34,600.  6/  9 
34,600.  6/  9 

26.572.12/  9 
26,572.12/  9 

18,143.11/  1 
18,143.11/  1 

9,294.  -/  8 
9,294.  -/  8 


TOTAL; 


243,205.  7/  8 
235,850.  4/  4 
228,127.  6/- 
220,018.  4/  8 
211,503.14/  2 
202,563.  9/  2 
193,176.  4/- 
183,319.11/  8 
172,970.  2/  6 
162,103.  4/- 
150,692.18/  8 
138,712.  2/10 
126,132.  6/  4 
112,923.10/2 
99,054.  5/- 
84,491.10/6 
69,200.13/  6 
53,145.  5/  6 
36,287.  2/  2 
18,588.  1/  4. 


Half-yearly 

Payments  of 

Capital. 


£8,709,259.  5/- 


73,551.12/  7 
73,551,12/  7 

77,229.  4/  3 
77,229.  4/  3 

81,090.13/  5 
81,090.13/  5 

85,145.  4/  1 
85,145.  4/  1 

89,402.  9/  4 
89,402.  9/  4 

93,872.11/10 
93,872.11/10 

98,566.  4/  5 
98,566.  4/  5 

103,494.10/  7 
103,494.10/  7 

108,669.  5/  2 
108,669.  5/  2 

114.102.14/  5 
114,102.14/  5 

119,807.17/  1 
119,807.17/  1 

125,798.  5/- 
125,798.  5/- 


Total  yearly  ^^^^^  j 


132.( 
132.( 


3/  3 
3/  3 


138,692.11/  4 
138,692.11/  4 

145,627.  3/11 
145,627.  3/11 

152,908.11/  2 
152,908.11/  2 

160.553.19/  8 
160,553.19/  8 

168,581.13/  8 
168,581.13/  8 

177.010.15/  4 
177,010.15/  4 

185,860.  5/  9 
185,860.  5/  9 


147,103.  5/  2 
154,458.  8/  6 
162,181.  6/10 
170,290.  8/  2 
178,804.18/  8 
187,745.  3/  8 
197,132.  8/10 
206,989.  1/  2 
217,338.10/  4 
228,205.  8/10 
239,615.14/  2 
251,596.10/- 
264,176.  6/  6 
277,385.  2/  8 
291,254.  7/10 
305,817.  2/  4 
321,107.19/  4 
337,163.  7/  4 
354,021.10/  8 
371,720.11/  6 


£6,000,000.  -/- 


390,308.12/10 

390,308.12/10 

390,308.12/10 

390,308.12/10 

390,308.12/10 

390,308.12/10 

390,308.12/10 

390,308.12/10 

•390,308.12/10 

390,308.12/10 

390,308.12/10 

390,308.12/10 

390,308.12/10 

390,308.12/10 

390,308.12/10 

390,308.12/10 

390,308.12/10 

390,308.12/10 

390,308.12/10 

390,308.12/10 


Principal 
outstanding. 


£14,709,259.  5/- 


4,717,004.  7/  4 
4,562,545.18/10 
4,400,364.12/- 
4,230,074.  3/10 
4,051,269.  5/  2 
3,863,524.  1/  6 
3,666,391.12/  8 
3,459,402.11/  6 
3,242,064.  1/  2 
3,013,858.12/  4 
2,774,242.18/  2 
2.522,646.  8/  2 
2,258,470.  1/  8 
1,981,084.19/- 
1,689,830.11/  2 
1,384,013.  8/10 
1,062,905.  9/  6 
725,742.  2/  2 
371,720.11/  6 


880  CHINA  TREATIES  AND  AGREEMENTS 

Note  1. 

An  agreement  for  a  loan  for  the  construction  of  these  railways  was  originally  con- 
cluded between  the  Chinese  Government  and  the  British,  French  and  German  banks,  on 
June  6,  1909,  in  the  following  terms: 

Agreement  with  British,  French  and  German  Banks  for  Hukuang  Railways, 

June  6,  1909. 

"This  Agreement  is  made  at  Peking  on  the  19th  day  of  the  4th  moon  in  the  first  year 
of  the  Emperor  Hsuan-T'ung,  corresponding  to  the  6th  of  June,  one  thousand  nine  hun- 
dred and  nine,  western  calendar,  and  the  contracting  parties  are : 

"  His  Excellency  the  Grand  Secretary  Chang  Chih-tung,  director-general  of  the  Canton- 
Hankow  Railway  and  of  the  Hupeh  section  of  the  Szechuen-Hankow  Railway,  duly 
authorized  by  imperial  decree  to  act  on  behalf  of  the  Imperial  Government  of  China,  of 
the  one  part,  and 

"  (a)   The  Deutsch-Asiatische   Bank,    Shanghai,   and 

"  (b)  The  Hongkong  and  Shanghai  Banking  Corporation  associated  with  the  Banque 
de  rindo-Chine,  hereafter  called  the   Banks,  of  the  other  part. 

"Article  1. — The  Imperial  Government  of  China  authorizes  the  Banks  to  issue  a  5  per 
cent  gold  loan  for  an  amount  of  five  million  five  hundred  thousand  pounds  sterling 
(f 5, 500.000).  The  loan  shall  be  of  the  date  on  which  the  bonds  are  issued  to  the  public, 
and  shall  be  called  '  The  Imperial  Chinese  Government  Five  Per  Cent  Hukuang  Railway 
Loan  of  1909.' 

"  Article  2. — This  loan  is  designed  to  provide  capital  (1)  for  the  redemption  at  a 
premium  of  2^2  per  cent,  with  accrued  interest,  of  certain  unredeemed  gold  bonds  of  the 
total  par  value  of  two  million  two  hundred  and  twenty-two  thousand  dollars  United  States 
currency,  issued  by  the  American-China  Development  Company  on  behalf  of  the  Imperial 
Chinese  Government,  and 

"  (2)  For  the  construction  of  a  Government  railway,  main  line  from  Wuchang,  the 
capital  of  the  Hupeh  Province,  through  Yo-chou  and  Chang-sha,  the  capital  of  the  Hunan 
Province,  to  a  point  in  the  prefecture  of  Ch'en-chou,  on  the  southern  boundary  of  Hunan, 
connecting  with  the  Kuang-tung  section  of  the  Canton-Hankow  Railway  line,  the  total 
length  of  this  line,  hereinafter  known  as  '  The  Hupeh-Hunan  section  of  the  Canton- 
Hankow  Railway  line,'  being  1,800  Chinese  li,  or  900  kilometers,  and  of 

"  A  Government  railway  main  line  from  Ichang,  in  the  Province  of  Hupeh,  through 
Ching-men-chou  and  Hsiang-yang,  to  a  point  at  or  near  Kuang-Hsui,  connecting  it  with 
the  Peking-Hankow,  and  a  branch  line  from  Ching-men-chou,  on  the  aforesaid  main  hne, 
through  Shasi  to  Han-yang,  t+ie  combined  length  of  these  two  lines,  hereinafter  known 
as  '  The  Hupeh  section  of  the  Szechuen-Hankow  Railway  line,'  being  about  1,600  Chinese 
li,  or  800  kilometers. 

"  The  survey  line  shall  be  open  to  revision  by  the  director-general  of  the  railways. 

"  The  Chinese  Imperial  Government  undertakes  to  call  in,  after  having  received  from 
the  Banks  application  in  writing  to  do  so,  the  aforesaid  gold  bonds  and  the  Banks  will 
apply  the  amount  necessary  for  the  said  redemption  out  of  the  proceeds  of  the  loan,  and 
will  deliver  the  redeemed  bonds  to  the  Chinese  Government,  after  having  made  the  bonds 
valueless.  The  Chinese  Imperial  Government  will,  after  receipt  of  the  redeemed  bonds, 
cancel  the  inscription  of  the  pledge  of  the  Canton-Hankow  Railway  line  in  their  archives 
and  will  advise  the  Banks  in  writing  after  having  done  this. 

"  It  is  understood  that  the  allotment  of  the  aforesaid  total  nominal  capital  of  £5.500,000 
will  be  in  the  proportion  of  £2,500,000  to  the  Hupeh-Hunan  section  of  the  Canton-Hankow 
Railway  line,  and  £2,500,000  to  the  Hupeh  section  of  the  Szechuen-Hankow  Railway  line, 
and  that  any  surplus  of  the  nominal  amount  of  the  £500,000  hereby  allotted  for  the  redemp- 
tion of  the  gold  bonds,  issued  by  the  American-China  Development  Company  aforesaid 
which  may  remain  after  complete  redemption  of  those  bonds  shall  be  added  to  the  amount 
allotted  to  the  Hupeh  section  of  the  Canton-Hankow  Railway  line. 

"Article  3.— After  deduction  of  the  amount  required  for  the  redemption  of  the  gold 
bonds  referred  to  in  Article  2  of  this  agreement,  the  balance  of  the  loan  proceeds  shall 
be  solely  devoted  to  the  construction  of  the  aforesaid  railway  lines,  including  the  pur- 
chase of  lands,  rolling  stock,  and  other  equipment,  and  to  the  working  of  the  line,  and 
to  the  payment  of  interest  on  the  loan  during  the  period  of  construction,  which  is  esti- 
mated at  four  years  from  the  actual  beginning  of  the  work.  The  commencement  of  the 
work  shall  not  be  delayed  beyond  six  months  after  this  agreement  has  been  signed,  within 
which  period  the  Banks  shall  notify  the  director-general  that  the  sum  of  five  hundred  and 
ten  thousand  pounds  sterling  (£510,000)  has  been  placed  at  his  disposal  in  case  funds 
should  be  required  for  survey  or  construction  purposes,  or  for  the  ordering  of  material, 
the  said  sum  to  be  held  in  Europe  or  remitted  to  China  as  he  may  direct,  as  a  first 
installment  on  account  of  the  proceeds  of  the  loan.  This  amount  of  £510,000,  or  whatever 
portion  thereof  is  actually  advanced,  together  with  interest  thereon,  not  exceeding  a  charge 
of  6  per  cent  per  annum,  shall  be  deducted  from  the  first  proceeds  of  the  sale  of  the  bonds. 


NUMBER  1911/5:  MAY  20,  1911:  NOTES  881 

"Article  4.— The  rate  of  interest  for  the  loan  shall  be  5  per  cent  per  annum  on  the 
nominal  principal  and  shall  be  paid  to  the  bondholders  half-yearly.  The  said  interest  shall 
be  calculated  from  the  date  on  which  the  loan  is  issued  to  the  public,  and  shall  be  paid 
by  the  Imperial  Chinese  Government  during  the  time  of  construction,  either  from  the 
proceeds  of  the  loan  or  from  other  sources,  and  afterwards,  in  the  first  place,  out  of  the 
revenues  of  the  railway,  and  then  from  such  other  revenues  as  the  Chinese  Government 
may  think  fit  to  use  for  the  purpose,  in  haJf-yearly  installments  according  to  the  amount 
specified  in  the  schedule  attached  to  this  agreement  and  fourteen  davs  before  their  due 
date,  western  calendar,  as  calculated  half-yearly  from  the  date  on  which  the  loan  is  issued 
to  the  public. 

"Article  5. — The  term  of  the  loan  shall  be  twenty-five  years.  Repayment  of  the 
principal  shall  commence  after  the  expiry  of  ten  years  from  the  date  of  the  loan,  and, 
e.xcept  as  provided  in  Article  6  hereinafter,  shall  be  made  by  equal  yearly  amortization  to 
the  Banks  in  half-yearly  installments  out  of  the  revenues  of  the  lines  or  such  other 
revenues  as  the  Chinese  Government  may  think  fit  to  use  for  the  purpose,  according  to 
the  amounts  specified  in  the  schedule  attached  to  this  agreement,  but  fourteen  davs  before 
their  due  date,  western  calendar,  as  calculated  half-yearly  from  the  date  on  which"  the  loan 
is  Issued  to  the  public. 

"Article  6. — If  at  any  time  after  the  lapse  of  ten  years  from  the  date  of  the  loan  the 
Imperial  Chinese  Government  should  desire  to  redeem  the  whole  outstanding  amount  of 
the  loan  or  any  part  of  it  not  yet  due  for  a  payment  in  accordance  with  the  schedule  for 
repayments  hereto  attached,  it  may  do  so  up  to  the  end  of  the  seventeenth  year  by  pay- 
ment of  a  premium  of  2!-2  per  cent  on  the  face  value  of  the  bonds ;  that  is  to  say,  by  the 
payment  of  £102  10s.  for  each  £100  bond,  and  after  the  lapse  of  seventeen  years  without 
premium ;  but  in  each  and  every  case  of  such  extra  redemption  the  Imperial  Chinese 
Government  will  give  six  months'  previous  notice  in  writing  to  the  Banks,  and  such 
redemption  shall  be  effected  by  additional  drawings  of  bonds  to  take  place  on  the  date 
of  an  ordinary  drawing,  as  provided  for  in  the  prospectus  of  the  loan. 

"  .Article  7. — The  half-yearly  payments  due  for  amortization  and  interest,  referred  to 
in  Articles  4  and  5,  shall  be  made  in  accordance  with  the  amounts  of  the  schedule  attached 
to  this  agreement  and  fourteen  days  before  their  due  date,  as  fixed  by  Articles  4  and  5, 
in  equal  shares  to  the  Banks  by  the  director-general  of  the  railway,  who  shall  hand  to 
the  Banks  in  Shanghai  or  in  Hankow,  fourteen  days  before  the  said  due  date,  funds  in 
Shanghai  (Kuei-yang)  sycee  or  Hankow  '  Yang-li '  sycee  sufficient  to  meet  such  pay- 
ments in  gold  in  Europe,  exchange  for  which  shall  be  settled  with  the  Banks  on  the  same 
day,  the  railway  having,  however,  the  option  of  settling  exchange  with  the  Banks  simul- 
taneously at  any  date  or  dates  within  six  months  previous  to  any  due  date  for  the  pay- 
ment of  interest  and/or  principal.  These  payments  may,  however,  be  made  in  gold  in 
Europe  if  the  Imperial  Chinese  Government  should  happen  to  have  gold  funds  bona  fide 
at  their  disposal  in  Europe  not  remitted  from  China  for  the  purpose  and  desires  so  to 
use  them. 

"  In  reimbursement  of  expenses  connected  with  the  payment  of  interest  and  repay- 
ment of  principal  of  the  loan,  the  Banks  will  receive  from  the  Chinese  Government  a 
commission  of  one-fourth  of  1  per  cent  on  the  annual  loan  service. 

"  Article  8. — The  Imperial  Government  of  China  hereby  engages  that  the  interest  and 
principal  of  this  loan  shall  be  duly  paid  in  full,  and  should  the  revenues  of  the  railways 
and/or  the  proceeds  of  the  loan  not  be  sufficient  to  provide  for  the  due  and  full  payment 
of  the  interest  and  repayment  of  the  principal,  the  director-general  shall  memorialize  the 
Throne  and  the  Imperial  Government  of  China  shall  thereupon  make  arrangements  to 
insure  that  the  amounts  of  the  deficiency  shall  be  met  from  other  sources  and  handed  over 
to  the  Banks  on  the  date  upon  which  funds  are  required  to  complete  full  payment  of 
interest  and  repayment  of  principal. 

"  Article  9. — The  present  loan,  in  respect  to  both  interest  and  principal,  is  hereby 
secured  by — 

"  (1)   Hupeh  general  likin,  amounting  to  two  million   (2,000,000)  haikwan  taels  a  year; 

"  (2)  Hupeh  additional  salt  tax  for  river  defense,  amounting  to  four  hundred  thousand 
(400,000)    haikwan  taels  a  year; 

"  (3)  Hupeh  new  additional  2-cash  salt  tax  of  September,  1908,  amounting  to  three 
hundred  thousand    (300,000)    haikwan  taels  a  year; 

"  (4)  Hupeh  collection  of  Hukuang  interprovincial  tax  on  imported  rice,  amounting 
to  two  hundred  and  fiftv  thousand   (250,000)  haikwan  taels  a  year; 

"  (5)   Hunan  general  likin  amounting  to  two  million   (2,000,000)  haikwan  taels  a  year; 

"  (6)  Hunan  salt  commissioner's  treasury  regular  salt  likin,  amounting  to  two  hundred 
and  fifty  thousand   (250,000)   haikwan  taels  a  year. 

"  The  above  provincial  revenues  are  hereby  declared  to  be  free  from  all  other  loans, 
charges,  or  mortgages.  .    ,  .     ,  ,     ,         •,    .v  u  ii   k 

'•  So  long  as  the  principal  and  interest  of  this  loan  are  regularly  paid,  there  shall  be 
no  interference  with  these  provincial  revenues;  but  if  principal  or  interests  of  the  loan 
be  in  default  at  due  date,  then,  after  a  reasonable  period  of  grace,  likin  and  other  suitable 


g82  CHINA  TREATIES  AND  AGREEMENTS 

internal  revenues  of  the  Provinces  of  Hupeh  and  Hunan  sufficient  to  provide  the  amounts 
above  stated  shall  forthwith  be  transferred  to  and  administered  by  the  Imperial  Maritime 
Customs  in  the  interest  of  the  bondholders,  and  so  long  as  this  loan  or  any  part  thereof 
shall  remain  unredeemed  it  shall  have  priority,  both  as  regards  principal  and  interest,  over 
all  future  loans,  charges,  and  mortgages  charged  on  the  aforesaid  provincial  revenues. 
No  loan,  charge,  or  mortgage  shall  be  raised  or  created  which  shall  take  precedence  of  or 
be  on  an  equality  with  this  loan,  or  shall  in  any  manner  lessen  or  impair  its  security  over 
the  aforesaid  provincial  revenues,  and  any  future  loan,  charge,  or  mortgage  charged  on 
the  said  provincial  revenues  shall  be  made  subject  to  this  loan,  and  it  shall  be  so  expressed 
in  every  agreement  for  every  such  future  loan,  charge,  or  mortgage. 

"  After  the  redemption  of  the  existing  gold  bonds  referred  to  in  Article  2  of  this 
agreement,  it  is  understood  and  agreed  that  so  long  as  this  loan  is  unredeemed  the  rail- 
way shall,  under  no  circumstances,  be  mortgaged,  nor  the  receipts  given  as  security  to  any 
other  parties. 

"  In  the  event  of  the  Chinese  Government,  during  the  currency  of  this  loan,  enter- 
ing upon  definite  arrangements  for  the  revision  of  the  customs  tariff,  accompanied  by 
stipulations  for  the  decrease  or  abolition  of  likin,  it  is  hereby  agreed  on  the  one  hand 
that  such  provisions  shall  not  be  barred  by  the  fact  that  this  loan  is  secured  by  likin  and 
provincial  revenues,  and,  on  the  other  hand,  that  whatever  likin  is  required  to  provide  for 
the  security  of  this  loan  shall  neither  be  decreased  nor  abolished  except  by  previous  arrange- 
ment with  the  Banks,  and  then  only  in  so  far  as  an  equivalent  is  substituted  for  it,  in  the 
shape  of  a  first  charge  upon  the  increase  of  customs  revenue  consequent  upon  such  revision. 

"  Article  10. — The  Banks  are  hereby  authorized  to  issue  to  the  subscribers  to  the  loan 
bonds  for  the  total  amount  of  the  loan  in  gold,  for  such  amounts  as  may  appear  advisable 
to  the  Banks.  The  form  and  language  of  the  bonds  shall  be  settled  by  the  Banks,  in 
consultation  with  the  director-general  or  the  Chinese  ministers  in  Berlin,  London,  or 
Paris.  They  shall  bear  the  facsimile  of  the  signature  of  the  director-general  and  his  seal 
of  office,  in  order  to  dispense  with  the  necessity  of  signing  them  all  in  person,  and  the 
Chinese  minister  in  Berlin,  London,  or  Paris,  as  the  case  may  be,  shall,  previous  to  the 
issue  of  the  bonds,  put  his  seal  upon  each  bond,  with  the  facsimile  of  his  signature,  as  a 
proof  that  the  issue  and  sale  of  the  bonds  are  duly  authorized  by  and  binding  upon  the 
Chinese  Government.  The  representatives  of  the  Banks  in  Berlin,  London,  or  Paris,  as 
the  case  may  be,  shall  countersign  the  bonds  as  agents  for  the  issue  of  the  loan. 

"  In  the  event  of  the  bonds  issued  for  this  loan  being  lost,  stolen,  or  destroyed,  the 
bank  concerned  shall  immediately  notify  the  director-general  and  the  Chinese  minister  in 
Berlin,  London,  or  Paris,  as  the  case  may  be,  who  shall  authorize  the  bank  to  insert  an 
advertisement  in  the  public  newspapers  notifying  that  payment  of  the  same  has  been 
stopped,  and  to  take  such  other  steps  as  may  appear  advisable  or  necessary,  according  to 
the  laws  and  customs  of  the  country  concerned,  and  should  such  bonds  not  be  recovered 
after  a  lapse  of  time  to  be  fixed  by  the  Banks,  the  director-general  and  the  Chinese  min- 
ister in  Berlin,  London,  or  Paris,  as  the  case  may  be,  shall  seal  and  execute  duplicate  bonds 
for  a  like  amount  and  hand  them  to  the  bank,  by  whom  all  expenses  in  connection  there- 
with shall  be  defrayed. 

"Article  11. — All  bonds  and  coupons  and  payments  made  and  received  in  connection 
with  the  service  of  this  loan  shall  be  exempt  from  all  Chinese  taxes  and  imposts  during 
the  currency  of  this  loan. 

"  Article  12. — All  details  necessary  for.  the  prospectus  and  connected  with  the  pay- 
ment of  the  interest  and  repayment  of  the  principal  of  this  loan,  not  herein  specifically 
provided  for,  shall  be  left  to  the  arrangement  of  the  Banks,  in  consultation  with  Chinese 
ministers  in  Berlin,  London,  and  Paris.  The  Banks  are  hereby  authorized  to  issue  the 
prospectus  of  the  loan  as  soon  as  possible  after  the  signing  of  this  agreement;  and  the 
Imperial  Government  will  instruct  the  Chinese  ministers  in  Berlin,  London,  and  Paris 
to  cooperate  with  the  Banks  in  any  matters  requiring  conjoint  action,  and  to  sign  the 
prospectus  of  the  loan. 

"  Article  13. — The  loan  shall  be  issued  to  the  public  in  one  amount  as  soon  as  pos- 
sible after  the  signature  of  this  agreement,  and  not  later  than  twelve  months  after  the 
date  thereof.  The  price  of  the  bonds  to  the  Imperial  Chinese  Government  shall  be  95  per 
cent  of  their  nominal  value.  Subscription  will  be  invited  by  the  Banks  in  Europe  and  in 
China  both  from  Chinese  and  Europeans  on  equal  conditions,  preference  being  given  to 
the  application  of  the  Chinese  Government,  providing  such  application  be  made  not  less 
than  four  days  before  the  issue  of  the  prospectus  to  the  public.  Seven  days'  notice  of  the 
issue  of  the  prospectus  will  be  given  by  the  Banks  to  the  Imperial  Chinese  Government. 

"  Article  14. — The  proceeds  of  the  loan  shall  be  paid  to  the  credit  of  the  '  Hukuang 
Government  Railways  account'  with  the  Deutsch-Asiatische  Bank,  the  Hongkong  and 
Shanghai  Banking  Corporation,  and  the  Banque  do  I'lndo-Chine  in  China,  Berlin,  London, 
or  Paris,  as  the  case  may  be.  Payments  of  loan  proceeds  into  the  credit  of  this  account 
shall  be  in  installments  and  on  dates  conforming  to  the  conditions  allowed  to  the  sub- 
scribers to  the  loan.  Interest  at  the  rate  of  3  per  cent  per  annum  shall  be  granted  on  the 
credit  balance  of  the  portion  of  this  account  kept  in  Berlin,  London,  Paris,  and  interest  on 


NUMBER  1911/5:  MAY  20,  1911:  NOTES  883 

the  credit  balance  of  the  portion  kept  in  China  will  be  allowed  at  the  Banks'  rate  for  cur- 
rent accounts,  to  be  arranged.  Subject  to  the  payments  and  deductions  to  be  made  from 
the  loan  proceeds  in  terms  of  Articles  2  and  3  of  this  agreement,  the  Banks  will  hold 
the  net  balance,  with  accrued  interest,  to  the  order  of  the  director-general.  Transfers  of 
the  loan  funds  to  China  in  amounts  conforming  to  actual  construction  requirements  will 
be  made  by  the  director-general  on  his  sole  authority;  the  transfer  being  effected  through 
the  Deutsch-Asiatische  Bank,  the  Hongkong  and  Shanghai  Banking  Corporation,  and  the 
Banque  de  ITndo-Chine,  as  the  case  may  be ;  ten  days'  previous  notice  will  be  given  to 
the  bank  concerned  of  the  transfer  of  any  sum  exceeding  twenty  thousand  (£20,000) 
pounds,  and  the  transerred  funds  shall  remain  on  deposit  with  that  bank  until  required 
for  railway  purposes.  The  director-general  shall,  at  his  discretion,  make  transfers  from 
the  loan  funds  held  in  China  by  the  Banks  to  the  credit  of  a  construction  account  for  the 
Hupeh  section  of  the  Szechuen-Hankow  Railway  line  with  the  Deutsch-Asiatische  Bank, 
and  of  a  construction  account  for  the  Hupeh-Hunan  section  of  the  Canton-Hankow  Rail- 
way line  with  the  Hongkong  and  Shanghai  Banking  Corporation.  Requisition  upon  these 
construction  accounts  will  be  drawn  in  amounts  to  suit  the  progress  of  the  construction  of 
the  railway  lines  by  orders  upon  the  Deutsch-Asiatische  or  the  Hongkong  and  Shanghai 
Banking  Corporation,  signed  by  the  managing  director  of  the  line  concerned  or,  in  his 
absence,  by  his  duly  authorized  representative,  who  shall,  moreover,  two  days  previous  to 
the  presentation  of  such  order,  issue  in  duplicate  a  certificate  stating  clearly  the  object  of 
the  funds  to  be  drawn,  handing  one  copy  to  the  auditor  (hereinafter  referred  to)  and 
one  copy  to  the  bank  concerned. 

"  The  accounts  of  the  railways  will  be  kept  in  Chinese  and  English  and/or  German, 
in  accordance  with  accepted  modern  methods,  and  will  be  supported  by  all  necessary 
vouchers.  During  the  period  of  construction  the  said  accounts  and  vouchers  will  be  open 
at  any  time  to  the  inspection  of  two  auditors  for  the  Hupeh-Hunan  section  of  the  Canton- 
Hankow  Railway  line  and  the  Hupeh  section  of  the  Szechuen-Hankow  Railway  line, 
respectively,  appointed  and  paid  by  the  Banks,  whose  duty  it  will  be  to  satisfy  the  Banks 
as  to  the  due  expenditure  of  the  loan  funds  in  accordance  with  the  provisions  of  Article  3 
of  this  agreement,  and  to  certify  to  monthly  statements  of  the  foreign  materials  purchased 
by  the  railway  administration  under  the  provisions  of  Article  18  hereinafter.  The  railway 
administration  will  publish  annually,  upon  the  close  of  its  financial  year,  a  report,  in  the 
Chinese  and  English  languages,  showing  the  working  accounts  and  traffic  receipts  of  the 
railways,  which  report  shall  he  procurable  by  the  public  on  application. 

"  Article  15. — If,  after  the  deduction  of  the  amount  required  for  the  redemption  of 
the  gold  bonds  referred  to  in  Article  2  of  this  agreement,  and  of  the  sums  necessary  for 
the  service  of  interest  on  the  loan  during  the  time  of  construction,  the  balance  of  the 
loan  proceeds,  with  accrued  interest,  should  not  be  sufiicient  to  complete  the  construction 
and  equipment  of  the  railway  lines  named  in  Article  2  of  this  agreement,  the  amount  of 
the  deficiency  shall  be  provided,  in  the  first  place,  from  such  Chinese  funds  as  may  be 
available  so  as  to  permit  of  the  uninterrupted  continuance  of  the  work  of  construction, 
and  any  balance  then  uncovered  shall  be  supplemented  by  a  further  foreign  loan  for  the 
amount  required,  to  be  issued  by  the  Banks.  The  interest  and  other  conditions  of  such 
supplementary  loan  or  loans  will  be  the  same  as  in  the  present  agreement,  and  the  price 
payable  to  the  Chinese  Government  in  respect  to  these  supplementary  loans  shall  be  the 
actual  rate  of  their  issue  to  the  public,  less  flotation  charges  of  five  and  one-half  points 
retainable  by  the  Banks — that  is  to  say,  a  charge  of  five  pounds  ten  shillings  (£5  10s.) 
sterling  for  every  £100  bond  issued.  If  after  the  completion  of  the  lines  there  should  be 
a  balance  of  the  railway's  accounts,  such  unused  balance  will  be  transferred  to  the  credit 
of  the  interest  reserve  fund  hereinafter  mentioned  in  Article  20  as  a  provision  for  pay- 
ments for  which  the  Imperial  Chinese  Government  is  responsible  under  this  agreement. 

"Article  16. — If  before  the  publication  of  the  prospectus  for  the  issue  of  the  loan  any 
political  or  financial  crisis  should  take  place  by  which  the  markets  and  the  prices  of  exist- 
ing Chinese  Government  stocks  are  so  affected  as  to  render,  in  the  opinion  of  the  Banks, 
the  successful  issue  of  the  loan  impossible  on  the  terms  herein  named,  the  Banks  shall  be 
granted  a  further  extension  of  time,  but  not  beyond  eighteen  months  from  the  date  of  this 
agreement  for  the  performance  of  their  contract.  If  within  this  time  limit  the  loan  shall 
have  not  been  issued,  then  this  contract  shall  become  null  and  void,  and  advances  made  by 
the  Banks  under  the  provisions  of  Article  3  shall  be  repaid  by  the  Chinese  Government 
with  accrued  interest,  but  without  any  other  compensation  or  remuneration  whatsoever. 

"  Article  17. — The  construction  and  control  of  the  railway  lines  shall  be  entirely  and 
exclusively  vested  in  the  Imperial  Chinese  Government,  and  shall  be  organized  in  accord- 
ance with  the  practice  at  the  present  time  actually  in  force  on  the  northern  section  of  the 
Tientsin-Pukow  Railway  line.  For  the  work  of  construction  the  Imperial  Chinese  Govern- 
ment will  select  and  appoint  a  fully  qualified  British  chief  engineer  for  the  Hupeh-Hunan 
section  of  the  Canton-Hankow  Railway  line  and  a  fully  qualified  German  chief  engmeer 
for  the  Hupeh  section  of  the  Szechuen-Hankow  Railway  line  who  shall  be  acceptable  to 
the  Banks.  In  the  event  of  the  Banks  objecting  to  any  proposed  appointment,  the  cause 
of  such  objection  shall  be  definitely  stated.     These  two  engineers  shall  be  under  the  orders 


884  CHINA  TREATIES  AND  AGREEMENTS 

of  the  managing  directors  of  the  respective  lines,  or,  in  their  absence,  of  their  duly 
authorized  representatives,  and  will  carry  out  all  the  wishes  of  the  railway  administra- 
tion with  regard  to  the  plan  and  construction  of  the  lines.  In  their  general  conduct 
they  shall  pay  all  due  respect  to  the  director-general  and  the  managing  directors.  The 
terms  of  their  respective  agreements  will  be  arranged  by  the  director-general  on  his  sole 
authority. 

"  Whenever  appointments  are  to  be  made  or  functions  defined  of  the  technical 
employees  on  the  railway  staff  as  well  as  in  the  case  of  their  dismissal,  the  managmg 
director,  or  in  his  absence  his  duly  authorized  representative,  will  act  in  consultation  with 
the  chief  engineer  concerned,  and  in  case  of  disagreement  the  matter  will  be  referred  to 
the  director-general,  whose  decision  shall  be  final. 

"  After  completion  of  construction,  and  during  the  currency  of  this  loan,  the  Imperial 
Chinese  Government  will  continue  to  employ  Europeans  as  chief  engineers  of  the  said 
railway  lines,  these  appointments  being  made  without  reference  to  the  Banks. 

■'  Article  18. — For  the  Hupeh-Hunan  section  of  the  Canton-Hankow  Railway  line,  and 
the  Hupeh  section  of  the  Szechuen-Hankow  Railway  line,  respectively,  (a)  a  company 
nominated  by  the  Hongkong  and  Shanghai  Banking  Corporation  and  approved  by  the 
director-general  and  (b)  the  Deutsch-Asiatische  Bank  will  act  as  agents  of  the  railway 
administration  during  construction  for  the  purchase  of  all  materials,  plant,  and  goods 
required  to  be  imported  from  abroad.  For  all  important  purchases  of  such  materials 
tenders  shall  be  called  for  by  the  managing  director  concerned ;  in  the  case  of  all  tenders, 
indents,  and  orders  for  the  importation  of  goods  and  materials  from  abroad  the  said 
agents  shall  purchase  the  materials  required  on  the  terms  most  advantageous  to  the 
railways,  and  shall  charge  the  original  net  cost  of  same  plus  a  commission  of  five  per 
cent  (5%).  It  is  understood  that  no  orders  for  materials  shall  be  executed  or  any  expendi- 
ture incurred  without  due  authorization  of  the  managing  director  concerned. 

"  In  return  for  payment  of  commission  as  above  stated  the  aforesaid  company  nomi- 
nated by  the  Hongkong  and  Shanghai  Banking  Corporation  and  the  Deutsch-Asiatische 
Bank  as  agents  for  the  respective  railway  lines  shall  be  prepared  to  superintend  the 
purchase  of  all  foreign  materials  required  for  their  construction  and  equipment  which 
shall  be  purchased  in  the  open  market  at  the  lowest  rate  obtainable,  it  being  under- 
stood that  all  such  materials  shall  be  of  good  and  satisfactory  quality,  and  that  the 
railway  administration  shall  have  the  right  to  reject,  on  arrival  in  China,  materials 
which  are  not  in  accordance  with  the  original  order.  At  equal  rates  and  qualities  goods 
of  British,  French,  and  German  manufacture  shall  be  given  the  preference  over  other 
goods  of  foreign  origin.  The  railway  administration  reserves  the  right,  while  paying  the 
above  stipulated  commission  to  the  said  agents  in  respect  to  all  purchases  of  foreign 
materials,  to  avail  itself  of  the  services  of  other  agents  in  China  or  abroad  should  it 
see  fit  to  do  so.  Original  invoices  and  inspectors'  certificates  are  to  be  submitted  to  the 
managing  director  concerned ;  all  return  commissions  and  rebates  of  every  description  shall 
be  credited  to  the  railways,  and  all  purchases  made  by  the  agents  on  behalf  of  the  railway 
shall  be  supported  by  manufacturers'  original  invoices  and  inspectors'  certificates.  No  com- 
mission shall  be  paid  to  the  agents  except  as  above  provided;  but  it  is  understood  that  the 
railway  administration  shall  provide  out  of  the  railway  funds  for  the  remuneration  of 
consulting  engineers  whenever  their  services  are  engaged. 

"  With  a  view  to  the  encouragement  of  Chinese  industries  preference  will  be  given, 
at  equal  prices  and  qualities,  over  British,  French,  and  German  or  other  foreign  goods 
to  Chinese  goods  and  materials  manufactured  in  China,  such  cases  being  left  to  the  deci- 
sion, in  consultation  with  the  chief  engineer,  of  an  inspector  appointed  by  the  Imperial 
Chinese  Government.  No  commission  will  be  paid  on  purchases  of  such  Chinese  materials 
and  goods. 

"  It  is  understood  and  agreed  that  after  the  construction  of  the  lines  is  completed  the 
aforesaid  company  nominated  by  the  Hongkong  and  Shanghai  Banking  Corporation  and 
the  Deutsch-Asiatische  Bank  will  be  given  the  preference  for  agency  business  for  the 
respective  lines,  during  the  currency  of  the  loan,  for  the  supply  of  foreign  materials  which 
the  railway  administration  may  require  on  terms  hereinafter  mutually  agreed  upon. 

"  Article  19. — Branch  lines  in  connection  with  railway  lines  named  in  Article  2  of 
this  agreement  that  may  appear  profitable  or  necessary  later  on  shall  be  built  by  the  Impe- 
rial Chinese  Government  with  funds  at  its  disposal  from  Chinese  sources;  but  if  foreign 
capital  is  required,  preference  will  be  given  to  the  Banks. 

"  Article  20. — After  payment  of  interest  and  repayment  of  principal  of  this  loan  for 
any  current  year  tKe  railway  administration  will  deposit  with  the  Banks  in  Shanghai  or 
Hankow  any  surplus  of  the  net  revenue  of  the  railway  lines  for  that  year  up  to  the  amount 
required  to  pay  the  following  year's  installments  of  interest  on  the  loan,  the  rate  of 
interest  on  the  deposit  being  arranged  with  the  Banks  from  time  to  time,  with  due  regard 
to  the  conditions  of  the  market. 

"  Article  21. — All  expenses  in  connection  with  the  flotation  and  issue  of  this  loan, 
such  as  underwriting,  commission  and  brokerage,  telegraph  charges,  advertising,  postage, 
printing  of  prospectus  and  bonds,  stamp  duty,  and  legal  fees  shall  be  borne  by  the  Banks. 


NUMBER  1911/5:  MAY  20,  1911:  NOTES    '  885 

"The  Chinese  officials  acting  in  the  matter  of  this  loan  do  not  receive  any  commis- 
sion whatsoever. 

"  Article  22. — The  Deutsch-Asiatische  Bank,  the  Hongkong  and  Shanghai  Banking 
Corporation,  and  the  Banque  de  ITndo-Chine  shall  take  the  loan  in  equal  shares  and  with- 
out responsibility  for  each  other. 

"  Article  23. — The  Deutsch-Asiatische  Bank,  the  Hongkong  and  Shanghai  Banking 
Corporation,  and  the  Banque  de  ITndo-Chine  may  subject  to  all  their  obhgations  under  the 
agreement,  transfer  or  delegate  all  or  any  of  their  rights,  powers,  and  discretions  there- 
under to  any  German,  British,  or  French  company,  directors,  or  agents,  with  power  of 
further  transfer  and  subdelegation,  such  transfer,  subtransfer,  delegation,  or  subdelegation 
to  be  subject  to  the  approval  of  the  director-general. 

"  Article  24. — This  agreement  is  signed  under  the  authority  of  an  imperial  edict  dated 
the day  of  the  fourth  moon  of  the  first  year  of  the  Emperor  Hsuan  T'ung,  correspond- 
ing to  the  June,  1909,  western  calendar,  which  has  been  officially  communicated  to  the 

ministers  of  Great  Britain,  France,  and  Germany  in  Peking  by  the  Wai-wu  Pu. 

"Article  25. — Seven  sets  of  this  agreement  are  executed  in  English  and  Chinese,  four 
sets  to  be  retained  by  the  Imperial  Chinese  Government  and  one  set  by  each  bank.  In  the 
event  of  any  doubt  arising  regarding  the  interpretation  of  the  contract,  the  English  text 
shall  rule. 

"  Signed  at  Peking  by  the  contracting  parties  this  19th  day  of  the  fourth  moon  of  the 
first  year  of  the  Emperor  Hsuan  T'ung,  corresponding  to  the  6th  day  of  June,  1909,  western 
calendar." 

With  the  support  of  the  American  Government,  the  American  group  claimed  a  right 
of  participation  in  the  loan  for  this  purpose,  basmg  its  claim  upon  two  notes  which  the 
Wai  Wu  Pu  had  addressed  to  the  American  Minister  in  1903  and  1904,  of  which  the  trans- 
lations (as  printed  in  For.  Rcl.  1909,  p.  175)  are  as  follows: 

"  The  Chinese  Foreign  Office  to  Minister  Conger. 

"  Foreign    Office, 

"Peking,  August  15,  1903. 

"  We  have  the  honor  to  acknowledge  the  receipt  yesterday  of  your  excellency's  note, 
saying  that  you  had  read  in  a  London  newspaper  a  statement  to  the  effect  that  two  British 
companies  had  applied  to  the  Chinese  Government  for  a  concession  to  build  a  railway  from 
Hsin-yang,  in  Hunan,  via  Hsiang-yang  in  Hupeh  to  Ch'eng-tu,  Szechuen ;  that  the  said  paper 
also  said  that  there  were  Chniese  who  desired  to  construct  the  road,  and  that  in  the  future, 
if  foreign  capital  should  be  borrowed,  it  was  proposed  to  first  consult  with  the  aforesaid  two 
companies  ;  that  your  excellency  had  to  state  clearly  that  your  countrymen  had  long  ago 
asked  for  a  concession  to  build  through  the  region  mentioned,  and  that  you  had  talked 
with  us  about  it  in  a  personal  interview  and  had  said  that  if  it  should  be  desired  to  borrow 
money  for  this  purpose  offers  ought  first  to  be  made  to  the  Americans;  that  if  it  should  be 
allowed  foreigners  to  construct  the  road,  the  concession  ought  first  to  be  offered  to  Ameri- 
cans;  that  if  arrangements  should  be  made  with  others  which  would  interfere  with  the  just 
rights  of  Americans,  you  must  enter  your  protest  against  them. 

"  Our  board  finds  on  examination  that  with  respect  to  the  building  of  the  Hankow- 
Szechuen  Railway  an  English  company  had  applied  in  the  XXV  year  of  Kuanghsu  for  such 
a  concession,  which  was  not  granted ;  afterwards,  in  the  fourth  moon  of  the  present  year,  the 
British  charge,  Mr.  Townley,  had  several  times  requested  that  the  concession  be  given  to 
British  companies,  and  at  that  time  our  board  replied  that  it  had  originally  been  proposed 
that  the  Chinese  should  themselves  construct  this  road ;  that  if  in  the  future  it  should  appear 
that  the  capital  was  not  sufficient  or  that  foreign  capital  ought  to  be  borrowed,  since  British 
and  American  companies  had  successively  applied  for  concessions  to  build  the  road,  when  the 
time  came  application  could  be  made  to  the  British  and  American  companies.  In  short,  when 
companies  of  various  nationalities  apply  to  China  for  railway  concessions,  it  must  always 
remain  with  China  to  decide  the  matter.  It  is  not  possible  to  regard  an  application  not 
granted  as  conferring  any  rights  or  as  being  proof  that  thereafter  application  must  first  be 
made  to  the  persons  concerned. 

"  As  in  duty  bound,  we  send  this  reply  for  your  excellency's  information. 
"  We  avail,  etc. 

"(Sixth  moon,  23rd  day.)" 

"  The  Prince  of  Ching  to  Minister  Conger. 

"  Foreign    Office, 

"Peking,  July  18,  1904. 
"  I  have  the  honor  to  acknowledge  the  receipt  of  your  excellency's  letter  of  recent  date, 
as  follows : 


885  CHINA  TREATIES  AND  AGREEMENTS 

"  '  I  have  the  honor  to  inform  Your  Imperial  Highness  that  I  am  in  receipt  of  a 
letter  from  Mr.  A.  W.  Bash,  agent  of  the  China  Investment  and  Construction  Company, 
requesting  me  to  forward  to  Your  Imperial  Highness  the  inclosed  letter,  in  which  he 
makes  application  for  a  concession  to  provide  a  loan  for  the  construction  of  a  railway 
line  from  Ch'eng-tu,  Szechuen,  to  Chungking  and  Hankow,  in  case  the  viceroy  of  Sze- 
chuen  should  find  himself  unable  to  prosecute  his  reported  plan  to  raise  money  from 
native  sources  for  such  a  line.  He  begs  that  your  board  will  place  his  application  on 
file.  I  have  much  pleasure  in  complying  with  Mr.  Bash's  request,  and  so  forward  the 
application  inclosed.' 

"  In  regard  to  the  above  I  have  the  honor  to  state  that  the  viceroy  of  Szechuen  is  even 
now  engaged  in  selling  shares  and  accumulating  capital  from  Chinese  sources  for  the 
purpose  of  building  the  line  from  Hankow  to  the  Province  of  Szechuen.  It  is  not  intended 
that  foreign  capital  shall  be  used,  but  if  in  the  future  the  native  capital  proves  to  be  insuffi- 
cient, or  if  a  time  comes  when  they  wish  to  borrow  funds  from  foreigners  to  fill  in  with,  then 
will  the  matter  be  dealt  with  as  proposed  in  the  letter  written  by  my  board  to  your  excel- 
lency in  the  sixth  moon  of  last  year  (August  15,  1903),  and  companies  composed  of  Eng- 
lishmen and  Americans  will  be  consulted.  As  for  the  application  of  the  China  Investment 
and  Construction  Company,  it  can  not  be  conveniently  granted  for  the  present. 

"  It  is  my  duty  in  the  premises,  therefore,  to  make  this  reply  to  your  excellency,  that 
you  may  be  informed  of  the  matter,  and  I  trust  that  your  excellency  will  issue  proper  in- 
structions to  the  above-mentioned  company. 
"  I  take,  etc." 

Consult  For.  Rel,  1909,  pp.  144-215,  and  1910,  pp.  269-291,  in  regard  to  the  negotiations 
for  the  admission  of  the  American  group  to  equal  participation  with  the  other  banks.  The 
terms  of  cooperation  among  the  banking  groups  of  the  four  nationalities  were  settled  by  an 
agreement  reached  at  a  conference  of  their  representatives  at  Paris,  May  23,  1910,  of  which 
the  text  (together  with  the  minutes  of  a  meeting  of  their  committee  on  the  same  date)  is 
thus  printed  in  For.  Rel,  1910,  p.  280: 

Inter-Bank  Railway  Agreement  among  American,  British,  French  and  German  Banks, 

May  23,  1910. 

"  Parties : 

The  British  and  Chinese  Corporation,  Limited,  Chinese  Central  Railways,  Limited, 

representing  the  British  group. 
The  Deutsch-Asiatische  Bank,  representing  the  German  group. 
The  Banque  de  I'lndo-Chine,  representing  the  French  group. 
Morgan,  Grenfell  &  Co.,  representing  the  American  group. 

"  1.  The  British,  German,  French,  and  American  groups  agree  to  enter  into  an  agree- 
ment with  the  Chinese  Government  for  a  loan  of  £6,000,000  and  any  supplementary  loans 
to  be  issued  in  connection  therewith  for  the  above  railways  on  the  basis  of  the  two  draft 
agreements  approved  by  the  parties  hereto  and  initialed  by  them,  being  the  draft  original 
loan  agreement,  with  accompanying  despatch  and  a  draft  supplemental  loan  agreement. 

"2.  This  loan  to  be  divided  equally  between  the  four  groups,  and  to  be  issued  simul- 
taneously. 

"  3.  All  orders  for  materials  to  be  divided  as  far  as  possible  equally  between  the  four 
groups. 

"  Za.  The  American  group  shall  share  equally  in  the  commissions  on  the  purchase  of 
materials,  plant,  and  goods  allowed  by  the  terms  of  article  18  of  the  original  loan  agreement. 

"  4.  In  regard  to  the  appointment  of  chief  engineers  and  subengineers  for  the  lines 
contemplated  by  the  original  loan  agreement  it  is  agreed  that  the  chief  engineer  for  the 
Hankow-Canton  Railway  is  to  be  appointed  by  the  British  and  Chinese  Corporation, 
Limited:  that  the  chief  engineer  for  the  Ichang-Hsiangyang-Kuangshui  line  and  the  Ichang- 
Hanyang  line,  to  the  length  of  about  800  kilometers,  is  to  be  appointed  by  the  German  group, 
which  is  to  provide  for  the  appointment  by  the  American  group  of  a  subengineer  for  a  section 
of  these  lines  to  the  length  of  about  200  kilometers.  With  regard  to  the  proposed  exten- 
sion of  the  line  from  Ichang  or  Hsiangyang  to  Ch'eng-tu,  which  is  estimated  to  be  1,600 
kilometers  in  length,  the  chief  engineer  for  the  first  400  kilometers  is  to  be  appointed  by  the 
American  group ;  the  chief  engineer  for  the  next  600  kilometers  is  to  be  appointed  by  the 
British  group,  and  the  chief  engineer  for  the  remaining  600  kilometers  is  to  be  appointed  by 
the  French  group.  If  the  extension  of  the  line  above  referred  to  should  be  less  than 
1,600  kilometers  in  length,  then  the  above-mentioned  lengths  of  400,  600,  and  600  kilometers 
shall  abate  proportionately.  If  the  extension  of  the  line  above  referred  to  should  exceed 
in  length  1,600  kilometers,  then  the  appointment  of  chief  engineers  of  the  excess  between 
1.600  kilometers  and  2,200  kilometers  shall  be  apportioned  equally  between  the  American, 
British,  and  French  groups.  If  such  extension  should  exceed  in  length  2,200  kilometers,  then 
the  appointment  of  chief  engineers  of  the  surplus  over  2,200  kilometers  shall  be  divided  as 
nearly  as  possible  equally  among  the  four  groups. 


NUMBER  1911/5:  MAY  20,  1911:  NOTES  887 

"  5.  Each  of  the  groups  to  apply  to  their  respective  bourses  for  the  internationalization 
of  the  above  loans. 

"  6.  The  stamp  duties  on  the  bonds  to  be  pooled  and  divided  equally  between  the  four 
groups,  but  this  is  not  to  be  treated  as  a  precedent  for  future  loans.  All  other  expenses 
of  issue  to  be  borne  by  the  respective  groups. 

"7.  The  preliminary  expenses  incurred  by  the  four  groups  prior  to  the  signing  of  this 
agreement  shall  be  shared  by  the  four  groups  upon  an  equitable  basis. 

"  For  the  British  group  :  Carl  Meyer. 

C.  S.  Addis. 
G.  Jamieson. 
"  For  the  German  group :  Fr.  Urbig. 

E.   Rehders. 
"  For  the  French  group  :  J.  Caillaux. 

St.   Simon. 
Ullmann. 
Casenave. 
"  For  the  American  group  :        E.  C.  Grenfell. 

H.  P.  Davison. 
Max  Warburg. 
H.  H.  Harjes. 
WiLLARD  Straight." 

"  FRENCH,  BRITISH,  GERMAN,  AND  AMERICAN  GROUPS. 

"  Mmutes  of  a  meeting  held  at  the  Banque  de  I'Indo-Chine  on  23d  May,  1910,  of  the  com- 
mittee appointed  at  the  meeting  of  the  four  groups  held  that  day. 

"  Present : 

Mr.  F.  Urbig,  in  the  chair. 
Mr.  M.  Casenave. 
Mr.  G.  Jamieson. 
Mr.  W.  D.  Straight. 

"  The  follovi'ing  resolutions  were  passed : 

"  1.  Preliminary  expenses. — That  to  carry  out  and  give  effect  to  clause  7  of  the  agree- 
ment between  the  four  groups  drafted  at  the  meeting  of  the  groups  held  that  day,  the 
American  group  pay  to  the  French,  British,  and  German  groups  respectively  the  sum  of 
£1,500,  being  1  per  1,000  on  the  share  of  the  loan  allotted  to  the  American  group. 

"  2.  Purchasing  arrangements. — That  the  existing  arrangements  of  article  18  of  the 
original  loan  agreement  be  allowed  to  stand,  provided  that  the  two  purchasing  agents  give 
to  the  French  and  American  groups  a  letter  in  the  following  terms,  and  provided  more- 
over that  said  purchasing  agents  shall  be  bound  to  report  as  far  as  possible  to  any  group 
requesting  such  information  regarding  the  purchase  of  materials  under  the  instructions  of  the 
director-general  in  accordance  with  the  provisions  of  the  original  loan  agreement  with 
accompanying  despatch  and  the  supplemental  loan  agreement : 

"  '  We  beg  to  inform  you  that  we  have  been  appointed  purchasing  agents  for  Hankow- 
Canton,  Hankow-Szechuen  railways,  in  accordance  with  article  18  of  the  Hukuang  loan 
agreement  initialed  on  the  6th  June,  1909. 

"  '  In  view  of  the  terms  of  said  loan  agreement  with  accompanying  despatch  and  the 
agreement  supplementary  thereto  providing  for  the  admission  to  participation  of  the  Ameri- 
can group  and  securing  equal  consideration  for  British,  German,  French,  and  American 
materials  and  equal  facilities  for  the  receipt  of  tenders  in  the  markets  of  the  four  countries, 
we  beg  to  state  that  we  will  take  all  steps  necessary  to  assure  the  above-mentioned  considera- 
tion for  French-American  materials  and  make  all  proper  provision  for  the  receipt  on  an 
absolute  basis  of  equality  of  tenders  from  British,  German,  French,  and  American  manu- 
facturers.' 

"  3.  C ommission  on  materials. — As  regards  commission  on  materials  it  was  resolved  that 
one-fifth  be  retained  by  purchasing  agents  to  cover  expenses;  that  the  balance  be  divisible; 

"  On  Hankow-Canton :  One-fourth  each  to  the  British  and  Chinese  Corporation,  Limited, 
the  French  group,  the  German  group,  and  the  American  group. 

"On  Hankow-Szechuen:  Two-fourths  to  Chinese  Central  Railways,  Limited,  one- 
fourth  to  the  German  group,  and  one-fourth  to  the  American  group. 

"  4.  Rotation  of  purchasing  agents. — It  was  also  resolved  that  upon  any  new  loan  being 
negotiated  for  the  purposes  of  the  extension  referred  to  in  article  4  of  the  agreement  of  the 
23d  May,  1910,  the  group  which  is  entitled  to  the  appointment  of  chief  engineer  shall  be 
entitled  to  nominate  the  purchasing  agent. 

"(Signed)  F.  Urbig. 

G.  Jamieson. 
M.  Casenave. 
W.    D.    Straight." 


ggg  CHINA  TREATIES  AND  AGREEMENTS 

In  connection  with  the  loan  agreement  of  May  20,  1911,  consult  the  following  corre- 
spondence supplementary  thereto  : 

Exchange  of  Communications  between  Ministry  and  Banks,  March  i  and  3,  1913. 

The  Minister  of  Comviunications  to  the  representatives  of  the  Deutsch-Asiatische  Bank,  the 
Hongkong  and  Shanghai  Banking  Corporation,  the  Banque  de  I'lndo-Chine  and  the 
American  group. 

[Official  translation,  as  printed  in  Wang,  p.  585.] 

''Peking,  March   1,    1913. 
"  Gentlemen : 

"I  duly  received  the  letter  of  the  representatives,  dated  the  Uth  of  July  last,  in  which 
were  submitted  four  points  for  discussion.  I  beg  to  state  that  frequent  discussions  have 
already  taken  place  and  that  more  than  half  a  year  has  elapsed  since  our  joint  discussion  of 
the  28th  of  September.  A  solution  has  not  yet  been  arrived  at.  Construction  work  is  in 
abeyance  for  lack  of  funds.     Both  parties  have  agreed  that  no  further  delay  should  occur. 

"  We  have  mutually  agreed  that  this  ministry  shall  address  a  dispatch  to  you  setting 
forth  a  method  of  procedure  and  I  would  request  that  you  will  assent  thereto  and  favor  us 
with  a  reply  so  that  funds  to  meet  requirements  may  be  speedily  made  available. 

"  The  method  of  procedure  decided  upon,  under  four  headings,  is  as  follows : 

"  1.  It  has  already  been  arranged  that  the  Ssu-ch'uan  Commercial  Railway  shall  be 
taken  over  and  operated  by  the  Government.  The  Commercial  Railway  line  of  the  Canton- 
Hankow  Railway  in  Hunan  has  already  been  taken  over  by  Director  General  Huang  in 
Hunan.  The  survey  of  the  Canton-Hankow  Railway  in  Hupei  is  nearing  completion  and 
arrangements  have  been  made  for  commencing  work  at  the  Wuchang  end.  The  German 
engineer-in-chief  and  the  American  engineer-in-chief  have  already  been  appointed  and  before 
many  days  will  proceed  to  make  the  survey  of  their  respective  sections.  The  above  may  all 
be  considered  as  a  simultaneous  commencement  of  work  on  the  four  railway  lines. 

"  2.  According  to  the  terms  of  Article  14  of  the  loan  agreement  one-half  of  the  pro- 
ceeds of  the  loan  funds  transferred  to  China  shall  be  deposited  with  the  Chiao-Tung  Bank 
or  with  the  Ta-Ching  Bank.  It  is  now  agreed  that  the  funds  transferred  to  China  shall 
be  temporarily  deposited  with  the  Deutsch-Asiatische  Bank,  the  Hongkong  and  Shanghai 
Banking  Corporation,  the  Banque  de  I'lndo-Chine  and  the  International  Banking  Corporation, 
designated  by  the  American  group,  in  readiness  to  be  drawn  upon  from  time  to  time  as 
required  for  the  work  until  such  time  as  either  the  Chiao-Tung  Bank  or  the  Ta-Ching  Bank 
has  been  reorganized  as  the  State  Bank  of  China  and  has  established  its  credit,  and  business 
relations  with  foreign  banks  have  been  mutually  resumed.  When  such  time  comes  the 
Government  may  consult  with  the  groups  as  to  a  reversion  to  the  method  of  procedure  laid 
down  in  Article  14  of  the  loan  agreement  by  which  the  deposits  of  the  proceeds  of  the 
loan  funds  shall  be  shared  with  the  Chiao-Tung  Bank  or  the  State  Bank  of  China  as  agents, 

"  3.  For  the  purpose  of  now  removing  the  bondholders'  apprehensions  that  the  amount 
of  the  likin  specified  in  the  agreement  as  security  may  have  been  decreased,  the  property 
and  materials  of  the  railway  are  hereby  specially  given  as  a  provisional  guarantee  that  the 
likin  is  unimpaired.  Excepting  this  all  other  conditions  should  be  carried  out  in  accord- 
ance with  the  loan  agreement.  In  the  future  whenever  the  Chinese  Government  is  able  to 
demonstrate  that  the  likin  is  not  only  unimpaired  but  assignable  by  the  Central  Govern- 
ment, or  to  find  some  other  suitable  security  then  the  said  guarantee  of  the  security  shall 
be  immediately  cancelled  and  annulled  and  it  shall  be  unnecessary  to  substitute  this  with  any 
other  guarantee.  In  the  event  of  the  Chinese  Government  drawing  up  new  regulations 
consequent  upon  the  abolition  of  likin  the  same  shall  be  carried  out  in  accordance  with  Article 
9  of  the  loan  agreement. 

"  4.  By  Article  14  of  the  loan  agreement  auditors  are  to  be  engaged  by  the  banks  for  the 
inspection  of  the  accounts.  Their  duty,  as  a  matter  of  course,  will  be  to  investigate,  to 
consult  and  make  enquiries.  They  should  therefore  be  in  constant  attendance  at  the  railway 
accounts  office  so  that  they  may  be  closely  connected  and  acquainted  with  the  affairs  relative 
to  their  office  and  they  shall  continue  to  function  during  the  time  of  construction  and  so 
long  afterwards  as  the  mortgage  of  the  railway,  referred  to  in  heading  No.  3  of  this  letter, 
shall  remain  in  force.  In  case  of  doubt  as  to  the  employment  of  loan  funds  or  of  any 
railway  revenues,  then  the  auditors  are  empowered  to  suspend  payment  of  requisitions  until 
satisfactory  explanations  are  received  by  them  from  the  managing  director  and/or  the 
director  general.  It  has  already  been  decided  that  railway  accounts  shall  be  kept  in  Chinese 
and  English  in  accordance  with  modern  methods.  China,  actuated  by  the  desire  to  have 
accounts  kept  so  that  they  shall  be  clear  for  auditing,  will  herself  forthwith  engage  experi- 
enced foreign  accountants  whose  executive  power  and  appointment  to  the  various  railway 
sections  shall  be  entirely  and  exclusively  controlled  by  the  director  general.  The  director 
general    shall    have    the    sole    power    of    engaging    or    dismissing    the    accountants.      These 


NUMBER  1911/5:  MAY  20,  1911:  NOTES 

appointments  are  made  by  the  Chinese  Government  and  have  no  concern  whatever  with  the 
loan  agreement. 

"  With  regard  to  the  control  of  the  railway  material  during  the  time  of  construction  it 
is  necessary  to  make  proper  arrangements.  The  managing  director  and  the  engineer-in-chief 
should  select  a  foreign  engineer  to  be  stationed  at  the  storeyards  to  control,  supervise  and 
keep  records  and  in  the  event  of  damage,  loss  or  misuse  the  managing  director  and  the 
engineer-in-chief  shall  be  responsible. 

"  The  above  points  having  been  mutually  determined  upon  verbally  I   have  to  request 
that  you — the  representatives — will  promptly  reply  and  proceed  to  carry  out  the  agreement 
and  thus  avoid  further  loss  upon  the  part  of  the  railways. 
"  With  compliments,   etc., 

(Signed)  "  Chu  Chi-chien 

"Minister  of  Communications."  (seal) 

The  Representatives  of  the  Banks  to  the  Minister  of  Communications. 

[Text  as  printed  in   Wang,  p.  591.] 

"Peking,  March  3,  1913. 
"  Sir, 

"We  have  the  honor  to  acknowledge  receipt  of  your  letter  of  the  1st  instant  setting 
forth  under  four  headings  the  procedure  which  has  been  agreed  upon  for  carrying  out 
the  purposes  of  the  Hukuang  Railways  loan  agreement,  as  follows : 

[Headings  1,  2,  3  and  4  as  in  the  letter  of  the  Minister  of  Communications,  above.] 
"  In  reply  we  have  the  honor  to  state  that  we  are  now  prepared  to  arrange   for  the 
transfer  of  loan  funds  to  China  for  purposes  of  survey  and/or  construction  in  amounts  as 
may  be  necessitated  by  the  progress  of  the  work. 

"  Arrangements  are  now  being  made  for  the  engagement  of  auditors  in  terms  of  the 
loan  agreement,  and  pending  their  appointment  we  are  prepared  to  designate  members  of  our 
banks'  stafifs  in  Hankow  to  act  provisionally  as  auditors  for  the  Hupei-Hunan  section  of  the 
Canton-Hankow  line  and  the  Hupei  section  of  the  Hankow-Ssu-ch'uan  line  respectively. 

"  We  shall  be  glad  to  learn   from  you  as  soon  as  possible  the  names  of  the  foreign 
accountants  whom  it  is  the  intention  of  the  Chinese  Government  to  engage  in  accordance 
with  the  provisions  of  heading  No.  4  above. 
"  We  have  the  honor  to  be,  Sir, 

Your  obedient  servants, 
"  For  the  Hongkong  and    Shanghai    Banking   Corporation. 

(Signed)  E.  G.  Hillier,  Agent. 

"  For  the  Deutsch-Asiatische  Bank 

(Signed)  H.  Cordes. 

"  For  the  Banque  de  L'indo-Chine 

(Signed)  R.  S./vint  Pierre. 

"  For  the  American  Group 

(Signed)  F.    H.    McKnight." 


Memoranda  of  September  12,  1913,  and  Accompanying  Correspondence.* 

Director-General  Feng  to  Representatives  of  the  Four  Groups. 

"Peking,   12th   September,  1913. 
"  Gentlemen, 

"  I  have  the  honour  to  acknowledge  the  receipt  of  your  letter  of  September  4th  with 
reference  to  the  omissions  to  be  made  in  the  Draft  Memorandum  of  September  3rd.,  Article 
IV.  paragraph    (e)   and  in  the  Annex,  Article  II. 

"  It  has  now  been  agreed  to  omit  the  whole  of  the  two  Clauses  above  mentioned.  I 
intend  upon  my  return  to  Hankow  immediately  to  embody  the  terms  of  the  two  said  Clauses 
in  the  Departmental  Regulations. 

"The  two  Clauses  in  question  read  as  follows: 

"Memorandum  I.  Article  IV.  Paragraph  (£)    (Draft  of  3rd  September.) 

"  '  The  mode  of  transmitting  all  funds  required  by  the  Engineer-in-Chief  for  his  District 
Engineers  for  survey  or  construction  expenditure,  shall  be  settled  by  the  Managing 
Director  in  consultation  with  the  Foreign  Accountant  concerned,  with  due  regard  to  their 

*  Translation.     Bank's  print. 


890  CHINA  TREATIES  AND  AGREEMENTS 

safe,  economical  and  speedy  transmission,  full  consideration  being  given  to  the  recommenda- 
tions of  the  Engineer-in-Chief. 

"  '  The  District  Engineers  shall  receive,  take  charge  of  and  account  for  all  funds  sent 
to  their  districts.' 

"Memorandum  II,  Article  II  {Draft  of  3rd  September.) 

" '  District  Engineers  will  have  charge  of  all  stores  and  materials  in  their  districts,  and 
will  be  authorised  to  call  for  tenders  where  necessary  for  construction  work  and  to  submit 
the  same  with  their  recommendations  to  the  Engineer-in-Chief  for  selection.  The  Engineer- 
in-Chief  will  submit  his  selection  to  the  Managing  Director  for  approval  and  sanction,  which 
decision  will  be  given  with  all  possible  dispatch  in  order  to  avoid  delay  in  construction.' 

"  I   have  the  honour  to  be.   Gentlemen, 
"  Your  obedient  servant, 

"(Sd.)  Feng  Yuan  Ting." 

Director-General  Feng  to  Representatives  of  the  Four  Groups. 

"Peking,   12th   September,   1913. 
"  To  the  Hongkong  and  Shanghai  Banking  Corporation, 
"        Deutsch-Asiatische  Bank, 
"        Banque  de  I'lndo-Chine,  and 
"        American  Group. 
"  Peking. 

"  Sirs, 

"  With  reference  to  the  Memorandum,  of  Procedure  for  Transfer  and  Expenditure  of 
Funds  and  Auditing  of  Accounts  in  Five  Articles  with  the  Annex  regarding  Construc- 
tion and  Purchase  of  Materials  in  Two  Articles,  for  the  Hukuang  Railways,  as  agreed 
to  in  our  meetings.  I  beg  to  enclose  you  herewith  copies  of  these  Memoranda  for  your 
information  and  acceptance,  and  shall  be  glad  to  be  favoured  with  your  reply  confirming 
the  same. 

"  I  am  Sirs, 

"  Your  obedient  servant, 

"  (Sd.)        Feng  Yuan  Ting." 

"  Hukuang  Railways. 

In  order  to  put  into  operation  the  terms  of  the  Letters  of  Agreement  of  March  1st 
and  3rd  1913,  the  following  rules  of  procedure  for  the  transfer  and  expenditure  of  funds  in 
five  Clauses  and  the  Annex  thereto  regarding  construction  and  purchase  of  materials  in  two 
Clauses  have  been  agreed  upon. 

"Memorandum  of  Procedure  for  the  Transfer  and  Expenditure  of  Funds. 

"  1.  In  the  second  half  of  each  month  estimates  of  construction  and  administrative 
expenditure  for  the  following  month  shall  be  made  out  by  the  Foreign  Accountants  of  the 
Sections  concerned  based  upon  the  forecasts  {vide  also  Memorandum  regarding  construction 
etc.)  supplied  to  them  by  the  Managing  Director  and  Engineer-in-Chief  concerned  (signed 
copies  of  which  forecasts  are  to  be  attached  thereto.)  Each  estimate  will  be  accompanied 
by  a  statement  prepared  and  signed  by  the  Foreign  Accountant  concerned,  showing: — 

"  (a)   Available  balance  at  the  credit  of  the  Construction  Account  concerned  on  date 

of   report. 
"  (b)   Actual  cash  balance  of  all  imprest  accounts. 
"  (c)   Approximate  expenditure  until  the  end  of  the  current  month. 
"  (d)   Gold    balances    of    the    Hukuang    Government    Railways    Accounts    in    Europe 
and/or  America. 
"2.    Funds  cannot  be  expended  for  any  purposes  other  than  those  for  which  they  were 
requisitioned  in  the  estimate.     Should   it  be   found  that  additional   funds  are  required   for 
unforeseen  contingencies  during  any  month,  such  funds  must  be  requisitioned  for  under  a 
supplementary  estimate  to   be   dealt  with   in   accordance   with   the   ordinary   procedure    for 
monthly  requisitions. 

"  3.  The  monthly  estimates  and  statements  above  mentioned  shall  be  submitted  for 
sanction  before  the  20th  of  every  month  to  the  Director-General  of  the  Railways  in  Hankow, 
who  has  been  duly  empowered  by  the  Ministry  of  Communications  to  act  as  its  representa- 
tive, and  copies  will  be  forwarded  in  due  course  to  the  Banks  and  Auditors  concerned. 

"  After  the  Director  General  has  sanctioned  these  estimates  and  statements  and  after 
they  have  been  passed  with  all  due  dispatch  by  the  Auditor  concerned,  the  Director-General 
will  direct  the  Banks  to  transfer  to  China  an  equivalent  amount  from  the  loan  funds 
to  be  credited  to  the   Construction   Account   concerned. 


NUMBER  1911/5:  MAY  20,  1911:  NOTES  891 

"  It  is  understood  that  the  provisions  of  Article  14  paragraph  5  of  the  Loan  Agreement 
for  the  forward  settlement  of  exchange  still  holds  good,  subject  always  to  the  amounts 
settled  being  based  upon  approximate  monthly  forecasts  by  the  departments  concerned. 
"  4.  Funds  having  passed  into  Construction  Account  are  then  available  for  expenditure 
in  accordance  with  the  following  procedure  devised  to  meet  the  conditions  of  the  Loan 
Agreement  Article  14  paragraph  9,  and  the  Letters  of  Agreement  of  1st  and  3rd  Alarch, 
which  require  that : — 

■  the  accounts  of  the  Railways  shall  be  kept  in  "  English  and  Chinese  in  accordance 
with  accepted  modern  methods  "  ' 
and  that : 

"  '  they  shall  be  clear  for  auditing.' 

"(a)  AH  bills  and  paysheets  must  be  certified  by  the  heads  of  departments  con- 
cerned, and  initialled  and  chopped  as  correct  by  the  Foreign  Accountant  before  they  can  be 
paid,  with  the  exception  of  payments  coming  under  Clause  5  of  this  Memorandum  and  of 
expenditure  incurred  by  District  Engineers  from  their  Imprest  Accounts. 

"(b)  Wherever  practicable,  payments  must  be  effected  by  cheques;  where  payment 
by  cheque  is  not  practicable  such  payment  will  be  made  in  cash  by  the  Cashier  from  an 
Imprest  Account  to  be  furnished  to  him  by  the  Foreign  Accountant. 

"(c)  The  Cashier  will  keep  a  Cash  Book  for  recording  all  payments  made  by  him. 
At  the  close  of  each  day  he  will  hand  to  the  Foreign  Accountant  a  copy  of  his  cash  account 
for  the  day,  accompanied  by  all  vouchers  for  entry  in  the  Cash  Book  kept  by  the  Foreign 
Accountant,  together  with  a  Statement  of  his  balance,  and  will,  if  desired,  produce  his  cash 
for  inspection  by  the  Auditor. 

"(d)  All  cheques  shall  be  prepared  by  the  Foreign  Accountant  and  shall  be  certi- 
fied as  correct  by  his  signature.  He  will  then  present  them,  together  with  the  relative  docu- 
ments to  the  ^Managing  Director  for  his  approval  and  signature. 

"  After  the  Managing  Director  has  signed  the  cheques  they  will  remain  in  the 
charge  of  the  Foreign  Accountant  who  will  be  responsible  for  the  safe  delivery  of  the 
cheques  or  their  proceeds  to  the  payees. 

"(e)  Funds  required  for  land  purchase  as  shown  in  the  Engineer-in-Chief's 
monthly  forecast  shall  be  paid  by  cheque  to  the  Land  Office  in  amounts  to  meet  immediate 
requirements,  and  the  relative  land  transfer  certificates  must  be  sent  by  the  Managing 
Director  without  delay  to  the  Foreign  Accountant  for  comparison  and  entry. 

"  5.  The  expenditure  of  the  Director-General's  establishment  will  be  a  fixed  monthly 
sum  of  $15,000  to  be  paid  against  the  receipt  of  the  Director-General. 

"  The  salaries  and  allowances  of  the  Managing-Director's  establishment,  not  in- 
cluding the  Foreign  Accountant's  department,  shall  also  be  a  fixed  monthly  sum  to  be 
arranged  from  time  to  time  with  the  Auditor  concerned,  and  to  be  approved  by  the  Director- 
General. 

"  This  amount  will  be  paid  against  the  receipt  of  the  Managing-Director. 

"Annex. 
"Memorandum  Regarding  Construction  and  Purchase  of  Materials. 

"1.  In  order  to  secure  efficiency  of  construction  of  the  Railways,  which  at  present  form 
the  sole  security  for  the  Loan,  all  executive  work  comprised  under  the  ten  main  heads  of 
the  form  of  monthly  forecast  approved  by  the  Director-General  and  attached  hereto,  will 
be  carried  out  by  the  Engineer-in-Chief,  and  all  orders  for  the  purchase  of  materials  shall 
be  prepared  by  him,  subject  always  to  the  authority  and  approval  of  the  Managing 
Director. 

"2.  In  the  case  of  all  orders  for  the  purchase  of  materials  (except  Chinese  materials 
and  goods  manufactured  in  China  on  which  no  commission  is  chargeable)  copies  of  requisi- 
tions relating  thereto  shall  be  handed  to  the  Purchasing  Agents  without  delay  in  order  to 
enable  them  to  make  the  necessary  arrangements  for  calling  for  tenders  or  placing  the 
orders  on  the  open  market,  under  the  terms  of  Article  18  of  the  Loan  Agreement. 

"Peking,  12th  September,  1913." 


892 


CHINA  TREATIES  AND  AGREEMENTS 


"  Canton-Hankow  Railway. 
"  Hupei-Hunan  Section. 


ENGINEERING   DEPARTMENT. 

"  Forecast  of  Cash  Requirements  by  Main  Heads 
for  Month 


Hankow. 


1913. 


"  Main    Head. 

1.  Preliminary  Expenses. 

2.  Land. 

3.  Formation. 

4.  Bridge    Work. 

5.  Fencing. 

6.  Telegraph. 

7.  Track. 

8.  Stations    &    Buildings. 

9.  Plant. 

10.    General    Charges. 

Stores. 
Local    Purchases. 
Foreign    Purchases. 
•■  Total : 

"  Approved. 
"  Managing-Director. 
"  1913. 


Amount 

$     17,000.  00. 

$  148,000.  00. 

$    35,000.  00. 

$  210,000.  00. 

$         500.  00. 

$      2,500.  00. 

$    25,000.  00. 

$  150,000.  00. 

$    10,000.  00. 

$    37,000.  00. 

$  635,000.  00. 

$      5,000.  00. 

$  320,000.  00. 

$  960,000.  00. 

Dollars  Nine  Hundred  and  Sixty  Thousand. 


1913. 


Remarks. 


"  Designation   Engineer-in-Chief, 
1913." 


The  Representatives  of  the  Banks  to  Director-General  Feng. 

"Peking,  12th  September,  1913. 
"The  Honourable  Mr.  FENG  YUAN  TING, 
Director-General, 

Hankow-Canton   and    Hankow-Szechuan    Railways. 
"  Sir, 

"  We  have  the  honour  to  acknovi^ledge  receipt  of  your  letter  of  to-day's  date,  enclosing 
for  our  information  and  acceptance  copy  of  the  Memorandum  of  Procedure  for  Transfer 
and  Expenditure  of  Funds  and  Auditing  of  Accounts,  in  Five  Articles,  with  the  Annex 
regarding  Construction  and  Purchase  of  Materials  in  Two  Articles  for  the  Hukuang 
Railways,  as  agreed  to  in  our  Meetings. 

"  In  reply,  we  have  the  honour  to  confirm  our  acceptance  of  the  same. 
"  We  have  the  honour  to  be.  Sir, 

Your  obedient  servants, 
"  For  the  Hongkong  and  Shanghai  Banking  Corporation, 

E.    G.    HILLIER,    Agent. 
"  For  the  Deutsch-Asiatische  Bank, 

A.   J.    EGGELING. 
"  For  the   Banque   de   I'lndo-Chine, 

R.    SAINT    PIERRE. 
"  For  the   International    Banking   Corporation, 

D.  A.  MENOCAL,  Manager. 
On  behalf  of  the  American  Group." 

Exchange  of  Communications  between  the  Banks  and  the  Ministry,  September 
26,  1913.— January  23,  1914. 

Banks  to  Ministry,  September  26,  1913. 

"Peking,  26th   September,   1913. 

"  To  The  Honourable  Mr.  Chou  Tzu-ch'i, 

Minister  of  Communications. 
"Sir: 

"  The  regulations  recently  issued  by  the  Director-General  of  the  Hukuang  Railways 
for  the  transfer  and  expenditure  of  Loan  funds  and  for  the  carrying  out  of  construction 


NUMBER  1911/5:  MAY  20,  1911:  NOTES  893 

and  purchase  of  materials,  marked  the  commencement  of  active  work  upon  that  system 
of  railways,  the  construction  of  which  with  all  possible  dispatch,  the  Chinese  Govern- 
ment rightly  regards  as  of  the  first  importance  for  the  improvement  of  communications 
and  the  pacification  and  development  of  the  provinces  to  be  traversed. 

"  Not  only  is  it  the  desire  of  the  Groups  responsible  for  the  financing  of  these  Rail- 
ways to  assist  by  every  means  the  objects  of  the  Central  Government,  but  the  fact  that 
by  the  special  arrangement  concluded  under  the  letters  of  the  agreement  of  the  1st  and 
3rd  March  last,  the  Loan  is  secured  by  a  mortgage  on  the  lines  to  be  constructed,  gives 
them  an  additional  interest  in  their  sound  construction  and  profitable  development. 

"  Of  the  railway  lines  contemplated  under  the  Loan  Agreement,  the  section  between 
Ichang  and  Kweifu  will  undoubtedly  be  the  most  difficult  and  costly,  and  the  heavy  expendi- 
ture required  for  its  construction  could  only  be  justified  by  its  extension  westwards  to 
Chengtu,  whereby  the  wealth  and  productiveness  of  the  province  of  Szechuan  could  be 
brought  into  direct  communication   with  the  trade  of  the   Lower  Yangtze. 

"  in  order,  therefore,  that  the  heavy  expenditure  upon  the  section  in  question  may  be 
made  remunerative  with  the  least  possible  delay,  and  that  the  earning  power  of  the  rail- 
way line  may  not  be  prejudicially  affected  by  the  granting  of  concessions  for  other  lines, 
the  Groups'  Representatives  feel  it  their  duty  to  urge  that  an  immediate  decision  should 
be  come  to,  with  regard  to  the  construction  of  the  required  extension,  and  that  arrange- 
ments should  be  made  for  its  survey  to  Chengtu  during  the  coming  winter,  in  order  that 
construction  may  be  commenced  as  soon  as  possible. 

"  The  financing  of  such  an  extension  is  provided  for  by  the  terms  of  Article  XIX  of 
the  Loan  Agreement,  under  which,  in  the  event  of  the  Chinese  Government  requiring 
to  borrow   foreign  capital,  preference  is  to  be  given  to  our   Groups. 

"  It  appears  to  the  Groups'  Representatives  important  that  the  cost  of  this  survey 
should  not  be  a  charge  upon  the  funds  of  the  present  loan,  which  are  already  clearly 
insufficient  for  the  work  at  present  in  progress,  and  they  would  therefore  be  glad  to 
recommend  to  their  Groups  the  advance  of  the  necessary   funds. 

"  We  have  the  honour  to  submit  the  foregoing  remarks  for  your  consideration,  and 
to  request  that  you  will  be  so  good  as  to  inform  us  as  early  as  possible  as  to  the  views 
of  the   Chinese   Government  on   the  matters  in   question. 

"  We  have  the  honour  to   be,   Sir, 

"  Your  obedient  servants, 
" (Signed  by 

"The  Representatives  of  the  Groups.)" 

Banks  to  Ministry,  October  27,  1913. 

"  Peking,  27th  October,  1913. 
"  To  The  Honourable  Mr.  Chou  Tzu-chi, 
Minister  of  Communications. 
"Sir, 

"  We  have  the  honour  to  acknowledge  receipt  of  your  letter  of  to-day's  date,  inform- 
ing us  that  your  Ministry  has  now  concluded  an  Agreement  with  the  Hunan  Railway 
Company,  whereby  the  Hunan  Section  of  the  Hankow-Canton  Railway  is  to  be  nationalised 
forthwith,  in  consideration  of  delivery  by  your  Ministry  to  the  Company  of  Chinese  Gov- 
ernment Treasury  bonds  for  an  amount — subject  to  final  adjustment  of  accounts — of 
approximately  twelve  million  dollars,  the  first  instalment  of  which,  amounting  to  $684,950 
plus  the  amount  of  interest  due  for  October  of  this  year  amounting  to  $25,000,  making 
a  total  of  $709,950.00,  becomes  due  on  October  31st,  1913. 

"  Your  Ministry  now  requests  the  payment  from  loan  funds  of  the  said  sum  of 
$709,950.00  (which  does  not  include  the  Szechuan-Hupei  Line),  to  be  considered  as  the 
first  instalment  of  further  payments  from  loan  funds  up  to_  an  aggregate  amount  not 
exceeding  the  final  valuation  of  the  Hunan   Section  by  the  British   Engineer-in-Chief. 

"  You  state  that  it  has  been  agreed  between  your  jMinistry  and  the  Hunan  Railway 
Company  that  on  payment  of  the  aforesaid  first  instalment  of  $709,950,  the  Company  will 
forthwith  relinquish  all  its  rights  in  respect  to  the  said  section,  and  will  look  solely  to  the 
Chinese  Government  for  the  payment,  when  due,  of  all  further  instalments  in  excess  of 
the  estimate  of  the  Engineer-in-Chief,  without  recourse  against  the  Hukuang  Railways. 
Further  that  a  declaration  to  the  effect  that  the  Chiao  Tung  Bank  has  been  designated  by 
the  Central  Government  its  Agent  for  the  repayment  of  principal  and  payment  of  interest 
of  these  bonds  without  recourse  against  the  Hukuang  Railways  will  be  stamped  on  the 
Chinese  Government  bonds  above-mentioned  before  their  issue  by  your  Ministry,  in  order 
to  show  clearly  that  the  said  railway  line  is  to  be  forthwith  incorporated  in  the  Hupei- 
Hunan  Section  of  the  Canton-Hankow  Railway,  as  part  of  the  security  for  the  Hukuang 
Railways  Loan  (that  is  to  say  the  security  mentioned  in  the  letter  of  March  1st,  1913). 

"  As  evidence  of  this  understanding  your  Ministry  enclose  for  our  information  copies 
of  telegrams  which  have  been  exchanged  with  its  four  delegates  sent  to  Hunan. 


894  CHINA  TREATIES  AND  AGREEMENTS 

"  In  reply  we  have  the  honour  to  inform  you  that  we  agree  to  the  conditions  stated 
in  your  letter  and  referred  to  above,  and  are  prepared  to  receive  your  instructions  with 
regard  to  the  transfer  from  the  loan  funds  of  the  equivalent  of  $709,950.00,  the  proceeds 
of  which  our  Branches  in  Hankow  will  be  requested  to  hold  at  your  disposal  for  payment 
to  the  Hunan  Railway  Company. 
"  We  have  the  honour  to  be, 

Sir, 

'■  Your   obedient    servants. 
"  (Signed  by  the  Representatives  of  the  Groups.)" 

Banks  to  Ministry,  January  22,  1914. 
[Text  as  printed  in   Wang,  p.  601.] 

"  Peking,  22nd  January,  1914. 
"  The  Honourable  Mr.  Feng  Yuan   Ting, 

Vice-Minister   of    Communications   and 
Director-General,  Hukuang  Railways. 
"Sir: 

"  We  have  the  honour  to  acknowledge  the  receipt  of  your  letter  No.  1  of  22nd  January, 
in  which  you  set  forth  under  five  headings  the  understanding  now  reached  with  regard  to 
the  redemption  of  the  Hunan  and  Szechuan  Railways  as  follows: — 

" '  1. — In  accordance  with  the  report  of  the  Engineer-in-Chief,  IMr.  CoUinson,  the 
materials,  and  property  of  the  Hunan  Railway  Company  are  worth  at  least  $2,300,000. 
The  first  instalment  of  the  principal  and  interest  upon  the  shares  amounting  to  $709,950 
has  been  paid,  and  provision  has  been  made  by  the  above  mentioned  transfer  of  £55,000 
for  the  payment  of  $554,150  due  on  account  of  the  second  instalment  of  the  principal  and 
interest  of  the  Hunan  Railway  Company's  shares.  In  addition,  it  has  been  decided  to 
make  a  provision  of  $1,000,000  to  meet  payment  of  the  debts  of  the  Hunan  Railway  Com- 
pany on  account  of  materials,  &c.  The  total  of  the  above  amounts  is  within  the  amount 
of  $2,300,000  estimated  to  be  the  minimum  value  of  the  line  by  the  Engineer-in-Chief. 

"  '  2. — With  the  exception  of  the  sums  enumerated  above,  the  Ministry  of  Communica- 
tion takes  full  and  entire  responsibility  for  the  payment  of  all  money  due  to  the  Hunan 
Railway  Company  for  redemption  of  the  railway  and  for  payment  of  its  debts  of  every 
description. 

"  '  3. — Should  the  final  estimate  of  the  Engineer-in-Chief  exceed  the  aforesaid  sum  of 
$2,300,000,  the  amount  of  excess  shall  be  paid  from  loan  funds  in  terms  of  the  Letter 
of  Agreement  of  27th  October,  1913. 

"  •  4. — In  the  event  of  there  being  a  surplus  from  the  $1,000,000  provided  for  the  pay- 
ment of  the  debts  of  the  Hunan  Railway  Company  after  all  claims  have  been  paid,  it  shall 
be  applied  to  the  payment  of  the  principal  and  interest  upon  the  shares  of  the  line,  in 
terms  of  the  letter  of  Agreement  of  27th  October,  1913. 

"  '  5. — With  regard  to  the  payment  to  be  made  for  the  redemption  of  the  Hunan  and 
Szechuan  Railways,  the  Loan  Agreement  only  allows  £600,000  for  this  purpose.  The 
total  amount  of  money  for  redemption  of  the  two  lines  from  loan  funds  must  therefore 
not  exceed  £600,000,  but  in  case  this  should  prove  insufficient  it  is  agreed  that  the  neces- 
sary appropriation  shall  be  made  from  the  second  series  of  the  loan  provided  for  under 
Article  15  of  the  Loan  Agreement,  it  being  understood  that  the  total  appropriation  of 
loan  funds  from  the  first  and  second  series  for  the  resumption  of  the  said  lines  shall  not 
exceed  their  final  Valuation  by  the  Engineer-in-Chief.' 

"  In  reply  we  have  the  honour  to  confirm  that  we  agree  to  the  above  five  clauses  on 
condition  that  we  receive  from  the  Minister  of  Communications  the  reply  to  our  letter 
of  September  26th  last  respecting  the  extension  of  the  Szechuan  Railway,  asked  for  in 
our  letter  Xo.  2  of  to-day's  date. 

"  We  have  the  honour  to  be.   Sir, 

"  Your  obedient  servants, 
"(Signed)  E.  G.  Hillier, 

"  H.  Cordes. 

"  R.  Saint  Pierre, 

"  D.  A.  Menocal." 

Banks   to  Ministry,  January  22,  1914. 

"  Peking,  22nd  January,  1914. 
"The  Honourable  Mr.  Chou  Tzu-ch'i, 
Minister  of  Communications. 
"  Sir, 

"On  the  26th  September  and  11th  November  last  we  addressed  you  on  the  subject 
of    the  extension    of   the    Ichang-Kweifu    section    to    Chengtu,    and    the    importance    of    an 


NUMBER  1911/5:  MAY  20,  1911:  NOTES  895 

immediate  decision  on  this  matter  being  taken  by  the  Chinese  Government  in  view  of  the 
expenditure  which  is  now  about  to  be  made  on  the  section  in  question. 

"  In  the  meantime  an  understanding  has  been  arrived  at  with  the  Director-General 
with  regard  to  the  resumption  of  the  Huna  (Hunan)  and  Szechuan  Provincial  Railways, 
which  makes  it  desirable  to  deal  comprehensively  with  the  whole  question  of  the  Han- 
Yiieh-Chuan  Railways. 

"  According  to  the  Loan  Agreement  the  Hupei-Hunan  section  of  the  Canton-Hankow 
Railway  stops  in  the  district  of  Yichanghsien  on  the  border  of  Hunan  Province.  Ijut 
unless  this  line  is  extended  and  connection  with  Canton  completed,  it  cannot  be  made  a 
commercial  success,  and  there  appears  to  be  no  certainty  as  to  when  the  line  now  under 
construction  by  the  Canton  Provincial  Company  will  be  completed  to  the  border  of  Hunan. 

"  We  would  therefore  beg  to  state  that  if  the  Chinese  Government  should  decide  to 
change  the  present  commercial  status  of  the  Provincial  Railway,  and  should  find  it  neces- 
sary to  borrow  capital  for  that  purpose,  the  Group  Banks  will  be  prepared  to  furnish  the 
funds  necessary  for  dealing  with  this  matter  in  accordance  with  the  intentions  of  the 
Chinese  Government. 

"  We  have  the  honour  to  request  that  if  the  above  proposal  in  regard  to  the  Canton 
extension  meet  your  wishes,  you  will  be  good  enough  to  inform  us  in  this  sense,  and  at 
the  same  time  favour  us  with  a  reply  to  our  letter  of  26th  September  last  with  regard  to 
the   Szechuan   extension. 

"  We  have  the  honour  to  be,  Sir, 
"  Your   obedient   servants, 

"(Sd.)  E.  G.  HILLIER, 

HEINRICH    CORDES, 
R.  SAINT  PIERRE, 
D.  A.  DE  MENOCAL." 

Ministry   to  Banks,  January  23,  1914. 

[Translation.] 

"  To  The  Hongkong  &  Shanghai  Bank,  Deutsch-Asiatische  Bank,  Banque  de  ITndo-Chine, 

International  Banking  Corporation, 
"  Peking. 
"  Sirs : 

"  I  beg  to  acknowledge  receipt  of  your  letters  dated  26th  September  and  11th  November 
of  last  year  and  22nd  January  of  this  year,  all  of  which  I  have  noted. 

"  With  regard  to  the  extension  of  the  Szechuan  line  to  Chengtu,  this  ministry  intends 
at  an  early  date  to  proceed  with  this  extension,  and  to  settle  upon  a  method  of  procedure 
in  respect  of  the  surveys  and  other  matters  as  soon  as  possible,  in  consultation  with  the 
groups. 

"  With  regard  to  the  extension  of  the  Hupei-Hunan  line  into  Kuangtung  territory, 
this  ministry  notes  that  should  the  Chinese  Government,  in  the  future,  decide  to  change 
the  commercial  status  of  the  Canton  Provincial  Railway  and  have  to  borrow  funds,  the 
groups  are  willing,  in  accordance  with  the  intentions  of  the  Chinese  Government,  to  pro- 
vide a  loan  for  this  purpose.  With  regard  to  this  question  it  is  the  intention  of  this  min- 
istry to  consult  with  the  groups  at  an  early  date. 

"  I   have,  etc. 

"  (Sd.)        Chou  Tzu  Ch'i." 
"  23rd  January,  1914. 


Note  2. 

With  a  view  to  the  nationalization  of  the  Hunan  and  Hupei  provincial  railways,  con- 
templated by  Article  3,  there  was  issued  on  ^lay  9,  1911,  an  imperial  edict  of  which  the 
translation   is   as   follows : 

Imperial  Edict  regarding  Nationalization  of  Trunk  Lines  of  Railway,  May  9,  1911. 

"  The  Board  of  Posts  and  Communications  has  memorialized  stating  that  in  obedience 
to  instructions  the  memorial  of  the  supervising  censor  Shih  Ch'ang-lien  on  the  importance 
of  clearly  determining  the  treatment  of  trunk  and  branch  railway  lines  has  been  taken 
into  consideration. 

"  The  plan  proposed  is  eminently  suitable.  China  has  a  great  area.  Her  boundaries 
are  far  apart.  The  distances  amount  to  several  ten  thousands  of  li,  to  traverse  which 
requires  many  months.  The  court  thinks  day  and  night  about  the  difficulty  of  guarding 
the  frontier,  wishing  to  find  a  way  to  overcome  it.     But  there  is  no  other  way  than  to 


896  CHINA  TREATIES  AND  AGREEMENTS 

construct  railways  quickly.  Moreover  the  consultations  connected  with  constitutional  gov- 
ernment, the  movements  of  troops,  the  transportation  of  produce,  all  depend  on  convenient 
means  of  communication.     All  important  reforms  depend  on  this. 

"  The  Government  must  have  in  all  directions  extending  to  the  borders  of  the  Empire 
great  trunk  lines  in  order  to  carry  on  government  effectively,  and  to  maintain  centralised 
authority.  Hitherto  the  methods  have  been  ill-conceived  and  there  has  been  no  fixed  plan, 
with  the  result  that  the  railway  administration  of  the  whole  country  has  fallen  into  con- 
fusion. There  has  been  no  distinction  between  trunk  and  branch  lines  and  no  estimate  of 
the  powers  of  the  people.  Requests  on  paper  to  act  hastily  have  been  granted.  Com- 
mercial railway  enterprises  have  been  carried  on  for  many  years.  In  Kuangtung  shares 
have  been  withdrawn  and  only  a  small  section  of  railway  has  been  built.  In  Szechuan 
there  has  been  misappropriation  of  funds  and  fruitless  attempts  to  recover.  In  Hunan 
and  Hupei  offices  have  been  opened  for  many  years,  capital  has  been  vainly  wasted  to 
the  exhaustion  of  the  people's  resources,  either  by  useless  extravagance  or  by  fraudulent 
practices.  If  this  period  of  waste  continues  longer  the  burdens  of  the  people  will  be  the 
heavier  and  both  Government  and  people  will  suffer  injury.  How  can  we  contemplate 
the  consequences  of  such  mistakes?  We  now  clearly  proclaim  to  the  whole  Empire  that 
the  trunk  railway  lines  are  to  belong  to  the  Government.  This  is  to  be  the  fixed  policy 
of  the  Government.  All  the  companies  which  have  been  organized  in  the  provinces  before 
the  3rd  year  of  Hsuan-t'ung  which  have  been  hindering  too  long  by  their  failures  should 
at  once  revert  to  the  Government,  which  will  build  the  roads  without  further  delay. 
Branch  roads  may  still  be  connected  by  the  people  according  to  their  ability,  but  all  permits 
heretofore  issued  for  the  building  of  trunk  lines  are  hereby  cancelled.  As  to  the  method 
of  taking  over  these  enterprises  the  Board  of  Finance  and  the  Board  of  Communications 
will  carefully  work  out  the  details  in  accordance  with  this  edict,  asking  without  delay  for 
the  edict  to  put  them  in  execution. 

"  The  ministers  concerned  must  not  show  indecision  nor  delay  this  matter.  If  any, 
disregarding  the  larger  interests  involved,  make  disturbances  about  the  railway  admin- 
istration, encourage  discontent  and  opposition,  they  will  be  dealt  with  at  once  as  ofifenders 
against  imperial  regulations. 

"  Let  this  be  widely  proclaimed." 

The  text  of  the  agreement  by  which  the  Central  Government  took  over  the  Hunan 
section  of  the  Canton-Hankow  Railway  is  not  available.  The  following  is  the  translation 
of  the  agreement  concluded  November  2,  1912,  between  the  Department  of  Communica- 
tions and  the  Szechuan-Hankow  Railway  Company,  for  the  taking  over  of  the  company's 
line : 

Agreement  for  Purchase  by  Government  of  Szechuan-Hankow  Railway  Company's 

Line,  November  2,  1912. 

"  Liu  Sun-yuan  (hereinafter  to  be  called  the  representative)  acting  as  representative 
to  the  Szechuan-Hankow  Railway  Company  (hereinafter  to  be  called  the  Company)  has 
received  full  powers  from  the  whole  body  of  shareholders  of  the  said  Company,  to  confer 
with  the  Department  of  Communications  (hereinafter  to  be  called  the  Department)  regard- 
ing the  nationalization  of  the  said  railway,  and  has  agreed  as  follows: 

"  1. — The  construction  work,  machinery,  workshop,  and  land,  etc.,  of  the  whole  Ichang- 
Wanhsien  section  of  the  Szechuan-Hankow  Railway  shall  be  handed  over  to  the  govern- 
ment, as  agreed  upon  by  the  whole  body  of  shareholders  of  the  Company,  and  all  other 
sections  of  the  Szechuan-Hankow  Railway  (from  Chengtu  to  Wanhsien)  shall  also  be 
handed  over  to  the  Government :  but  in  the  future,  if  the  Government  alter  the  location 
of  the  railway,  in  such  a  way  that  this  railway  is  not  made  a  trunk  line,  excepting  the 
Ichang- Wanhsien  section,  all  other  sections  shall  still  be  turned  over  to  the  Company. 

"  2. — All  cash  funds  of  the  Company  shall  be  taken  back  by  the  Company  to  be  used 
for  other  industrial  purposes :  such  cash  funds  are  of  the  following  description : — those 
funds  that  are  deposited  with  the  Bank  of  Communications,  the  Hanyang  Iron  Works, 
the  Cement  Company,  and  all  the  cash  funds  of  the  Company  deposited  in  Shanghai, 
Hankow,  Chungking,  Chengtu :  in  addition  to  this,  the  machinery  and  workshop  land  and 
all  other  appended  property  of  the  copper  mint  of  Chengtu,  shall  also  be  taken  back  by  the 
Company,  and  the  Government  shall  undertake  to  draw  back  for  the  Company  all  such 
funds  as  loaned  to  the  Bank  of  Communications,  and  advances  made  to  the  Hanyang  iron 
works. 

"  3. — Regarding  the  public  loan  bonds  issued  on  account  of  the  payment  of  con- 
struction work  on  the  Ichang-Wanhsien  section,  the  outstanding  debts  on  account  of 
materials  bought  of  the  various  foreign  companies,  and  the  loan  of  the  Hupei  Army's 
Payment  Bureau  Loan,  the  above  three  items  amounting  to  about  Tls.  900,000 :  it  is 
agreed  that  the  said  bonds  shall  be  redeemed  by  the  Government,  the  outstanding  accounts 
with  the  various  foreign  companies  to  be  settled  by  the  Government,  and  the  Hupei  Army 
Payment  Bureau  Loan  shall  be  taken  care  of  by  the  Company. 

"  4. — The   Department   shall   issue  promissory   notes  to   the   Company  to   reimburse  all 


NUMBER  1911/5:  MAY  20,  1911:  NOTES  897 

direct  and  indirect  expenditure  incurred  on  construction  work  by  the  Company  expendi- 
ture directly  or  indirectly  incurred  by  the  Company,  and  beginning  on  the  date  when  the 
railway  is  received  by  the  Government,  an  annual  interest  of  six  per  cent  shall  be  started 
on  this  reimbursement  due  to  the  Company,  and  the  interest  shall  be  paid  to  the  Com- 
pany once  a  year.  All  expenditure  direct  on  construction  work  directly  incurred  by  the 
Company  up  to  the  end  of  the  eighth  month  of  the  first  year  of  the  Republic  (August 
31,  1912)  shall  be  paid  to  the  Company  in  instalments,  within  ten  years:  all  expenditure 
indirectly  on  construction  work  incurred  by  the  Company,  such  as  interest  on  shares, 
salaries,  students'  tuition,  etc.,  shall  be  reimbursed  to  the  Company  in  instalments  within 
five  years,  beginning  on  the  eleventh  year  of  taking  over  of  the  railway  by  the  Govern- 
ment ;  the  different  items  are  detailed  on  a  separate  statement.  All  the  interest  on  shares 
due  to  shareholders  before  the  taking  of  the  railway,  shall  be  reckoned  as  indirect  expendi- 
ture. All  the  direct  and  indirect  expenditure  shall  be  calculated  according  to  the  records 
of  the  Szechuan  Railway  Company  Shareholders'  Meeting  and  the  records  kept  by  the 
Department  of  Posts  and  Communications  of  the  former  Tsing  Dynasty.  All  direct  expendi- 
ture shall  be  calculated  jointly  by  a  specially  appointed  officer  of  the  Department  and  the 
manager  of  the  Company  at  Ichang:  the  indirect  expenditure  shall  be  calculated  jointly 
by  a  specially  appointed  officer  of  the  Department  and  the  head  office  of  the  Company  at 
Chcngtu,  so  that  the  railway  may  be  properly  handed  over.  All  expenditures  that  have  no 
bearing  on  the  railway  work  either  directly  or  indirectly,  shall  not  be  taken  into  account. 

"  5. — All  bankrupt  accounts  at  Shanghai  shall  be  attended  to  by  the  Company  and  the 
Government  shall  assist  in  the  collecting  of  such  accounts. 

"6. — If  in  the  future  the  Szechuan-Canton-Hankow  General  Railway  Company  be 
organized,  the  holders  of  promissory  notes  mentioned  in  Article  4  shall  be  free  to  exchange 
such  promissory  notes  for  share  certificates  of  the  General  Railway  Company. 

"  7. — All  detail  procedures  for  the  carrying  out  of  the  above  articles  shall  be  further 
discussed  by  the  representative  with  the  Department. 

"  The  Department, 

"  The  Representative." 
"  November  2,  1912. 


Note  3. 

With  the  object  of  giving  more  practical  eflFect  to  the  principle  of  impartial  pref- 
erence, as  among  the  markets  of  the  four  nationalities  concerned,  in  respect  to  the  supply 
of  equipment  and  materials,  a  conference  of  directors  and  engineers-in-chief  of  the 
Hukuang  railways  was  held,  under  the  chairmanship  of  the  director  General  (Dr.  Jeme 
Tien-yu)  at  Hankow  in  May,  1914.  The  following  articles  were  adopted  by  the  con- 
ference in  reference  to  bridges  (May  20  and  21)  and  in  regard  to  locomotives  and  rolling- 
stock  (May  25)  : 

Hankow  Conference  Resolutions    concerning  Equipment  and  Materials  for  Hukuang 

Railways,  May  20-25,  1914. 

"  Bridges. 

"  1.  Consulting  engineers  to  be  appointed  by  the  Ministry  of  Communications  in  each 
country  with  authority  to  approve  or  reject  the  designs  and  workmanship  of  the  manu- 
facturers and  to  officially  accept  the  structure  on  behalf  of  the  section  for  which  the  struc- 
ture is  intended. 

"2.  All  indents  must  be  forwarded  by  the  managing  directors  of  the  various  sections 
to  the  director  general,  who  in  sending  indents  to  the  purchasing  agents  will  forward 
copies  simultaneously  to  the  groups  banks  in  New  York,  London,  Paris  and  Berlin  for 
distribution  and  advertisement,  and  the  representatives  of  the  groups  banks  in  Peking 
for  distribution  to  the  local  representatives  of  the  American,  British,  French  and  German 
manufacturers. 

"  3.  Sealed  bids  with  recommendations  to  be  presented  to  the  director  general  at 
Hankow  by  the  consulting  engineers  of  the  various  countries  interested  ninety  days  from 
the  date  indents  are  forwarded  by  the  director  general  to  the  groups  banks  in  New  York, 
London,  Paris  and  Berlin.  Local  manufacturers  forward  their  bids  direct  to  the  director 
general  at  Hankow. 

"  4.  All  tenders  to  be  publicly  opened  in  the  presence  of  the  bidders'  representatives 
on  that  date. 

"5.  The  specifications  of  the  material  to  be  used  throughout  in  tendering  for  the 
supply  of  bridges  and  bridge  material  and  for  the  manufacture  and  fabrication  of  same 
shall  be  in  strict  accordance  with  the  recognized  standards  and  best  practices  prevailing 
in  Great  Britain,  France,  Germany  and  the  United  States  of  America. 


898  CHINA  TREATIES  AND  AGREEMENTS 

"  For  material  as  accepted  from  Great  Britain,  the  specifications  for  same  shall  be 
as  recommended  by  the  British  Standards  Committee  as  affiliated  with  the  International 
Association   for  testing  materials. 

"  For  materials  as  accepted  from  the  United  States  of  America,  the  specifications  for 
same  shall  be  in  accordance  with  the  specifications  recommended  by  the  American  Society 
for  testing  materials  affiliated  with  the  International  Association  for  testing  materials. 

"  For  materials  as  accepted  from  Germany,  the  specifications  for  same  shall  be  in 
accordance  with  the  specifications  as  recommended  by  Konigl.  preussische  staatseisenbahn 
verwaltung  (Royal  Prussian  state  railway  administration). 

"  For  materials  as  accepted  from  France,  the  specifications  for  same  shall  be  in  accord- 
ance with  the  specifications  as  recommended  by  a  similar  society  to  the  above  and  affiliated 
v/ith  the  International  Association  for  testing  materials. 

"  6.  The  chief  engineers  shall  submit  the  type  of  bridge  required,  together  with  the 
span,  length  over-all,  depth  or  height,  width  or  loading,  when  tenders  are  invited,  and 
the  bidders  shall  submit  tenders  each  in  accordance  with  the  approved  specification  of  the 
nationality  of  the  bidders. 

"  7.  The  most  favorable  American,  British,  French  and  German  bidders  complying 
with  the  adopted  specifications  to  be  immediately  awarded  the  contract." 

"  Locomotives  and  Rolling  Stock. 

"  1.  Consulting  engineers  to  be  appointed  by  the  Ministry  of  Communications  in  each 
country  with  authority  to  approve  or  reject  the  designs  and  workmanship  of  the  manu- 
facturers and  to  officially  accept  the  locomotives  and  rolling  stock  on  behalf  of  the  section 
for  which  the  locomotives  and  rolling  stock  are  intended. 

"  2.  All  indents  must  be  forwarded  by  the  managing  directors  of  the  various  sections 
to  the  director  general,  who  in  sending  indents  to  the  purchasing  agents  will  forward 
copies  simultaneously  to  the  groups  banks  in  New  York,  London,  Paris  and  Berlin  for 
distribution  and  advertisement,  and  the  representatives  of  the  groups  banks  in  Peking  for 
distribution  to  the  local  representatives  of  the  American,  British,  French  and  German 
manufacturers. 

"  3.  Sealed  bids  with  recommendations  to  be  presented  to  the  director  general  at 
Hankow  by  the  consulting  engineers  of  the  various  countries  interested  ninety  days  from 
the  date  indents  are  forwarded  by  the  director  general  to  the  groups  banks  in  New  York, 
London,  Paris  and  Berlin.  Local  manufacturers  will  forward  their  bids  direct  to  the 
director  general  at  Hankow. 

"  4.  All  tenders  to  be  publicly  opened  in  the  presence  of  the  bidders'  representatives 
on  that  date. 

"  5.  The  specifications  of  the  material  to  be  used  throughout  the  tendering  for  the 
supply  of  locomotives  and  rolling  stock  and  for  the  manufacture  and  fabrication  of  same 
shall  be  in  strict  accordance  with  the  recognized  standards  and  best  practices  prevailing 
in  Great  Britain,  France,  Germany  and  the  United  States  of  America. 

"  Only  usual  tests  of  quality  shall  be  required  and  no  chemical  analysis  to  be  pre- 
scribed.    Furthermore,  the  production  of  the  stee^  shall  be  left  to  the  manufacturers. 

"  In  construction  and  design  of  details  each  country  to  use  its  own  standards,  method 
of  construction,  quality  of  workmanship  and  tests  and  all  of  the  foregoing,  providing 
they  are  standard  in  one  of  the  four  countries,  are  to  be  acceptable  to  the  other  three 
countries. 

"  All  tenders  to  be  accompanied  by  a  certificate  from  the  manufacturer  indicating  upon 
the  basis  of  which  specifications  the  tender  is  made,  bidders  being  privileged  to  select  one 
of  the  four  following  specifications : 

"  I.    The  specifications  recommended  by  the  British  Standards  Committee. 
"  2.    The   specifications    recommended   by   the    American    Society    for   testing   ma- 
terials. 

"  3.     The   specifications   recommended  by   the   Konigl.   preussische   Staatseisenbahn 

verwaltung  (Royal  Prussian  state  railway  administration). 

"  4.    The    specifications    recommanded    by    the    Cahiers    des    charges    unifies    des 

compagnies  franqaises  de  chemins  de  fer. 

"  6.  English  and  metric  standard  system  of  measurements.  In  the  event  of  specifications 
being  issued  in  the  metric  system  the  English  equivalent  to  the  nearest  sixteenth  of  an  inch 
higher  is  to  be  accepted,  and  in  the  event  of  specifications  being  issued  in  the  English  system 
the  correspondingly  higher  metric  equivalent  is  to  be  accepted. 

"7.  The  engineer-in-chief  specifies  in  the  tenders  the  type  of  construction  of  the  engines, 
including  the  general  measurements  required,  as  accurately  as  possible.  All  details  referring 
to  maximum  axle  pressure,  power  of  engine,  gradients,  curves,  etc.,  must  be  mentioned  in  the 
tender-specifications. 

"  In  the  tender-specifications  accurate  description  of  special  engine  fittings  should  be 
made  by  the  engineer-in-chief. 

"  8.    The  construction  of  the  engines  shall  be  under  the  control  of  the  consulting  engi- 


NUMBER  1911/6:  JUNE  10/23,  1911  899 

neer.  He  is  also  responsible  for  tests  of  material  used  for  their  construction.  Any  pro- 
posals made  by  the  consulting  engineer  should  be  carefully  considered.  Parts  which  are 
rejected  on  account  of  faulty  material  or  bad  workmanship  must  on  no  account  be  used. 

"  9.    The  most  favorable  American,  British,  French  and  German  bidders  complying  with 
the  adopted  specifications  to  be  immediately  awarded  the  contract." 


NUMBER  1911/6. 

JAPAN  AND  RUSSIA. 

Convention  for  the  reciprocal  protection  of  industrial  property  in  China* — 

June  10/23,  1911. 

His  Majesty  the  Emperor  of  all  the  Russias,  and  His  Majesty  the  Emperor 
of  Japan,  desiring  to  assure  in  China  the  reciprocal  protection  of  the  industrial 
property  of  their  respective  subjects,  have  resolved  to  conclude  a  convention  for 
that  purpose,  and  have  named  their  plenipotentiaries,  to  wit : 

His  Majesty  the  Emperor  of  all  the  Russias,  His  Ambassador  Extraordinary 
and  Plenipotentiary  near  His  Majesty  the  Emperor  of  Japan,  the  Master  of  his 
Court  and  Senator  Nicolas  Malewsky-Malewitch ;  and 

His  Majesty  the  Emperor  of  Japan,  his  Minister  for  Foreign  Affairs,  Marquis 
Jutaro  Komura,  Shosammi,  Grand  Cordon  of  the  Imperial  Order  of  the  Rising 
Sun  (with  Paulo wnia  flowers), 

who,  having  communicated  to  each  other  their  full  powers,  found  to  be  in 
good  and  due  form,  have  agreed  upon  the  following  articles : 

Article  1. — The  inventions,  designs,  and  trademarks,  duly  patented  or 
registered  by  the  subjects  of  one  of  the  high  contracting  parties  in  the  appro- 
priate office  of  the  other  contracting  party,  will  have  in  all  parts  of  China  the 
same  protection,  against  any  infringement  by  the  subjects  of  that  other  contract- 
ing party,  as  in  the  territories  and  possessions  of  that  other  contracting  party. 

Article  2. — In  cases  of  infringement,  in  China,  by  any  subject  of  one  of  the 
two  high  contracting  parties,  of  any  invention,  design,  or  trademark  whatsoever, 
entitled  to  protection  by  virtue  of  the  present  convention,  the  injured  party  will 
have,  before  the  competent  national  or  consular  tribunals  of  that  contracting  party, 
the  same  rights  and  recourse  as  the  subjects  of  that  contracting  party. 

Article  3. — It  is  mutually  agreed  between  the  two  high  contracting  parties 
that  the  effect  of  the  present  convention  will  be  extended,  in  so  far  as  it  is 
applicable,  to  all  other  countries  where  each  of  them  may  have  the  rights  of 
extraterritorial  jurisdiction. 

All  the  rights  arising  out  of  the  present  convention  will  be  recognized  in  the 
insular  and  other  possessions  and  the  territories  occupied  under  lease  by  the  high 
contracting  parties,  and  all  the  legal  means  contemplated  for  the  protection  of 
such  rights  will  be  duly  applied  by  the  competent  tribunals. 

*  Translation  from  the  French  text  as  printed  in  Izviestia,   1913,  vol.  II,  p.   12. 


900  CHINA  TREATIES  AND  AGREEMENTS 

Article  4. — Every  person  to  whom  the  provisions  of  this  convention  are 
appHcable,  who,  at  the  time  when  the  present  convention  comes  into  force,  pos- 
sesses any  merchandise  bearing  an  imitation  of  a  trademark  belonging  to 
another  person  and  entitled  to  protection  by  virtue  of  the  said  convention,  must 
remove  or  cancel  this  false  trademark,  or  withdraw  this  merchandise  from  the 
Chinese  market  within  a  period  of  six  months  from  the  coming  into  force  of  this 
convention. 

Article  5. — The  present  convention  will  be  ratified,  and  the  ratifications 
thereof  will  be  exchanged  at  Tokyo,  as  soon  as  possible.  It  will  come  into  force 
four  months  after  the  exchange  of  ratifications. 

In  faith  whereof  the  respective  plenipotentiaries  have  signed  the  present 
convention  and  affixed  their  seals  thereto. 

Done  in  duplicate  at  Tokyo,  June  10/23,  1911,  corresponding  to  the  23rd 
day  of  the  6th  month  of  the  44th  year  of  Meiji. 

(Sgd)  N.    Malewsky-Malewitch         (L.S.) 

(Sgd)  JUTARO    KOMURA  (L.S.) 


NUMBER  1911/7. 

GREAT  BRITAIN  AND  JAPAN. 

Agreement  respecting  the  integrity  of  China,  the  general  peace  of  Eastern  Asia 
and  India,  and  the  territorial  rights  and  special  interests  of  the  Parties  in 
those  regions.^ — July  13,  1911. 

Preamble. 

THE  Government  of  Great  Britain  and  the  Government  of  Japan,  having  in 
view  the  important  changes  which  have  taken  place  in  the  situation  since  the 
conclusion  of  the  Anglo-Japanese  Agreement  of  the  12th  August,  1905,  and 
believing  that  a  revision  of  that  Agreement  responding  to  such  changes  would  con- 
tribute to  general  stability  and  repose,  have  agreed  upon  the  following  stipulations 
to  replace  the  Agreement  above  mentioned,  such  stipulations  having  the  same 
object  as  the  said  Agreement,  namely ; 

(a)  The  consolidation  and  maintenance  of  the  general  peace  in  the  regions 
of  Eastern  Asia  and  of  India ; 

(&)  The  preservation  of  the  common  interests  of  all  Powers  in  China  by 
insuring  the  independence  and  integrity  of  the  Chinese  Empire  and  the  principle 
of  equal  opportunities  for  the  commerce  and  industry  of  all  nations  in  China; 

(c)   The  maintenance  of  the  territorial  rights  of  the  High  Contracting  Parties 

*Text  as  printed  in  British  Treaty  Series,  No.  18   (1911). 

In  connection  with  this  agreement  see  also  the  Anglo-Japanese  agreements  of  January 
30,  1902  (Xo.  1902/2,  anie)  and  August  12,  1905  (No.  1905/6,  ante). 


NUMBER  1911/7:  JULY  13,  1911  901 

in  the  regions  of  Eastern  Asia  and  of  India,  and  the  defence  of  their  special  inter- 
ests in  the  said  regions  : — 

Article  I. — It  is  agreed  that  whenever,  in  the  opinion  of  either  Great  Britain 
or  Japan,  any  of  the  rights  and  interests  referred  to  in  the  preamble  of  this 
Agreement  are  in  jeopardy,  the  two  Governments  will  communicate  with  one 
another  fully  and  frankly,  and  will  consider  in  common  the  measures  which 
should  be  taken  to  safeguard  those  menaced  rights  or  interests. 

Article  II. — If  by  reason  of  unprovoked  attack  or  aggressive  action,  where- 
ever  arising,  on  the  part  of  any  Power  or  Powers,  either  High  Contracting  Party 
should  be  involved  in  war  in  defence  of  its  territorial  rights  or  special  interests 
mentioned  in  the  preamble  of  this  Agreement,  the  other  High  Contracting  Party 
will  at  once  come  to  the  assistance  of  its  ally,  and  will  conduct  the  war  in  com- 
mon, and  make  peace  in  mutual  agreement  with  it. 

Article  III. — The  High  Contracting  Parties  agree  that  neither  of  them 
will,  without  consulting  the  other,  enter  into  separate  arrangements  with  another 
Power  to  the  prejudice  of  the  objects  described  in  the  preamble  of  this  Agreement. 

Article  IV. — Should  either  High  Contracting  Party  conclude  a  treaty  of 
general  arbitration  with  a  third  Power,  it  is  agreed  that  nothing  in  this  Agreement 
shall  entail  upon  such  Contracting  Party  an  obligation  to  go  to  war  with  the 
Power  with  whom  such  treaty  of  arbitration  is  in  force. 

Article  V. — The  conditions  under  which  armed  assistance  shall  be  afforded 
by  either  Power  to  the  other  in  the  circumstances  mentioned  in  the  present  Agree- 
ment, and  the  means  by  which  such  assistance  is  to  be  made  available,  will  be 
arranged  by  the  Naval  and  Military  authorities  of  the  High  Contracting  Parties, 
who  will  from  time  to  time  consult  one  another  fully  and  freely  upon  all  questions 
of  mutual  interest. 

Article  VI. — The  present  Agreement  shall  come  into  effect  immediately 
after  the  date  of  its  signature,  and  remain  in  force  for  ten  years  from  that  date. 

In  case  neither  of  the  High  Contracting  Parties  should  have  notified  twelve 
months  before  the  expiration  of  the  said  ten  years  the  intention  of  terminating  it, 
it  shall  remain  binding  until  the  expiration  of  one  year  from  the  day  on  which 
either  of  the  High  Contracting  Parties  shall  have  denounced  it.  But  if,  when  the 
date  fixed  for  its  expiration  arrives,  either  ally  is  actually  engaged  in  war,  the 
alliance  shall,  ipso  facto,  continue  until  peace  is  concluded. 

In  faith  whereof  the  Undersigned,  duly  authorised  by  their  respective 
Governments,  have  signed  this  Agreement,  and  have  affixed  thereto  their  Seals. 

Done  in  duplicate  at  London,  the  13th  day  of  July,  1911. 

E.  Grey, 
His  Britannic  Majesty's  Principal  Secretary  of 
State  for  Foreign  Affairs. 
Takaaki  Kato, 
Ambassador   Extraordinary   and   Plenipoten- 
tiary of  His  Majesty  the  Emperor  of  Japan 
at  the  Court  of  St.  James. 


902  CHINA  TREATIES  AND  AGREEMENTS 


NUMBER  1911/8. 

FRANCE  (Banque  de  I'Indo-Chine),  GERMANY  (Deutsch-Asiatische  Bank), 

GREAT  BRITAIN  (Hongkong  &  Shanghai  Banking  Corporation), 

UNITED  STATES  (American  Group)  AND  CHINA. 

Agreement  for   the   Hupei  Provincial  seven   per   cent   silver   loan    of   1911. — 

August  14,  1911. 

This  Agreement  is  made  between  His  Excellency  Jul  Cheng,  Viceroy  of  the 
Hukwang  Provinces,  of  the  one  part,  and  the  Hongkong  and  Shanghai  Banking 
Corporation,  the  Deutsch-Asiatische  Bank,  the  Banque  de  ITndo-Chine  and  the 
American  Group  represented  by  the  International  Banking  Corporation,  here- 
inafter called  the  Banks,  of  the  other  part. 

Whereas  the  Viceroy  of  the  Hukwang  provinces,  His  Excellency  Jui  Cheng, 
has  for  the  purpose  and  with  the  object  of  repaying  outstanding  loans  contracted 
on  onerous  conditions.  Memorialized  the  Throne  for  and  received  an  Imperial 
Edict,  authorising  him  to  raise  a  foreign  loan  for  Taels  2,000,000,  and  to  seal  the 
loan  bonds  hereinafter  referred  to,  it  is  hereby  Agreed  as  follows : 

1. — The  Loan  shall  be  called  "The  Hupei  Provincial  Seven  Per  Cent  Silver 
Loan  of  1911." 

2. — The  Banks  agree  to  lend  to  the  Viceroy  of  the  Hukwang  Provinces,  and 
the  Viceroy  agrees  to  borrow  from  the  Banks,  the  sum  of  Two  Million  Taels 
(Tls.  2,000,000),  the  payment  and  repayment  of  which  said  sum  and  of  interest 
thereon  are  to  be  made  in  Hankow  in  Taels  of  Hankow  Yang-li  Sycee  or  its 
equivalent  in  coin  of  the  National  Currency  if  the  said  Currency  shall  have  been 
effectively  established. 

3. — The  Banks  shall,  on  the  execution  of  this  Agreement,  pay  to  the  Viceroy 
in  full  the  sum  of  Two  Million  Taels  (Tls.  2,000,000)  Hankow  Yang-li  Sycee. 

4. — The  period  of  the  said  Loan  of  Tls.  2,000,000  shall  be  ten  years  and  the 
interest  thereon  shall  be  Seven  per  cent  per  annum  to  be  computed  from  the 
date  of  this  Agreement,  and  shall  be  paid  by  the  Viceroy  or  his  successors  in 
office  to  the  Banks  half-yearly  in  accordance  with  Schedule  attached  to  this 
Agreement,  but  twelve  days  before  the  due  dates  as  shown  thereon  until  repay- 
ment of  the  Loan  has  been  completed.  The  principal  shall  be  repaid  in  ten  half- 
yearly  instalments  of  two  hundred  thousand  Taels  (Tls.  200,000)  commencing 
with  the  Sixth  year  in  accordance  with  the  Schedule  attached  to  this  Agreement 
but  twelve  days  before  the  due  dates  shown  thereon. 

The  first  repayment  of  principal  will  be  made  twelve  days  before  the  four- 
teenth day  of  February,  1917. 

After  each  instalment  of  the  principal  is  paid,  interest  at  the  rate  aforesaid 
shall  only  be  charged  on  the  principal  for  the  time  being  remaining  owing. 

All  payments  of  interest  and  repayments  of  principal  shall  be  made  to  the 
four  Banks  in  Hankow  in  equal  shares. 


NUMBER  1911/8:  AUGUST  14,  1911  903 

5. — This  loan  is  secured  by  a  third  mortgage  on  the  Ichang  Salt  Likin  amount- 
ing to  about  One  Million  Taels  (Tls.  1,000,000)  per  annum  already  charged 
with  the  service  of  the  Imperial  Chinese  Government  4^/2  Per  Cent  Sterling  Loan 
of  1898  for  £16,000.000  and  the  Silver  Loan  for  Five  hundred  thousand  Taels 
Hankow  Sycee  (Hankow  Tls.  500,000)  made  by  the  Hongkong  and  Shanghai 
Banking  Corporation  to  the  Hupei  Government  on  the  14th  day  of  August  1909, 
and  shall  rank  as  regards  security  for  principal  and  interest  immediately  after  the 
two  said  loans,  which  the  Viceroy  hereby  guarantees  to  be  the  only  existing  charges 
on  the  said  Salt  Likin.  The  Viceroy  further  guarantees  on  behalf  of  himself 
and  his  successors  in  Office  that  if  in  future  it  shall  be  necessary  to  employ  the 
said  Likin  as  security,  it  shall  in  no  wise  affect  this  the  third  pledge:  moreover, 
there  must  be  an  explicit  declaration  in  any  subsequent  loan  agreement  that  there 
is  already  a  prior  pledge  of  the  said  likin  to  the  herein  mentioned  four  Banks  as  a 
third  loan  charge,  that  is  to  say,  if  subsequently  there  be  any  pledge  of  the  said 
likin,  such  pledge  shall  rank  as  fourth,  and  shall  not  be  allowed  to  have  priority 
over  or  equality  with  the  third  loan  charge  to  the  four  Banks.  In  case  of  need 
it  shall  be  open  to  the  Viceroy  to  supplement  the  revenue  of  the  Ichang  Salt 
Likin  by  other  revenues  of  the  province  of  Hupei  for  the  service  of  the  present 
loan,  and  in  case  the  Ichang  Salt  Likin  shall,  during  the  currency  of  the  present 
loan,  be  altered  or  abolished,  the  Viceroy  shall  forthwith  apply  to  the  service 
of  the  present  loan  other  approved  provincial  free  revenues  in  substitution 
therefor  or  addition  thereto,  so  as  to  secure  and  pledge  for  the  service  of  the 
present  loan  an  amount  equivalent  to  the  present  annual  charge  upon  the  Ichang 
Salt  Likin  revenue ;  but  in  case  of  default  with  regard  to  a  payment  of  interest 
or  repayment  of  principal  of  the  present  loan,  the  Viceroy  may  be  called  upon  by 
the  British,  German,  French  and  American  Consuls  at  Hankow  to  appropriate 
and  place  under  the  administration  of  the  Imperial  Maritime  Customs  other 
approved  free  revenue  as  security. 

6. — This  loan  shall  further  be  secured  by  deposit  with  the  Hongkong  and 
Shanghai  Banking  Corporation  of  twenty  likin  half-yearly  bonds,  similar  to  the 
likin  half-yearly  bonds  so  deposited  under  Article  6  of  the  Agreement  for  the  loan 
of  the  14th  of  August,  1909,  by  the  Hongkong  and  Shanghai  Banking  Corporation 
to  the  then  Hukwang  Viceroy  Ch'en  K'uei-lung,  equal  in  value  altogether  to  the 
total  amount  of  the  loan  principal  and  interest  sealed  by  the  Viceroy  of  the 
Hukwang  Provinces  and  by  the  Provincial  Treasurer  of  Hupei,  and  countersigned 
by  the  foreign  Commissioner  of  Customs  in  Hankow.  In  the  event  of  the  money 
to  meet  a  payment  of  interest  or  repayment  of  principal  not  being  handed  to  the 
Banks  at  their  branches  in  Hankow  on  due  date,  these  likin  bonds  shall  become 
available  for  the  payment  of  likin  in  the  Province  of  Hupei,  and  the  provincial 
authorities  shall  be  instructed  accordingly.  As  soon  as  likin  to  the  amount  of 
each  bond  shall  have  been  paid  the  bond  shall  be  surrendered  for  cancellation. 
These  twenty  bonds  shall  be  made  out  in  accordance  with  the  amounts  and  dates 
specified  in  the  annexed  Schedule.  On  the  payment  of  each  instalment,  the 
corresponding  bond  shall  be  cancelled  and  returned. 

7. — The  Banks  shall  prepare  and  send  to  the  Viceroy  bonds  in  Hankow  Taels 
Yang-li  Sycee  for  the  total  amount  of  this  Loan  namely  Tls.  2,000,000,  which 


904  CHINA  TREATIES  AND  AGREEMENTS 

bonds  shall  within  three  months  from  the  execution  of  this  Agreement  be  returned 
to  the  Banks  sealed  with  the  Official  Seal  of  the  Viceroy  and  of  the  Provincial 
Treasurer  of  Hupei,  as  evidence  that  the  Imperial  Chinese  Government  is  bound 
thereby.  The  Banks  in  Hankow  shall  countersign  the  Bonds  as  Agents  for  the 
Loan.  These  bonds  may  either  be  held  by  the  Banks  or,  at  their  option,  sold  to 
the  public.  The  form  and  amount  of  the  Bonds  shall  be  settled  by  the  Banks  in 
consultation  with  the  Viceroy.  Bonds  drawn  for  the  repayment  of  any  instalment 
of  principal  will,  as  soon  as  possible  after  payment,  be  handed  to  the  Viceroy  for 
cancellation. 

8. — In  the  event  of  any  bond  or  bonds  of  this  Loan  being  lost,  stolen  or 
destroyed,  the  Banks  concerned  may  notify  the  Viceroy  who  shall  authorise  the 
Banks  concerned  to  insert  an  advertisement  in  the  public  newspapers  stating  that 
payment  of  such  bond  or  bonds  has  been  stopped;  and  to  take  such  other  steps 
as  may  appear  advisable  or  necessary  according  to  the  laws  of  the  Country  con- 
cerned. Should  any  bond  or  bonds  be  destroyed,  or  such  lost  or  stolen  bond  or 
bonds  not  be  recovered  after  a  lapse  of  time  to  be  fixed  by  the  Banks,  the 
Viceroy  and  Provincial  Treasurer  of  Hupei  shall  seal  and  execute  a  duplicate  bond 
or  duplicate  bonds  for  a  like  amount  and  deliver  the  same  to  the  Bank  or  Banks 
representing  the  owner  or  owners  of  such  lost,  stolen,  or  destroyed  bond  or  bonds, 
which  Bank  or  Banks  shall  pay  all  expenses  in  connection  with  such  delivery  and 
execution  of  such  duplicate  bond  or  bonds  for  the  account  of  the  owner  or 
owners  of  such  bond  or  bonds. 

9. — All  bonds  and  coupons  and  payments  made  and  received  in  connection 
with  the  service  of  this  Loan  shall  be  exempt  from  all  Chinese  taxes  and  imposts 
of  any  and  every  description  during  the  currency  of  this  Loan. 

10. — In  reimbursement  of  expenses  connected  with  the  payment  of  interest 
and  the  repayment  of  principal  of  this  Loan  the  Viceroy  shall  pay  to  the  Banks 
a  commission  of  One  Quarter  of  one  per  Cent  on  the  annual  loan  service. 

11. — The  terms  of  this  present  Loan  Agreement  for  Tls.  2,000,000,  concluded 
by  the  Viceroy  of  the  Hukwang  Provinces  with  the  Hongkong  and  Shanghai 
Banking  Corporation,  the  Deutsch-Asiatische  Bank,  the  Banque  de  ITndo-Chine 
and  the  American  Group  represented  by  the  International  Banking  Corporation, 
have  been  sanctioned  by  Imperial  Decree  officially  communicated  by  the  Wai 
Wu  Pu  to  the  British,  German,  French  and  American  Ministers  in  Peking,  and 
in  pursuance  of  the  Imperial  Authority  so  received  the  Viceroy  for  and  on 
behalf  of  the  Imperial  Chinese  Government  hereby  guarantees  under  his  official 
seal  that  payment  of  interest  and  repayment  of  principal  shall  be  duly  made. 

12. — Eleven  sets  of  this  Agreement  are  executed  in  English  and  Chinese,  one 
set  to  be  retained  by  the  Viceroy,  one  by  each  of  the  Banks  and  one  each  by  the 
British,  German,  French  and  American  Ministers  in  Peking.  Of  the  remaining 
two  sets,  one  will  be  forwarded  to  the  Wai  Wu  Pu  by  the  Viceroy,  and  one  will 
be  handed  under  a  Joint  Note  to  the  Wai  Wu  Pu  by  the  Ministers  of  the  four 
countries  to  be  placed  on  record.  In  the  event  of  any  question  or  dispute  arising 
as  to  the  meaning  of  this  Agreement,  the  English  Text  shall  rule. 


NUMBER  1911/8:  AUGUST  14,  1911 


905 


THE  HUPEI  PROVINCIAL  SEVEN  PER  CENT  SILVER  LOAN  OF  1911. 

Tls.  2,000,000. 
Schedule  of  Payments  of   Principal  and  Interest. 


Due. 

Interest 
at  7% 

Princip.il. 

Total. 

14  February,  1912  

14  August,  1912 

14  February,    1913    

14  August,  1913  

14  February,    1914    

14  August,   1914    

Tls. 
70,000 
70,000 
70,000 
70,000 
70,000 
70,000 
70,000 
70,000 
70,000 
70,000 
70,000 
63,000 
..56,000 
49,000 
42,000 
35,000 
28,000 
21,000 
14,000 
7,000 

Tls. 

200,000 
200,000 
200,000 
200,000 
200,000 
200,000 
200,000 
200,000 
200,000 
200,000 

Tls. 
70,000 
70,000 
70,000 
70,000 
70,000 
70,000 
70,000 
70,000 
70,000 
70,000 
270  000 

14  February,  1915   

14  August,  1915  

14  February,  1916  

14  August,    1916    

14  February,    1917    

14  August,   1917    

14  February,  1918  

263,000 
256,000 
249,000 
74?  nnn 

14  August,  1918  J 

14  February,  1919  

14  August,  1919  

235,000 
228,000 
221  000 

14  February,    1920    

14  August,    1920    

14  February,    1921    

14  August,    1921    

214,000 
207,000 

Hankow  Taels 

Yang-li  Sycee  

1,085,000 

2,000,000 

3,085,000 

THE  HUPEI  PROVINCIAL  SEVEN  PER  CENT  SILVER  LOAN  OF  1911. 

Tls.  2,000.000. 
Schedule  of  Payments  of  Interest  due  to 


Date. 

Hongkong 

and 

Shanghai 

Banking 

Corporation. 

Deutsch- 

Asiatische 

Bank. 

Banque  de 
I'Tndo- 
Chine. 

Tls. 

Inter- 
national 
Banking 
Corpora- 
tion. 

Total. 

14  Febrnarv    1912  

Tls. 

17,500 

17,500 

17,500 

17,500 

17,500 

17,500 

17,500 

17,500 

17,500 

17,500 

17,500 

15,750 

14,000 

12,250 

10.500 

8,750 

7,000 

5,250 

3,500 

1,750 

Tls. 

17,500 

17,500 

17.500 

17,500 

17,500 

17,500 

17,500 

17,500 

17,500 

17,500 

17,500 

15,750 

14.000 

12,250 

10,500 

8,750 

7,000 

5.250 

3,500 

1.750 

17.500 

17,500 

17.500 

17,500 

17,500 

17.500 

17.500 

17,500 

17,500 

17,500 

17,500 

15,750 

14,000 

12,250 

10,500 

8,750 

7,000 

5.250 

3,500 

1.750 

Tls. 

17.500 

17,500 

17,500 

17,500 

17,500 

17,500 

17,500 

17,500 

17,500 

17,500 

17,500 

15,750 

14,000 

12,250 

10,500 

8,750 

7,000 

5,250 

3,500 

1,750 

Tls. 
70  000 

14  Aiimist    1912    

70  000 

14  Fehniarv    1913 

70  000 

14  Aiip-iist    19n         

70  000 

14  Fehruarv    1914  

70.000 
70  000 

14  Aiip-imt    1Q14        

14  Fehniarv    1915  

70  000 

14   Aiicrii(;f    1Q1  S          

70  000 

14  February,  1916  

14    Aiicrii<;t     1916              

70.000 
70  000 

14  FpVirnarv    1917 

70,000 
63,000 
56,000 
49.000 

14  August,  1917 

14  February,  1918  

14  AiicnT^I-    1918 

14  Fehniarv    1919     

42,000 

14    Anmist    1919 

35.000 

14  February,  1920  

14  August,  1920 

14  Fehniarv    1921  

28,000 
21,000 
14.000 

14  August    1921 

7,000 

Hankow    Taels 

Yang-li   Sycee   

271,250 

271,250 

271.250 

271,250 

1,085,000 

906 


CHINA  TREATIES  AND  AGREEMENTS 


THE  HUPEI  PROVINCIAL  SEVEN  PER  CENT  SILVER  LOAN  OF  1911. 

Tls.  2,000,000. 
Schedule  of  Payments  of  Principal  due  to 


Date. 


14  February,  1917  • 
14  August,  1917  . . . 
14  February,  1918  • 
14  August,  1918  . .  . 
14  February,  1919  • 
14  August,  1919  ... 
14  February,  1920  • 
14  August,  1920  . . . 
14  February,  1921  • 
14  August,  1921  . . . 
Hankow  Taels 
Yang-li  Sycee 


Hongkong 

Inter- 

and 

national 

Shanghai 

Deutsche- 

Banque  de 

Banking 

Banking 

Asiatische 

rindo- 

Corpora- 

Corporation. 

Bank. 

Chine. 

tion. 

Tls. 

Tls. 

Tls. 

Tls. 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

50,000 

•      500,000 

500,000 

500,000 

500,000 

Total. 


Tls. 
200,000 
200,000 
200,000 
200,000 
200,000 
200,000 
200,000 
200,000 
200,000 
200,000 

2,000,000 


Signed  at  HANKOW  by  the  contracting  parties  this  twentieth  day  of  the 
intercalary  sixth  moon  of  the  third  year  of  the  Emperor  Hsiian  T'ung,  being  the 
fourteenth  day  of  August,  one  thousand  nine  hundred  and  eleven,  Western 
Calendar. 


[Signatures  of  the  representatives 
of  the  four  banks.] 


[Signature  of  Witness. 


[Seal  and  signature  of  the  Viceroy 
of  the  Hukwang  Provinces.] 


NUMBER  1911/9. 

FRANCE  (Banque  de  I'lndo-Chine),  GERMANY  (Deutsch-Asiatische  Bank), 
GREAT  BRITAIN   (Hongkong  &  Shanghai  Banking  Corporation) 

AND  CHINA. 

Agreement  for  the  Kwangtung  Provincial  seven  per  cent  silver  loan  of  1911. — 

August  30,  1911. 

THIS  AGREEMENT  is  made  between  His  Excellency  Chung  Ming  Chi, 
Viceroy  of  the  Liang  Kwang  Provinces,  of  the  one  part,  and  the  Hongkong  and 
Shanghai  Banking  Corporation,  the  Banque  de  ITndo-Chine  and  the  Deutsch- 
Asiatische  Bank,  hereinafter  called  the  Banks,  of  the  other  part. 

WHEREAS  the  Viceroy  of  the  Liang  Kwang  Provinces,  H.  E.  Chung  Ming 


NUMBER  1911/9:  AUGUST  30,  1911  907 

Chi  has,  for  the  purpose  and  with  the  object  of  reheving  the  present  financial 
situation  in  the  money  markets  of  Kwangtung,  memorialized  the  Throne  for  and 
received  an  Imperial  Edict,  authorizing  him  to  raise  a  foreign  loan  for  FIVE 
MILLION  DOLLARS  HONGKONG  CURRENCY  and  to  seal  the  loan  bonds 
hereinafter  referred  to,  it  is  hereby  agreed  as  follows : — 

1. — The  Loan  shall  be  called  "the  Kwangtung  Provincial  seven  per  cent 
Silver  Loan  of  1911." 

2. — The  Banks  agree  to  lend  to  the  Viceroy  of  the  Liang  Kwang  Provinces 
and  the  Viceroy  agrees  to  borrow  from  the  Banks,  the  sum  of  FIVE  MILLION 
DOLLARS  HONGKONG  CURRENCY,  the  payment  and  repayment  of  which 
said  sum  and  of  interest  thereon  are  to  be  made  in  Hongkong  in  Hongkong  Cur- 
rency Bank  Notes. 

3. — The  Banks  shall,  seven  days  after  the  execution  of  this  agreement,  pay 
to  the  Viceroy  the  sum  of  ONE  MILLION  DOLLARS  HONGKONG  CUR- 
RENCY Bank  Notes.  The  balance  of  this  loan  shall  be  paid  by  the  Banks  to 
the  Viceroy  in  four  consecutive  monthly  instalments  of  ONE  MILLION  DOL- 
LARS HONGKONG  CURRENCY  each  as  follows  :— 

ONE  MILLION  DOLLARS  HONGKONG  CURRENCY  on  the  30th 
day  of  September,  1911,  Western  Calendar. 

ONE  MILLION  DOLLARS  HONGKONG  CURRENCY  on  the  30th  day 
of  October,  1911,  Western  Calendar. 

ONE  MILLION  DOLLARS  HONGKONG  CURRENCY  on  the  30th  day 
of  November,  1911,  Western  Calendar. 

ONE  MILLION  DOLLARS  HONGKONG  CURRENCY  on  the  30th 
day  of  December,  1911,  Western  Calendar. 

4.— The  period  of  the  said  loan  for  FIVE  MILLION  DOLLARS  HONG- 
KONG CURRENCY  shall  be  five  years,  and  the  interest  thereon  shall  be  seven 
per  cent,  per  annum  to  be  computed  on  the  first  payment  of  ONE  MILLION 
DOLLARS  HONGKONG  CURRENCY  from  the  date  of  that  payment  and  on 
subsequent  payments  from  the  dates  of  such  subsequent  payments  and  shall  be 
paid  by  the  Viceroy  or  his  successors  in  Office  to  the  Banks  half-yearly  in  accord- 
ance with  the  Schedule  attached  to  this  agreement,  but  twelve  days  before  the 
due  dates  as  shown  thereon  until  repayment  of  the  loan  shall  be  completed.  The 
principal  shall  be  repaid  in  ten  half-yearly  instalments  of  FIVE  HUNDRED 
THOUSAND  DOLLARS  HONGKONG  CURRENCY,  commencing  six  months 
from  the  date  of  this  agreement,  in  accordance  with  the  Schedule  attached  to  this 
agreement,  but  twelve  days  before  the  due  dates  shown  thereon. 

The  first  payment  of  interest  and  repayment  of  the  principal  will  be  made 
twelve  days  before  the  28th  day  of  February,  1912,  Western  Calendar. 

After  each  instalment  of  the  principal  is  repaid,  interest  at  the  rate  aforesaid 
shall  only  be  charged  on  the  principal  for  the  time  being  remaining  owing. 

All  payments  of  interest  and  repayments  of  principal  shall  be  made  to  the 
three  Banks  in  Hongkong  in  Hongkong  Currency  Bank  Notes  in  equal  shares. 

5. — In  reimbursement  of  expenses  connected  with  this  loan  the  Viceroy  shall 
pay  to  the  Banks  a  commission  of  one  quarter  of  one  per  cent  on  the  half-yearly 
service  of  the  loan. 


908  CHINA  TREATIES  AND  AGREEMENTS 

6. — The  Banks  may,  at  their  option,  issue  this  loan  in  whole  or  part  to  the 
Public  in  Hongkong  or  elsewhere  on  terms  to  be  determined  by  the  Banks. 

7. — This  loan  is  secured  by  a  first  mortgage  on  the  Likin  dues  of  the 
Province  of  Kwangtung  amounting  to  Two  million  four  hundred  thousand  Taels 
per  annum  and  shall  rank  as  regards  security  for  principal  and  interest  as  a  first 
charge  on  the  said  Likin  dues,  which  the  Viceroy  hereby  guarantees  to  be  at  pres- 
ent free  of  all  mortgage  and  unincumbered.  The  Viceroy  further  guarantees  on 
behalf  of  himself  and  his  successors  in  Ofiice  that  if  in  the  future  it  shall  be  neces- 
sary to  employ  the  said  Likin  as  security,  it  shall  in  no  wise  affect  this  the  first 
pledge,  moreover  there  must  be  an  explicit  declaration  in  any  subsequent  loan 
agreement  that  there  is  already  a  prior  pledge  of  the  said  Likin  to  the  herein  men- 
tioned Banks  as  the  first  loan  charge,  that  is  to  say,  if  subsequently  there  be  any 
pledge  of  the  said  Likin,  such  pledge  shall  rank  as  the  second,  and  shall  not  be 
allowed  to  have  priority  over  or  equality  with  the  first  loan  charge  to  the  Banks. 
In  case  of  need  it  shall  be  open  to  the  Viceroy  to  supplement  the  revenue  of  the 
Kwangtung  Likin  dues  by  other  approved  revenues  of  the  Province  of  Kwang- 
tung for  the  service  of  the  present  loan,  and  in  case  the  Kwangtung  Likin  dues 
shall,  during  the  currency  of  the  present  loan,  be  altered  or  abolished,  the  Viceroy 
shall  forthwith  apply  to  the  service  of  the  present  loan  other  approved  Provincial 
free  revenues  in  substitution  therefor  or  addition  thereto,  so  as  to  secure  and 
pledge  for  the  service  of  the  present  loan  an  amount  equivalent  to  the  present 
annual  charge  upon  the  Kwangtung  Likin  dues ;  but  in  case  of  default  of  any 
payment  of  interest  or  repayment  of  principal  of  the  present  loan  the  Viceroy  or 
his  successors  in  Office  shall  forthwith,  in  consultation  with  the  Banks,  make 
special  arrangements  for  the  collection  and  payment  into  the  Banks  of  these  or 
other  approved  free  revenues  of  the  Province  of  Kwangtung  in  such  manner  and 
in  such  amount  as  shall  secure  the  due  payment  of  interest  and  repayment  of 
principal  in  terms  of  this  agreement. 

8. — The  Viceroy  shall  within  three  months  of  the  execution  of  this  agreement 
hand  to  the  Banks  Bonds  in  Hongkong  Currency  Bank  Notes  for  the  total  amount 
of  the  loan,  namely  FIVE  MILLION  DOLLARS  HONGKONG  CURRENCY, 
sealed  with  the  Official  seals  of  the  Viceroy  and  of  the  Provincial  Treasurer  of 
Kwangtung  as  evidence  that  the  Imperial  Chinese  Government  is  bound  thereby 
and,  if  issued  to  the  public,  countersigned  by  the  issuing  Bank  as  Agents  for  the 
loan.  The  form  and  amount  of  these  Bonds  shall  be  settled  by  the  Banks  in 
consultation  with  the  Viceroy. 

Bonds  drawn  for  repayment  of  any  instalment  of  principal  will,  as  soon  as 
possible  after  payment,  be  handed  to  the  Viceroy  for  cancellation. 

9. — In  the  event  of  any  such  bond  or  bonds  being  lost,  stolen  or  destroyed, 
the  Bank  interested  may  notify  the  Viceroy  who  shall  authorize  that  Bank  to 
insert  an  advertisement  in  the  public  newspapers  stating  that  payment  of  such 
bond  or  bonds  has  been  stopped ;  and  to  take  such  other  steps  as  may  appear 
advisable  or  necessary  according  to  the  laws  of  the  country  concerned.  Should 
any  bond  or  bonds  be  destroyed,  or  such  lost  or  stolen  bond  or  bonds  not  be 
recovered  after  a  lapse  of  time  to  be  fixed  by  the  Bank  interested,  the  Viceroy 
and  the  Provincial  Treasurer  of  Kwangtung  shall  seal  and  execute  a  duplicate 


NUMBER  1911/10:  AUGUST  31,  1911  909 

bond  or  duplicate  bonds  for  a  like  amount  and  deliver  the  same  to  the  Bank  repre- 
senting the  owner  or  owners  of  such  lost,,  stolen  or  destroyed  bond  or  bonds  and 
the  Bank  interested  shall  pay  all  expenses  in  connection  with  such  delivery  and 
execution  of  such  duplicate  bond  or  bonds  for  the  account  of  the  owner  or 
owners  of  such  bond  or  bonds. 

10. — All  bonds  and  coupons  and  payments  made  and  received  in  connection 
with  the  service  of  this  loan  shall  be  exempt  from  all  Chinese  taxes  and  imposts 
of  any  and  every  description  during  the  currency  of  this  loan. 

11. — The  terms  of  this  present  loan  agreement  for  FIVE  MILLION  DOL- 
LARS HONGKONG  CURRENCY  concluded  by  the  Viceroy  of  the  Liang 
Kwang  Provinces  with  the  Hongkong  and  Shanghai  Banking  Corporation,  the 
Banque  de  ITndo-Chine  and  the  Deutsch  Asiatische  Bank,  have  been  sanctioned  by 
Imperial  Decree  officially  communicated  by  the  Wai-Wu-Pu  to  the  British, 
French  and  German  Ministers  in  Peking,  and  in  pursuance  of  the  Imperial 
authority  so  received  the  Viceroy  for  and  on  behalf  of  the  Imperial  Chinese 
Government  hereby  guarantees  under  his  official  seal  that  payment  of  interest 
and  repayment  of  principal  shall  be  duly  made. 

12. — Nine  sets  of  this  agreement  are  executed  in  English  and  Chinese,  one 
set  to  be  retained  by  the  Viceroy,  one  by  each  of  the  Banks,  one  by  the  British, 
one  by  the  French  and  one  by  the  German  Ministers  in  Peking.  Of  the  remaining 
two  sets,  one  will  be  forwarded  to  the  Wai-Wu-Pu  by  the  Viceroy,  and  one  will 
be  handed  under  a  joint  note  to  the  Wai-Wu-Pu  by  the  Ministers  of  the  three 
countries  to  be  placed  on  record. 

In  the  event  of  any  question  or  dispute  arising  as  to  the  meaning  of  this 
agreement,  the  English  text  shall  rule. 

Signed  at  Canton  by  the  contracting  parties  this  7th  day  of  the  7th  month  of 
the  third  year  of  the  Emperor  Hsuan-t'ung,  being  the  30th  day  of  August  One 
thousand  nine  hundred  and  eleven.  Western  Calendar. 


NUMBER  1911/10. 

FRANCE  AND  GREAT  BRITAIN  (Syndicat  du  Yunnan,  Ltd.  )AND  CHINA. 

Exchange  of  notes  between  the  Wai  IVu  Pu  and  the  French  legation  in  regard  to 
the  cancellation  of  the  mining  concession  of  the  Syndicat  du  Yunnan* — 

August  31,  1911. 

Prince  Ch'ing,  President  of  the  Council  and  President  of  the  Ministry  for  Foreign 
Affairs,  to  Mr.  Georges-Picot,  French  Charge  d' Affaires  in  China. 

Peking,  August  29,  1911. 
In  conclusion  of  the  negotiations  that  have  been  carried  on  between  your 
Excellency  and  Mr.  Kao,  Treasurer  General  of  Yunnan,  on  the  subject  of  the 

*  Translations  from  the  French  version  of  the  Chinese  text,  and  from  the  French  text. 
See  Xote  to  this  document,  post,  p.  911. 


910  CHINA  TREATIES  AND  AGREEMENTS 

Lung-Hsing  Company  (Anglo-French  Yunnan  Syndicate),  the  concessionaire 
for  the  working  of  the  mines  in  Yunnanfu  and  six  other  locahties,  an  agreement 
has  been  arrived  at  with  the  British  Minister  that  China  will  pay  the  said  syndicate, 
for  the  cancellation  of  the  original  contract,  the  sum  of  1,500,000  taels. 

The  payment  of  this  sum  will  be  made  in  six  instalments.  On  each  instalment 
the  sum  of  250,000  Kuping  taels  will  be  paid. 

The  first  payment  will  be  made  during  the  course  of  this  moon  (August  24 
to  September  21).  The  five  other  payments  will  be  made  every  six  months.  The 
French  and  British  Ministers  will  give  notice  a  month  in  advance  to  our  ministry, 
in  order  that  it  may  provide  funds. 

All  the  property  and  all  the  material  belonging  to  the  syndicate  and  to  its 
branch  will  be  turned  over  entire  to  China,  which  will  thereafter  have  no  further 
concern  with  the  said  syndicate. 

As  an  agreement  has  been  reached  upon  these  conditions,  the  matter  will  be 
arranged  by  an  exchange  of  letters  that  will  be  conclusive. 

I  am  addressing  your  Excellency  the  present  official  communication  to  be 
filed  in  your  archives.  I  have  to  request  that  you  be  so  good  as  to  acknowledge 
its   receipt. 

Pray  accept,  etc. 

Mr.  F.  Georges-Picot,  French  Charge  d' Affaires  in  China,  to  his  Highness,  Prince 
Ch'ing,  President  of  the  Council  and  President  of  the  Ministry  for  Foreign 
Affairs. 

Peking,  August  31,  1911. 

Your  Highness  has  made  known  to  me  that  the  Wai  Wu  Pu  was  disposed  to 
pay  the  sum  of  fifteen  hundred  thousand  Kuping  taels,  the  payment  of  which 
would  be  guaranteed  by  the  Imperial  Government,  in  compensation  for  the  can- 
cellation of  the  contract  signed  in  1902  between  the  Imperial  Government,  the 
Province  of  Yunnan,  and  the  Syndicat  du  Yunnan.  You  add  that  this  amount 
will  be  paid  in  Peking  in  half-yearly  instalments  of  250,000  taels,  the  first  being 
paid  by  the  Wai  Wu  Pu  before  September  22  next. 

I  have  the  honor  to  inform  your  Highness  that  the  company  concerned 
accepts  this  proposal.  It  acknowledges  that  by  the  payment  of  this  sum  the 
Imperial  Government  frees  itself  from  all  the  obligations  created  by  the  contract 
cited  above.  The  syndicate  moreover  undertakes  to  grant  without  charge  to  the 
Imperial  Government  all  property  and  things  possessed  by  it  in  Yunnan,  or  by  its 
branch  (the  Compagnie  d'Exploitation  de  Lin  Ngan),  and  to  turn  them  over  to 
the  delegate  that  the  Government  may  be  pleased  to  name. 

I  regret  that  circumstances  have  compelled  us  to  terminate  a  contract  that 
seemed  to  me  to  be  of  such  a  nature  as  to  afford  important  advantages  to  each  of 
the  contracting  parties,  and  thus  contribute  to  the  economic  development  of  China. 


NUMBER  1911/10:  AUGUST  31,  1911:  NOTE  911 

Note. 

The  original  concession  had  been  granted  by  a  contract  concluded  June  21,  1902,  of 
which  the  following  translation  from  the  French  text  is  given  in  Collins,  p.  262: 

Agreement  for  Yunnan  Mining  Concession,  June  21,  1902, 

Whereas  the  working  of  the  Yunnan  mines  has  continued,  up  to  the  present,  to  be 
primitive  and  incomplete,  and  a  company  called  the  "  Syndicat  du  Yunnan,  Limited,"  has 
been  formed  in  England  and  France  with  the  object  of  working  these  mines  by  the  best 
methods,  with  the  assistance  of  engineers,  with  a  competent  staff,  and  with  machinery  and 
the  capital  necessary  for  giving  the  fullest  development  of  which  they  are  capable  to  these 
undertakings. 

The  following  Convention  lias  been  agreed  on  between  T.  E.  the  Governor-General  of 
the  Yun-Kwei  Provinces,  the  Governor  of  Yunnan  and  the  Imperial  High  Commissioner 
of  Mines  on  the  one  hand  and  M.  Rocher,  Consul-General  representing  the  Syndicat  du 
Yunnan,  Limited   (Lung  Hsing  Kung  Ssu),  on  the  other  hand. 

Article  I. — The  Governor-General  of  Yun-Kwei  and  the  Governor  of  Yunnan,  in  con- 
cert with  the  High  Commissioner  of  Mines,  agree  to  ask  the  Imperial  Government  to  concede 
to  the  Syndicat  du  Yunnan,  Limited,  the  right  to  prospect  and  work  the  mineral  deposits 
of  the  departments  of  Yunnan-fu,  Cheng  Kiang-fu,  Lin  Xgan-fu,  K'ai  Hua-fu,  Ch'ou 
Hsiung-fu,  together  with  Yuan  Kiang  Chou  and  Yung  Pai  T'ing  situated  in  the  Province  of 
Yunnan,  namely : — 

1.  The  copper  mines  which  are  at  present  abandoned  by  the  State  of  China  and 
those  which  shall  be  discovered  by  the  Syndicate. 

2.  The  mines  of  gold,  silver,  coal,  iron,  etc.    .    .    .   once  worked  but  now  abandoned. 

3.  The  mines  of  gold,  silver,  coal,  iron,  platinum,  tin,  as  well  as  the  deposits  of 
petroleum,  precious  stones,  and  cinnabar  which  shall  be  discovered  by  the   Syndicate. 

The  High  Authorities  of  Yunnan  agree  to  ask  the  Imperial  Government  for  the  con- 
cession of  the  mines  of  the  seven  above-mentioned  districts  to  the  Syndicat  du  Yunnan, 
Limited.  No  company  unconnected  with  it  will  be  able,  in  any  manner  to  prospect  or  work 
mines  in  the  departments  cited  above.  However,  the  Government,  as  well  as  the  Chinese, 
will  be  able,  as  in  the  past,  to  work  such  new  deposits  as  they  shall  discover,  and  if  com- 
panies which  are  purely  Chinese,  with  capital  exclusively  Chinese,  request  authorisation  to 
work  deposits,  the  requested  authorisation  may  be  granted  on  condition  that  the  said  com- 
panies shall  be  subjected  to  charges  and  obligations  at  least  equal  to  those  laid  upon  the 
Syndicat   du   Yunnan,   Limited. 

Should  the  Syndicat  du  Yunnan,  Limited,  not  discover  deposits  worth  working  in  the 
above-mentioned  departments  or  districts,  the  Imperial  Government  will  exchange  them 
against  others  which  the  Syndicate  will  point  out,  but  their  total  number  shall  never 
exceed  seven.  However,  when  all  the  mines  of  the  above-mentioned  departments  or  dis- 
tricts shall  be  working,  if  its  duties  and  profits  are  regularly  paid  to  the  Chinese  Govern- 
ment, the  Syndicate  will  be  able  to  obtain  other  concessions  on  appealing  to  the  Provincial 
Authorities. 

Article  II. — Apart  from  the  State  mines  whose  working  will  be  started  in  the  above- 
mentioned  districts,  if  the  Syndicate  wishes  to  work  mines  belonging  to  private  persons,  it 
will  apply  to  the  High  Provincial  Authorities,  who  will  order  an  investigation  to  be  made; 
and  if  the  said  investigation  does  not  bring  to  light  any  objection  the  local  officials  will  be 
authorised  to  negotiate  with  the  proprietor  for  hiring  the  mine  or  the  land  for  a  period 
which  shall  not  exceed  the  time  during  which  the  present  convention  will  be  in  force.  The 
expenses  of  hiring  the  mine  or  the  land  will  be  chargeable  to  the  Syndicate,  which  will  not 
under  any  circumstances  be  able  to  buy  or  hire  directly  or  become  proprietor  of  mines  or 
land. 

If,  after  authorisation  to  work  any  mine  has  been  granted,  work  on  it  shall  not  have 
been  commenced  within  three  years,  the  mine  and  the  contract  will  be  returned  to  the 
proprietors  through  the  authorities. 

Article  III. — When,  in  places  determined  by  the  Syndicate,  a  mine  capable  of  being 
worked  shall  have  been  found,  the  limits  shall  be  fixed  and  a  plan  of  it  shall  be  drawn. 
This  shall  be  submitted  to  the  High  Provincial  Authorities.  These  last  shall  have  an 
investigation  made,  and  should  this  investigation  prove  favourable  the  lands  will  be  hired 
and  handed  over  to  the  Company,  which  will  then  be  able  to  begin  the  working. 

Article  IV. — On  waste  lands  situated  near  the  mines  the  Syndicat  du  Yunnan,  Limited, 
will  be  able  to  build  railways,  roads,  canals,  and  all  means  of  communication  which  it  shall 
deem  necessary  for  the  passage  of  its  workmen,  the  transport  of  its  material,  mineral,  etc., 
etc.  If  these  means  of  communication  are  to  use  land  belonging  to  private  persons  the 
Syndicate  shall  inform  the  Provincial  Authorities,  who,  after  a  favourable  investigation, 
will  give  the  order  to  the  local  officials  to  come  to  terms  with  the  proprietor  for  the  hiring 
of  the  land  at  a  reasonable  price.  The  price  of  this  hiring  will  be  chargeable  to  the  Syndi- 
cate. 


912  CHINA  TREATIES  AND  AGREEMENTS 

Since  the  joining  up  of  the  railroads  of  the  Syndicate  with  the  railway  has  as  its 
object  the  facilitating  of  the  marketing  of  its  mineral  products  and  the  transport  of  material, 
as  soon  as  the  principal  trunk-Tine  shall  be  constructed,  special  rules  will  be  drawn  up  by 
common  agreement,  and,  when  the  said  rules  shall  have  been  approved  by  the  Imperial 
Government,  the  work  of  joining  up  the  lines  may  be  commenced. 

Under  no  circumstances  will  the  Syndicate  be  able  to  transport  travellers  or  private 
merchandise  over  its  mining  lines. 

Article  V. — The  Syndicat  du  Yunnan,  Limited,  will  be  permitted  to  recruit  the  labour 
it  considers  necessary  for  its  workings  m  the  Province,  and,  if  there  is  not  enough,  it  may 
cause  workmen  to  come  from  neighbourmg  Provinces. 

No  distinction  shall  be  made  between  Catholic,  Mussulman,  or  other  workmen :  all  shall 
be  engaged  on  the  same  basis  according  to  their  aptitude  and  activity. 

If  workmen  are  injured  in  the  course  of  work  for  the  Syndicate,  and  if  these  injuries 
entail  incapacity  for  work,  or  death,  the  Syndicate  shall  give  equitable  compensation. 

Lawsuits,  assassinations,  robberies,  or  quarrels  which  arise  in  the  course  of  work  shall 
be  dealt  with  according  to  the  treaties. 

Article  VI. — In  consideration  of  the  facilities  which  are  given  it,  the  Syndicat  du 
Yunnan,  Limited,  undertakes  to  furnish  annually  to  the  Imperial  Government,  provided 
that  the  working  of  the  mines  allows  of  it,  1,000,000  lbs.  of  copper.  This  amount  is  fixed 
as  follows :  600,000  lbs.  three  years  after  the  opening  of  the  copper  mines,  and  400,000  lbs. 
two  years  later.  Afterwards  a  fixed  quantity  of  1,000,000  lbs.  shall  be  furnished  in  each 
year. 

The  metal  delivered  shall  contain  85  per  cent,  of  copper,  and  shall  be  paid  for  to  the 
Syndicate  at  the  price  of  twenty  Ku  p'ing  taels  per  hundred  Chinese  pounds.  When  the 
annual  amount  due  has  been  delivered  the  rest  of  the  output  shall  be  offered  to  the  Pro- 
vincial Government,  and  to  such  Provinces  as  shall  ask  for  it,  at  market  price ;  the  balance 
may  be  exported  by  the  Syndicate. 

The  copper  for  the  Central  Government  shall  be  liable  to  no  tax,  but  that  which  is 
sold  in  Yunnan  or  other  Provinces  or  exported  shall  pay  a  5  per  cent.  tax. 

Article  VII. — In  order  to  avoid  all  cause  of  trouble  the  Syndicat  du  Yunnan,  Limited, 
undertakes  to  avoid  all  operations  or  encroachments,  during  the  construction  of  the  means 
of  communication  or  the  working  of  the  mines,  which  may  damage  houses,  fields,  or  graves. 
The  Syndicate  will  also  respect  the  customs  and  usages  of  Yunnan,  the  mines  worked  by 
the  State,  and  the  rights  acquired  by  private  persons. 

Article  VIII. — The  Syndicat  du  Yunnan,  Limited,  undertakes  to  found  one  or  several 
schools  in  which  Chinese  shall  be  trained  in  technical  subjects  for  the  working  of  mines 
and  other  industries.  It  shall,  in  due  course,  choose  according  to  its  needs,  from  among 
the  pupils  who  shall  have  satisfactorily  passed  the  leaving  examinations,  engineers  and 
foremen   for   employment    in   its   undertakings. 

Article  IX. — By  reason  of  the  extent  of  the  mineral  land  and  the  difficulties  of  trans- 
port, the  Imperial  Government,  in  order  to  facilitate  the  development  of  the  mineral  industry 
which  will  be  a  source  of  riches  to  this  country,  gives  the  Syndicat  du  Yunnan,  Limited, 
the  right  to  form  exploitation  companies,  to  which  it  may  cede  the  privileges  which  it 
obtains,  or  transfer  concessions,  on  the  express  condition  that  the  said  companies,  whether 
they  work  on  the  Syndicate's  account  or  whether  they  work  on  their  own  account,  conform 
strictly  to  this  Convention. 

Since  the  Imperial  Government  does  not  participate  in  the  losses  each  mine  is  to  have 
a  separate  account,  and  in  no  case  can  the  profits  of  one  be  used  to  balance  the  losses  of 
another.  The  division  of  the  profits  at  the  end  of  the  year  shall  be  made  separately  for 
each  mine. 

The  Syndicat  du  Yunnan,  Limited,  undertakes  to  cause  Chinese  capital  to  participate 
as  far  as  possible  in  the  public  issues  of  shares  of  the  companies  which  shall  be  formed. 
The  officials,  merchants,  workmen,  or  proprietors  shall  be  able,  at  their  convenience,  to 
interest  themselves  in  the  enterprises  of  the  Syndicate  on  the  same  conditions  as  foreign 
shareholders.  The  share-lists  shall  be  opened  simultaneously  in  the  principal  cities  of  China 
and    Europe. 

Article  X. — The  working  capital  raised  by  the  Syndicate  shall  not  exceed  50,000,000 
Haikwan  taels.  However,  if  at  a  later  date  the  necessity  should  make  itself  felt,  the  capital 
may  be  increased  after  coming  to  an  agreement  with  the  High  Provincial  Authorities. 

Article  XI. — The  sum  of  the  net  profits  shall  be  arrived  at  after  deducting  the  fol- 
lowing : — 

1.  A  sum  representing  general  expenses,  including  customs  expenses,  the  hire  of  the 
mines,  lands  and  other  taxes. 

2.  A  sum  representing  8  per  cent,  of  the  capital  as  interest. 

3.  A  sum  equal  to  10  per  cent,  as  amortisation  of  plant,  of  school  constructions,  build- 
ings, etc.  .  .  .  Once  the  amortisation  is  complete,  no  further  sum  shall  be  charged  to  this 
account. 

4.  A  sum  representing  10  per  cent,  of  the  profits  as  a  reserve  fund,  of  which  the 
Syndicate  shall  dispose  according  to  necessity.     However,  when  the  division  of  this  reserve 


NUMBER  1911/10:  AUGUST  31,  1911:  NOTE  913 

fund  takes  place,  the  assignment  of  its  parts  shall  be  made  equitably  in  accordance  with 
Article  12. 

Article  XII. — The  net  profits  remaining  after  the  deduction  of  the  above-named  prior 
charges  shall  be  distributed  as  follows : 

1.  The  Imperial  Government's  share 25  per  cent. 

2.  The    Provincial    Government's    share 10  per  cent. 

3.  The  share  of  the   Syndicate   for   distribution  among  its   shareholders    65  per  cent. 
At  the  end  of  each  year  the  High  Provincial  Authorities  and  the  Syndicate  shall  each 

name  a  commissioner  to  verify  the  accounts  of  the  year  and  take  delivery  of  the  sums  due 
to  them  respectively. 

Article  XIII. — X'either  the  Imperial  Government  nor  the  Provincial  Authority  under- 
takes any  pecuniary  responsibility  in  the  operations  of  the  Syndicate,  which  shall  be  alone 
in  bearing  the  risks  of  the  enterprise. 

Article  XI"V. — The  Imperial  Government  shall  receive  5  per  cent,  in  kind  of  all  mineral 
extracted,  of  whatever  nature  it  be.  The  official  living  at  the  mines  shall  take  note  of  the 
raising  of  the  products,  of  coal,  or  of  precious  stones;  and,  after  having  compared  it  with  the 
register  kept  at  the  mines  for  that  purpose,  shall  collect,  on  the  mineral  raised,  once 
quarterly   only. 

The  Syndicat  du  Yunnan,  Limited,  shall  be  subjected  for  the  importation  of  its  work- 
ing material,  and  for  the  products  exported,  to  the  tariff  of  the  maritime  customs.  For  the 
ybove-mentioned  articles  it  shall  be  exempted  from  likin  and  the  other  internal  taxes  im- 
posed on  merchandise  in  circulation. 

The  Syndicate  must  respect  the  general  regulations  of  the  Empire,  and,  in  conformity 
with  the  treaties,  must  not  transport  secretly  articles  which  are  either  prohibited  or  dutiable 
to  the  customs  or  revenue. 

Article  XV. — Any  difference  which  may  arise  in  the  interpretation  of  the  present  con- 
vention or  in  its  execution  shall  be  settled  by  a  tribunal  of  arbitration,  consisting  of  four 
members  who  shall  be  ap.pointed  respectively — 

One  by  the  Imperial  Government. 
One  by  the  Provincial  Government. 
One  by  the  French  Legation. 
One  by  the  British  Legation. 

Any  decision  in  arbitration  arrived  at  in  this  manner  shall  be  communicated  through  an 
official  channel  to  the  parties  interested  and  shall  be  final. 

Article  XVI. — Since  the  Imperial  Government  and  the  Provincial  Authorities  share 
in  the  profits  realised  by  the  Syndicate,  they  have  a  considerable  pecuniary  and  fiscal 
interest  in  protecting  and  safeguarding,  by  all  the  means  in  their  power,  the  mining  enter- 
prises of  the  Syndicate.  In  consequence,  orders  will  be  given  to  the  local  authorities  to 
conform  in  the  strictest  manner  with  the  clauses  of  the  present  Convention. 

Article  XVII. — The  Syndicate  will  do  all  in  its  power  to  keep  up  the  best  possible 
relations  with  the  authorities,  and  will  neglect  nothing  to  ensure  the  maintenance  of  a  cordial 
understanding  and  mutual  confidence. 

-Any  want  of  respect  to  an  official,  and  any  unfriendly  act  of  which  an  employee  may 
be  guilty,  must  be  reported  by  the  local  official.  The  Syndicate  undertakes,  after  enquiry, 
to  dismiss  an  official  who  has  been  proved  guilty  and  to  give  him  no  other  employment  for 
two  years.  If,  for  special  reasons,  he  cannot  be  absolutely  dismissed,  he  shall  not  be  allowed 
to  work  on  the  same  mine. 

Article  XVIII. — Since  the  working  of  mines  attracts  a  considerable  number  of  indi- 
viduals of  all  kinds  to  their  vicinity,  in  order  to  obtain  security  for  the  Europeans  and  all 
the  persons  working  in  the  mines ;  in  order  also  to  ensure  peace  and  tranquillity  and  to 
prevent  complications,  the  Syndicat  du  Yunnan,  Limited,  may,  on  giving  notice  to  the  local 
authorities,  recruit  near  its  mines  native  soldiers,  who  shall  be  placed  under  the  command  of 
an  officer  chosen  for  that  purpose,  who  shall  reside,  with  his  men,  near  the  workings. 

If  it  should  become  necessary,  for  the  maintenance  of  order,  to  reinforce  this  body, 
the  High  Authorities  will  send  regular  troops  to  the  spot,  but  the  Syndicate  may  not  cause 
European  troops  to  enter  the  Province  on  any  pretext  whatever. 

Article  XIX. — When  the  engineers  and  their  staff  come  to  Yunnan  to  prospect  the 
mineral  deposits  and  to  proceed  to  work  them,  the  Syndicate  must  inform  the  local  authori- 
ties in  advance  of  their  arrival  and  movements,  in  order  that  they  may  be  able  to  give  them 
the  escorts  necessary  to  ensure  their  security.  In  case  the  precaution  should  be  omitted,  and 
incidents  should  arise,  the  Provincial  Authorities  decline  to  take  any  responsibility. 

Article  XX. — The  maintenance  as  well  as  the  salaries  of  provincial  agents  who  shall 
be  detached  to  the  mine  shall  be  paid  by  the  Syndicate. 

The  Syndicate  shall  also,  according  to  circumstances,  allot  gratuities  to  the  escorts  of 
engineers   who   shall   proceed  to   prospect   for  mines. 

Article  XXI.-— The  present  Convention  is  agreed  on  for  a  period  of  sixty  years  from 
the  date  of  its  signature.  At  the  expiration  of  this  period  the  mines  which  have  been 
worked,  whether  old  or  new  and  whether  prosperous   or  otherwise,  as  well  as  the   land, 


914  CHINA  TREATIES  AND  AGREEMENTS 

houses  working  material,  railroads,  roads,  canals,  etc.  .  .  .  belonging  to  the  Syndicate  will  be 
handed  over  to  the  High  Authorities  of  Yunnan  free  of  cost,  by  the  Syndicate's  agents. 

However,  if  at  the  end  of  the  above-mentioned  period  the  workings  are  prosperous, 
and  if  the  Syndicate  wishes  to  continue  them,  China  will  grant  an  extension.  This  exten- 
sion will  be  for  a  period  of  not  more  than  twenty-five  years. 

Article  XXII.— Since  the  Province  of  Yunnan  is  an  integral  part  of  the  Empire,  the 
Syndicate  undertakes  in  case  of  war  with  any  State,  to  act  in  conformity  with  the  wishes 
of  China  and  to  lend  no  assistance  to  the  enemy. 

Article  XXIII. — The  present  Convention,  after  having  been  submitted  by  the  Ministry 
for  Foreign  Affairs,  for  the  ratification  of  the  Chinese  Government,  and  after  having  been 
signed  will  become  a  legal  concession. 

Article  XXIV. — The  present  Convention  is  drawn  in  six  originals :  three  in  the 
Chinese  and  three  in  the  French  language.  In  case  of  divergence  of  interpretation,  the 
French  text  shall  rule. 

Signed  at  Peking,  the  twenty-first  of  June,  nineteen  hundred  and  two,  the  sixteenth 
day  of  the  fifth  moon,  in  the  twenty-eighth  year  of  the  reign  of  the  Emperor  Kwang-Su. 

The  above  Convention  was,  on  the  tenth  day  of  the  5th  moon  of  the  28th  year  of 
Kwang-Su  (15  June  1902),  the  object  of  a  report  addressed  to  the  Throne  by  the  Ministry 
for  Foreign  Affairs,  which  has  been  furnished  with  the  following  Imperial  ratification — 

"  Approved.    By  Imperial  Order." 


NUMBER  1911/11. 

JAPAN  AND  CHINA. 
Convention  relating  to  raihvay  connections  at  Antung* — November  2,  1911. 

In  effecting  through  train  service  across  the  national  boundaries  between  the 
Antung-Mukden  Railway  and  the  Korean  Railway,  the  Governments  of  Japan  and 
China  have  appointed  their  respective  commissioners  and  have  agreed  upon  the 
following  clauses : 

1. — The  Governments  of  Japan  and  China  consent,  in  the  interest  of  world 
communications,  to  direct  connection  of  trains  on  the  boundary  between  the  two 
countries. 

2. — For  the  purpose  of  through  train  service  over  the  two  railways,  the 
centre  of  the  Yalu  iron  bridge  shall  be  regarded  as  the  dividing  line  between  the 
two  countries,  the  western  portion  being  the  Chinese  boundary  and  the  eastern 
portion  the  Japanese. 

3. — When  a  train  crosses  the  national  boundary,  the  locomotive  shall  be 
changed.  Locomotives  used  on  the  Korean  Railway  shall  not  proceed  westward 
beyond  the  Antung-hsien  station;  and  locomotives  used  on  the  Antung-Mukden 
Railway  shall  not  proceed  eastward  beyond  the  Shingishu  (Hsin  Wiju)  station. 

4. — With  reference  to  trains  coming  from  either  country,  those   entering 

*  Translation  from  the  Japanese  text  as  published  in  the  Japanese  Official  Gaacite, 
November  15.  1911.  Another  translation,  together  with  the  Chinese  text,  is  printed  in 
Customs,  vol.  II,  p.  772). 

In  connection  with  this  convention,  see  the  Memorandum  concerning  the  reconstruction 
of  the  Antung-Mukden  Railway,  August  19,  1909  (No.  1909/8,  ante)  ;  agreement  concerning 
mines  and  railways  in  Manchuria,  September  4,  1909  (No.  1909/9,  ante)  ;  Provisional  Regu- 
lations for  the  working  of  the  maritime  customs  office  at  Antung,  March  31,  1912  (No. 
1912/5,  post)  ;  and  arrangement  in  regard  to  the  reduction  of  customs  duties  on  goods  trans- 
ported by  the  Antung-Mukden  Railway,  May  29,  1913   (No.  1913/7,  post). 


NUMBER  1911/11:  NOVEMBER  2,  1911  915 

Japanese  territory  shall  be  limited  to  the  Korean  Railway  lines,  and  those  entering 
Chinese  territory  shall  be  limited  to  the  lines  of  the  South  Manchuria  Railway 
Company. 

5. — When  a  train  of  either  railway  arrives  at  Antung-hsien  station,  China, 
freight,  hand  baggage  and  small  goods  must  be  unloaded  at  the  goods  inspection 
office  and  inspected  by  the  customs  officials  of  both  countries. 

However,  this  provision  shall  not  be  applicable  to  goods  which  the  customs 
officials  deem  it  unnecessary  to  have  unloaded. 

6. — The  two  countries  shall  detail  their  respective  customs  officials  to  conduct 
joint  inspection  at  the  Antung-hsien  station  goods  inspection  office,  and  said 
officials  shall  act  in  accordance  with  the  customs  regulations  of  their  respective 
countries  and  detailed  rules  determined  by  themselves.  Goods  imported  into 
China  from  Japanese  territory  shall  first  be  inspected  by  Japanese  customs 
officials  and  then  by  Chinese  customs  officials ;  while  goods  imported  into  Japan 
from  Chinese  territory  shall  first  be  iiispected  by  Chinese  customs  officials  and 
then  by  Japanese  customs  officials. 

(a)  Hand  baggage  carried  by,  or  small  goods  belonging  to,  passengers 
leaving  or  arriving  at  the  Antung-hsien  station  shall  be  inspected  at  the  Antung- 
hsien  station. 

(b)  Hand  baggage  carried  by,  or  small  goods  belonging  to,  passengers  pass- 
ing through  Antung-hsien  station  shall  be  inspected  in  the  train  while  it  is 
stopping. 

When  inspection  is  not  completed  before  the  train  leaves,  customs  officials 
shall,  according  to  their  convenience,  continue  inspection  on  the  train  while  in 
motion,  or  shall  have  hand  baggage  carried  by,  or  small  goods  belonging  to, 
passengers  unloaded  at  the  goods  inspection  office  and  inspected  there. 

(c)  When  customs  officials  in  the  course  of  inspection  in  accordance  with 
the  two  preceding  paragraphs  discover  dutiable  articles,  the  duties  shall  be  col- 
lected directly  from  the  passengers  owning  such  articles. 

(d)  Hand  baggage  or  small  goods  entrusted  for  shipment  shall  be  brought 
to  the  goods  inspection  station  for  inspection. 

(e)  With  reference  to  small  goods  and  freight  leaving  or  arriving  at  the 
Antung-hsien  station,  the  consignors  or  consignees  shall  attend  to  their  passage 
through  the  customs  and  any  other  formalities. 

(f )  With  reference  to  freight  and  small  goods  passing  through  the  Antung- 
hsien  station,  employees  of  the  South  Manchuria  Railway  Company  shall  attend 
to  the  procedure  of  passing  them  through  the  customs  on  behalf  of  the  consignors 
or  consignees,  and  shall  have  them  inspected  in  the  presence  of  the  customs 
officials ;  and  the  customs  duties  on  dutiable  articles  shall  be  advanced  by  the 
company. 

(g)  The  South  Manchuria  Railway  Company  and  the  Railway  Bureau  of 
the  Government  General  of  Chosen,  in  order  to  enable  customs  officials  to  conduct 
inspection  on  the  train,  shall  issue  to  such  customs  officials  permanent  free  passes 
for  both  railways. 

7. — Trains  crossing  the  boundary  between  the  two  countries  may  not  carry 
troops. 


916  CHINA  TREATIES  AND  AGREEMENTS 

This  provision  shall  not  apply  to  troops  whose  stationing  has  oeen  permitted 
by  treaty,  provided,  however,  that  notice  must  be  given  prior  to  their  crossing 
the  national  boundary. 

8. — Koreans  who  have  heretofore  resided  in  China  shall  be  dealt  with  in 
accordance  with  usage ;  other  Koreans  not  possessing  passports  may  not  travel 
in  the  interior  of  China  beyond  the  limits  of  train  journeys. 

9. — When  trains  of  the  two  railways  cross  the  national  boundary,  it  is 
necessarily  expected  that  the  freight  charges  on  similar  goods  both  for  export 
and  for  import  shall  be  equal. 

10. — Since,  in  accordance  with  treaty,  the  Antung-Mukden  Railway  is  to  be 
purchased  by  the  Chinese  Government  after  fifteen  years,  the  present  convention 
shall  be  applicable  to  said  railway  only  prior  to  such  purchase;  and  after  the 
purchase  the  two  Governments  shall  agree  upon  separate  regulations  relative  to 
through  train  service. 

IN  WITNESS  WHEREOF,  the  commissioners  of  the  two  countries  have 
signed  and  sealed  the  present  convention  in  duplicate  in  the  Japanese  and  Chinese 
languages. 

Second  day  of  the  11th  month  of  the  44th  year  of  Meiji  (November  2,  1911), 
corresponding  to  the  12th  day  of  the  9th  moon  of  the  3rd  year  of  Hsuan  Tung. 

Chozo  Koike, 

Consul-Gencral   of   the   Empire    of 
Japan. 
GoMPEi  Oya, 

Director  of  Railway  Bureau  of  Gov- 
ernment-General of  Chosen. 
Shimbei  Okazaw^a, 

Vice-President  of  the  South  Man- 
churia Raihvay  Company,  Limited. 
Kyusaburo  Yang, 

Director  of  Customs  of  the  Govern- 
ment-General of  Chosen. 
Seijiro  Tanaka, 

Director   of   tJie   South   Manchuria 
Raikvay  Company,  Limited. 
Hsu  Ting  Lin, 

Commissioner  of  Foreign  Affairs  at 
Mukden  of  the  Empire  of  China. 
Yuan  Yi  Ho, 

Secretary    of    the    Department    of 
Communications  of  the  Empire  of 
China. 
Masaki  Taciiibana, 

Representing   the  Inspector-General 
of  Customs  of  the  Empire  of  China. 
T.  D.  Moorhead, 

Representing  the  Inspector-General 
of  Customs  of  the  Etnpire  of  China. 


NUMBER  1911/12:  DECEMBER  16,  1911  917 

NUMBER  1911/12. 

MEXICO  AND  CHINA. 

Convention  for  the  payment  of  an  indemnity  for  injuries  to  Chinese 
subjects* — December  16,  1911. 

Chang  Ying  Tang,  Envoy  Extraordinary  and  Minister  Plenipotentiary  of 
the  Chinese  Empire  to  the  United  States  of  Mexico,  and  Manuel  Calero,  Secretary 
of  State  of  the  United  States  of  Mexico,  have  agreed  to  sign,  in  behalf  of  their 
respective  governments,  the  following  protocol : 

Considering:  That  several  Chinese  subjects  have  suffered,  within  Mexican 
territory,  damages  in  their  persons  and  property,  in  some  cases  in  cruel  and 
inhuman  form,  acts  which  the  Government  of  the  United  States  of  Mexico 
considers  contrary  to  the  sentiments  of  friendship  and  amity  which  should  be 
held  for  all  men  and  especially  for  those  who  are  subjects  of  a  friendly  nation 
and  for  which  it  has  expressed  its  sorrow  to  the  Government  of  the  Chinese 
Empire ; 

Considering:  That  the  Government  of  the  United  States  of  Mexico,  while 
it  maintains  the  principle  that  the  nation  neither  is  nor  can  be  responsible  for  the 
acts  of  rebels  or  riotous  mobs,  except  in  the  exceptional  cases  prescribed  by 
international  law,  which  the  Government  of  the  United  States  of  Mexico  does 
not  consider  to  include  the  happenings  alluded  to  in  the  preceding  paragraph,  is 
ready,  however,  voluntarily  and  as  an  act  of  grace,  to  indemnify  the  injured 
Chinese  subjects  to  the  extent  provided  by  the  present  convention,  and  with  the 
understanding  that  this  act  of  grace  shall  not  be  considered  as  establishing  a 
precedent ; 

Considering:  That  the  Chinese  Government  concurs  in  the  friendly  spirit 
which  animates  the  Mexican  Government,  it  being  the  wish  of  both  governments 
to  prevent,  by  a  friendly  agreement,  all  discussion  or  controversy  which  might 
arise  out  of  the  occurrences  mentioned  in  the  preceding  considerations : 

Have  agreed  upon  the  following  articles : 

Article  I. — The  Mexican  Government  shall  deliver  to  the  Chinese  Govern- 
ment the  sum  of  Three  Million  One  Hundred  Thousand  Pesos  ($3,100,000.00)  in 
Mexican  coin  of  the  weight  and  fineness  which  are  actually  in  use. 

Article  II. — The  sum  mentioned  in  the  preceding  article  shall  be  received 
by  the  diplomatic  representative  of  the  Chinese  Government  duly  accredited  at 
Mexico,  or  by  some  other  agent  of  said  government  who  shall  produce  his 
authority,  and  the  delivery  shall  be  made  in  the  city  of  Mexico  on  or  before  the 
first  day  of  July,  one  thousand  nine  hundred  and  twelve. 

Article  III. — It  is  the  express  intention  of  both  governments  that  as  a 

*  Translation,  as  printed  in  Am.  Int.  Law  Journal,  Supplement,  1914,  p.  147,  from  the 
Spanish  text  as  printed  in  the  Boletin  oficial  de  la  Secretaria  dc  Relaciones  Exteriores, 
Mexico,  February,  1913,  p.  118. 


918  CHINA  TREATIES  AND  AGREEMENTS 

consequence  of  the  delivery  of  the  sum  to  which  this  convention  refers,  neither  the 
Chinese  Government  nor  its  subjects  shall  be  entitled  to  make  any  claim  what- 
soever against  the  Mexican  Government  or  Mexican  citizens  for  damages  to 
property,  bodily  harm  or  loss  of  lives  directly  or  indirectly  suffered  by  Chinese 
subjects  within  the  Mexican  Republic  during  the  revolution  of  1910,  or  as  a 
result  of  it,  and  within  the  period  of  time  from  the  20th  of  November,  1910,  to 
the  date  of  the  present  convention.  Any  claim  already  formulated  or  presented 
by  Chinese  subjects  on  account  of  the  aforesaid  revolution,  shall  terminate  ipso 
jure  by  virtue  of  the  provisions  of  the  present  clause. 

Article  IV. — The  present  convention  shall  be  submitted  to  the  ratification 
prescribed  by  the  laws  of  both  countries,  and  the  exchange  of  ratifications  shall 
take  place  at  the  Mexican  Embassy  in  the  City  of  Washington,  United  States  of 
America,  at  the  latest  on  the  15th  day  of  June,  1912. 

In  faith  whereof,  we,  the  respective  Plenipotentiaries,  have  signed  the  present 
convention  in  the  Spanish,  Chinese  and  English  languages,  and  affixed  thereto 
our  seals.  In  case  of  doubt  as  to  the  meaning  of  any  expression  or  sentence  in 
this  convention,  the  English  text  shall  be  decisive. 

Done  in  duplicate  in  the  City  of  Mexico,  this  16th  day  of  December,  one 
thousand  nine  hundred  and  eleven. 

(L.  S.)     Manuel  Calero, 
(L.  S.)     Chang  Ying  Tang. 

Additional  protocol  signed  at  Mexico  City  December  13,  1912 ;  ratifications 
exchanged  January  29,  1913. 

The  Constitutional  President  of  the  Unitfed  States  of  Mexico  and  the  Gov- 
ernment of  China,  taking  into  consideration  that  the  dates  fixed  in  the  protocol 
signed  in  the  City  of  Mexico  on  the  16th  day  of  December,  1911,  have  passed 
without  the  exchange  of  the  instruments  of  ratification  of  said  convention  or  the 
payment  of  the  voluntary  and  gratuitous  indemnity  which  the  Mexican  Govern- 
ment promised  to  pay  to  the  Chinese  Government  for  the  damages  and  injury 
to  property,  bodily  harm  and  loss  of  lives  suffered  by  the  Chinese  residents  in  the 
Mexican  Republic  during  the  revolution  which  took  place  in  its  territory  in  the 
year  one  thousand  nine  hundred  and  ten  or  as  a  consequence  of  it,  have  agreed 
to  modify  the  said  convention  with  an  additional  protocol,  and  for  that  purpose 
have  appointed  as  their  plenipotentiaries,  that  is  to  say : 

The  Constitutional  President  of  the  United  States  of  Mexico :  Sefior  Licen- 
tiate Don  Julio  Garcia,  Subsecretary  in  Charge  of  the  Office  for  Foreign  Affairs ; 
and 

The  Chinese  Government :  Woo  Chung  Yen,  its  Charge  d' Affaires  ad  interim 
to  the  Mexican  Government ; 

Who,  after  having  communicated  to  each  other  their  full  powers,  found  in 
due  and  good  form,  agreed  upon  the  following  articles. 

.A.RTICLE  I. — The  Government  of  the  United  States  of  Mexico  and  the  Gov- 
ernment of  China,  agree  to  extend  the  dates  fixed  in  Articles  II  and  IV  of  the 
protocol  signed  by  their  respective  plenipotentiaries  in  the  City  of  Mexico  on  the 


NUMBER  1911/13:  DECEMBER  20,  1911  919 

16th  day  of  December,  one  thousand  nine  hundred  and  eleven,  for  the  payment  of 
the  voluntary  and  gratuitous  indemnity  which  the  Government  of  Mexico  shall 
pay  to  the  Government  of  China  for  the  reasons  above  mentioned,  fixing  for  the 
first  purpose,  the  15th  day  of  February,  one  thousand  nine  hundred  and  thirteen, 
and  for  the  second,  the  thirty-first  day  of  January  of  the  same  year.  In  conse- 
quence, the  articles  referred  to  will  read  as  follows : 

Article  II. — The  sum  mentioned  in  the  preceding  article  shall  be  received 
by  the  diplomatic  representative  of  the  Chinese  Government  duly  accredited  at 
Mexico,  or  by  some  other  agent  of  said  government  who  shall  produce  his 
authority,  and  the  delivery  shall  be  made  in  the  City  of  Mexico  on  or  before  the 
fifteenth  day  of  February,  one  thousand  nine  hundred  and  thirteen. 

Article  IV. — The  ratifications  of  this  convention  shall  be  exchanged  at  the 
Mexican  Embassy  in  the  City  of  Washington,  United  States  of  America,  at  the 
latest  on  the  thirty-first  of  January,  one  thousand  nine  hundred  and  thirteen. 

In  faith  whereof,  the  said  plenipotentiaries  have  signed  the  present  protocol 
in  duplicate  and  affixed  thereto  their  seals  in  the  City  of  Mexico,  this  thirteenth 
day  of  December,  one  thousand  nine  hundred  and  twelve. 

(L.  S.)     Julio  Garcia. 
(L.  S.)     Woo  Chung  Yen. 


NUMBER  1911/13. 

RUSSIA  AND  CHINA. 

Treaty  fixing  the  national  boundary  betzveen  Russia  and  China,  from  Tarbaga 
Dagh  to  Abahaitu,  and  along  the  Argun  River  to  its  confluence  zvith  the 
Amur  River* — December  20,  1911. 

In  view  of  the  age-long  and   friendly  relations  between  the  Russian  and 
Chinese  Empires,  and  with  the  aim  of  eliminating  frontier  disputes,  the  Govern- 

*  Translation   from  the  Russian  text  as  printed  in  Izviestia,  1913,  vol.  Ill,  p.  65. 

In  Izviestia,  1912,  vol.  II,  p.  110,  is  printed  an  exchange  of  notes  in  regard  to  this 
treaty,  of  vi'hich  the  substance  is  contained  in  the  following  translation  of  the  note  from 
the  Wai  Wu  Pu  to  the  Russian  Legation,  under  date  of  December  7/20,  1911  : 

"  I  had  the  honor  to  receive  your  communication,  Monsieur  le  Charge  d'Affaires,  in 
which  you  stated : 

" '  I  had  the  honor  to  receive  the  memorandum  of  your  esteemed  ministry,  under 
date  of  November  28  of  this  year,  regarding  the  telegram  of  the  Heilungkiang  Governor 
about  the  signature  in  Tsitsikhar  of  the  agreement,  confided  to  the  commissioners  of  the  two 
sides,  relating  to  the  land  and  water  frontier.  Similar  notice  was  simultaneously  received 
from  the  Russian  commissioner  also. 

"  '  In  the  text  of  the  acts  of  agreement  signed  at  Tsitsikhar  no  further  formalities 
are  anticipated  for  the  confirmation  of  these  acts.  In  consequence  of  this,  the  Imperial 
Government  considers  that  the  question  of  the  present  agreement  has  been  settled  finally 
on  the  spot  and  there  only  remains  to  erect  the  boundary  marks  provided  for  in  the 
agreement.' 

"  The  ministry  confided  to  my  charge,  fully  sharing  the  above  stated  point  of  view,  has 
not  failed  to  furnish  the  Governor  of  the  Heilungkiang  Province  with  instructions  by  tele- 
graph, which  I  bring  to  your  knowledge,  IMonsieur  le  Charge  d'Affaires,  in  reply  to  your 
communication." 


920  CHINA  TREATIES  AND  AGREEMENTS 

ments  of  His  Majesty  the  Emperor  of  all  the  Russias  and  His  Majesty  the 
Emperor  of  China  have  now  appointed  their  commissioners :  on  the  Russian  side, 
Commissioner  by  Imperial  Command  Major  General  Putiloff,  and  on  the  Chinese 
side  by  Imperial  Command  Governor  Chow  of  Heilungkiang  Province,  Mandarin 
for  the  joint  inspection  of  the  frontier  between  Russia  and  China;  who  being 
duly  provided  with  credentials  which  were  found  in  due  and  legal  form,  in  the 
name  of  their  Governments,  by  mutual  agreement,  concluded  the  present  treaty 
act  as  follows : 

(1)  The  Land  Frontier  between  the  Russian  and  Chinese  Empires  on  the 
section  between  Frontier  Post  No.  58,  Tarbaga  Dagh,  and  Post  No.  63,  Abahaitu, 
shown  in  protocol  No.  2  of  the  agreement  concluded  in  Tsitsikhar  on  November 
25,  1911  (Russian  style)  or  the  eighteenth  of  the  tenth  moon  of  the  third  year 
of  Hsiian  Tung  (Chinese  style),  and  in  the  maps  exchanged  as  supplement  to  the 
same,  shall  in  future  consist  of  the  line  which  passes  in  straight  lines  between 
the  undermentioned  frontier  points,  the  nomenclature  of  which  corresponds  with 
the  points  named  in  the  Abahaitu  exchange  of  letters  in  the  year  1727  (Russian 
style)  or  fifth  year  of  Yung  Cheng  (Chinese  style). 

The  line  of  frontier  is  fixed  by  the  red  line  which  is  drawn  on  the  above- 
mentioned  maps  exchanged,  from  Frontier  Post  No.  58  to  Post  No.  63,  and 
further  along  the  Mutnoi  Protok  (Muddy  Stream)  to  the  River  Argun. 

Frontier  Points 

(a)  Tarbaga  Dagh. — The  58th  frontier  point  is  due  south  from  the  summit 
of  Mount  Tarbaga  Dagh  and  6  Russian  versts  312  sajens  from  same,  or  12.64 
Chinese  //  (7220.16  metres),  on  the  steppe. 

{h)  Tsahan-Ola. — The  59th  frontier  point  is  northwest  of  the  northern  bank 
of  Lake  Kharanor  and  7  Russian  versts  60  sajens  from  same  or  13.5  Chinese  li 
(7760.8  metres),  on  the  height. 

(c)  Tahun-Tologoi. — The  60th  frontier  point  is  at  the  frontier  fortification 
of  the  beginning  of  the  Ching  Dynasty  (or  Jenghiz  Khan's  Fort),  northwest  of 
the  northern  bank  of  Lake  Tsahan  Nor,  and  4  Russian  versts,  or  7.4  Chinese  li 
(4360  metres)  from  same. 

id)  Soktu. — The  61st  frontier  point  is  4  Russian  versts  450  sajens,  or  9 
Chinese  li  (5341  metres)  northeast  of  the  station  building  of  the  Chinese  Eastern 
Railway  station  Manchuli,  on  the  height,  and  400  Russian  sajens  or  1.5  Chinese 
//  (872  metres)  south  of  the  frontier  fortification  of  the  beginning  of  the  Ching 
Dynasty  (or  Jenghiz  Khan's  Fort). 

(e)  Erdyni  Tologoi. — The  62nd  frontier  point  is  on  the  northern  slope  of  the 
Four-Headed  Hill  and  is  twelve  Russian  versts  400  sajens,  or  24.4  Chinese  li 
(13952  metres)  southeast  of  the  61st  frontier  point  Soktu. 

(/)  Abahaitu. — The  63rd  frontier  point  is  on  the  western  bank  of  the  River 
Dalan  Ola  or  IVIutnoi  Protok,  and  6  Russian  versts  300  sajens,  or  12.2  Chinese 
//  (7194  metres)  southwest  of  the  Russian  village  of  Abahaitu,  and  3  versts  250 
sajens  or  6.5  //  (3715  metres)  southwest  of  Mount  Krestovoi  as  it  is  called  in 
Russian,  or  Abahaitu,  in  Chinese. 

(2)  The  water  frontier  between  the  Russian  and  Chinese  Empires  from  the 


NUMBER  1911/13:  DECEMBER  20,  1911  921 

mouth  of  the  River  Argun,  that  is  from  the  point  of  its  confluence  with  the 
River  Amur  (Heilungkiang)  to  the  63rd  frontier  point  (Abahaitu)  to  be  the 
course  of  the  River  Argun,  in  accordance  with  the  Nerchinsk  treaty  of  1689  (by 
Russian  reckoning)  or  the  28th  year  of  the  reign  of  K'ang  Hsi  (by  Chinese 
reckoning),  and  the  protocols  Nos.  1  and  3  of  the  agreement  of  1911  (Russian 
reckoning)  and  3rd  year  of  the  reign  of  Hsiian  Tung  (Chinese  reckoning). 

The  ownership  of  the  islands  in  the  River  Argun,  in  accordance  with  Proto- 
cols 1  and  3,  has  been  amicably  divided  in  the  following  way : 

(o)  Islands  shown  on  the  maps  exchanged  under  numbers  1,  2,  3,  4,  5, 
7,  8,  11, 12,  13,  14,  15,  16,  17,  18,  19,  21,  23,  26,  28,  29,  32,  34,  35,  36,  38,  43,  44,  45, 
46,  47,  48,  49,  51,  55,  59,  60,  61,  62,  63,  64,  65,  66,  67,  69,  70,  71,  7Z,  75,  76,  77,  80, 
83,  84,  86,  87,  88,  90,  92,  93,  94,  101,  102,  104,  106,  107,  108,  109,  HI,  112,  113, 
114,  115,  116,  117,  118,  119,  120,  127,  128,  129,  130,  132,  136,  137,  139,  142,  143, 
146,  151,  152,  156,  157,  158,  160,  161,  162,  165,  166,  169,  170,  171,  174,  176,  177, 
178,  180,  182,  193,  194,  197,  200,  202,  203.  206,  209,  211,  212,  214,  215,  216,  218, 
219,  221,  223,  224,  226,  227,  228,  230,  231,  232,  235,  237,  238,  239,  243,  244,  245, 
247,  248,  251,  252,  255,  256,  258,  262,  267,  268,  269,  270,  271,  272,  273,  274,  275, 
276,  278,  279,  and  280  belong  to  Russia. 

(&)  Islands  shown  on  the  maps  exchanged  under  numbers  6,  9,  10,  20,  22, 
24,  25,  27,  30,  31,  ZZ,  Z7 ,  39,  40,  41,  42,  50,  52,  53,  54,  56,  57,  58,  68,  72,  74,  78,  79, 
81,  82,  85,  89,  91,  95,  96,  97,  98,  99,  100,  103,  105,  110,  121,  122,  123,  124,  125, 
126,  131,  133,  134,  135,  138,  140,  141,  144,  145,  147,  148,  149,  150,  153,  154,  155, 
159,  163,  164,  167,  168,  172,  173,  175,  179,  181,  183,  184,  185,  186,  187,  188,  189, 
190,  191,  192,  195,  196,  198,  199,  201,  204,  205,  207,  208,  210,  213,  217,  220,  222, 
225,  229,  233,  234,  236,  240,  241,  242,  246,  249,  250,  253,  254,  257,  259,  260,  261, 
263,  264,  265,  266,  and  277  belong  to  China. 

Further  details  concerning  the  national  boundary  from  the  58th  to  63rd 
frontier  points,  and  from  the  mouth  of  the  River  Argun  to  the  said  63rd  frontier 
point,  are  provided  in  protocols  of  agreement  Nos  1,  2,  and  3,  and  in  the  maps 
attached  and  exchanged  with  them  and  the  schedules  of  islands  signed  and  sealed 
by  both  commissioners,  which  protocols,  maps  and  schedules  of  islands  have 
equal  force  with  the  present  act,  and  have  to  be  observed  by  both  sides. 

Done  in  the  town  of  Tsitsikhar,  December  7,  1911  (Russian  style,  i.e., 
December  20,  new  style),  and  the  first  of  the  eleventh  moon  of  the  third  year 
of  Hsiian  Tung  (Chinese  style),  in  the  Russian  and  Chinese  languages,  in  two 
copies  in  each  language,  which  upon  signature  and  apposition  of  seals  were  duly 
exchanged  by  the  commissioners,  so  that  each  side  might  have  original  acts  in  the 
Russian  and  Chinese  languages.  Originals  were  signed  and  sealed  by  Major 
General  Putilofif,  Russian  High  Commissioner,  appointed  by  Imperial  Command, 
and  Governor  Chow  of  the  Heilungkiang  Province,  by  Imperial  Command 
Mandarin  for  the  delimitation  of  the  frontier  of  the  Ta  Ch'ing  Empire. 

Protocol  of  Agreement  No.  1. 

Basing  themselves  on  the  reports  made  by  the  vice-presidents  of  the  Russian 
and  Chinese  delimitation  commissioners,  Messrs.  Jdanov  and  Sun,  regarding 
the  section  of  national  river  frontier  from  the  mouth  of  the  river  Argun  to  the 


922  CHINA  TREATIES  AND  AGREEMENTS 

Cossack  post  of  Argunski  and  above,  the  presidents  of  the  Russian  and  Chinese 
commissions,  after  verification  decided : 

The  islands  shown  on  the  maps  under  numbers  1,  2,  3,  4,  5,  7,  8,  11,  12,  13, 
14,  15,  16,  17,  18,  19,  21,  23,  26,  28,  29,  32,  34,  35,  36,  38,  43,  44,  45,  46,  47,  48, 
49,  51,  55,  59,  60,  61,  62,  63,  64,  65,  66,  67,  69,  70,  71,  7}>,  75,  76,  77,  80,  83,  84, 
86  and  87  to  be  considered  as  belonging  to  Russia;  and  islands  under  numbers 
6,  9,  10,  20,  22,  24,  25,  27,  30,  31,  33,  37,  39,  40,  41,  42,  50,  52,  53,  54,  56,  57, 
58,  68,  72,  74,  78,  79,  81,  82,  and  85,  to  be  considered  as  belonging  to  China. 

The  numbers  of  the  islands  as  shown  on  the  maps  certified  by  their  seals  and 
exchanged  by  the  two  presidents  of  the  preliminary  commissions  at  Manchuli 
Station  do  not  correspond  to  the  numbers  in  the  protocols  of  survey  by  the 
members  of  the  preliminary  commissions,  and  numbers  85,  86,  and  87,  do  not 
appear  at  all  on  the  maps  exchanged  at  Manchuli  Station;  and,  moreover,  these 
three  numbers  in  the  protocols  of  survey  by  members  of  both  preliminary 
commissions  also  dififer  from  the  numbers  of  the  joint  survey  carried  out  by 
Mr.  Ousat,  member  of  the  Russian  Frontier  Commission,  and  Mr.  Sun  Hsiao 
Liang,  President  of  the  Chinese  Frontier  Commission.  In  view  of  these  facts, 
the  numbers  are  shown  in  a  comparative  schedule  and  a  separate  detailed  map 
has  been  drawn  showing  the  numbers  according  to  this  protocol  of  agreement ;  this 
map  has  been  signed,  sealed,  and  exchanged,  and  is  joined  to  the  protocol  in 
order  to  avoid  misunderstanding.  The  small  maps  exchanged  at  first,  and  the 
maps  exchanged  at  Manchuli,  have  been  handed  back  by  both  parties. 

The  originals  were  signed  by  Major  General  Putilofif,  Commissioner  for 
Russia,  and  by  Heilungkiang  Governor  Chow,  Mandarin  for  the  delimitation  of 
the  Ta  Ch'ing  frontier. 


NUMBER  1911/13:  DECEMBER  20,  1911 


923 


Comparative  Schedule  of  the   numeration  of  islands   in  the  River   Argun  from   its 
MOUTH  to  the  Cossack  post  of  Argunski  and   above. 


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36 

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53 

35 

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10 

78 

10 

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34 

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11 

77 

11 

55 

22 

55 

12 

76 

12 

56 

22 

56 

13 

75 

13 

57 

31 

57 

14 

74 

14 

58 

30 

58 

15 

72, 

15 

59 

29 

59 

16 

72 

16 

60 

28 

60 

17 

71 

17 

61 

27 

61 

18 

70 

18 

62 

26 

62 

19 

69 

19 

63 

25 

63 

20 

68 

20 

64 

24 

64 

21 

67 

21 

65 

23 

65 

22 

66 

22 

66 

22 

66 

23 

65 

23 

67 

21 

67 

24 

64 

24 

68 

20 

68 

25 

63 

25 

69 

19 

69 

26 

62 

26 

70 

18 

70 

27 

61 

27 

71 

17 

71 

28 

60 

28 

72 

16 

72 

29 

59 

29 

72 

15 

72 

30 

58 

30 

74 

14 

74 

31 

57 

31 

75 

13 

75 

32 

56 

32 

76 

12 

76 

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55 

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77 

11 

77 

34 

54 

34 

78 

10 

78 

35 

53 

35 

79 

9 

79 

36 

52 

36 

80 

8 

80 

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51 

27 

81 

7 

81 

38 

50 

38 

82 

6 

82 

39 

49 

39 

83 

5 

83 

40 

48 

40 

84 

4 

25 

84 

41 

47 

41 

85 

3 

24 

42 

46 

42 

86 

2 

23 

43 

45 

43 

87 

1 

22 

44 

44 

44 

924  CHINA  TREATIES  AND  AGREEMENTS 

The  originals  were  signed  by  Major  General  Putiloff,  Commissioner  for 
Russia,  and  by  Heilungkiang  Governor  Chow,  Mandarin  for  the  Delimitation  of 
the  Ta  Ch'ing  Frontier. 

Protocol  of  Agreement  No.  2. 

The  Russian  and  Chinese  delimitation  commissions  in  Tsitsikhar  by  mutual 
agreement  have  together  recognized  that  the  national  land  frontier  between 
Russia  and  China  on  the  section  from  frontier  pillar  Tarbaga  Dagh,  No.  58,  to 
frontier  pillar  Abahaitu,  No.  63,  shall  be  the  straight  lines  between  the  following 
points,  the  nomenclature  of  which  corresponds  to  the  frontier  points  fixed  by 
treaty : 

[Here  follows  an  enumeration  of  the  frontier  points  Tarbaga  Dagh,  Tsahan-Ola, 
Tabun-Tologoi,  Soktu,  Erdyni-Tologoi.  and  Abahaitu,  in  terms  identical  with  those  of 
§§  (a),  (b),  (c),  (d),  (e),  and  (f)  of  the  treaty,  as  printed  on  p.  920,  ante?[ 

Upon  the  termination  of  all  negotiations  of  the  two  frontier  commissions 
in  Tsitsikhar,  and  after  both  presidents  had  signed  and  sealed  the  present  protocol 
and  had  affixed  the  maps  (likewise  signed  and  sealed),  we  exchanged  the  same. 
Thereupon  each  side  shall  appoint  representatives  to  the  relative  places  in  order 
to  measure  on  the  spot  the  directions  and  distances  shown  in  this  protocol  of 
agreement  and  in  the  maps  exchanged  and  affixed  thereto,  and  in  order  to  mark 
the  frontier  points ;  and  in  case  the  maps  exchanged  show  discrepancies  with 
the  locality,  such  discrepancies  are  to  be  corrected  on  the  spot  by  both  representa- 
tives by  mutual  agreement. 

In  the  present  year  there  will  only  be  erected  temporary  stone  pillars  to  mark 
the  position  of  the  frontier,  but  next  spring,  at  a  time  to  be  appointed,  and  after 
jointly  ascertaining  the  longitude  and  latitude  of  these  points,  they  shall  be  marked 
with  frontier  pillars  on  which  shall  be  inscribed  in  Russian  and  Chinese  the 
name  of  the  frontier  point  and  the  degrees  of  longitude  and  latitude.  The  whole 
of  the  frontier  line  must  be  marked  by  digging  a  trench. 

The  additional  act,  which  shall  be  jointly  drawn  up  by  the  two  representatives 
after  finishing  the  determination  of  the  frontier  on  the  spot,  and  which  shall  be 
exchanged  by  them,  is  to  be  added  as  a  document  to  the  present  protocol  of  agree- 
ment. 

Originals  were  signed  and  sealed  by  Major  General  Putiloff,  Russian  High 
Commissioner,  appointed  by  Imperial  Command,  and  Governor  Chow  of  the 
Heilungkiang  Province,  by  Imperial  Command  Mandarin  for  the  delimitation 
of  the  frontier  of  the  Ta  Ch'ing  Empire. 

Tsitsikhar,  November  25,  1911  (Russian  style),  and  the  eighteenth  of  the 
tenth  moon  of  the  third  year  of  Hsiian  T'ung's  reign  (Chinese  Calendar). 


Protocol  of  Agreement  No.  3. 

Having  verified  the  reports  made  by  Messrs.  Jdanov  and  Sun,  the  assistants 
to  the  presidents  of  the  Russian  and  Chinese  delimitation  commissions,  relative 
to  the  section  of  the  River  line  national  boundary  from  Island  No.  87,  shown  on 


NUMBER  1911/13:  DECEMBER  20,  1911  925 

the  map  attached  to  protocol  of  agreement  Xo.  1,  to  the  frontier  pillar  No.  63 
(Abahaitu),  shown  on  the  map  exchanged  and  attached  to  protocol  of  agreement 
No.  2,  the  presidents  of  the  Russian  and  Chinese  commissions  have  decided : 

(1)  In  accordance  with  the  previous  treaty  of  1689,  or  the  twentieth  year  of 
K'ang  Hsi,  to  consider  the  course  of  the  River  Argun  as  the  national  boundary 
between  Russia  and  China  from  the  mouth  of  the  River  Argun  to  frontier  pillar 
No.  63  (Abahaitu). 

(2)  The  islands  shown  on  the  maps  exchanged  under  numbers  89,  91,  95, 
96,  97,  98,  99,  100,  103,  105.  110,  121.  122,  123,  124,  125,  126,  131,  133,  134,  135, 
138,  140,  141,  144,  145,  147,  148,  149,  150,  153,  154.  155,  159,  163,  164,  167,  168, 
172,  173,  175,  179,  181,  183,  184,  185,  186,  187,  188,  189,  190,  191,  192,  195,  196, 
198,  199,  201.  204.  205,  207,  208,  210.  213,  217,  220.  222.  225,  229,  233,  234,  236. 
240,  241,  242,  246,  249,  250,  253,  254,  257,  259,  260,  261,  263,  264,  265,  266,  and 
277,  belong  to  China. 

(3)  The  islands  shown  on  the  maps  exchanged  under  numbers  88,  90,  92,  93. 
94,  101,  102,  104,  106,  107,  108,  109,  113,  114,  116.  118,  119,  127,  128,  129,  130. 
132,  136,  137,  139,  142,  143,  146,  151,  152,  156,  157,  158,  160,  161,  162,  165,  166, 
169,  170,  171,  174,  176,  177,  178,  180,  182,  193,  194,  197,  200,  202,  203,  206,  209. 
212,  214,  215,  216,  218,  219,  221,  223,  224,  228.  230,  231.  232,  235,  237,  238,  239, 
243,  244,  245,  247,  248,  251,  252,  255,  256,  258,  262,  275,  276,  and  278  belong  to 
Russia. 

(4)  The  islands  shown  on  the  exchanged  maps  under  numbers  111,  112. 
115,  117,  120,  211,  226,  227,  267,  268,  269,  270,  271,  272,  273,  274,  279,  and 
280,  being  islands  formed  between  the  old  bed  of  the  Argun,  the  former  national 
boundary,  and  the  present-day  Argun,  which  in  the  course  of  time  has  shifted  to 
the  west,  are  to  remain  in  Russian  possession.  The  present  course  of  the  River 
Argun  is  to  be  considered  as  the  national  boundary  between  Russia  and  China. 

On  the  banks  of  the  old  and  new  Argun,  opposite  the  large  islands,  numbers 
227,  269,  273,  279,  and  280,  the  representatives  who  will  be  sent  by  both  parties 
next  spring  at  an  agreed  time  shall  place  stone  pillars  on  which  shall  be  inscribed, 
in  Russian  and  Chinese,  the  area  of  the  islands  in  vcrsts  or  dessiatincs,  the  distance 
to  the  banks  of  the  old  and  new  Argun,  as  per  maps  exchanged  and  according 
to  the  position  of  the  pillars  as  jointly  fixed  by  longitude  and  latitude.  Until 
this  work  is  done,  temporary  signs  are  to  be  placed,  as  was  also  agreed  in  the 
case  of  the  land  frontier  in  protocol  of  Agreement  No.  2. 

For  the  remaining  islands,  the  proof  shall  consist  of  the  maps  exchanged  and 
certified  by  seals  and  signatures. 

(5)  For  future  reference  there  are  added  to  this  protocol  maps  and  ex- 
planatory schedules  of  islands,  duly  signed,  sealed,  and  exchanged  by  the 
presidents  of  the  commissions. 

Originals  were  signed  and  sealed  by  Major  General  Putiloflf,  Russian  High 
Commissioner,  appointed  by  Imperial  Command,  and  Governor  Chow  of  the 
Heilungkiang  Province,  by  Imperial  Command  Mandarin  for  the  delimitation  of 
the  frontier  of  the  Ta  Ch'ing  Empire. 

Tsitsikhar,  November  25,  1911  (Russian  style),  and  the  eighteenth  of  the 
tenth  moon  of  the  third  year  of  Hsiian  T'ung  (Chinese  calendar). 


926 


CHINA  TREATIES  AND  AGREEMENTS 


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NUMBER  1911/14:  DECEMBER  27,  1911  927 

Original  signed  and  sealed  by  Major  General  Putiloff,  Russian  High  Com- 
missioner, appointed  by  Imperial  Command,  and  Governor  Chow  of  the  Heilung- 
kiang  Province,  by  Imperial  Command  Mandarin  for  the  delimitation  of  the 
frontier  of  the  Ta  Ch'ing  Empire. 

Tsitsikhar,  November  25,  1911  (Russian  style)  and  eighteenth  of  the  tenth 
moon  of  the  third  year  of  Hsiian  T'ung  (Chinese  Calendar). 


NUMBER  1911/14. 

FRANCE  AND  THE  UNITED  STATES. 

Exchange   of   notes  for   the   reciprocal   protection   of   copyrights  in   China* — 

December  27,  1911. 

The  French   Charge  d'Affaires  to   the  American  Minister  at  Peking. 

[Translation.] 

Legation  of  the  French  Republic  in  China, 

Peking,  December  26,  1911. 
Mr.  Minister, 

Our  Governments  being  desirous  of  assuring  to  French  and  American  citi- 
zens and  subjects  reciprocal  protection  in  China  of  the  rights  of  authors  over 
their  literary  and  artistic  productions  to  the  same  extent  that  they  are  protected 
in  French  and  American  territories  and  possessions,  I  have  been  instructed  by 
the  Minister  for  Foreign  Affairs  of  France  to  communicate  to  you  the  following: 

1st. — By  virtue  of  the  civil  and  criminal  jurisdiction  with  which  they  are 
vested  and  which  they  exercise  in  China,  the  Consuls  and  Consular  Courts  of 
France  are  competent  to  take  cognizance  of  all  complaints  that  may  be  laid  before 
them  relative  to  the  violation  of  the  rights  of  authorship  by  persons  under  French 
jurisdiction. 

2nd. — Consequently,  whenever  persons  under  American  jurisdiction  shall 
have  occasion  to  address  them  in  order  to  obtain  respect  from  persons  under 
French  jurisdiction  of  their  rights  of  authorship  over  their  literary  and  artistic 
productions,  including  photographs,  the  complaints  will  henceforth  be  laid,  in  the 
first  instance,  before  the  Consular  Court,  and  in  appeals  before  the  Appellate 
Courts  at  Saigon  or  Hanoi. 

3rd. — The  citizens  of  the  possessions  of  the  United  States  of  America  will 
enjoy  in  China  the  same  treatment  as  the  citizens  of  the  United  States  of 
America. 

4th. — Unauthorized  reproductions  by  persons  under  French  jurisdiction, 
made  previous  to  the  first  of  January  next,  of  literary,  artistic,  or  photographic 

*In  this  connection,  see  also  the  exchange  of  notes  in  regard  to  the  reciprocal  protec- 
tion of  trademarks,  October  3,  1905  (No.  1905/12,  ante). 


928  CHINA  TREATIES  AND  AGREEMENTS 

works  executed  by  persons  under  American  jurisdiction,  will  be  withdrawn  from 
sale  or  circulation  in  China  before  December  thirty-first,   1912. 

5th. — Literary  and  artistic  property  in  France  is  regulated  by  the  Law  of 
March  28,  1887,  which  approves  the  Convention  signed  at  Berne  on  September 
9,  1886,  for  the  protection  of  literary  and  artistic  productions,  and  also  by  the 
Law  of  April  15,  1897,  which  approves  the  additional  enactment  and  the  declara- 
tion of  May  4,  1896,  modifying  the  Convention  of  Berne. 

I  will  be  under  great  obligation  to  you  if  you  will  kindly  take  note  of  the 
present  declaration  and  will  inform  me  whether  persons  under  French  jurisdic- 
tion may  count  on  the  same  legal  protection  from  the  consular  authorities  in 
China  of  the  United  States  of  America  in  all  that  concerns  the  ownership  of 
literary  and  artistic  productions. 

Accept,  Mister  Minister,  the  assurances  of  my  high  consideration. 

(Signed)         F.  Georges  Picot. 

The  American  Minister  to  the  French  Charge  d' Affaires  at  Peking. 

American   Legation, 
Peking,  December  27,  1911. 
Mr.  Charge  d'Aff aires  and  dear  Colleague : 

I  have  the  honor  to  acknowledge  the  receipt  of  your  note  of  December  26, 
1911,  informing  me  that  you  have  been  authorized  by  your  Government  to  effect 
with  me  by  an  exchange  of  notes  an  agreement  for  the  reciprocal  protection  in 
China  of  French  and  American  copyrights  for  literary  and  artistic  productions. 

I  have  the  honor  to  inform  you  in  reply  that  I  have  been  authorized  to  state 
that  henceforth  protection  will  be  afforded  in  China,  in  accordance  with  the 
laws  of  the  United  States  and  on  condition  of  reciprocity,  for  the  copyrights  of 
French  literary,  artistic,  musical,  or  dramatic  works,  including  photographs,  duly 
registered  in  the  United  States,  against  infringement  by  persons  under  American 
jurisdiction.  To  that  end  the  American  courts  in  China  will  be  competent  to  hear 
all  such  cases  presented  by  citizens  or  subjects  of  France. 

I  have  the  honor  further  to  inform  you  that  the  protection  of  literary  and 
artistic  property  in  the  United  States  of  America  is  provided  for  by  the  act  of 
Congress  of  March  4,  1909,  amending  and  consolidating  previous  acts  respecting 
copyright  {U.  S.  Statutes  at  Large,  vol.  35,  Chapter  320)  ;  and  that  by  a  Presi- 
dential proclamation  of  April  9,  1910,  this  protection  is  extended  to  works  of 
authors  or  proprietors  who  are  citizens  or  subjects  of  France. 

Accept,  Mr.  Charge  d'Affaires  and  dear  Colleague,  the  renewed  assurances 
of  my  high  consideration. 

(Signed)         W.  J.  Calhoun. 
Mr.  Fr.  Georges  Picot, 

Charge  d'Affaires, 

The  Legation  of  France, 
etc.,      etc.,       etc. 


university  of  Califoma 
SOOTHERS  REGIONAL  UBRA«V*Si'-S388 
"^  %HSg°^l"eS.  «UFlkN."90095.138a 


AA    000  966  69C 


CENTRAL  UNIVERSITY  LIBRARY 
University  of  California,  San  Diego 


DATE  DUE 

^^^  i)Z  13/4 

FEB  19  1975 

oaai  9  T  ^^^ 

Cl  39 

UCSD  Libr. 

